8-K 1 novastar2_jun05.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) June 27, 2005 NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2005-2 (Issuer with respect to Certificates) NOVASTAR MORTGAGE FUNDING CORPORATION (Exact name of registrant as specified in its charter) Delaware 333-121066-02 48-1195807 (State or Other (Commission File Number) (I.R.S. Employer Jurisdiction of Identification No.) Incorporation) 1901 W. 47th Place, Suite 105 Westwood, Kansas 66205 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (913) 514-3500 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 2005-2, pursuant to a Pooling and Servicing Agreement, dated as of May 1, 2005, 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 and successor servicer. On June 27, 2005 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 June 27, 2005 as Exhibit 99.1. 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. NOVASTAR MORTGAGE FUNDING CORPORATION NovaStar Mortgage Funding Trust, Series 2005-2 By: JPMorgan Chase Bank, N.A., Trustee /s/ Andrew Cooper ----------------------------- Andrew Cooper Assistant Vice President Dated: July 8, 2005 INDEX TO EXHIBITS Exhibit Number Description of Exhibits 99.1 Statement to Certificateholders Exhibit 99.1 NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2005-2 STATEMENT TO CERTIFICATEHOLDERS June 27, 2005 ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTION IN DOLLARS ---------------------------------------------------------------------------------------------------------------------------------- ORIGINAL BEGINNING ENDING FACE PRINCIPAL REALIZED DEFERRED PRINCIPAL CLASS VALUE BALANCE PRINCIPAL INTEREST TOTAL LOSSES INTEREST BALANCE ---------------------------------------------------------------------------------------------------------------------------------- A1A 781,000,000.00 781,000,000.00 1,331,483.63 2,233,215.91 3,564,699.54 0.00 0.00 779,668,516.37 A1B 195,300,000.00 195,300,000.00 332,956.15 566,855.70 899,811.85 0.00 0.00 194,967,043.85 A2A 206,300,000.00 206,300,000.00 1,154,788.70 565,030.08 1,719,818.78 0.00 0.00 205,145,211.30 A2B 148,500,000.00 148,500,000.00 0.00 414,395.56 414,395.56 0.00 0.00 148,500,000.00 A2C 103,000,000.00 103,000,000.00 0.00 292,747.54 292,747.54 0.00 0.00 103,000,000.00 A2D 59,000,000.00 59,000,000.00 0.00 175,819.23 175,819.23 0.00 0.00 59,000,000.00 M1 89,100,000.00 89,100,000.00 0.00 270,120.34 270,120.34 0.00 0.00 89,100,000.00 M2 34,200,000.00 34,200,000.00 0.00 104,271.55 104,271.55 0.00 0.00 34,200,000.00 M3 27,000,000.00 27,000,000.00 0.00 83,017.15 83,017.15 0.00 0.00 27,000,000.00 M4 33,300,000.00 33,300,000.00 0.00 106,115.57 106,115.57 0.00 0.00 33,300,000.00 M5 24,300,000.00 24,300,000.00 0.00 78,063.43 78,063.43 0.00 0.00 24,300,000.00 M6 13,500,000.00 13,500,000.00 0.00 43,949.82 43,949.82 0.00 0.00 13,500,000.00 M7 13,500,000.00 13,500,000.00 0.00 44,975.57 44,975.57 0.00 0.00 13,500,000.00 M8 13,500,000.00 13,500,000.00 0.00 44,975.57 44,975.57 0.00 0.00 13,500,000.00 M9 13,500,000.00 13,500,000.00 0.00 44,975.57 44,975.57 0.00 0.00 13,500,000.00 M10 18,000,000.00 18,000,000.00 0.00 59,967.42 59,967.42 0.00 0.00 18,000,000.00 M11 18,000,000.00 18,000,000.00 0.00 59,967.42 59,967.42 0.00 0.00 18,000,000.00 C 9,000,000.00 9,000,000.00 0.00 16,403.21 16,403.21 0.00 0.00 9,000,000.00 R 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTALS 1,800,000,000.00 1,800,000,000.00 2,819,228.48 5,204,866.64 8,024,095.12 0.00 0.00 1,797,180,771.52 ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- FACTOR INFORMATION PER $1,000 OF ORIGINAL FACE ---------------------------------------------------------------------------------------------------------------------------------- BEGINNING ENDING CURRENT CLASS CUSIP PRINCIPAL PRINCIPAL INTEREST TOTAL PRINCIPAL CLASS PASS-THROUGH RATE ---------------------------------------------------------------------------------------------------------------------------------- A1A 66987WCF2 1,000.00000000 1.70484460 2.85943138 4.56427598 998.29515540 A1A 3.320630 % A1B 66987WCG0 1,000.00000000 1.70484460 2.90248694 4.60733154 998.29515540 A1B 3.370630 % A2A 66987WCH8 1,000.00000000 5.59761852 2.73887581 8.33649433 994.40238148 A2A 3.180630 % A2B 66987WCJ4 1,000.00000000 0.00000000 2.79054249 2.79054249 1,000.00000000 A2B 3.240630 % A2C 66987WCK1 1,000.00000000 0.00000000 2.84220913 2.84220913 1,000.00000000 A2C 3.300630 % A2D 66987WCL9 1,000.00000000 0.00000000 2.97998695 2.97998695 1,000.00000000 A2D 3.460630 % M1 66987WCM7 1,000.00000000 0.00000000 3.03165365 3.03165365 1,000.00000000 M1 3.520630 % M2 66987WCN5 1,000.00000000 0.00000000 3.04887573 3.04887573 1,000.00000000 M2 3.540630 % M3 66987WCP0 1,000.00000000 0.00000000 3.07470926 3.07470926 1,000.00000000 M3 3.570630 % M4 66987WCQ8 1,000.00000000 0.00000000 3.18665375 3.18665375 1,000.00000000 M4 3.700630 % M5 66987WCR6 1,000.00000000 0.00000000 3.21248683 3.21248683 1,000.00000000 M5 3.730630 % M6 66987WCS4 1,000.00000000 0.00000000 3.25554222 3.25554222 1,000.00000000 M6 3.780630 % M7 66987WCT2 1,000.00000000 0.00000000 3.33152370 3.33152370 1,000.00000000 M7 3.868866 % M8 66987WCU9 1,000.00000000 0.00000000 3.33152370 3.33152370 1,000.00000000 M8 3.868866 % M9 66987WCV7 1,000.00000000 0.00000000 3.33152370 3.33152370 1,000.00000000 M9 3.868866 % M10 66987WCW5 1,000.00000000 0.00000000 3.33152333 3.33152333 1,000.00000000 M10 3.868866 % M11 66987WCX3 1,000.00000000 0.00000000 3.33152333 3.33152333 1,000.00000000 M11 3.868866 % C 66987WCZ8 1,000.00000000 0.00000000 1.82257889 1.82257889 1,000.00000000 C 0.000000 % TOTALS 1,000.00000000 1.56623804 2.89159258 4.45783062 998.43376196 ----------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- IF THERE ARE ANY QUESTIONS OR PROBLEMS WITH THIS STATEMENT, PLEASE CONTACT THE ADMINISTRATOR LISTED BELOW: Ariella Kaminer JPMorgan Chase Bank, N.A. - Structured Finance Services 4 New York Plaza, Floor 6, New York, New York 10004 Tel: (212) 623-5439 Email: ariella.x.kaminer@jpmchase.com REMIC Available Funds - Group I 5,313,567.09 REMIC Available Funds - Group II 3,114,969.93 Sec. 4.03 Principal Group I Scheduled Principal 421,270.23 Group I Prepayments in Full 1,209,774.89 Group I Curtailments 33,394.66 Group I Net Liquidation Proceeds 0.00 Group I Realized Losses 0.00 Group II Scheduled Principal 197,738.00 Group II Prepayments in Full 885,241.19 Group II Curtailments 71,809.51 Group II Net Liquidation Proceeds 0.00 Group II Realized Losses 0.00 Total Scheduled Principal 619,008.23 Total Prepayments in Full 2,095,016.08 Total Curtailments 105,204.17 Total Net Liquidation Proceeds 0.00 Total Realized Losses 0.00 Sec. 4.03(a)(i) Distributions of Principal Class A-1A 1,331,483.63 Class A-1B 332,956.15 Class A-2A 1,154,788.70 Class A-2B 0.00 Class A-2C 0.00 Class A-2D 0.00 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 M7 0.00 Class M8 0.00 Class M9 0.00 Class M10 0.00 Class M11 0.00 Sec. 4.03(a)(ii) Distributions of Interest Class A-1A 2,233,215.91 Class A-1B 566,855.70 Class A-2A 565,030.08 Class A-2b 414,395.56 Class A-2C 292,747.54 Class A-2D 175,819.23 Class M-1 270,120.34 Class M-2 104,271.55 Class M-3 83,017.15 Class M-4 106,115.57 Class M-5 78,063.43 Class M-6 43,949.82 Class M7 44,975.57 Class M8 44,975.57 Class M9 44,975.57 Class M10 59,967.42 Class M11 59,967.42 Sec. 4.03(a)(iii) Pool Balances Group I Beginning Pool Balance 616,379,397.95 Group I Ending Pool Balance 614,714,958.63 Group II Beginning Pool Balance 350,998,990.79 Group II Ending Pool Balance 349,844,202.12 Total Beginning Pool Balance 967,378,388.74 Total Ending Pool Balance 964,559,160.75 Sec. 4.03(a)(iv) Mortgage Loan Information as of Determination Date Number of Mortgage Loans 6,262 Aggregate Principal Balance of Mortgage Loans 964,559,160.75 Beginning Weighted Average Mortgage Rate 7.7328 % 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 832,621,611.26 Section 4.03(a)(v) A Loans Delinquent Contractual Delinquency - Group I Balance of 0-30 Days 614,006,064.58 Number of 0-30 Days 4,487 Balance of 30-59 Days 691,468.23 Number of 30-59 Days 5 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 I Balance of 0-30 Days 0.00 Number of 0-30 Days 0 Balance of 30-59 Days 17,425.82 Number of 30-59 Days 1 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 614,006,064.58 Number of 0-30 Days 4,487 Balance of 30-59 Days 691,468.23 Number of 30-59 Days 5 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 Bankruptcy - Group I Balance of 0-30 Days 17,425.82 Number of 0-30 Days 1 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 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 60-89 Days 0.00 Number of 60-89 Days 0 Contractual Delinquency - Group II Balance of 0-30 Days 349,686,645.87 Number of 0-30 Days 1,768 Balance of 30-59 Days 157,556.25 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 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 349,686,645.87 Number of 0-30 Days 1,768 Balance of 30-59 Days 157,556.25 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 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 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) 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 % Sec. 4.03(a)(vi) Principal Prepayments Group I Prepayments 1,209,774.89 Group II Prepayments 885,241.19 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 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-2C 0.00 Unpaid Interest Shortfall - A-2D 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 - M7 0.00 Unpaid Interest Shortfall - M8 0.00 Unpaid Interest Shortfall - M9 0.00 Unpaid Interest Shortfall - M10 0.00 Unpaid Interest Shortfall - M11 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 17.05 % Sec. 4.03 (a)(xii) Available Funds Cap Carryforward Amount Current Period Available Funds Cap Carryforward Amount - A-1A 0.00 Current Period Available Funds Cap Carryforward Amount - A-1B 7,657.27 Current Period Available Funds Cap Carryforward Amount - A-2A 0.00 Current Period Available Funds Cap Carryforward Amount - A-2B 0.00 Current Period Available Funds Cap Carryforward Amount - A-2C 0.00 Current Period Available Funds Cap Carryforward Amount - A-2D 3,612.89 Current Period Available Funds Cap Carryforward Amount - M-1 13,291.36 Current Period Available Funds Cap Carryforward Amount - M-2 5,690.74 Current Period Available Funds Cap Carryforward Amount - M-3 5,190.19 Current Period Available Funds Cap Carryforward Amount - M-4 10,128.98 Current Period Available Funds Cap Carryforward Amount - M-5 8,019.17 Current Period Available Funds Cap Carryforward Amount - M-6 5,036.34 Current Period Available Funds Cap Carryforward Amount - M7 10,035.09 Current Period Available Funds Cap Carryforward Amount - M8 11,778.84 Current Period Available Funds Cap Carryforward Amount - M9 16,777.59 Current Period Available Funds Cap Carryforward Amount - M10 42,520.12 Current Period Available Funds Cap Carryforward Amount - M11 42,520.12 Available Funds Cap Carryforward Amount Repaid This Period- A-1A 0.00 Available Funds Cap Carryforward Amount Repaid This Period- A-1B 7,657.27 Available Funds Cap Carryforward Amount Repaid This Period- A-2A 0.00 Available Funds Cap Carryforward Amount Repaid This Period- A-2B 0.00 Available Funds Cap Carryforward Amount Repaid This Period- A-2C 0.00 Available Funds Cap Carryforward Amount Repaid This Period- A-2D 3,612.89 Available Funds Cap Carryforward Amount Repaid This Period- M-1 13,291.36 Available Funds Cap Carryforward Amount Repaid This Period- M-2 5,690.74 Available Funds Cap Carryforward Amount Repaid This Period- M-3 5,190.19 Available Funds Cap Carryforward Amount Repaid This Period- M-4 10,128.98 Available Funds Cap Carryforward Amount Repaid This Period- M-5 8,019.17 Available Funds Cap Carryforward Amount Repaid This Period- M-6 5,036.34 Available Funds Cap Carryforward Amount Repaid This Period- M7 6,062.08 Available Funds Cap Carryforward Amount Repaid This Period- M8 6,062.08 Available Funds Cap Carryforward Amount Repaid This Period- M9 6,062.08 Available Funds Cap Carryforward Amount Repaid This Period- M10 8,082.78 Available Funds Cap Carryforward Amount Repaid This Period- M11 8,082.78 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-2C 0.00 Remaining Available Funds Cap Carryforward Amount - A-2D 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 - M7 3,973.01 Remaining Available Funds Cap Carryforward Amount - M8 5,716.76 Remaining Available Funds Cap Carryforward Amount - M9 10,715.51 Remaining Available Funds Cap Carryforward Amount - M10 34,437.34 Remaining Available Funds Cap Carryforward Amount - M11 34,437.34 Sec. 4.03 (a)(xiii) REMIC Pass-Through Rates REMIC Pass-Through Rate - A-1A 3.3206 % REMIC Pass-Through Rate - A-1B 3.3706 % REMIC Pass-Through Rate - A-2A 3.1806 % REMIC Pass-Through Rate - A-2B 3.2406 % REMIC Pass-Through Rate - A-2C 3.3006 % REMIC Pass-Through Rate - A-2D 3.4606 % REMIC Pass-Through Rate - M-1 3.5206 % REMIC Pass-Through Rate - M-2 3.5406 % REMIC Pass-Through Rate - M-3 3.5706 % REMIC Pass-Through Rate - M-4 3.7006 % REMIC Pass-Through Rate - M-5 3.7306 % REMIC Pass-Through Rate - M-6 3.7806 % REMIC Pass-Through Rate - M7 3.8689 % REMIC Pass-Through Rate - M8 3.8689 % REMIC Pass-Through Rate - M9 3.8689 % REMIC Pass-Through Rate - M10 3.8689 % REMIC Pass-Through Rate - M11 3.8689 % Next REMIC Pass-Through Rate - A-1A 3.5444 % Next REMIC Pass-Through Rate - A-1B 3.5944 % Next REMIC Pass-Through Rate - A-2A 3.4044 % Next REMIC Pass-Through Rate - A-2B 3.4644 % Next REMIC Pass-Through Rate - A-2C 3.5244 % Next REMIC Pass-Through Rate - A-2D 3.6844 % Next REMIC Pass-Through Rate - M-1 3.7444 % Next REMIC Pass-Through Rate - M-2 3.7644 % Next REMIC Pass-Through Rate - M-3 3.7944 % Next REMIC Pass-Through Rate - M-4 3.9244 % Next REMIC Pass-Through Rate - M-5 3.9544 % Next REMIC Pass-Through Rate - M-6 4.0044 % Next REMIC Pass-Through Rate - M7 4.4344 % Next REMIC Pass-Through Rate - M8 4.5844 % Next REMIC Pass-Through Rate - M9 5.0144 % Next REMIC Pass-Through Rate - M10 6.3144 % Next REMIC Pass-Through Rate - M11 0.0000 % Sec. 4.03 (a)(xiv) Supplemental Interest Payment Supplemental Interest Payment - A-1A 0.00 Supplemental Interest Payment - A-1B 7,657.27 Supplemental Interest Payment - A-2A 0.00 Supplemental Interest Payment - A-2B 0.00 Supplemental Interest Payment - A-2C 0.00 Supplemental Interest Payment - A-2D 3,612.89 Supplemental Interest Payment - M-1 13,291.36 Supplemental Interest Payment - M-2 5,690.74 Supplemental Interest Payment - M-3 5,190.19 Supplemental Interest Payment - M-4 10,128.98 Supplemental Interest Payment - M-5 8,019.17 Supplemental Interest Payment - M-6 5,036.34 Supplemental Interest Payment - M7 6,062.08 Supplemental Interest Payment - M8 6,062.08 Supplemental Interest Payment - M9 6,062.08 Supplemental Interest Payment - M10 8,082.78 Supplemental Interest Payment - M11 8,082.78 Sec. 4.03 (a)(xv) Swap Notional Amount and the Underwritten Certificates Principal Balance Underwritten Certificates Principal Balance 1,788,180,771.52 Swap Notional Amount 725,000,000.00 Cap Notional Amount 320,000,000.00 Total Notional Amount 1,045,000,000.00 Difference 743,180,771.52 Funds paid to Swap Counterparty 332,487.50 Funds paid to Cap Counterparty 0.00 Sec. 4.03 (a)(xvi) Overcollateralization Amounts Required Overcollateralization Amount 9,000,000.00 Overcollateralization Amount 9,000,000.49 Sec. 4.03 (a)(xvii) Excess Cashflow 0.00 Sec. 4.03 (a)(xxiii) Mortgage Insurance MI Premiums 570,266.48 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) May 27, 2005

NOVASTAR MORTGAGE FUNDING TRUST, SERIES 2005-2

(Issuer with respect to Certificates)

NOVASTAR MORTGAGE FUNDING CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		333-121066-02		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 $12,000,000,000 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. 333-121066) (the “Registration Statement”). Pursuant to the Registration Statement, NovaStar Mortgage Funding Trust, Series 2005-2, issued on May 27, 2005, $1,791,000,000 in aggregate principal amount of its Home Equity Loan Asset-Backed Certificates, Series 2005-2, Class A-1A, Class A-1B, Class A-2A, Class A-2B, Class A-2C, Class A-2D, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10, Class M-11, Class C and Class I (the “Certificates”).

The Certificates were issued pursuant to a Pooling and Servicing Agreement, dated as of May 1, 2005 attached hereto as Exhibit 4.1, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as servicer and as seller, Wachovia Bank, National Association, as custodian, JPMorgan Chase Bank, National Association, as trustee, and J.P. Morgan Trust Company, National Association, as co-trustee. The Certificates represent beneficial ownership interests in a pool of mortgage related loans and certain related property.

As of May 27, 2005, the mortgage loans possessed the characteristics described in the Prospectus, dated December 27, 2004, and the Prospectus Supplement, dated May 24, 2005, filed pursuant to Rule 424(b)(5) of the Act on May 26, 2005.

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 (c) Exhibits:

1.1 Underwriting Agreement, dated as of May 24, 2005, between NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Financial, Inc. and Greenwich Capital Markets, Inc., Wachovia Capital Markets, LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. Incorporated.

4.1 Pooling and Servicing Agreement, dated as of May 1, 2005, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as servicer and as seller, the Custodian, the Trustee, and the Co-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 May 27, 2005, with respect to certain tax matters.

10.1 Mortgage Loan Purchase Agreement, dated as of May 1, 2005, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as seller, the Custodian, and the Trustee.

10.2 Novation Agreement, dated as of May 27, 2005 among Greenwich Capital Derivatives, Inc., NovaStar Financial, Inc., and NovaStar Mortgage Supplemental Interest Trust, Series 2005-2 (the “Supplemental Interest Trust”).

10.3 Master Agreement, dated May 27, 2005 between Greenwich Capital Derivatives, Inc. and the Supplemental Interest Trust.

10.4 Novation Agreement, dated as of May 27, 2005 among Wachovia Bank, National Association, NovaStar Mortgage, Inc. and the Supplemental Interest Trust.

10.5 Master Agreement, dated May 27, 2005 between Wachovia Bank, National Association and the Supplemental Interest Trust.

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: May 27, 2005

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 May 24, 2005, between NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Financial, Inc. and Greenwich Capital Markets, Inc., Wachovia Capital Markets, LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. Incorporated.
Exhibit 4.1		Pooling and Servicing Agreement, dated as of May 1, 2005, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as servicer and as seller, the Custodian, the Trustee, and the Co-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 May 27, 2005, with respect to certain tax matters.
Exhibit 10.1		Mortgage Loan Purchase Agreement, dated as of May 1, 2005, among NovaStar Mortgage Funding Corporation, NovaStar Mortgage, Inc., as seller, the Custodian and the Trustee.
Exhibit 10.2		Novation Agreement, dated as of May 27, 2005 among Greenwich Capital Derivatives, Inc., NovaStar Financial, Inc., and NovaStar Mortgage Supplemental Interest Trust, Series 2005-2 (the “Supplemental Interest Trust”).
Exhibit 10.3		Master Agreement, dated May 27, 2005 between Greenwich Capital Derivatives, Inc. and the Supplemental Interest Trust.

Exhibit 10.4		Novation Agreement, dated as of May 27, 2005 among Wachovia Bank, National Association, NovaStar Mortgage, Inc. and the Supplemental Interest Trust.
Exhibit 10.5		Master Agreement, dated May 27, 2005 between Wachovia Bank, National Association and the Supplemental Interest Trust.

Filing Compare · NovaStar Mortgage Funding Trust, Series 2005-2