Novastar Mortgage Funding Corp Watch

from 8-K 27 pages Novastar Mortgage, Inc. (The “Sponsor”), Novastar Mortgage Funding Corporation (The “Depositor”) and Novastar Financial, Inc. (“Nfi”) Hereby Confirm Their Agreement to Sell Certain Asset Backed Certificates to Greenwich Capital Markets, Inc. (“Gcm”), Wachovia Capital Markets, LLC (“Wachovia”) and Deutsche Bank Securities Inc. (“Deutsche Bank” And, Together With Gcm and Wachovia, the “Underwriters”) as Described Herein. the Certificates Will Represent Interests in the Assets of a Trust Consisting Primarily of a Pool of Residential, Subprime Mortgage Loans (The “Mortgage Loans”), Which Were Originated by the Sponsor, as Originator (In Such Capacity, the “Originator”) or Its Affiliate. Pursuant to a Pooling and Servicing Agreement Dated as of May 1, 2007 (The “Pooling and Servicing Agreement”) Among the Depositor, the Sponsor, U.S. Bank National Association, a National Banking Corporation (“U.S. Bank”), Not in Its Individual Capacity, but Solely as Custodian (The “Custodian”), Deutsche Bank National Trust Company, a National Banking Association, Not in Its Individual Capacity, but Solely as Trustee (The “Trustee”), Novastar Mortgage Funding Trust 2007-2, a Common Law Trust Acting Through the Trustee (The “Issuer” or the “Trust”), Will Issue the Securities, as Described Herein. All Capitalized Terms Used but Not Otherwise Defined Herein Have the Respective Meanings Set Forth in the Pooling and Servicing Agreement

from 8-K 3 pages Annex a Underwriting Class M-6 Certificates Underwriter Principal Amount Purchase Price Deutsche Bank Securities Inc. $19,833,000 95.156250% Class M-7 Certificates Underwriter Principal Amount Purchase Price Deutsche Bank Securities Inc. $21,721,000 92.2968750%

from 8-K 26 pages All Capitalized Terms Used but Not Otherwise Defined Herein Have the Respective Meanings Set Forth in the Pooling and Servicing Agreement

from 8-K 27 pages Underwriting Agreement

from 8-K 27 pages Underwriting Agreement

from 8-K 27 pages Underwriting Agreement

from 8-K 27 pages Greenwich Capital Markets, Inc. 600 Steamboat Road Greenwich, Connecticut 06830 Deutsche Bank Securities Inc. 60 Wall Street New York, New York 10005 Wachovia Capital Markets, LLC 301 South College Street, Nc0610 Charlotte, North Carolina 28288-0610 Morgan Stanley & Co. Incorporated 1585 Broadway New York, New York 10036 Re: Novastar Mortgage Funding Trust, Series 2006-3 Ladies and Gentlemen

from 8-K 27 pages Underwriting Agreement

from 8-K 26 pages Greenwich Capital Markets, Inc. 600 Steamboat Road Greenwich, Connecticut 06830 Re: Novastar Mortgage Funding Trust, Series 2006–mta1 Ladies and Gentlemen

from 8-K 29 pages Underwriting Agreement

from 8-K 28 pages Underwriting Agreement

from 8-K ~20 pages Underwriting Agreement

from 8-K ~20 pages Underwriting Agreement

from S-3 ~20 pages Form of Underwriting Agreement

from S-3 ~20 pages Form of Underwriting Agreement