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) October 1, 2007 NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2006-1 (Issuing Entity with respect to Notes) NOVASTAR CERTIFICATES FINANCING CORPORATION (Exact name of depositor and co-registrant as specified in its charter)

Delaware		333-131111-02		48-1194616
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

Washington, D.C. 20549

~~NOVASTAR MORTGAGE FUNDING CORPORATION (Exact name of sponsor and registrant as specified in its charter)~~Form 8-K

Delaware	333-131111	48-1195807
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
8140 Ward Parkway, Suite 300 Kansas City, Missouri		64114
(Address of Principal Executive Offices)		(Zip Code)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 31, 2007

NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2002-3

(Issuing Entity with respect to Certificates)

NOVASTAR MORTGAGE INC.

(Exact name of Sponsor as specified in its charter)

NOVASTAR MORTGAGE FUNDING CORPORATION

(Exact name of Depositor and registrant as specified in its charter)

Delaware		333-84328		48-1195807
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

8140 Ward Parkway, Suite 300 Kansas City, Missouri		64114
(Address of Principal Executive Offices)		(Zip Code)

Registrant's telephone number, including area code

(816) 237-7000

No Change

(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):

~~[ ]~~ o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

~~[ ]~~ o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

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

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

Item 1.01. Entry into a Material Definitive Agreement.

NovaStar Mortgage Funding Corporation ~~and NovaStar Certificates Financing Corporation~~ registered issuances of up to $42,~~145~~300,~~350~~000,000 ~~principal~~ principal amount of Asset-Backed ~~Notes~~Certificates on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, as amended (the "Act"), by the Registration Statement on Form S-3 (Registration File ~~Nos~~No. 333-~~131111 and~~84328) ~~333-131111-02)~~ (the "Registration Statement"). Pursuant to the Registration Statement, NovaStar Mortgage Funding Trust, Series ~~2006~~2002-13, issued on ~~April 28~~September 27, 2002, ~~2006,~~ $1736,~~320~~875,~~974,000~~100 in aggregate principal amount of its Home Equity Loan Asset-Backed ~~Notes~~ Certificates, Series ~~2006~~2002-13, Class A-1A1, Class A-2A2, Class ~~A-2B, Class A-2C, Class A-2D, Class~~ M-1, Class M-2, Class M-3, Class ~~M-4,~~AIO ~~Class~~and ~~M-5,~~ Class ~~M-6,~~ ~~Class~~P ~~M-7, Class M-8 Notes~~ (the "~~Offered Notes~~Certificates"). Also issued, but not offered by NovaStar Mortgage Funding Trust, Series 2006-1 were its Home Equity Loan Asset-Backed Notes, Series 2006-1, Class M-9, Class M-10 and Class M-11 Notes (and collectively with the Offered Notes, the “Notes”).

The ~~Sale~~ Pooling and Servicing Agreement filed in connection with the ~~Notes~~Certificates is hereby amended pursuant to the Amendment ~~Number 2~~ to the ~~Sale~~Pooling and Servicing Agreement, dated as of October 1 31, 2007 and attached hereto as Exhibit 104.1, among NovaStar Mortgage Funding ~~Trust~~Corporation, ~~Series 2006-1,~~ as ~~issuing~~depositor ~~entity~~ (the “~~Issuing Entity~~Depositor”), NovaStar ~~Certificates~~ ~~Financing Corporation, as depositor, NovaStar~~ Mortgage, Inc., as servicer (the “Servicer”) and as sponsor (the “Sponsor”), ~~seller,~~ U.S. Bank, National Association, (as successor to Wachovia Bank, N.A.), as custodian (the “Custodian”), The Bank of New York (as successor to JPMorgan Chase Bank, National Association), as ~~indenture~~ trustee (the "~~Indenture~~ Trustee"), and The Bank of New York (as successor to J.P. Morgan Trust Company, National Association), as co-trustee (the “Co-Trustee” and together with the Depositor, the Servicer, the Sponsor, the Custodian and the Trustee, the “Parties”).

The Pooling and Servicing Agreement filed in connection with the Certificates is hereby further amended pursuant to the Amendment to the Pooling and Servicing Agreement, dated as of November 1, 2007 attached hereto as Exhibit 4.2, among the Parties.

Item 9.01 - Financial Statements and Exhibits:

~~(a)~~	~~Financial Statements of Business Acquired:~~(a)	~~None~~Financial Statements of Business Acquired:		None
~~(b)~~	~~Pro Forma Financial Information:~~(b)	~~None~~Pro Forma Financial Information:		None
~~(c)~~	Exhibits: 10.1 Amendment No. 2 to the Sale and Servicing Agreement, dated as of October 1, 2007, among the Issuing Entity, the Depositor, the Sponsor, the Servicer, the Custodian, the Indenture Trustee and the Co-Trustee.(c)	Exhibits:
		4.1	Amendment to the Pooling and Servicing Agreement, dated as of October 31, 2007, among the Depositor, the Servicer and the Sponsor, the Custodian, the Trustee, and the Co-Trustee and consented to by DB Structured Products, Inc., Wachovia Bank, N.A., Wachovia Capital Markets, LLC and Wachovia Investment Holdings, LLC.
		4.2	Amendment to the Pooling and Servicing Agreement, dated as of November 1, 2007, among the Depositor, the Servicer and the Sponsor, the Custodian, the Trustee, and the Co-Trustee and consented to by DB Structured Products, Inc., Wachovia Bank, N.A., Wachovia Capital Markets, LLC and Wachovia Investment Holdings, LLC.

SIGNATURES

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.

Dated: ~~October~~November 36, 2007

NOVASTAR ~~CERTIFICATES~~MORTGAGE ~~FINANCING~~FUNDING CORPORATION By: /s/ Matt Kaltenrieder ~~Name:~~ Matt Kaltenrieder ~~Title:~~ Vice President

Exhibit Index

Exhibit No.	Description
Exhibit 10.1	Amendment No. 2 to the Sale and Servicing Agreement, dated as of October 1, 2007, among the Issuing Entity, the Depositor, the Sponsor, the Servicer, the Custodian, the Indenture Trustee and the Co-Trustee.
Exhibit 4.1	Amendment to the Pooling and Servicing Agreement, dated as of October 31, 2007, among the Depositor, the Servicer and the Sponsor, the Custodian, the Trustee, and the Co-Trustee and consented to by DB Structured Products, Inc., Wachovia Bank, N.A., Wachovia Capital Markets, LLC and Wachovia Investment Holdings, LLC.
Exhibit 4.2	Amendment to the Pooling and Servicing Agreement, dated as of November 1, 2007, among the Depositor, the Servicer and the Sponsor, the Custodian, the Trustee, and the Co-Trustee and consented to by DB Structured Products, Inc., Wachovia Bank, N.A., Wachovia Capital Markets, LLC and Wachovia Investment Holdings, LLC.

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