Warehouse USA - Non-Prime Warehouse Lender (NovaStar Subsidiary)

The following notice announcing cessation of operations was posted on Warehouse USA's web site a few days ago:

Effective March 30, 2007 WarehouseUSA Capital Corp. is no longer accepting applications for mortgage warehouse lines of credit. WarehouseUSA clients will receive official notice of the closure of their lines as required by their respective agreements. All new funding activity by WarehouseUSA under existing warehouse lending lines is expected to be concluded on or about April 27, 2007. The closure of the warehouse lending business will not impact direct mortgage loan funding by, or any other business of, any NovaStar entity.

Articles such as this one suggest the shutdown was to reduce NovaStar's exposure to other, potentially weaker lenders.

If you want an idea of what the unit did in specific, these "Benefits" posted to the home page are rather illustrative:

With any of the WarehouseUSA warehouse line programs, you'll enjoy the following advantages:

• Close and fund in your name
• 100% of your line may be used for non-prime and Alt-A loans
• Line available for most all residential loan types up to 100% CLTV
• Online access to all loan info in warehouse and over 50 different reports