<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) MARCH 25, 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)
<TABLE>
<CAPTION>
Delaware 333-64775 51-6512366
- -------------------------------------------------------------------------------
<S> <C> <C>
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
</TABLE>
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
-------------------------------------------------------------------------------
(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 MARCH 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.
20.1 Monthly statement to holders of NovaStar Home Equity Loan
Asset-Backed Bonds Series 1999-1 relating to the MARCH 25, 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: APRIL 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
-3-
<PAGE> 4
EXHIBIT INDEX
20.1 Monthly statement to holders of NovaStar Home Equity Loan Asset-Backed
Bonds Series 1999-1 relating to the MARCH 25, 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>
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS IN DOLLARS
PRIOR CUMULATIVE CURRENT
ORIGINAL PRINCIPAL REALIZED REALIZED DEFERRED PRINCIPAL
CLASS FACE VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES LOSSES INTEREST BALANCE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 75,000,000.00 74,836,581.34 312,385.85 154,950.46 467,336.31 0.00 0.00 0.00 74,681,630.88
A-2 20,000,000.00 19,988,707.45 84,836.87 7,726.49 92,563.36 0.00 0.00 0.00 19,980,980.96
A-3 45,000,000.00 44,764,191.84 234,452.45 128,164.01 362,616.46 0.00 0.00 0.00 44,636,027.83
A-4 20,000,000.00 19,987,605.78 106,367.38 12,214.22 118,581.60 0.00 0.00 0.00 19,975,391.56
B-1 2,197,208.51 2,197,208.51 9,171.68 0.00 9,171.68 0.00 0.00 0.00 2,197,208.51
B-2 585,922.27 585,922.27 2,486.79 0.00 2,486.79 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-4 585,922.27 585,922.27 3,118.08 0.00 3,118.08 0.00 0.00 0.00 585,922.27
IO-1 77,519,379.85 77,519,379.85 202,156.76 0.00 202,156.76 0.00 0.00 0.00 77,519,379.85
IO-2 20,671,834.62 20,671,834.62 47,719.40 0.00 47,719.40 0.00 0.00 0.00 20,671,834.62
IO-3 46,035,805.62 46,035,805.62 81,273.11 0.00 81,273.11 0.00 0.00 0.00 46,035,805.62
IO-4 20,460,358.06 20,460,358.06 26,401.36 0.00 26,401.36 0.00 0.00 0.00 20,460,358.06
- ----------------------------------------------------------------------------------------------------------------------------------
TOTALS 162,197,208.51 161,774,294.92 1,117,274.47 303,055.18 1,420,329.65 0.00 0.00 0.00 161,471,239.74
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
FACTOR INFORMATION PER $1000 OF ORIGINAL FACE PASS-THROUGH
PRIOR CURRENT RATES
PRINCIPAL PRINCIPAL
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE CURRENT NEXT
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 66987WAC10 997.821085 4.165145 2.066006 6.231151 995.755078 5.366880% 5.368750%
A-2 66987WAD92 999.435373 4.241844 0.386325 4.628168 999.049048 5.456880% 5.458750%
A-3 66987WAE75 994.759819 5.210055 2.848089 8.058144 991.911730 6.285000% 6.285000%
A-4 66987WAF41 999.380289 5.318369 0.610711 5.929080 998.769578 6.386000% 6.386000%
B-1 1,000.000000 4.174240 0.000000 4.174240 1,000.000000 5.366880% 5.368750%
B-2 1,000.000000 4.244240 0.000000 4.244240 1,000.000000 5.456880% 5.458750%
B-3 1,000.000000 5.237500 0.000000 5.237500 1,000.000000 6.285000% 6.285000%
B-4 1,000.000000 5.321667 0.000000 5.321667 1,000.000000 6.386000% 6.386000%
IO-1 1,000.000000 2.607822 0.000000 2.607822 1,000.000000 5.366880% 5.368750%
IO-2 1,000.000000 2.308426 0.000000 2.308426 1,000.000000 5.456880% 5.458750%
IO-3 1,000.000000 1.765433 0.000000 1.765433 1,000.000000 6.285000% 6.285000%
IO-4 1,000.000000 1.290367 0.000000 1.290367 1,000.000000 6.386000% 6.386000%
- ---------------------------------------------------------------------------------------------------------------------
Seller: NovaStar Financial, Inc.
Servicer: NovaStar Mortgage Corporation
Record Date: March 31, 1999
Distribution Date: March 25, 1999
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 2
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL I
- -------------------------------------------------------------------------------
Distribution Date: March 25, 1999
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL I
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Total Collection on Pool 771,800.34
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 66,938,359.93
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 66,783,409.47
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
PREPAYMENT PENALTIES 3,365.02
WEIGHTED AVERAGE MORTGAGE RATE 8.81393020%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PRINCIPAL BALANCE 1,695,991.05 999,918.00 0.00 605,664.90 0.00
NUMBER OF LOANS 18 11 0 5 0
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
REPURCHASE Current Cumulative
INFORMATION Period History
- ------------------------------------------------------
<S> <C> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
<CAPTION>
- ------------------------------------------------------
CONVERTED MTGE Current Cumulative
LOANS INFO Period History
- ------------------------------------------------------
<S> <C> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 0.90691%
ROLLING DELINQUENCY PERCENTAGE 0.81326%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
</TABLE>
<PAGE> 3
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL II
- -------------------------------------------------------------------------------
Distribution Date: March 25, 1999
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL II
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Total Collection on Pool 165,845.51
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 16,268,663.53
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 16,260,937.04
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
PREPAYMENT PENALTIES 0.00
WEIGHTED AVERAGE MORTGAGE RATE 8.81166578%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PRINCIPAL BALANCE 113,678.92 520,243.77 72,276.23 733,099.32 0.00
NUMBER OF LOANS 1 4 1 3 0
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
REPURCHASE Current Cumulative
INFORMATION Period History
- ------------------------------------------------------
<S> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
<CAPTION>
- ------------------------------------------------------
CONVERTED MTGE Current Cumulative
LOANS INFO Period History
- ------------------------------------------------------
<S> <C> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 4.95282%
ROLLING DELINQUENCY PERCENTAGE 4.38610%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
</TABLE>
<PAGE> 4
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL III
- -------------------------------------------------------------------------------
Distribution Date: March 25, 1999
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL III
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Total Collection on Pool 506,720.70
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 39,218,726.25
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 39,078,168.02
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
PREPAYMENT PENALTIES 765.00
WEIGHTED AVERAGE MORTGAGE RATE 9.27166692%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PRINCIPAL BALANCE 735,886.78 0.00 0.00 170,198.16 0.00
NUMBER OF LOANS 9 0 0 3 0
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
REPURCHASE Current Cumulative
INFORMATION Period History
- ------------------------------------------------------
<S> <C> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
<CAPTION>
- ------------------------------------------------------
CONVERTED MTGE Current Cumulative
LOANS INFO Period History
- ------------------------------------------------------
<S> <C> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 0.43553%
ROLLING DELINQUENCY PERCENTAGE 0.29639%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
</TABLE>
<PAGE> 5
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED BONDS
SERIES 1999-1
STATEMENT TO BONDHOLDER - POOL IV
- -------------------------------------------------------------------------------
Distribution Date: March 25, 1999
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS IN POOL IV
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Total Collection on Pool 171,171.60
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 16,036,875.05
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 16,024,660.83
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
PREPAYMENT PENALTIES 0.00
WEIGHTED AVERAGE MORTGAGE RATE 0.00000000%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PRINCIPAL BALANCE 792,588.13 143,868.87 0.00 248,730.62 0.00
NUMBER OF LOANS 4 2 0 2 0
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
REPURCHASE Current Cumulative
INFORMATION Period History
- ------------------------------------------------------
<S> <C> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
<CAPTION>
- ------------------------------------------------------
CONVERTED MTGE Current Cumulative
LOANS INFO Period History
- ------------------------------------------------------
<S> <C> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
- ------------------------------------------------------
CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 1.55217%
ROLLING DELINQUENCY PERCENTAGE 1.44791%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
MI INSURER INSOLVENCY EVENT OCCURRED No
</TABLE>
