Another Chapter in the Slow Death of Nova Star

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Nova Star today reported nearly $600 million in losses for the 3rd quarter due to the deteriorating mortgage environment said representatives of the much beleaguered subprime originator.

From Market Watch:

NovaStar has been hit hard by rising delinquencies on subprime mortgages, which are offered to less creditworthy borrowers. It was a top-20 subprime mortgage lender last year, originating more than $10 billion in loans, according to industry publication Inside Mortgage Finance. The company has lost more than 95% of its market value so far this year.

NovaStar said on Wednesday that subprime lending fundamentals and the secondary mortgage market have continued to deteriorate.

“As the mortgage environment has grown progressively worse through 2007, we have greatly reduced our business activity and simplified our organization,” NovaStar Chief Executive Scott Hartman said in a statement. “Going forward, our strategy is to manage the cash flows from our portfolio of mortgage-backed securities and operate our retail brokerage operations.”

We’ve detailed the painfully slow death of Nova Star here in the past, and one has to wonder how much blood this stone has left in it? Just to boot their shares are most-likely going to be delisted from the NYSE; an announcement on the determination is scheduled for December 5th.