EXHIBIT 21.1

SUBSIDIARIES OF THE REGISTRANT

Novation Holdings, Inc., a Delaware Corporation

NovaStar Mortgage LLC, a Virginia limited liability company

▪ NovaStar Mortgage Funding Corporation, a Delaware corporation

▪ NovaStar REMIC Financing Corporation, a Delaware corporation

NovaStar CDO Holdings, Inc., a Delaware corporation

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

2114 Central, LLC, a Delaware limited liability company