<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) NOVEMBER 26, 1999.
NovaStar Mortgage Funding Trust, Series 1999-1
(Issuer in respect of the NovaStar Home Equity Loan
Asset-Backed Bonds Series 1999-1)
(Exact name of registrant as specified in its charter)
Delaware 333-64775 51-6512366
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
c/o First Union National Bank, 230 S. Tryon Street, 9th Floor,
Charlotte, NC 28288-1179
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (704) 383-9568
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(Former name or former address, if changed since last report.)
<PAGE> 2
Item 5. See the monthly statement to Bondholders attached as Exhibit 20.1 hereto
reflecting the required information for the NOVEMBER 1999 payment to the
NovaStar Home Equity Loan Asset-Backed Bonds Series 1999-1
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Item 601 (a) of Regulation.
S-K Exhibit Number.
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20.1 Monthly statement to holders of NovaStar Home Equity Loan Asset-Backed
Bonds Series 1999-1 relating to the NOVEMBER 26, 1999 Payment Date.
-2-
<PAGE> 3
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on behalf of NovaStar
Mortgage Funding Trust Series 1999-1 by the undersigned thereunto duly
authorized.
Dated: DECEMBER 9, 1999 By: First Union National Bank, as Indenture
Trustee and on behalf of NovaStar Home
Mortgage Funding Trust Series 1999-1
BY: Robert Ashbaugh
---------------------------------------
Vice President
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<PAGE> 4
EXHIBIT INDEX
20.1 Monthly statement to holders of NovaStar Home Equity Loan Asset-Backed
Bonds Series 1999-1 relating to the NOVEMBER 26, 1999 Payment Date.
-4-
<PAGE> 1
NOVASTAR MORTGAGE FUNDING TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
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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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 75,000,000.00 68,447,960.83 344,143.51 2,503,918.93 2,848,062.44 0.00 0.00 0.00 65,944,041.90
A-2 20,000,000.00 16,948,719.74 86,528.51 541,604.58 628,133.09 0.00 0.00 0.00 16,407,115.16
A-3 45,000,000.00 42,198,933.17 221,016.91 199,367.71 420,384.62 0.00 0.00 0.00 41,999,565.46
A-4 20,000,000.00 17,535,083.01 93,315.87 162,338.41 255,654.28 0.00 0.00 0.00 17,372,744.60
B-1 2,197,208.51 2,197,208.51 11,047.15 0.00 11,047.15 0.00 0.00 0.00 2,197,208.51
B-2 585,922.27 585,922.27 2,991.32 0.00 2,991.32 0.00 0.00 0.00 585,922.27
B-3 1,318,325.11 1,318,325.11 6,904.73 0.00 6,904.73 0.00 0.00 0.00 1,318,325.11
B-4 585,922.27 524,965.13 2,793.69 0.00 2,793.69 0.00 0.00 0.00 524,965.13
IO-1 77,519,379.85 70,967,340.83 220,602.51 0.00 220,602.51 0.00 0.00 0.00 70,967,340.83
IO-2 20,671,834.62 17,620,554.74 42,432.96 0.00 42,432.96 0.00 0.00 0.00 17,620,554.74
IO-3 46,035,805.62 43,234,739.17 85,435.73 0.00 85,435.73 0.00 0.00 0.00 43,234,739.17
IO-4 20,460,358.06 17,995,441.01 33,077.03 0.00 33,077.03 0.00 0.00 0.00 17,995,441.01
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TOTALS 162,197,208.51 147,327,905.26 1,150,289.91 3,407,229.63 4,557,519.54 0.00 0.00 0.00 143,920,675.63
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AGGREGATE TOTALS:
Cumulative Loss Percentage 0.00000%
Delinquency Percentage 4.95726%
Rolling Delinquency Percentage 5.04154%
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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 66987WAC1 912.639478 4.588580 33.385586 37.974166 879.253892 5.838750% 6.020000%
A-2 66987WAD9 847.435987 4.326426 27.080229 31.406655 820.355758 5.928750% 6.110000%
A-3 66987WAE7 937.754070 4.911487 4.430394 9.341880 933.323677 6.285000% 6.285000%
A-4 66987WAF4 876.754151 4.665794 8.116921 12.782714 868.637230 6.386000% 6.386000%
B-1 999.999999 5.027811 0.000000 5.027811 999.999999 5.838750% 6.020000%
B-2 1,000.000000 5.105319 0.000000 5.105319 1,000.000000 5.928750% 6.110000%
B-3 1,000.000002 5.237502 0.000000 5.237502 1,000.000002 6.285000% 6.285000%
B-4 895.963777 4.768022 0.000000 4.768022 895.963777 6.386000% 6.386000%
IO-1 915.478697 2.845772 0.000000 2.845772 915.478697 5.838750% 6.020000%
IO-2 852.394336 2.052694 0.000000 2.052694 852.394336 5.928750% 6.110000%
IO-3 939.154612 1.855854 0.000000 1.855854 939.154612 6.285000% 6.285000%
IO-4 879.527179 1.616640 0.000000 1.616640 879.527179 6.386000% 6.386000%
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Seller: NovaStar Financial, Inc.
Servicer: NovaStar Mortgage Corporation
Record Date: November 30, 1999
Distribution Date: November 26, 1999
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</TABLE>
<PAGE> 2
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL I
<TABLE>
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<S> <C> <C>
Distribution Date: November 26, 1999
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- ----------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL I
- ----------------------------------------------------------------------------------
Total Collection on Pool 3,136,813.21
Total Servicer Advances 0.00
Total Compensating Interest 0.00
- ----------------------------------------------------------------------------------
AVAILABLE CARRY-FORWARD AMOUNT 0.00
AGGREGATE UNPAID 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 70,967,340.83
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 68,463,421.90
NUMBER OF LOANS AT MONTH END 750
REQUIRED SUBORDINATION AMOUNT 2,519,380.00
CURRENT SUBORDINATION AMOUNT 2,519,380.00
SUBORDINATION INCREASE AMOUNT 0.00
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
PREPAYMENTS 2,465,019.35
PREPAYMENT PENALTIES 63,272.62
WEIGHTED AVERAGE MORTGAGE RATE 9.63183887%
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DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- -------------------------------------------------------------------------------------------------
PRINCIPAL BALANCE 2,868,401.18 178,425.00 266,157.20 2,287,154.02 919,783.75
NUMBER OF LOANS 33 2 3 20 12
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REPURCHASE CURRENT CUMULATIVE
INFORMATION PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
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- ------------------------------------------------------
CONVERTED MTGE CURRENT CUMULATIVE
LOANS INFO PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
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CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 5.07292%
ROLLING DELINQUENCY PERCENTAGE 5.36566%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
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</TABLE>
<PAGE> 3
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL II
<TABLE>
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<S> <C> <C>
Distribution Date: November 26, 1999
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- ----------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL II
- ----------------------------------------------------------------------------------
Total Collection on Pool 688,003.34
Total Servicer Advances 0.00
Total Compensating Interest 0.00
- ----------------------------------------------------------------------------------
AVAILABLE CARRY-FORWARD AMOUNT 0.00
AGGREGATE UNPAID 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 17,620,554.74
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 17,078,950.16
NUMBER OF LOANS AT MONTH END 107
REQUIRED SUBORDINATION AMOUNT 671,835.00
CURRENT SUBORDINATION AMOUNT 671,835.00
SUBORDINATION INCREASE AMOUNT 0.00
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
PREPAYMENTS 531,140.04
PREPAYMENT PENALTIES 5,939.29
WEIGHTED AVERAGE MORTGAGE RATE 9.56561053%
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DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- -------------------------------------------------------------------------------------------------
PRINCIPAL BALANCE 750,746.99 262,433.95 0.00 729,806.34 396,395.72
NUMBER OF LOANS 7 1 0 4 3
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REPURCHASE CURRENT CUMULATIVE
INFORMATION PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
- ------------------------------------------------------
CONVERTED MTGE CURRENT CUMULATIVE
LOANS INFO PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
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CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 6.59409%
ROLLING DELINQUENCY PERCENTAGE 7.67958%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
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</TABLE>
<PAGE> 4
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL III
<TABLE>
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<S> <C> <C>
Distribution Date: November 26, 1999
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- ----------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL III
- ----------------------------------------------------------------------------------
Total Collection on Pool 548,035.31
Total Servicer Advances 0.00
Total Compensating Interest 0.00
- ----------------------------------------------------------------------------------
AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT 0.00
AGGREGATE UNPAID AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT 0.00
AVAILABLE CARRY-FORWARD AMOUNT 0.00
AGGREGATE UNPAID CARRY-FORWARD AMOUNT 0.00
AGGREGATE BEGINNING PRINCIPAL BALANCE OF MORTGAGE LOANS 43,234,739.17
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 43,035,371.46
NUMBER OF LOANS AT MONTH END 571
REQUIRED SUBORDINATION AMOUNT 1,035,806.00
CURRENT SUBORDINATION AMOUNT 1,035,806.00
SUBORDINATION INCREASE AMOUNT 0.00
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
PREPAYMENTS 158,468.40
PREPAYMENT PENALTIES 4,143.36
WEIGHTED AVERAGE MORTGAGE RATE 9.56242818%
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DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- -------------------------------------------------------------------------------------------------
PRINCIPAL BALANCE 1,191,265.78 465,069.46 63,717.19 1,155,619.08 303,875.44
NUMBER OF LOANS 18 6 1 15 4
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REPURCHASE CURRENT CUMULATIVE
INFORMATION PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
- ------------------------------------------------------
CONVERTED MTGE CURRENT CUMULATIVE
LOANS INFO PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 3.53944%
ROLLING DELINQUENCY PERCENTAGE 3.37197%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
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</TABLE>
<PAGE> 5
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL IV
<TABLE>
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<S> <C> <C>
Distribution Date: November 26, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL IV
- ----------------------------------------------------------------------------------
Total Collection on Pool 306,670.42
Total Servicer Advances 0.00
Total Compensating Interest 0.00
- ----------------------------------------------------------------------------------
AVAILABLE CARRY-FORWARD AMOUNT 0.00
AGGREGATE UNPAID 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 17,995,441.01
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 17,833,102.60
NUMBER OF LOANS AT MONTH END 158
REQUIRED SUBORDINATION AMOUNT 460,358.00
CURRENT SUBORDINATION AMOUNT 460,358.00
SUBORDINATION INCREASE AMOUNT 0.00
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
PREPAYMENTS 148,349.25
PREPAYMENT PENALTIES 2,705.84
WEIGHTED AVERAGE MORTGAGE RATE 9.44413665%
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DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- -------------------------------------------------------------------------------------------------
PRINCIPAL BALANCE 1,170,067.58 199,402.22 0.00 971,943.75 163,519.03
NUMBER OF LOANS 10 1 0 6 2
- -------------------------------------------------------------------------------------------------
- ------------------------------------------------------
REPURCHASE CURRENT CUMULATIVE
INFORMATION PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
- ------------------------------------------------------
CONVERTED MTGE CURRENT CUMULATIVE
LOANS INFO PERIOD HISTORY
- ------------------------------------------------------
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 6.36716%
ROLLING DELINQUENCY PERCENTAGE 4.87240%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
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</TABLE>
