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NovaStar Mortgage Funding Trust
NovaStar Home Equity Loan Asset-Backed Certificates
Series 2002-2

2002 Annual Statement To Bondholder

DISTRIBUTIONS IN DOLLARS

|       |     |            |                |          |                |           |              |       |              |        |               |         |              |  |               |  |               |          |           |           |           |  |                |         |                | 
|------ | --- | ---------- | -------------- | -------- | -------------- | --------- | ------------ | ----- | ------------ | ------ | ------------- | ------- | ------------ |  | ------------- |  | ------------- | -------- | --------- | --------- | --------- |  | -------------- | ------- | -------------- | 
|       |     |            |                |          |                |           |              |       |              |        |               |         |              |  |               |  |               |          |           |           |           |  |                | CURRENT
|       |     |            |                | ORIGINAL |                |           |              |       |              |        |               |         |              |  |               |  |               | REALIZED |           | PRINCIPAL
|CLASS  |     | FACE VALUE |                | INTEREST |                | PRINCIPAL |              | TOTAL |              | LOSSES |               | BALANCE
|       |     |            |                |          |                |           |              |       |              |        |               |        
|       | A-1 |            |                |          | 200,000,000.00 |           |              |       | 2,020,320.75 |        |               |         | 8,242,849.29 |  |               |  | 10,263,170.04 |          |           |           | 0.00      |  |                |         | 191,757,150.71 | 
|       | A-2 |            |                |          | 80,550,000.00  |           |              |       | 823,350.62   |        |               |         | 3,134,739.31 |  |               |  | 3,958,089.93  |          |           |           | 0.00      |  |                |         | 77,415,260.69  | 
|       | M-1 |            |                |          | 8,525,000.00   |           |              |       | 107,743.61   |        |               |         | 0.00         |  |               |  | 107,743.61    |          |           |           | 0.00      |  |                |         | 8,525,000.00   | 
|       | M-2 |            |                |          | 6,975,000.00   |           |              |       | 109,311.37   |        |               |         | 0.00         |  |               |  | 109,311.37    |          |           |           | 0.00      |  |                |         | 6,975,000.00   | 
|       | M-3 |            |                |          | 5,425,000.00   |           |              |       | 97,361.82    |        |               |         | 0.00         |  |               |  | 97,361.82     |          |           |           | 0.00      |  |                |         | 5,425,000.00   | 
|       | B   |            |                |          | 3,100,000.00   |           |              |       | 97,950.31    |        |               |         | 0.00         |  |               |  | 97,950.31     |          |           |           | 0.00      |  |                |         | 3,100,000.00   | 
|       | AIO |            |                |          | 310,000,000.00 |           |              |       | 6,054,126.28 |        |               |         | 0.00         |  |               |  | 6,054,126.28  |          |           |           | 0.00      |  |                |         | 301,949,625.87 | 
|       | O   |            |                |          | 5,425,000.00   |           |              |       | 0.00         |        |               |         | 0.00         |  |               |  | 0.00          |          |           |           | 74,544.21 |  |                |         | 5,350,455.79   | 
|       | P   |            |                |          | 100.00         |           |              |       | 180,431.96   |        |               |         | 0.00         |  |               |  | 180,431.96    |          |           |           | 0.00      |  |                |         | 100.00         | 
|       | R   |            |                |          | 0.00           |           |              |       | 0.00         |        |               |         | 0.00         |  |               |  | 0.00          |          |           |           | 0.00      |  |                |         | 0.00           | 
|       |     |            |                |          |                |           |              |       |              |        |               |        
|TOTALS |     |            | 310,000,100.00 |          |                |           | 9,490,596.72 |       |              |        | 11,377,588.60 |         |              |  | 20,868,185.32 |  |               |          | 74,544.21 |           |           |  | 600,497,593.06 |        
|       |     |            |                |          |                |           |              |       |              |        |               |        



FACTOR INFORMATION PER $1000 OF ORIGINAL FACE

|      |  |           |  |          |           |           |  |       |           |         |  |  |           |  |  |  |              |           |  | 
|----- |  | --------- |  | -------- | --------- | --------- |  | ----- | --------- | ------- |  |  | --------- |  |  |  | ------------ | --------- |  | 
|      |  |           |  |          |           |           |  |       |           |         |  |  |           |  |  |  |              | CURRENT  
|      |  |           |  |          |           |           |  |       |           |         |  |  |           |  |  |  |              | PRINCIPAL
|CLASS |  | CUSIP     |  | INTEREST |           | PRINCIPAL |  | TOTAL |           | BALANCE
|      |  |           |  |          |           |           |  |       |           |        
|A-1   |  | 66987XBM6 |  |          | 10.101604 |           |  |       | 41.214246 |         |  |  | 51.315850 |  |  |  | 958.785754   |          
|A-2   |  | 66987XBN4 |  |          | 10.221609 |           |  |       | 38.916689 |         |  |  | 49.138298 |  |  |  | 961.083311   |          
|M-1   |  | 66987XBP9 |  |          | 12.638547 |           |  |       | 0.000000  |         |  |  | 12.638547 |  |  |  | 1,000.000000 |          
|M-2   |  | 66987XBQ7 |  |          | 15.671881 |           |  |       | 0.000000  |         |  |  | 15.671881 |  |  |  | 1,000.000000 |          
|M-3   |  | 66987XBR5 |  |          | 17.946879 |           |  |       | 0.000000  |         |  |  | 17.946879 |  |  |  | 1,000.000000 |          
|B     |  | 66987WAM9 |  |          | 31.596874 |           |  |       | 0.000000  |         |  |  | 31.596874 |  |  |  | 1,000.000000 |          
|AIO   |  | 66987XBS3 |  |          | 19.529440 |           |  |       | 0.000000  |         |  |  | 19.529440 |  |  |  | 974.031051   |          
|P     |  | 66987XBT1 |  |          | 0.000000  |           |  |       | 0.000000  |         |  |  | 0.000000  |  |  |  | 1,000.000000 |          
|      |  |           |  |          |           |           |  |       |           |        

Seller:

Servicer:


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##### 



NovaStar Mortgage Funding Trust
NovaStar Home Equity Loan Asset-Backed Certificates
Series 2002-22002 Annual Statement To Bondholder

Aggregate Collections From the Mortgage Loans

|                                                        |  |  |               |  |  |  |                | 
|------------------------------------------------------- |  |  | ------------- |  |  |  | -------------- | 
|Available Funds                                         |  |  | 22,903,071.79 |  |  |  |                | 
|Total Servicer Advances                                 |  |  | 0.00          |  |  |  |                | 
|Total Compensating Interest                             |  |  | 0.00          |  |  |  |                | 
|Aggregate Beginning Principal Balance of Mortgage Loans |  |  |               |  |  |  | 310,000,000.67 | 
|Aggregate Ending Principal Balance of Mortgage Loans    |  |  |               |  |  |  | 298,547,967.19 | 
|Cumulative Realized Losses                              |  |  |               |  |  |  | 74,544.21      | 

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