<PAGE> 1
NovaStar Home Equity Loan Trust
NovaStar Home Equity Loan Asset-Backed Bonds
Series 1998-2
Statement To Bondholder
<TABLE>
<CAPTION>
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DISTRIBUTIONS IN DOLLARS
PRIOR CUMULATIVE CURRENT
ORIGINAL PRINCIPAL REALIZED REALIZED DEFERRED PRINCIPAL
CLASS FACE VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES LOSSES INTEREST BALANCE
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A-1 115,000,000.00 111,432,119.16 518,099.86 847,749.01 1,365,848.87 0.00 0.00 0.00 110,584,370.15
A-2 200,000,000.00 193,794,989.86 882,686.55 1,474,346.10 2,357,032.64 0.00 0.00 0.00 192,320,643.76
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TOTALS 315,000,000.00 305,227,109.02 1,400,786.41 2,322,095.10 3,722,881.51 0.00 0.00 0.00 302,905,013.92
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Maximum Bond Interest Rate 13.00000%
Available Funds Interest Rate 8.89094%
Bond Interest Rate 5.39938%
Guaranteed Interest Payment $ 604,384.26
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FACTOR INFORMATION PER $1000 OF ORIGINAL FACE PASS-THROUGH
PRIOR CURRENT RATES
PRINCIPAL PRINCIPAL
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE CURRENT NEXT
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A-1 66987XAB1 968.974949 4.505216 7.371730 11.876947 961.603219 5.399380% 5.222340%
A-2 66987XAC9 968.974949 4.413433 7.371730 11.785163 961.603219 5.289380% 5.112340%
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<S> <C>
Seller: NovaStar Financial, Inc.
Servicer: NovaStar Mortgage Corporation
Record Date: November 30, 1998
Distribution Date: November 25, 1998
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<PAGE> 2
NovaStar Home Equity Loan Trust
NovaStar Home Equity Loan Asset-Backed Bonds
Series 1998-2
Statement To Bondholder
<TABLE>
<S> <C>
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Distribution Date: November 25, 1998
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Aggregate Collections From the Mortgage Loans
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Total Collection on Pool 4,392,105.69
Total Servicer Advances 0.00
Total Compensating Interest 0.00
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Available Funds Cap Carry-Forward Amount 0.00
Aggregate Unpaid Available Funds Cap Carry-Forward Amount 0.00
Current Period Insured Payments Paid by Insurer 0.00
Aggregate Unreimbursed Insured Amounts Payable to Insurer 0.00
Aggregate Beginning Principal Balance of Mortgage Loans 267,578,859.15
Aggregate Ending Principal Balance of Mortgage Loans 308,153,909.62
Required Subordination Amount 11,970,000.00
Current Subordination Amount 5,248,895.70
Subordination Increase Amount 508,641.12
Subordination Reduction Amount 0.00
Net Monthly Excess Cashflow 0.00
Unpaid Accrued Interest 0.00
Current Realized Loss on Mortgage Loans 0.00
Aggregate Realized Loss on Mortgage Loans 0.00
Weighted Average Net Mortgage Rate 10.98857557%
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DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
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PRINCIPAL BALANCE 2,038,060.58 4,379,393.49 307,587.54 1,813,920.57 0.00
NUMBER OF LOANS 29 44 4 21 0
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REPURCHASE Current Cumulative
INFORMATION Period History
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PRINCIPAL BALANCE 42,388,504.45 0.00
NUMBER OF LOANS 493 0
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Cumulative Loss Percentage 0.00000%
Delinquency Percentage 0.09982%
Rolling Delinquency Percentage 0.22377%
Prepayment Interest Shortfalls 0.00
Relief Act Shortfalls 0.00
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