WareHouse USA Takes an Exit

The warehouse lending subsidiary of NovaStar Financial Inc. is getting out of the mortgage industry. According to a statement posted on their website, Warehouse USA Capital Corp. has stopped taking new applications for their mortgage warehouse lines-of-credit. Existing clients are being notified and their loans will now be closed according to their agreements with the Roswell, Ga., company. The lender which was reportedly founded in 2003 as NovaStar Capital Inc., financed up to 100 percent of Alt-A and nonprime mortgages. Its programs included USA Direct, USA Express and USA Pro. The statement released by the ender stated," All new funding activity by Warehouse USA under existing warehouse lending lines is expected to be concluded on or about April 27,2007. The closure of the warehouse lending business will not impact direct mortgage loan funding by, or any other business of, any NovaStar entity."