Tuesday, May 24, 2011

Red Flags on NovaStar’s Mortgages Were Unheeded

MARC COHODES had heard the stories.


Heard how these guys would give a mortgage to anyone — even to a corpse, the joke went. How the place was run like a frat house.

You wouldn’t believe the things that go on there, his brother-in-law had told him.

So Mr. Cohodes, a money manager in Marin County, Calif., decided to bet against one of the big names of the subprime age: NovaStar Financial.

Check out the rest here…

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