EXHIBIT 21.1

SUBSIDIARIES OF THE REGISTRANT

Novation Companies, Inc., a Maryland corporation, and its subsidiaries

▪ NovaStar Certificates Financing Corporation, a Delaware corporation

▪ NFI Holding Corporation, a Delaware Corporation, and its subsidiaries

▪ NovaStar Asset Management Company, a Delaware corporation

▪ NovaStar Mortgage, Inc., a Virginia corporation, and its subsidiaries

▪ NovaStar Mortgage Funding Corporation, a Delaware corporation

▪ NovaStar REMIC Financing Corporation, a Delaware corporation

▪ Corvisa Services, LLC, a Delaware limited liability company, and its subsidiaries

• Corvisa LLC, a Wisconsin limited liability company

• Corvisa Europe, Ltd., a United Kingdom limited company

▪ NovaStar CDO Holdings, Inc., a Delaware corporation, and its subsidiaries

▪ NovaStar ABS CDO I, Inc., a Delaware corporation

▪ NovaStar ABS CDO I, Ltd., a Cayman Islands corporation

▪ NCIP Holdings, LLC, a Delaware limited liability company

▪ NCI Tax Holdings, LLC a Delaware limited liability company and its subsidiaries

▪ 2114 Central, LLC, a Delaware limited liability company

▪ Community Income Tax, LLC, a Florida limited liability company