8-K 1 novastar3_oct04.txt 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) October 25, 2004 NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2004-3 (Issuer with respect to Certificates) NOVASTAR MORTGAGE FUNDING CORPORATION (Exact name of registrant as specified in its charter) Delaware 333-114297-02 48-1195807 (State or Other (Commission File Number) (I.R.S. Employer Jurisdiction of Identification No.) Incorporation) 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 N/A (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: [] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) [] 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)) Item 8.1 Other Events. This current report on Form 8-K relates to the monthly distribution reported to the holders of Novastar Mortgage Funding Trust, Series 2004-3, pursuant to a Pooling and Servicing Agreement, dated as of September 1, 2004, among NovaStar Mortgage Funding Corporation, as company, NovaStar Mortgage, Inc., as servicer and as seller, Wachovia Bank, National Association, as custodian and JPMorgan Chase Bank, as trustee. On October 25, 2004 distributions were made to the Certificateholders. Specific information with respect to these distributions is filed as Exhibit 99.1. Item 9.1 Financial Statements and Exhibits. (a) Not applicable (b) Not applicable (c) The following exhibit is filed as part of this report: Statement to Certificateholders on October 25, 2004 as Exhibit 99.1. NOVASTAR MORTGAGE FUNDING CORPORATION NovaStar Mortgage Funding Trust, Series 2004-3 ---------------------------------------------------------------------------- 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 hereunto duly authorized. JPMORGAN CHASE BANK, N.A., not in its individual capacity, but solely as Trustee under the Agreement referred to herein By: /s/ Michael A. Smith ----------------------------- Michael A. Smith Vice President Dated: December 7, 2004 INDEX TO EXHIBITS Exhibit Number Description of Exhibits 99.1 Statement to Certificateholders Exhibit 99.1 NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2004-3 STATEMENT TO CERTIFICATEHOLDERS October 25, 2004 ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTION IN DOLLARS ---------------------------------------------------------------------------------------------------------------------------------- ORIGINAL BEGINNING ENDING FACE PRINCIPAL REALIZED DEFERRED PRINCIPAL CLASS VALUE BALANCE PRINCIPAL INTEREST TOTAL LOSSES INTEREST BALANCE ---------------------------------------------------------------------------------------------------------------------------------- A1A 1,000,000,000.00 1,000,000,000.00 5,924,551.56 2,680,138.89 8,604,690.45 0.00 0.00 994,075,448.44 A1B 50,000,000.00 50,000,000.00 0.00 150,937.50 150,937.50 0.00 0.00 50,000,000.00 A2A 200,000,000.00 200,000,000.00 1,705,711.88 533,472.22 2,239,184.10 0.00 0.00 198,294,288.12 A2B 20,000,000.00 20,000,000.00 0.00 58,458.33 58,458.33 0.00 0.00 20,000,000.00 A3A 236,700,000.00 236,700,000.00 5,008,936.00 592,045.88 5,600,981.88 0.00 0.00 231,691,064.00 A3B 116,800,000.00 116,800,000.00 0.00 311,547.78 311,547.78 0.00 0.00 116,800,000.00 A3C 93,500,000.00 93,500,000.00 0.00 276,876.88 276,876.88 0.00 0.00 93,500,000.00 A3D 120,000,000.00 120,000,000.00 1,344,680.81 321,616.67 1,666,297.48 0.00 0.00 118,655,319.19 M1 62,700,000.00 62,700,000.00 0.00 189,275.63 189,275.63 0.00 0.00 62,700,000.00 M2 61,600,000.00 61,600,000.00 0.00 188,709.89 188,709.89 0.00 0.00 61,600,000.00 M3 33,000,000.00 33,000,000.00 0.00 102,781.25 102,781.25 0.00 0.00 33,000,000.00 M4 33,000,000.00 33,000,000.00 0.00 117,539.58 117,539.58 0.00 0.00 33,000,000.00 M5 29,700,000.00 29,700,000.00 0.00 109,580.63 109,580.63 0.00 0.00 29,700,000.00 M6 24,200,000.00 24,200,000.00 0.00 97,018.47 97,018.47 0.00 0.00 24,200,000.00 B1 23,100,000.00 23,100,000.00 0.00 105,891.04 105,891.04 0.00 0.00 23,100,000.00 B2 22,000,000.00 22,000,000.00 0.00 103,659.72 103,659.72 0.00 0.00 22,000,000.00 B3 22,000,000.00 22,000,000.00 0.00 147,231.94 147,231.94 0.00 0.00 22,000,000.00 B4 7,700,000.00 7,700,000.00 0.00 51,531.18 51,531.18 0.00 0.00 7,700,000.00 R 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTALS 2,156,000,000.00 2,156,000,000.00 13,983,880.25 6,138,313.48 20,122,193.73 0.00 0.00 2,142,016,119.75 C 2,199,995,276.96 2,199,995,276.96 0.00 4,976,687.22 4,976,687.22 0.00 0.00 2,186,016,119.74 ---------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- FACTOR INFORMATION PER $1,000 OF ORIGINAL FACE -------------------------------------------------------------------------------------------------------------------------------- BEGINNING ENDING CURRENT CLASS CUSIP PRINCIPAL PRINCIPAL INTEREST TOTAL PRINCIPAL CLASS PASS-THROUGH RATE ------------------------------------------------------------------------------------------------------------------------------ A1A 66987XFF7 1,000.00000000 5.92455156 2.68013889 8.60469045 994.07544844 A1A 2.097500 % A1B 66987XFG5 1,000.00000000 0.00000000 3.01875000 3.01875000 1,000.00000000 A1B 2.362500 % A2A 66987XFH3 1,000.00000000 8.52855940 2.66736110 11.19592050 991.47144060 A2A 2.087500 % A2B 66987XFJ9 1,000.00000000 0.00000000 2.92291650 2.92291650 1,000.00000000 A2B 2.287500 % A3A 66987XFK6 1,000.00000000 21.16153781 2.50125002 23.66278783 978.83846219 A3A 1.957500 % A3B 66987XFL4 1,000.00000000 0.00000000 2.66736113 2.66736113 1,000.00000000 A3B 2.087500 % A3C 66987XFM2 1,000.00000000 0.00000000 2.96125005 2.96125005 1,000.00000000 A3C 2.317500 % A3D 66987XFN0 1,000.00000000 11.20567342 2.68013892 13.88581233 988.79432658 A3D 2.097500 % M1 66987XFP5 1,000.00000000 0.00000000 3.01875008 3.01875008 1,000.00000000 M1 2.362500 % M2 66987XFQ3 1,000.00000000 0.00000000 3.06347224 3.06347224 1,000.00000000 M2 2.397500 % M3 66987XFR1 1,000.00000000 0.00000000 3.11458333 3.11458333 1,000.00000000 M3 2.437500 % M4 66987XFS9 1,000.00000000 0.00000000 3.56180545 3.56180545 1,000.00000000 M4 2.787500 % M5 66987XFT7 1,000.00000000 0.00000000 3.68958350 3.68958350 1,000.00000000 M5 2.887500 % M6 66987XFU4 1,000.00000000 0.00000000 4.00902769 4.00902769 1,000.00000000 M6 3.137500 % B1 66987XFV2 1,000.00000000 0.00000000 4.58402771 4.58402771 1,000.00000000 B1 3.587500 % B2 66987XFW0 1,000.00000000 0.00000000 4.71180545 4.71180545 1,000.00000000 B2 3.687500 % B3 66987XFX8 1,000.00000000 0.00000000 6.69236091 6.69236091 1,000.00000000 B3 5.237500 % B4 66987XFY6 1,000.00000000 0.00000000 6.69236104 6.69236104 1,000.00000000 B4 5.237500 % TOTALS 1,000.00000000 6.48602980 2.84708417 9.33311397 993.51397020 C 66987WBM8 1,000.00000000 0.00000000 2.26213541 2.26213541 993.64582399 C 0.000000 % -------------------------------------------------------------------------------------------------------------------------------- IF THERE ARE ANY QUESTIONS OR PROBLEMS WITH THIS STATEMENT, PLEASE CONTACT THE ADMINISTRATOR LISTED BELOW: STANISLAV PERTSEV JPMorgan Chase Bank - Structured Finance Services NY 4 NEW YORK PLAZA FLR 6, SBS-ABS 6/ 4NYP, New York, New York 10004 Tel: (212) 623-5379 Fax: (212) 623-5933 Email: STANISLAV.PERTSEV@JPMORGAN.COM REMIC Available Funds - Group I 13,000,223.78 REMIC Available Funds - Group II 3,151,292.65 REMIC Available Funds - Group III 10,421,436.47 Sec. 4.03 Principal Group I Scheduled Principal 931,724.92 Group I Prepayments in Full 4,739,473.68 Group I Curtailments 251,351.95 Group I Net Liquidation Proceeds 0.00 Group I Realized Losses 0.00 Group II Scheduled Principal 132,115.16 Group II Prepayments in Full 1,552,849.71 Group II Curtailments 20,170.91 Group II Net Liquidation Proceeds 0.00 Group II Realized Losses 0.00 Group III Scheduled Principal 391,980.77 Group III Prepayments in Full 5,915,147.12 Group III Curtailments 44,343.00 Group III Net Liquidation Proceeds 0.00 Group III Realized Losses 0.00 Total Scheduled Principal 1,455,820.85 Total Prepayments in Full 12,207,470.51 Total Curtailments 315,865.86 Total Net Liquidation Proceeds 0.00 Total Realized Losses 0.00 Sec. 4.03(a)(i) Distributions of Principal Class A-1A 5,924,551.56 Class A-1B 0.00 Class A-2A 1,705,711.88 Class A-2B 0.00 Class A-3A 5,008,936.00 Class A-3B 0.00 Class A-3C 0.00 Class A-3D 1,344,680.81 Class M-1 0.00 Class M-4 0.00 Class M-5 0.00 Class M-6 0.00 Class M-2 0.00 Class M-3 0.00 Class B-1 0.00 Class B-2 0.00 Class B-3 0.00 Class B-4 0.00 Sec. 4.03(a)(ii) Distributions of Interest Class A-1A 2,680,138.89 Class A-1B 150,937.50 Class A-2A 533,472.22 Class A-2b 58,458.33 Class A-3A 592,045.88 Class A-3B 311,547.78 Class A-3C 276,876.88 Class A-3D 321,616.67 Class M-1 189,275.63 Class M-2 188,709.89 Class M-3 102,781.25 Class M-4 117,539.58 Class M-5 109,580.63 Class M-6 97,018.47 Class B-1 105,891.04 Class B-2 103,659.72 Class B-3 147,231.94 Class B-4 51,531.18 Sec. 4.03(a)(iii) Pool Balances Group I Beginning Pool Balance 1,257,497,446.25 Group I Ending Pool Balance 1,251,574,895.70 Group II Beginning Pool Balance 263,499,635.20 Group II Ending Pool Balance 261,794,499.42 Group III Beginning Pool Balance 678,998,195.51 Group III Ending Pool Balance 672,646,724.62 Total Beginning Pool Balance 2,199,995,276.96 Total Ending Pool Balance 2,186,016,119.74 Sec. 4.03(a)(iv) Mortgage Loan Information as of Determination Date Number of Mortgage Loans 15,207 Aggregate Principal Balance of Mortgage Loans 2,186,016,119.74 Beginning Weighted Average Mortgage Rate 7.7829 % Number of Subsequent Mortgage Loans Added during Prepayment Period 0 Balance of Subsequent Mortgage Loans Added during Prepayment Period 0.00 Balance of Pre-Funding Account 0.00 Section 4.03(a)(v) A Loans Delinquent Contractual Delinquency - Group I Balance of 0-30 Days 1,244,282,489.45 Number of 0-30 Days 9,066 Balance of 30-59 Days 5,146,771.26 Number of 30-59 Days 39 Balance of 60-89 Days 604,749.75 Number of 60-89 Days 4 Balance of 90+ Days 0.00 Number of 90+ Days 0 Contractual Bankrutpcy - Group I Balance of 0-30 Days 1,068,527.03 Number of 0-30 Days 11 Balance of 30-59 Days 0.00 Number of 30-59 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Legal Delinquency - Group I Balance of 0-30 Days 1,244,282,489.45 Number of 0-30 Days 9,066 Balance of 30-59 Days 5,146,771.26 Number of 30-59 Days 39 Balance of 60-89 Days 604,749.75 Number of 60-89 Days 4 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Legal Bankruptcy - Group I Balance of 0-30 Days 1,068,527.03 Number of 0-30 Days 11 Balance of 30-59 Days 0.00 Number of 30-59 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Sec. 4.03 (a)(v) B Loans in Foreclosure - Group I Balance of 0-30 Days 84,774.16 Number of 0-30 Days 1 Balance of 30-59 Days 152,772.42 Number of 30-59 Days 1 Balance of 60-89 Days 234,811.63 Number of 60-89 Days 2 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Contractual Delinquency - Group II Balance of 0-30 Days 261,352,851.06 Number of 0-30 Days 1,720 Balance of 30-59 Days 353,807.70 Number of 30-59 Days 3 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Contractual Bankrutpcy - Group II Balance of 0-30 Days 0.00 Number of 0-30 Days 0 Balance of 30-59 Days 0.00 Number of 30-59 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Legal Delinquency - Group II Balance of 0-30 Days 261,352,851.06 Number of 0-30 Days 1,720 Balance of 30-59 Days 353,807.70 Number of 30-59 Days 3 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Legal Bankruptcy - Group II Balance of 0-30 Days 0.00 Number of 0-30 Days 0 Balance of 30-59 Days 0.00 Number of 30-59 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Sec. 4.03 (a)(v) B Loans in Foreclosure - Group II 0.00 Balance of 0-30 Days 0.00 Number of 0-30 Days 0 Balance of 30-59 Days 87,840.66 Number of 30-59 Days 1 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Contractual Delinquency - Group III Balance of 0-30 Days 669,066,466.67 Number of 0-30 Days 4,335 Balance of 30-59 Days 2,623,532.65 Number of 30-59 Days 16 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Contractual Bankrutpcy - Group III Balance of 0-30 Days 504,426.73 Number of 0-30 Days 5 Balance of 30-59 Days 0.00 Number of 30-59 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Legal Delinquency - Group III Balance of 0-30 Days 669,066,466.67 Number of 0-30 Days 4,335 Balance of 30-59 Days 2,623,532.65 Number of 30-59 Days 16 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Legal Bankruptcy - Group III 0.00 Balance of 0-30 Days 504,426.73 Number of 0-30 Days 5 Balance of 30-59 Days 0.00 Number of 30-59 Days 0 Balance of 60-89 Days 0.00 Number of 60-89 Days 0 Balance of 90+ Days 0.00 Number of 90+ Days 0 Sec. 4.03 (a)(v) B Loans in Foreclosure - Group III Balance of 0-30 Days 0.00 Number of 0-30 Days 0 Balance of 30-59 Days 336,743.87 Number of 30-59 Days 1 Balance of 60-89 Days 115,554.70 Number of 60-89 Days 2 Balance of 90+ Days 0.00 Number of 90+ Days 0 Sec. 4.03(a)(v) C Loans in REO Group 1 Principal Number Balance Percentage 0 0.00 0.00 % Group 2 Principal Number Balance Percentage 0 0.00 0.00 % Group 3 Principal Number Balance Percentage 0 0.00 0.00 % Sec. 4.03(a)(vi) Principal Prepayments Group I Prepayments 4,739,473.68 Group II Prepayments 1,552,849.71 Group III Prepayments 5,915,147.12 Sec. 4.03 (a)(vii) Realized Losses Group I Liquidated Loan Balance 0.00 Group I Net Liquidation Proceeds 0.00 Group I Current Period Realized Losses 0.00 Group I Recoveries of Prior Losses 0.00 Group I Subsequent Losses 0.00 Group I Cumulative Liquidated Loan Balance 0.00 Group I Cumulative Net Liquidation Proceeds 0.00 Group I Cumulative Recoveries of Prior Losses 0.00 Group I Cumulative Subsequent Losses 0.00 Group I Cumulative Realized Losses 0.00 Group II Liquidated Loan Balance 0.00 Group II Net Liquidation Proceeds 0.00 Group II Current Period Realized Losses 0.00 Group II Recoveries of Prior Losses 0.00 Group II Subsequent Losses 0.00 Group II Cumulative Liquidated Loan Balance 0.00 Group II Cumulative Net Liquidation Proceeds 0.00 Group II Cumulative Recoveries of Prior Losses 0.00 Group II Cumulative Subsequent Losses 0.00 Group II Cumulative Realized Losses 0.00 Group III Liquidated Loan Balance 0.00 Group III Net Liquidation Proceeds 0.00 Group III Current Period Realized Losses 0.00 Group III Recoveries of Prior Losses 0.00 Group III Subsequent Losses 0.00 Group III Cumulative Liquidated Loan Balance 0.00 Group III Cumulative Net Liquidation Proceeds 0.00 Group III Cumulative Recoveries of Prior Losses 0.00 Group III Cumulative Subsequent Losses 0.00 Group III Cumulative Realized Losses 0.00 Total Liquidated Loan Balance 0.00 Total Net Liquidation Proceeds 0.00 Total Current Period Realized Losses 0.00 Total Recoveries of Prior Losses 0.00 Total Subsequent Losses 0.00 Total Cumulative Liquidated Loan Balance 0.00 Total Cumulative Net Liquidation Proceeds 0.00 Total Cumulative Recoveries of Prior Losses 0.00 Total Cumulative Subsequent Losses 0.00 Total Cumulative Realized Losses 0.00 Sec. 4.03 (a)(ix) Unpaid Interest Shortfall Amounts Unpaid Interest Shortfall - A-1A 0.00 Unpaid Interest Shortfall - A-1B 0.00 Unpaid Interest Shortfall - A-2A 0.00 Unpaid Interest Shortfall - A-2B 0.00 Unpaid Interest Shortfall - A-3A 0.00 Unpaid Interest Shortfall - A-3B 0.00 Unpaid Interest Shortfall - A-3C 0.00 Unpaid Interest Shortfall - A-3D 0.00 Unpaid Interest Shortfall - M-1 0.00 Unpaid Interest Shortfall - M-2 0.00 Unpaid Interest Shortfall - M-3 0.00 Unpaid Interest Shortfall - M-4 0.00 Unpaid Interest Shortfall - M-5 0.00 Unpaid Interest Shortfall - M-6 0.00 Unpaid Interest Shortfall - B-1 0.00 Unpaid Interest Shortfall - B-2 0.00 Unpaid Interest Shortfall - B-3 0.00 Unpaid Interest Shortfall - B-4 0.00 Sec. 4.03 (a)(x) Prepayment Interest Shortfalls not covered by the Servicer 0.00 Sec. 4.03 (a)(xi) Credit Enhancement Percentage 16.50 % Sec. 4.03 (a)(xii) Available Funds Cap Carryforward Amount Available Funds Cap Carryforward Amount - A-1A 0.00 Available Funds Cap Carryforward Amount - A-1B 0.00 Available Funds Cap Carryforward Amount - A-2A 0.00 Available Funds Cap Carryforward Amount - A-2B 0.00 Available Funds Cap Carryforward Amount - A-3A 0.00 Available Funds Cap Carryforward Amount - A-3B 0.00 Available Funds Cap Carryforward Amount - A-3C 0.00 Available Funds Cap Carryforward Amount - A-3D 0.00 Available Funds Cap Carryforward Amount - M-1 0.00 Available Funds Cap Carryforward Amount - M-2 0.00 Available Funds Cap Carryforward Amount - M-3 0.00 Available Funds Cap Carryforward Amount - M-4 0.00 Available Funds Cap Carryforward Amount - M-5 0.00 Available Funds Cap Carryforward Amount - M-6 0.00 Available Funds Cap Carryforward Amount - B-1 0.00 Available Funds Cap Carryforward Amount - B-2 0.00 Available Funds Cap Carryforward Amount - B-3 0.00 Available Funds Cap Carryforward Amount - B-4 0.00 Remaining Available Funds Cap Carryforward Amount - A-1A 0.00 Remaining Available Funds Cap Carryforward Amount - A-1B 0.00 Remaining Available Funds Cap Carryforward Amount - A-2A 0.00 Remaining Available Funds Cap Carryforward Amount - A-2B 0.00 Remaining Available Funds Cap Carryforward Amount - A-3A 0.00 Remaining Available Funds Cap Carryforward Amount - A-3B 0.00 Remaining Available Funds Cap Carryforward Amount - A-3C 0.00 Remaining Available Funds Cap Carryforward Amount - A-3D 0.00 Remaining Available Funds Cap Carryforward Amount - M-1 0.00 Remaining Available Funds Cap Carryforward Amount - M-2 0.00 Remaining Available Funds Cap Carryforward Amount - M-3 0.00 Remaining Available Funds Cap Carryforward Amount - M-4 0.00 Remaining Available Funds Cap Carryforward Amount - M-5 0.00 Remaining Available Funds Cap Carryforward Amount - M-6 0.00 Remaining Available Funds Cap Carryforward Amount - B-1 0.00 Remaining Available Funds Cap Carryforward Amount - B-2 0.00 Remaining Available Funds Cap Carryforward Amount - B-3 0.00 Remaining Available Funds Cap Carryforward Amount - B-4 0.00 Sec. 4.03 (a)(xiii) REMIC Pass-Through Rates REMIC Pass-Through Rate - A-1A 2.0975 % REMIC Pass-Through Rate - A-1B 2.3625 % REMIC Pass-Through Rate - A-2A 2.0875 % REMIC Pass-Through Rate - A-2B 2.2875 % REMIC Pass-Through Rate - A-3A 1.9575 % REMIC Pass-Through Rate - A-3B 2.0875 % REMIC Pass-Through Rate - A-3C 2.3175 % REMIC Pass-Through Rate - A-3D 2.0975 % REMIC Pass-Through Rate - M-1 2.3625 % REMIC Pass-Through Rate - M-2 2.3975 % REMIC Pass-Through Rate - M-3 2.4375 % REMIC Pass-Through Rate - M-4 2.7875 % REMIC Pass-Through Rate - M-5 2.8875 % REMIC Pass-Through Rate - M-6 3.1375 % REMIC Pass-Through Rate - B-1 3.5875 % REMIC Pass-Through Rate - B-2 3.6875 % REMIC Pass-Through Rate - B-3 5.2375 % REMIC Pass-Through Rate - B-4 5.2375 % Next REMIC Pass-Through Rate - A-1A 2.2925 % Next REMIC Pass-Through Rate - A-1B 2.5575 % Next REMIC Pass-Through Rate - A-2A 2.2825 % Next REMIC Pass-Through Rate - A-2B 2.4825 % Next REMIC Pass-Through Rate - A-3A 2.1525 % Next REMIC Pass-Through Rate - A-3B 2.2825 % Next REMIC Pass-Through Rate - A-3C 2.5125 % Next REMIC Pass-Through Rate - A-3D 2.2925 % Next REMIC Pass-Through Rate - M-1 2.5575 % Next REMIC Pass-Through Rate - M-2 2.5925 % Next REMIC Pass-Through Rate - M-3 2.6325 % Next REMIC Pass-Through Rate - M-4 2.9825 % Next REMIC Pass-Through Rate - M-5 3.0825 % Next REMIC Pass-Through Rate - M-6 3.3325 % Next REMIC Pass-Through Rate - B-1 3.7825 % Next REMIC Pass-Through Rate - B-2 3.8825 % Next REMIC Pass-Through Rate - B-3 5.4325 % Next REMIC Pass-Through Rate - B-3 5.4325 % Sec. 4.03 (a)(xiv) Supplemental Interest Payment Supplemental Interest Payment - A-1A 0.00 Supplemental Interest Payment - A-1B 0.00 Supplemental Interest Payment - A-2A 0.00 Supplemental Interest Payment - A-2B 0.00 Supplemental Interest Payment - A-3A 0.00 Supplemental Interest Payment - A-3B 0.00 Supplemental Interest Payment - A-3C 0.00 Supplemental Interest Payment - A-3D 0.00 Supplemental Interest Payment - M-1 0.00 Supplemental Interest Payment - M-2 0.00 Supplemental Interest Payment - M-3 0.00 Supplemental Interest Payment - M-4 0.00 Supplemental Interest Payment - M-5 0.00 Supplemental Interest Payment - M-6 0.00 Supplemental Interest Payment - B-1 0.00 Supplemental Interest Payment - B-2 0.00 Supplemental Interest Payment - B-3 0.00 Supplemental Interest Payment - B-4 0.00 Sec. 4.03 (a)(xv) Swap Notional Amount and the Underwritten Certificates Principal Balance Underwritten Certificates Principal Balance 2,142,016,119.75 Swap Notional Amount 1,315,000,000.00 Difference 827,016,119.75 Funds paid to Swap Counterparty 1,464,599.31 Sec. 4.03 (a)(xvi) Overcollateralization Amounts Required Overcollateralization Amount 43,999,999.99 Overcollateralization Amount 43,999,999.99 Sec. 4.03 (a)(xvii) Excess Cashflow 0.00 Sec. 4.03 (a)(xxiii) Mortgage Insurance MI Premiums 842,575.38 Insurance Proceeds 0.00 Copyright 2001 J.P. Morgan Chase & Co. All rights reserved.

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) September 9, 2004

NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2004-3

(Issuer with respect to Certificates)

NOVASTAR MORTGAGE FUNDING CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		333-114297		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

(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))

Item 2.01. Completion of Acquisition or Disposition of Assets.

NovaStar Mortgage Funding Corporation registered issuances of up to $8,000,000,000 principal amount of Asset-Backed 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 No. 333-114297) (the “Registration Statement”). Pursuant to the Registration Statement, NovaStar Mortgage Funding Trust, Series 2004-3, issued on September 9, 2004, $2,156,000,000 in aggregate principal amount of its Home Equity Loan Asset-Backed Certificates, Series 2004-3, Class A-1A, Class A-1B, Class A-2A, Class A-2B, Class A-3A, Class A-3B, Class A-3C, Class A-3D, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4, Class C and Class I (the “Certificates”).

The Certificates were issued pursuant to a Pooling and Servicing Agreement, dated as of September 1, 2004 (the “Agreement”) attached hereto as Exhibit 4.1, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as servicer (the “Servicer”) and as seller (the “Seller”), Wachovia Bank, National Association, as custodian (the “Custodian”) and JPMorgan Chase Bank, as trustee (the “Trustee”). The Certificates represent beneficial ownership interests in a pool of mortgage related loans and certain related property.

As of September 9, 2004, the mortgage loans possessed the characteristics described in the Prospectus, dated April 16, 2004, and the Prospectus Supplement, dated September 1, 2004, filed pursuant to Rule 424(b)(5) of the Act on September 3, 2004.

Item 8.01 - Other Events.

• Copies of the opinions of Dewey Ballantine LLP are being filed as Exhibits 5.1 and 8.1 to this Current Report on Form 8-K.

• Consent of Dewey Ballantine LLP

Item 9.01 - Financial Statements and Exhibits:

(a) Financial Statements of Business Acquired: None

(b) Pro Forma Financial Information: None

1.1 Underwriting Agreement, dated as of September 1, 2004, between NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Financial, Inc. and Greenwich Capital Markets, Inc. (“GCM”), Wachovia Capital Markets, LLC (“Wachovia”), Deutsche Bank Securities Inc. (“Deutsche Bank”) and Morgan Stanley & Co. Incorporated (“Morgan Stanley”) and together with GCM, Wachovia and Deutsche Bank, the “Underwriters”).

4.1 Pooling and Servicing Agreement, dated as of September 1, 2004, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as servicer and as seller, the Custodian, and the Trustee.

5.1 Opinion of Dewey Ballantine LLP with respect to legality.

8.1 Opinion of Dewey Ballantine LLP with respect to tax matters.

8.2 Opinion of Dewey Ballantine LLP, dated September 9, 2004, with respect to certain tax matters.

10.1 Mortgage Loan Purchase Agreement, dated as of September 1, 2004, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as seller, the Custodian, and the Trustee.

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: September 9, 2004

NOVASTAR MORTGAGE FUNDING CORPORATION, By: /s/ Matt Kaltenrieder Matt Kaltenrieder Vice President

Exhibit Index

Exhibit No.		Description
Exhibit 1.1		Underwriting Agreement, dated as of September 1, 2004, between NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Financial, Inc. and Greenwich Capital Markets, Inc. (“GCM”), Wachovia Capital Markets, LLC (“Wachovia”), Deutsche Bank Securities Inc. (“Deutsche Bank”) and Morgan Stanley & Co. Incorporated (“Morgan Stanley”) and together with GCM, Wachovia and Deutsche Bank, the “Underwriters”).
Exhibit 4.1		Pooling and Servicing Agreement, dated as of September 1, 2004, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as servicer and as seller, the Custodian, and the Trustee.
Exhibit 5.1		Opinion of Dewey Ballantine LLP with respect to legality.
Exhibit 8.1		Opinion of Dewey Ballantine LLP with respect to tax matters.
Exhibit 8.2		Opinion of Dewey Ballantine LLP, dated September 9, 2004, with respect to certain tax matters.
Exhibit 10.1		Mortgage Loan Purchase Agreement, dated as of September 1, 2004, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as seller, the Custodian, and the Trustee.

Filing Compare · NovaStar Mortgage Funding Trust, Series 2004-3