Hints and tips:
...The announcements came a day after another troubled mortgage lender, NovaStar Financial, said it would give up its real estate investment trust status because it could not pay a $157m dividend necessary...
...The subprime mortgage mess has, predictably, turned into a frantic game of finger-pointing. Who are the participants?...
...NovaStar Financial , the mortgage investment company, fell 15.7 per cent to $7.16 after it announced further restructuring, including job cuts, tighter lending and the cancellation of a $101.2m sale of preferred...
...Last week, shares in NovaStar Financial, a subprime lender, sank 42 per cent after it said it might generate no taxable income over the next five years....
...NovaStar blamed its reversal of fortune on write-downs and defaults on high-risk loans....
...Impac Mortgage Holding was off 6 per cent at $4.55 and NovaStar Financial was down nearly 4 per cent at $5.12....
...The poor results saw shares in Novastar plunge more than 40 per cent to $10.10....
...Other subprime lenders such as NovaStar Financial, Accredited Home Lenders and Residential Capital, the mortgage finance unit of GMAC, have said they expect lower earnings and written down subprime exposure...
...mortgage market and beyond....
...Novastar Financial fell 39 per cent, Accredited Home Lenders fell 30 per cent and Countrywide Financial fell 4 per cent in late trading....
...Other subprime lenders were also on the defensive, with shares in Fremont General 32.4 per cent lower to $5.89, NovaStar down 40.8 per cent to $4.28 and Accredited Home Lenders 26 per cent weaker at $16.06...
...Shares in rival lender NovaStar fell 19 per cent to $4.50. “The subprime sector alone is not the issue,” said Marc Pado, chief market strategist at Cantor Fitzgerald....
...Data on fourth-quarter defaults by borrowers were released and specialist lenders that served the market began to report losses for the period, starting with the largest, NovaStar ....
...The sell-off in subprime mortgage lenders continued, but a late rally lightened losses. New Century Financial eased 1.8 per cent to $15.24 and NovaStar fell a further 6.1 per cent to $7.96....
...There was more bad news from subprime mortgage lenders....
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