EXHIBIT 21.1

SUBSIDIARIES OF THE REGISTRANT

NovaStar Financial, Inc., a Maryland corporation, and its subsidiaries

• NovaStar Assets Corporation, a Delaware corporation

• NovaStar Certificates Financing Corporation, a Delaware corporation

• NovaStar Capital Access Corporation, a Delaware corporation

• NovaStar Financial Repurchase Corporation, a Delaware corporation

• NovaStar Mortgage Repurchase Corporation, a Delaware corporation

• NFI Holding Corporation, a Delaware corporation, and its subsidiaries

  a. NovaStar Mortgage, Inc., a Virginia corporation

  b. NovaStar Home Mortgage, Inc., a Delaware corporation

  c. NovaStar Capital, Inc., a Delaware corporation

  d. NovaStar Mortgage Funding Corporation, a Delaware corporation

  e. NovaStar Mortgage Funding Corporation II, a Delaware corporation

  f. NovaStar Mortgage Funding Corporation III, a Delaware corporation

  g. NovaStar REMIC Financing Corporation, a Delaware corporation

  h. Ampro Financial Services, Inc., a Delaware corporation