8-K

UNITED STATES

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

November 10, 2004

Date of Report (Date of earliest event reported)

NOVASTAR FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Maryland	001-13533	74-2830661
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

8140 Ward Parkway, Suite 300, Kansas City, MO 64114

(Address of principal executive offices)

(Zip Code)

(816) 237-7000

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

INFORMATION TO BE INCLUDED IN THE REPORT

Item 8.01 – Other Events

Pursuant to Item 8.01 of Form 8-K, NovaStar Financial, Inc. is hereby furnishing, as an Exhibit to this current report on Form 8-K, a copy of its Monthly Loan Origination Data and Selected Non-Conforming Loan Origination Data reported on the Company’s website November 10, 2004.

Item 9.01 (c) - Exhibit

99.1 Monthly Loan Origination Data and Selected Non-Conforming Loan Origination Data.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	NOVASTAR FINANCIAL, INC.
DATE: November 10, 2004	/s/ Gregory S. Metz
	Gregory S. Metz
	Chief Financial Officer

Exhibit Index

Exhibit Number
99.1	Monthly Loan Origination Data and Selected Non-Conforming Loan Origination Data.

EX-99.1

Exhibit 99.1

NOVASTAR FINANCIAL, INC.

MONTHLY LOAN ORIGINATION DATA

(dollars in thousands)

(unaudited)

	For the Month Ended October 31,								For the Ten Months Ended October 31,
	2004		As a % of Total		2003		As a % of Total		2004		As a % of Total		2003		As a % of Total
Non-conforming production volume
Non-conforming
Wholesale	$	480,863	59	%	$	341,165	64	%	$	4,509,275	64	%	$	2,806,941	67	%
Correspondent/Bulk		160,215	20	%		19,813	4	%		691,934	10	%		225,617	5	%
Retail *		172,201	21	%		167,283	32	%		1,801,402	26	%		1,159,324	28	%
Total non-conforming production volume	$	813,279	100	%	$	528,261	100	%	$	7,002,611	100	%	$	4,191,882	100	%
# of funding days in the month		20				22				209				211
Average originations per funding day	$	40,664			$	24,012			$	33,505			$	19,867
Retail production volume *
Non-conforming
Sold to non-affiliates	$	133,366	27	%	$	130,628	19	%	$	1,732,254	29	%	$	808,842	14	%
Retained by NMI		172,201	36	%		167,283	25	%		1,801,402	30	%		1,159,324	19	%
Total non-conforming		305,567	63	%		297,911	44	%		3,533,656	59	%		1,968,166	33	%
Conforming/Government		176,553	37	%		385,919	56	%		2,489,379	41	%		3,947,288	67	%
Total retail production volume	$	482,120	100	%	$	683,830	100	%	$	6,023,035	100	%	$	5,915,454	100	%

* Branch production volumes are considered a part of our retail operations and are included within the retail production volumes shown above.

NOVASTAR FINANCIAL, INC.

SELECTED NON-CONFORMING LOAN ORIGINATION DATA

(Unaudited)

	For the Month Ended 10/31/04							For the Month Ended 9/30/04							For the Month Ended 8/31/04
	Weighted Average Coupon		Weighted Average LTV (A)		Weighted Average FICO	Percent of Total		Weighted Average Coupon		Weighted Average LTV (A)		Weighted Average FICO	Percent of Total		Weighted Average Coupon		Weighted Average LTV (A)		Weighted Average FICO	Percent of Total
Summary by Credit Grade
660 and above	7.06	%	85.6	%	699	29	%	7.12	%	85.1	%	699	28	%	7.12	%	85.6	%	699	28	%
620 to 659	7.37	%	83.7	%	639	24	%	7.34	%	83.0	%	638	24	%	7.40	%	83.9	%	639	23	%
580 to 619	7.79	%	81.6	%	600	19	%	7.71	%	81.8	%	599	20	%	7.74	%	82.4	%	599	21	%
540 to 579	8.28	%	78.0	%	559	18	%	8.29	%	79.1	%	559	18	%	8.25	%	79.4	%	560	18	%
539 and below	8.83	%	77.9	%	528	10	%	8.73	%	77.0	%	527	10	%	8.72	%	77.7	%	528	10	%
	7.66	%	82.3	%	624	100	%	7.66	%	82.0	%	622	100	%	7.68	%	82.6	%	622	100	%
Summary by Program Type
2-Year Fixed	7.81	%	82.6	%	610	64	%	7.82	%	82.5	%	607	62	%	7.84	%	83.1	%	607	59	%
2-Year Fixed Interest-only	7.03	%	83.9	%	662	17	%	7.06	%	84.4	%	656	18	%	7.14	%	84.5	%	654	18	%
3-Year Fixed	7.24	%	80.6	%	631	3	%	7.33	%	75.6	%	607	3	%	7.43	%	81.5	%	620	3	%
3-Year Fixed Interest-only	6.82	%	85.2	%	673	1	%	6.73	%	81.2	%	665	1	%	6.81	%	82.0	%	661	1	%
5-Year Fixed	7.13	%	73.7	%	636	1	%	7.19	%	78.3	%	650	1	%	7.19	%	81.2	%	635	1	%
5-Year Fixed Interest-only	6.78	%	79.3	%	671	0	%	6.93	%	80.2	%	652	0	%	6.63	%	78.1	%	660	1	%
15-Year Fixed	7.96	%	73.8	%	630	2	%	7.86	%	76.8	%	627	2	%	7.84	%	75.2	%	631	2	%
30-Year Fixed	7.62	%	78.6	%	632	10	%	7.47	%	77.0	%	634	11	%	7.60	%	78.5	%	630	12	%
30-Year Fixed Interest-only	7.59	%	76.8	%	637	0	%	7.48	%	80.4	%	657	0	%	7.22	%	82.9	%	677	1	%
Other Products	9.59	%	91.7	%	669	2	%	9.94	%	94.0	%	676	2	%	9.49	%	90.2	%	673	2	%
	7.66	%	82.3	%	624	100	%	7.66	%	82.0	%	622	100	%	7.68	%	82.6	%	622	100	%

(A) Beginning in January 2004, we changed the way we treat the LTV on second mortgages in our computation of the weighted average LTV. Prior to 2004, we included second mortgage LTV’s on a stand-alone basis in our computation. Typically, these second mortgages have LTV’s of approximately 20%. We now are combining all second mortages with their corresponding first mortgages and using a combined LTV (CLTV) in our weighted average calculation.