8-K 1 nvs01001.txt DECEMBER 8K 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 Date of Report (Date of earliest event reported): December 26, 2001 NOVASTAR MORTGAGE FUNDING TRUST Home Equity Loan Asset-Backed Certs., Series 2001-1 Trust (Exact name of registrant as specified in its charter) New York (governing law of 333-50290-01 Pooling and Servicing Agreement) (Commission 52-2289292 (State or other File Number) 52-2289293 jurisdiction IRS EIN of Incorporation) c/o Wells Fargo Bank Minnesota, N.A., 11000 Broken Land Parkway Columbia, MD 21044 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (410) 884-2000 Former name or former address, if changed since last report) ITEM 5. Other Events On December 26, 2001 a distribution was made to holders of NOVASTAR MORTGAGE FUNDING TRUST, Home Equity Loan Asset-Backed Certs., Series 2001-1 Trust. ITEM 7. Financial Statements and Exhibits (c) Exhibits furnished in accordance with Item 601(a) of Regulation S-K Exhibit Number Description EX-99.1 Monthly report distributed to holders of Home Equity Loan Asset-Backed Certs., Series 2001-1 Trust, relating to the December 26, 2001 distribution. 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 hereunto duly authorized. NOVASTAR MORTGAGE FUNDING TRUST Home Equity Loan Asset-Backed Certs., Series 2001-1 Trust By: Wells Fargo Bank Minnesota, N.A. as Certificate Administrator By: /s/ Beth Belfield, Officer By: Beth Belfield, Officer Date: 1/8/02 INDEX TO EXHIBITS Exhibit Number Description EX-99.1 Monthly report distributed to holders of Home Equity Loan Asset-Backed Certs., Series 2001-1 Trust, relating to the December 26, 2001 distribution. EX-99.1

NOVASTAR MORTGAGE FUNDING TRUST ~~Mortgage~~Home ~~Pass~~Equity Loan Asset-~~Through~~Backed Certificates Record Date: 1011/3130/01 Distribution Date: 1112/26/01 NVS Series: 2001-1 Contact: Customer Service - CTSLink Wells Fargo Bank Minnesota, N.A. Securities Administration Services 7485 New Horizon Way Frederick, MD 21703 Telephone: (301) 815-6600 Fax: (301) 815-6660 Certificateholder Distribution Summary Certificate Certificate Beginning Class Pass-Through Certificate Interest Principal Class CUSIP Description Rate Balance Distribution Distribution A-1 66987XAK1 SEN 2.~~70000~~38000% ~~364~~359,~~199~~065,~~891~~675.8604 ~~874~~712,~~079~~146.7492 56,~~134~~609,~~216~~103.8275 M-1 66987XAL9 MEZ 32.~~07000~~75000% 8,300,000.00 2219,~~649~~020.7883 0.00 M-2 66987XAM7 MEZ 3.~~77000~~45000% 8,300,000.00 2723,~~814~~862.2250 0.00 M-3 66987XAN5 MEZ 4.~~72000~~40000% 6,225,000.00 2622,~~117~~825.3300 0.00 A-IO 66987XAP0 IO 5.~~18868~~94405% 0.00 12,~~913~~049,~~602~~845.7374 0.00 O 66987XAQ8 OC 0.00000% 6,~~225~~224,~~000~~233.0064 0.00 0.00 RL NVS0101RL RL 0.00000% 0.00 0.00 0.00 RU NVS0101RU RU 0.00000% 0.00 0.00 0.00 P 66987XAR6 P 0.00000% 0.00 ~~118~~144,~~057~~048.6928 0.00 Totals ~~393~~388,~~249~~114,~~891~~908.8668 2,~~982~~971,~~321~~749.4927 56,~~134~~609,~~216~~103.8275

Certificateholder Distribution Summary (continued) Current Ending Cumulative Realized Certificate Total Realized Class Loss Balance Distribution Losses A-1 0.00 ~~359~~352,~~065~~456,~~675~~571.0429 67,~~008~~321,~~296~~250.5667 0.00 M-1 0.00 8,300,000.00 2219,~~649~~020.7883 0.00 M-2 0.00 8,300,000.00 2723,~~814~~862.2250 0.00 M-3 0.00 6,225,000.00 2622,~~117~~825.3300 0.00 A-IO 0.00 0.00 12,~~913~~049,~~602~~845.7374 0.00 O ~~766~~3,446.3669 6,~~224~~220,~~233~~786.6495 0.00 ~~766~~4,213.3605 RL 0.00 0.00 0.00 0.00 RU 0.00 0.00 0.00 0.00 P 0.00 0.00 ~~118~~144,~~057~~048.6928 0.00 Totals ~~766~~3,446.3669 ~~388~~381,~~114~~502,~~908~~358.6824 89,~~116~~580,~~538~~853.3102 ~~766~~4,213.3605 All distributions required by the Pooling and Servicing Agreement have been calculated by the Certificate Administrator on behalf of the Trustee.

Principal Distribution Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Realized Class Amount Balance Distribution Distribution Accretion Loss (1) A-1 385,950,000.00 ~~364~~359,~~199~~065,~~891~~675.8604 0.00 56,~~134~~609,~~216~~103.8275 0.00 0.00 M-1 8,300,000.00 8,300,000.00 0.00 0.00 0.00 0.00 M-2 8,300,000.00 8,300,000.00 0.00 0.00 0.00 0.00 M-3 6,225,000.00 6,225,000.00 0.00 0.00 0.00 0.00 A-IO 0.00 0.00 0.00 0.00 0.00 0.00 O 6,225,000.00 6,~~225~~224,~~000~~233.0064 0.00 0.00 0.00 ~~766~~3,446.3669 RL 0.00 0.00 0.00 0.00 0.00 0.00 RU 0.00 0.00 0.00 0.00 0.00 0.00 P 0.00 0.00 0.00 0.00 0.00 0.00 Totals 415,000,000.00 ~~393~~388,~~249~~114,~~891~~908.8668 0.00 56,~~134~~609,~~216~~103.8275 0.00 ~~766~~3,446.3669 (1) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Principal Distribution Statement (continued) Total Ending Ending Total Principal Certificate Certificate Principal Class Reduction Balance Percentage Distribution A-1 56,~~134~~609,~~216~~103.8275 ~~359~~352,~~065~~456,~~675~~571.0429 0.~~93034247~~91321822 56,~~134~~609,~~216~~103.8275 M-1 0.00 8,300,000.00 1.00000000 0.00 M-2 0.00 8,300,000.00 1.00000000 0.00 M-3 0.00 6,225,000.00 1.00000000 0.00 A-IO 0.00 0.00 0.00000000 0.00 O ~~766~~3,446.3669 6,~~224~~220,~~233~~786.6495 0.~~99987689~~99932320 0.00 RL 0.00 0.00 0.00000000 0.00 RU 0.00 0.00 0.00000000 0.00 P 0.00 0.00 0.00000000 0.00 Totals 56,~~134~~612,~~983~~550.1844 ~~388~~381,~~114~~502,~~908~~358.6824 0.~~93521665~~91928279 56,~~134~~609,~~216~~103.8275

Principal Distribution Factors Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Class (2) Amount Balance Distribution Distribution Accretion A-1 385,950,000.00 ~~943~~930.~~64526975~~34246674 0.00000000 1317.~~30280301~~12424861 0.00000000 M-1 8,300,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-2 8,300,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-3 6,225,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 A-IO 0.00 0.00000000 0.00000000 0.00000000 0.00000000 O 6,225,000.00 ~~1000~~999.~~00000000~~87688996 0.00000000 0.00000000 0.00000000 RL 0.00 0.00000000 0.00000000 0.00000000 0.00000000 RU 0.00 0.00000000 0.00000000 0.00000000 0.00000000 P 0.00 0.00000000 0.00000000 0.00000000 0.00000000

Principal Distribution Factors Statement (continued) Total Ending Ending Total Realized Principal Certificate Certificate Principal Class Loss (3) Reduction Balance Percentage Distribution A-1 0.00000000 1317.~~30280301~~12424861 ~~930~~913.~~34246674~~21821814 0.~~93034247~~91321822 1317.~~30280301~~12424861 M-1 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-2 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-3 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 A-IO 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 O 0.~~12311004~~55368514 0.~~12311004~~55368514 999.~~87688996~~32320482 0.~~99987689~~99932320 0.00000000 RL 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 RU 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 P 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 (3) Amount Does Not Include Excess Special Hazard, Bankrupcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class Amount Rate Balance Interest Shortfall Shortfall A-1 385,950,000.00 2.~~70000~~38000% ~~364~~359,~~199~~065,~~891~~675.8604 ~~874~~712,~~079~~146.7492 0.00 0.00 M-1 8,300,000.00 32.~~07000~~75000% 8,300,000.00 2219,~~649~~020.7883 0.00 0.00 M-2 8,300,000.00 3.~~77000~~45000% 8,300,000.00 2723,~~814~~862.2250 0.00 0.00 M-3 6,225,000.00 4.~~72000~~40000% 6,225,000.00 2622,~~117~~825.3300 0.00 0.00 A-IO 0.00 5.~~18868~~94405% ~~393~~388,~~249~~114,~~891~~908.8668 12,~~913~~049,~~602~~845.7374 0.00 0.00 O 6,225,000.00 0.00000% 6,~~225~~224,~~000~~233.0064 0.00 0.00 0.00 RL 0.00 0.00000% 0.00 0.00 0.00 0.00 RU 0.00 0.00000% 0.00 0.00 0.00 0.00 P 0.00 0.00000% 0.00 0.00 0.00 0.00 Totals 415,000,000.00 2,~~864~~827,~~263~~700.8099 0.00 0.00

Interest Distribution Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (4) Distribution Shortfall Balance A-1 0.00 0.00 ~~874~~712,~~079~~146.7492 0.00 ~~359~~352,~~065~~456,~~675~~571.0429 M-1 0.00 0.00 2219,~~649~~020.7883 0.00 8,300,000.00 M-2 0.00 0.00 2723,~~814~~862.2250 0.00 8,300,000.00 M-3 0.00 0.00 2622,~~117~~825.3300 0.00 6,225,000.00 A-IO 0.00 0.00 12,~~913~~049,~~602~~845.7374 0.00 ~~388~~381,~~114~~502,~~908~~358.6824 O 0.00 0.00 0.00 0.00 6,~~224~~220,~~233~~786.6495 RL 0.00 0.00 0.00 0.00 0.00 RU 0.00 0.00 0.00 0.00 0.00 P 0.00 0.00 ~~118~~144,~~057~~048.6928 0.00 0.00 Totals 0.00 0.00 2,~~982~~971,~~321~~749.4927 0.00 (4) Amount Does Not Include Excess Special Hazard, Bankrupcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Factors Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class (5) Amount Rate Balance Interest Shortfall Shortfall A-1 385,950,000.00 2.~~70000~~38000% ~~943~~930.~~64526975~~34246674 21.~~26474865~~84517922 0.00000000 0.00000000 M-1 8,300,000.00 32.~~07000~~75000% 1000.00000000 2.~~72888916~~29166627 0.00000000 0.00000000 M-2 8,300,000.00 3.~~77000~~45000% 1000.00000000 32.~~35111084~~87500000 0.00000000 0.00000000 M-3 6,225,000.00 4.~~72000~~40000% 1000.00000000 43.~~19555502~~66666667 0.00000000 0.00000000 A-IO 0.00 5.~~18868~~94405% ~~947~~935.~~59010087~~21664742 4.~~61109092~~93938733 0.00000000 0.00000000 O 6,225,000.00 0.00000% ~~1000~~999.~~00000000~~87688996 0.00000000 0.00000000 0.00000000 RL 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 RU 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 P 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 (5) Per $1000 Denomination. The Original Notional Balance of Class AIO is $415,000,000. The Original Notional Balance of Class P is $415,000,000.

Interest Distribution Factors Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (6) Distribution Shortfall Balance A-1 0.00000000 0.00000000 21.~~26474865~~84517922 0.00000000 ~~930~~913.~~34246674~~21821814 M-1 0.00000000 0.00000000 2.~~72888916~~29166627 0.00000000 1000.00000000 M-2 0.00000000 0.00000000 32.~~35111084~~87500000 0.00000000 1000.00000000 M-3 0.00000000 0.00000000 43.~~19555502~~66666667 0.00000000 1000.00000000 A-IO 0.00000000 0.00000000 4.~~61109092~~93938733 0.00000000 ~~935~~919.~~21664742~~28279094 O 0.00000000 0.00000000 0.00000000 0.00000000 999.~~87688996~~32320482 RL 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 RU 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 P 0.00000000 0.00000000 0.~~28447636~~34710429 0.00000000 0.00000000 (6) Amount Does Not Include Excess Special Hazard, Bankrupcy,or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

CERTIFICATEHOLDER ACCOUNT STATEMENT CERTIFICATE ACCOUNT Beginning Balance 0.00 Deposits Payments of Interest and Principal 89,~~528~~961,~~963~~386.7158 Liquidations, Insurance Proceeds, Reserve Funds 0.00 Proceeds from Repurchased Loans 0.00 Other Amounts (Servicer Advances) 0.00 Realized Losses (~~766~~3,446.3669) Prepayment Penalties ~~118~~144,~~057~~048.6928 Total Deposits 810,~~646~~101,~~255~~988.0417 Withdrawals Reimbursement for Servicer Advances 0.00 Payment of Service Fee ~~529~~521,~~716~~135.7315 Payment of Interest and Principal 89,~~116~~580,~~538~~853.3102 Total Withdrawals (Pool Distribution Amount) 810,~~646~~101,~~255~~988.0417 Ending Balance 0.00

SERVICING FEES Gross Servicing Fee ~~163~~161,~~854~~714.1255 MI Premiums ~~363~~357,~~732~~318.4322 Wells Fargo bank 2,~~130~~102.1838 Supported Prepayment/Curtailment Interest Shortfall 0.00 Net Servicing Fee ~~529~~521,~~716~~135.7315

LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT DELINQUENCY STATUS DELINQUENT BANKRUPTCY FORECLOSURE REO Total No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0 0 0 0 0.00 0.00 0.00 0.00 30 Days 5449 0 0 0 5449 6,~~980~~092,~~471~~416.2774 0.00 0.00 0.00 6,~~980~~092,~~471~~416.2774 60 Days 2528 0 0 0 2528 34,~~116~~053,~~664~~313.3415 0.00 0.00 0.00 34,~~116~~053,~~664~~313.3415 90 Days 4 0 4754 613 5771 ~~541~~344,~~016~~725.3129 0.00 56,~~772~~741,~~192~~868.8237 ~~784~~1,~~772~~574,419.9568 78,~~097~~661,~~982~~013.0834 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180+ Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 8381 0 4754 613 ~~136~~148 10,~~638~~490,~~151~~455.9218 0.00 56,~~772~~741,~~192~~868.8237 ~~784~~1,~~772~~574,419.9568 1718,~~195~~806,~~117~~743.6923 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 30 Days 1.~~701323~~566997% 0.000000% 0.000000% 0.000000% 1.~~701323~~566997% 1.~~797468~~595955% 0.000000% 0.000000% 0.000000% 1.~~797468~~595955% 60 Days 0.~~787650~~895427% 0.000000% 0.000000% 0.000000% 0.~~787650~~895427% 01.~~802540~~061796% 0.000000% 0.000000% 0.000000% 01.~~802540~~061796% 90 Days 0.~~126024~~127918% 0.000000% 1.~~480781~~726895% 0.~~189036~~415734% 12.~~795841~~270547% 0.~~139311~~090303% 0.000000% 1.~~486337~~766084% 0.~~202079~~412431% 12.~~827727~~268818% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180+ Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 2.~~614997~~590342% 0.000000% 1.~~480781~~726895% 0.~~189036~~415734% 4.~~284814~~732971% 2.~~739319~~748055% 0.000000% 1.~~486337~~766084% 0.~~202079~~412431% 4.~~427734~~926570%

COLLATERAL STATEMENT Collateral Description Fixed & Mixed ARM Weighted Average Gross Coupon 10.~~356714~~354158% Weighted Average Net Coupon 8.~~746787~~749378% Weighted Average Pass-Through Rate 8.~~740286~~742878% Weighted Average Maturity(Stepdown Calculation ) ~~351~~350 Beginning Scheduled Collateral Loan Count 3,~~207~~174 Number Of Loans Paid In Full 3347 Ending Scheduled Collateral Loan Count 3,~~174~~127 Beginning Scheduled Collateral Balance ~~393~~388,~~249~~114,~~891~~908.8668 Ending Scheduled Collateral Balance ~~388~~381,~~114~~502,~~908~~358.6824 Ending Actual Collateral Balance at 3130-~~Oct~~Nov-2001 ~~388~~381,~~350~~741,~~257~~132.3550 Monthly P &I Constant 3,~~583~~538,~~895~~478.6074 Special Servicing Fee 0.00 Prepayment Penalties ~~118~~144,~~057~~048.6928 Realized Loss Amount ~~766~~3,446.3669 Cumulative Realized Loss ~~766~~4,213.3605 Ending Scheduled Balance for Premium Loans ~~388~~381,~~114~~502,~~908~~358.6824 Scheduled Principal 189,~~914~~642.9971 Unscheduled Principal 46,~~945~~422,~~068~~907.1973

Credit Enhancement Percent 7.3948%

Filing Compare · NOVASTAR MORTGAGE FUNDING TRUST SERIES 2001-1