<PAGE>

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                         NOVASTAR MORTGAGE FUNDING TRUST
                  NOVASTAR HOME EQUITY LOAN ASSET-BACKED NOTES
                                  SERIES 2001-2
                       2001 ANNUAL STATEMENT TO BONDHOLDER
<TABLE>
<CAPTION>
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                                              DISTRIBUTIONS IN DOLLARS

                                   PRIOR                                                                CURRENT
               ORIGINAL          PRINCIPAL                                                             PRINCIPAL
 CLASS        FACE VALUE          BALANCE           INTEREST        PRINCIPAL          TOTAL            BALANCE
--------------------------------------------------------------------------------------------------------------------
<S>         <C>                <C>                <C>              <C>              <C>              <C>
 A-1        200,000,000.00     200,000,000.00     1,342,554.98     2,766,846.28     4,109,401.26     197,233,153.72
 A-2        200,000,000.00     200,000,000.00     1,387,968.29     2,301,463.07     3,689,431.36     197,698,536.93
 A-3        344,000,000.00     344,000,000.00     2,325,979.90     3,958,516.47     6,284,496.37     340,041,483.53
 M-1         16,000,000.00      16,000,000.00       124,478.89             0.00       124,478.89      16,000,000.00
 M-2         16,000,000.00      16,000,000.00       138,790.00             0.00       138,790.00      16,000,000.00
 M-3         12,000,000.00      12,000,000.00       127,092.50             0.00       127,092.50      12,000,000.00
 A-IO       800,000,000.00               0.00     7,778,748.78             0.00     7,778,748.78               0.00
  O          12,000,000.00      12,000,000.00             0.00             0.00             0.00      12,000,000.00
  P                 100.00             100.00       105,016.46             0.00       105,016.46             100.00
  R                   0.00               0.00             0.00             0.00             0.00               0.00

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TOTALS      800,000,100.00     800,000,100.00    13,330,629.80     9,026,825.82    22,357,455.62     790,973,274.18
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Aggregate Collections From the Mortgage Loans                     22,365,111.04

Aggregate Beginning Principal Balance of Mortgage Loans          465,498,729.80
Aggregate Ending Principal Balance of Mortgage Loans             669,176,493.06


















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                                   FACTOR INFORMATION PER $1000 OF ORIGINAL FACE

                                    PRIOR                                                                CURRENT
                                  PRINCIPAL                                                             PRINCIPAL
CLASS              CUSIP           BALANCE            INTEREST        PRINCIPAL          TOTAL           BALANCE
--------------------------------------------------------------------------------------------------------------------

 A-1             66987XAS4       1,000.000000         6.712775        13.834231        20.547006         986.165769
 A-2             66987XAT2       1,000.000000         6.939841        11.507315        18.447157         988.492685
 A-3             66987XAU9       1,000.000000         6.761569        11.507315        18.268885         988.492685
 M-1             66987XAV7       1,000.000000         7.779931         0.000000         7.779931       1,000.000000
 M-2             66987XAW5       1,000.000000         8.674375         0.000000         8.674375       1,000.000000
 M-3             66987XAX3       1,000.000000        10.591042         0.000000        10.591042       1,000.000000
 A-IO            66987XAZ8           0.000000         9.723436         0.000000         9.723436             --
  O              66987XBA2       1,000.000000         0.000000         0.000000         0.000000       1,000.000000
  P              66987XBB0             --                 --              --               --                --

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</TABLE>
Seller:                                   NovaStar Financial, Inc.
Servicer:                              NovaStar Mortgage Corporation


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