Late Tuesday, NovaStar reported a net loss available to common shareholders of $14.4 million, or 39 cents a share, in the fourth quarter. A year earlier, the company generated net income available to common shareholders of $26.4 million, or 84 cents a share.
Problems with mortgages originated in 2006 knocked $17.4 million, or 47 cents a share, off fourth-quarter earnings. Provisions for losses on loans NovaStar has been forced to repurchase cut $13.4 million, or 36 cents a share, off results. More provisions for losses on a package of early 2006 mortgages the company securitized cost it another $10.3 million, or 28 cents a share, NovaStar said.
This shake-out is getting really ugly.
