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

June 10, 2005

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 7.01    Regulation FD Disclosure

Pursuant to Item 7.01 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 June 10, 2005.

Item 9.01    Financial Statements and Exhibits

(c) Exhibits

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: June 10, 2005	/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 May 31,								For the Five Months Ended May 31,
	2005		As a % of Total		2004		As a % of Total		2005		As a % of Total		2004		As a % of Total
Non-conforming production volume
Non-conforming
Wholesale	$	590,432	75	%	$	406,543	68	%	$	2,569,476	76	%	$	1,970,738	65	%
Correspondent/Bulk		54,757	7	%		21,511	4	%		267,235	8	%		204,671	7	%
Retail *		139,239	18	%		164,792	28	%		546,652	16	%		855,476	28	%
Total non-conforming production volume	$	784,428	100	%	$	592,846	100	%	$	3,383,363	100	%	$	3,030,885	100	%
# of funding days in the month		21				20				104				104
Average originations per funding day	$	37,354			$	29,642			$	32,532			$	29,143
Retail production volume *
Non-conforming
Sold to non-affiliates	$	56,149	23	%	$	211,883	34	%	$	393,993	30	%	$	864,333	28	%
Retained by NMI		139,239	56	%		164,792	26	%		546,652	42	%		855,476	27	%
Total non-conforming		195,388	79	%		376,675	60	%		940,645	72	%		1,719,809	55	%
Conforming/Government		50,872	21	%		255,045	40	%		355,726	28	%		1,401,950	45	%
Total retail production volume	$	246,260	100	%	$	631,720	100	%	$	1,296,371	100	%	$	3,121,759	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 5/31/2005							For the Month Ended 4/30/2005							For the Month Ended 3/31/2005
	Weighted Average Coupon		Weighted Average LTV		Weighted Average FICO	Percent of Total		Weighted Average Coupon		Weighted Average LTV		Weighted Average FICO	Percent of Total		Weighted Average Coupon		Weighted Average LTV		Weighted Average FICO	Percent of Total
Summary by Credit Grade
660 and above	7.16	%	83.6	%	702	34	%	7.32	%	83.2	%	700	33	%	7.15	%	83.1	%	700	33	%
620 to 659	7.35	%	82.0	%	639	24	%	7.52	%	82.9	%	639	23	%	7.28	%	81.3	%	640	25	%
580 to 619	7.66	%	81.8	%	600	18	%	7.78	%	82.6	%	599	19	%	7.66	%	83.0	%	601	20	%
540 to 579	8.28	%	80.8	%	558	17	%	8.30	%	80.0	%	560	18	%	8.23	%	80.6	%	558	15	%
539 and below	9.01	%	79.3	%	529	7	%	8.93	%	78.3	%	528	7	%	8.82	%	78.8	%	528	7	%
	7.62	%	82.1	%	632	100	%	7.74	%	82.1	%	630	100	%	7.57	%	81.9	%	631	100	%
Summary by Program Type
2-Year Fixed	7.82	%	83.1	%	612	57	%	7.89	%	83.1	%	612	61	%	7.72	%	82.8	%	614	60	%
2-Year Fixed Interest-only	6.95	%	81.6	%	670	19	%	7.11	%	81.7	%	672	18	%	6.85	%	81.0	%	668	18	%
3-Year Fixed	7.65	%	80.4	%	621	2	%	7.28	%	81.7	%	646	1	%	7.29	%	77.8	%	627	2	%
3-Year Fixed Interest-only	6.16	%	78.5	%	658	1	%	6.67	%	71.7	%	676	1	%	6.69	%	79.2	%	659	1	%
5-Year Fixed	6.64	%	78.8	%	670	0	%	7.22	%	72.3	%	651	1	%	6.93	%	75.2	%	658	1	%
5-Year Fixed Interest-only	6.75	%	78.9	%	666	0	%	6.85	%	77.0	%	668	0	%	6.51	%	78.9	%	677	1	%
15-Year Fixed	7.94	%	76.6	%	648	2	%	8.29	%	78.5	%	637	2	%	7.99	%	77.2	%	642	1	%
30-Year Fixed	7.25	%	75.5	%	641	14	%	7.27	%	75.2	%	634	12	%	7.14	%	75.9	%	641	12	%
30-Year Fixed Interest-only	6.88	%	79.6	%	671	0	%	6.72	%	75.9	%	681	0	%	7.62	%	82.9	%	642	0	%
Other Products	9.09	%	94.5	%	677	5	%	10.10	%	96.8	%	674	4	%	10.00	%	96.6	%	681	4	%
	7.62	%	82.1	%	632	100	%	7.74	%	82.1	%	630	100	%	7.57	%	81.9	%	631	100	%