Document:

Exhibit10.1

                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

                                                                 January 4, 2008

NovaStar Mortgage, Inc.
NovaStar Certificates Financing LLC
NovaStar Certificates Financing Corporation
NFI Repurchase Corporation
NMI Repurchase Corporation
NMI Property Financing, Inc.
HomeView Lending, Inc.
NovaStar Financial, Inc.
NFI Holding Corporation
8140 Ward Parkway,
Suite 300
Kansas City, Missouri 64114

     Re:  Master Repurchase Agreements Waiver

     Reference is made to those certain Master  Repurchase  Agreements listed on
Schedule I attached hereto (the  "Agreements").  Capitalized  terms used in this
letter agreement  without  definition have the meanings  ascribed to them in the
Agreements.

     Effective  as of the date hereof and until  February  4, 2008 (the  "Waiver
Period") and subject to the limitations set forth herein, each Buyer hereby:

     A.   1.   Agrees not to enforce the  requirements  for NovaStar  Financial,
               Inc. ("NFI") to maintain a required  Adjusted  Tangible Net Worth
               under the Agreements;

          2.   Waives  any  breach  and/or  any  event  of  default  that  would
               otherwise  arise under the  Agreements  solely as a result of the
               failure of NFI to have the required  Adjusted  Tangible Net Worth
               specified in the Agreements; or

          3.   Agrees that in the Monthly Certificates delivered by NFI, NFI may
               carve-out  the  certification  solely  relating  to the  Adjusted
               Tangible Net Worth for the  previous  month and each Buyer hereby
               waives any breach  and/or event of default  that would  otherwise
               arise under the Agreements as a result of such carve-out from the
               Monthly Certifications.

     B.   1.   Agrees, during the Waiver Period, not to enforce the requirements
               for NovaStar Financial,  Inc. ("NFI") to maintain Liquidity in an
               amount  not  less  than   $30,000,000  as  specified   under  the

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               Agreements;  provided  that  NFI  agrees  to  maintain  Liquidity
               (taking  into  account  required  haircuts) in an amount not less
               than $22,000,000;

          2.   Waives  any  breach  and/or  any  event  of  default  that  would
               otherwise  arise under the  Agreements  solely as a result of the
               failure of NFI to maintain  Liquidity  in an amount not less than
               $30,000,000 during the Waiver Period; provided that NFI maintains
               Liquidity  in an amount  not less  than  $22,000,000  during  the
               Waiver Period;

          3.   Agrees that in the Monthly  Certificates  delivered by NFI during
               the Waiver Period,  NFI may carve-out from the  certification the
               requirement  to  maintain  Liquidity  in an amount  not less than
               $30,000,000  for the  previous  month;  provided  that NFI  shall
               maintain  Liquidity  in an amount not less than  $22,000,000  for
               such month and shall certify that it has  maintained  such amount
               in the Monthly Certification.

Notwithstanding  anything  to the  contrary  herein,  all parties  bound  herein
acknowledge  and agree that the Buyers,  shall retain all rights and remedies in
order to  enforce  any Event of  Default  or other  breach  contemplated  by the
Agreements.

     Notwithstanding  the  occurrence  and  continuance  of the NFI's failure to
maintain the required  Adjusted  Tangible Net Worth or  maintenance of Liquidity
under the Agreements  described above, each Buyer is willing to waive certain of
its  rights;  provided  that  each  Buyer  reserves  the  right to  unilaterally
terminate this letter  agreement on or prior to January 4, 2008,  without notice
to any party,  based upon the  occurrence of any Event of Default or breach that
occurs under the  Agreements on or after the date hereof other than the Event of
Default  expressly  waived by the Buyers herein.  Either Buyer's exercise of the
right to terminate this letter agreement shall be effective as to both Buyers.

     Each  Buyer  hereby  expressly  reserves  all  other  rights  and  remedies
available to it under the Agreements, and all rights, remedies, obligations, and
liabilities  created or evinced  thereby with respect to future  breaches of, or
Defaults or Events of Default under,  the  Agreements.  Except as stated herein,
the  Buyers  shall not be deemed to have  waived or  modified  any of its rights
hereunder or under any other  agreement,  instrument or paper signed by NovaStar
Mortgage,  Inc.,  NovaStar  Certificates  Financing LLC,  NovaStar  Certificates
Financing Corporation,  NFI Repurchase Corporation,  NMI Repurchase Corporation,
NMI  Property  Financing,  Inc.,  HomeView  Lending,  Inc.,  NFI and NFI Holding
Corporation  (collectively,  the  "NovaStar  Parties")  unless  such  waiver  or
modification  is in  writing  and  signed by the  Buyers.  Except  as  expressly
provided herein, no failure or delay on the part of the Buyers in exercising any
right,  power or remedy  hereunder or any of the  Agreements  shall operate as a
waiver  thereof;  nor shall any single or partial  exercise  of any such  right,
power or remedy preclude any other or further  exercise  thereof or the exercise
of any other right,  power or remedy  hereunder.  This letter

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agreement  shall be  construed in  accordance  with the laws of the State of New
York, and the obligations, rights and remedies of the parties hereunder shall be
determined  in  accordance  with the laws of the State of New York except to the
extent  preempted by federal law. Any  provision  hereof which is  prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining   provisions   hereof  or  thereof  or   affecting   the  validity  or
enforceability of such provision in any other jurisdiction.

     This letter agreement may be executed in any number of  counterparts,  each
of which (including any copy hereof delivered by facsimile) shall constitute one
and the same  original  instrument,  and either  party  hereto may execute  this
letter agreement by signing any such counterpart.

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                                                                  EXECUTION COPY

                                       Very truly yours,

                                       Wachovia Bank, N.A.,
                                             as Buyer

                                       By:      /s/  Andrew W. Riebe
                                          --------------------------------------
                                       Name:    Andrew W. Riebe
                                       Title:   Director

                                       Wachovia Investment Holdings, LLC,
                                             as Buyer

                                       By:      /s/ Goetz Rokahr
                                          --------------------------------------
                                       Name:    Goetz Rokahr
                                       Title:   Vice President

Acknowledged and Agreed:

NovaStar Mortgage, Inc., as Seller and Guarantor

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

NovaStar Certificates Financing LLC, as Seller

By:      /s/ Rodney E. Schwatken
   ------------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

NovaStar Certificates Financing Corporation, as Seller

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

                                                                  EXECUTION COPY

NFI Repurchase Corporation, as Seller

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

NMI Repurchase Corporation, as Seller

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

NMI Property Financing, Inc., as Seller

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

HomeView Lending, Inc., as Seller and Guarantor

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

NovaStar Financial, Inc., as Seller and Guarantor

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

NFI Holding Corporation, as Seller and Guarantor

By:      /s/  Rodney E. Schwatken
   -----------------------------------------
Name:    Rodney E. Schwatken
Title:   SVP, CFO & Secretary

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                                  SCHEDULE I

1. Master Repurchase  Agreement (2007 Residual Securities) dated as of April 18,
2007 (the "Residual  Securities  Agreement"),  among Wachovia  Investment
Holdings,  LLC, Wachovia Capital Markets LLC, NovaStar Mortgage,  Inc., NovaStar
Certificates Financing LLC, and NovaStar Certificates Financing Corp.

2. Master  Repurchase  Agreement  (2007 Whole Loan) dated as of May 9, 2007 (the
"Whole  Loan  Agreement"),   among  Wachovia  Bank,  National  Association,  NFI
Repurchase  Corporation,  NMI Repurchase  Corporation,  NMI Property  Financing,
Inc.,  HomeView Lending,  Inc, NovaStar Financial Inc., NFI Holding  Corporation
and NovaStar Mortgage Inc.

3. Master Repurchase Agreement (2007  Non-investment  Grade) dated as of May 31,
2007  (the  "Non-Investment   Grade  Securities   Agreement"),   among  Wachovia
Investment Holdings, LLC, Wachovia Capital Markets LLC, NovaStar Mortgage, Inc.,
NovaStar Certificates Financing LLC, and NovaStar Certificates Financing Corp.

4. Master Repurchase  Agreement (2007 Investment Grade) dated as of May 31, 2007
(the "Investment  Grade Securities  Agreement"),  among Wachovia Bank,  National
Association,  Wachovia Capital Markets LLC, NovaStar  Mortgage,  Inc.,  NovaStar
Certificates Financing LLC, and NovaStar Certificates Financing Corp.

5.  Master  Repurchase  Agreement  (New York)  dated as of July 6, 2007 (the "NY
Agreement") between Wachovia Bank,  National  Association and NovaStar Mortgage,
Inc.Exhibit10.1

                                                                    Exhibit 10.2

                                                                  EXECUTION COPY

                        Wachovia Investment Holdings, LLC
                          Wachovia Capital Markets LLC
                            301 South College Street
                      Charlotte, North Carolina 28288-0610

                                                                 January 4, 2008

NovaStar Mortgage, Inc.
NovaStar Certificates Financing LLC
NovaStar Certificates Financing Corporation
NFI Holding Corporation
NovaStar Financial, Inc.
Homeview Lending, Inc.
8140 Ward Parkway, Suite 300
Kansas City, Missouri  64114

     Re:  Release of Security Interest  relating to Master Repurchase  Agreement
          (2007 Residual Securities), dated as of April 18, 2007

Ladies and Gentlemen:

     Reference is made to: (i) the Master  Repurchase  Agreement  (2007 Residual
Securities),  dated as of April 18, 2007 (as amended,  supplemented or otherwise
modified, the "Repurchase  Agreement"),  among Wachovia Investment Holdings, LLC
(the "Buyer"),  Wachovia Capital Markets, LLC (the "Agent"),  NovaStar Mortgage,
Inc. ("NMI"), as a seller, NovaStar Certificates Financing LLC ("NCFLLC"),  as a
seller and NovaStar Financing  Corporation ("NFC"), as a seller (NMI, NCFLLC and
NFC each a "Seller" and  collectively,  jointly and severally,  the  "Sellers");
(ii) the  Guaranty,  dated as of April 18,  2007 (as  amended,  supplemented  or
otherwise  modified),  among  NMI,  NFI  Holding  Corporation  ("NFI  Holding"),
NovaStar  Financial,  Inc.  ("NFI")  and  Homeview  Lending,  Inc.  ("Homeview",
together  with NMI,  NFI Holding and NFI each a  "Guarantor"  and  collectively,
jointly and severally,  the  "Guarantors") and (iii) all other Program Documents
(as amended,  supplemented or otherwise  modified from time to time),  among the
Sellers, Buyer, Agent and the Guarantors, as applicable.  Capitalized terms used
herein but not otherwise  defined herein shall have the meanings provided in the
Repurchase Agreement.

     Provided no Default or Event of Default  has  occurred  and is  continuing,
upon  receipt  by the Buyer of payment in full of  $5,648,181.44  (the  "Payment
Amount") in immediately available funds and fulfillment of all other Obligations
contained in the Program Documents owing with respect to the Purchased Assets by
the Sellers and the Guarantors  (including  without  limitation any and all fees
required to be paid by the Sellers  under any Program  Document),  (i) the Buyer
hereby  releases  all of its  right,  title  and  interest  in, to and under the
Collateral and acknowledges that it does not have a security interest in, to and
under, or any other lien or encumbrance on,

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such Collateral and (ii) the Buyer hereby authorizes the Sellers, as applicable,
to file UCC-3 termination statements,  substantially in the form attached hereto
as Exhibit A, to evidence  the release of any and all liens or  encumbrances  in
favor of the Buyer with  respect to such  Collateral.  The Buyer and the Sellers
acknowledge and agree that the Payment Amount is comprised of (i) the Repurchase
Price  owed to the  Buyer by the  Sellers  under  the  terms  of the  Repurchase
Agreement  in the  amount  of  $1,648,181.44  and  (ii) the  termination  fee in
accordance  with the Repurchase  Agreement in the amount of  $4,000,000.00.  The
Buyer and the Sellers further acknowledge and agree that the Collateral released
in  accordance  with  this  letter  agreement  shall,  simultaneously  with  the
execution of this letter  agreement,  be purchased by the Buyer  pursuant to the
terms of that certain Master  Repurchase  Agreement (2007  Non-Investment  Grade
Securities),  dated as of May 31, 2007 (as  amended,  supplemented  or otherwise
modified,  the "Non-Investment  Grade Securities Repurchase  Agreement"),
among Buyer, Agent, NMI, NCFLLC,  NCFC, NFI and NFI Holding.  Both the Buyer and
the Sellers  acknowledge and agree that any failure,  arising from any action or
omission  on the part of any  Seller,  to sell the  Collateral  to the  Buyer as
contemplated  herein  shall  constitute  an Event of Default  (as defined in the
Non-Investment  Grade  Securities  Repurchase  Agreement) under the terms of the
Non-Investment  Grade Securities  Repurchase  Agreement.  Both the Buyer and the
Sellers further  acknowledge and agree that (i) this letter  agreement is deemed
to be an amendment to the Non-Investment  Grade Securities  Repurchase Agreement
and any  related  Program  Document  (as  defined  in the  Non-Investment  Grade
Securities  Repurchase  Agreement) and (ii) in the event of any conflict between
the terms of this letter  agreement and any Program  Document (as defined in the
Non-Investment Grade Securities Repurchase Agreement),  the terms of this letter
agreement shall control.

     Upon the Buyer's receipt of the Payment Amount as set forth above,  (i) the
Buyer and the Sellers hereby agree that the Repurchase Agreement shall be deemed
to be terminated,  together with all of the respective rights and obligations of
the Buyer and the Sellers  thereunder,  except for any obligations  that survive
termination pursuant to the terms of the Repurchase  Agreement,  in all respects
as of the date hereof,  and (ii) the Buyer and the Guarantors  hereby agree that
the  Guaranty  shall  be  deemed  to be  terminated,  together  with  all of the
respective  rights and  obligations of the Buyer and the Guarantors  thereunder,
except for any obligations that survive termination pursuant to the terms of the
Guaranty or the Repurchase Agreement, in all respects as of the date hereof.

     This letter agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and permitted assigns.

     The Sellers shall promptly reimburse Buyer for all out-of-pocket  costs and
expenses of Buyer in connection with the preparation,  execution and delivery of
this letter agreement (including,  without limitation,  the fees and expenses of
counsel for Buyer).

     This letter agreement shall be construed in accordance with and governed by
the laws of the State of New York.

     This letter  agreement  may be  executed  by the parties  hereto in several
counterparts,  each of which shall be deemed to be an original  and all of which
shall  constitute  together  but one and

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the same  agreement.  The parties may  execute  facsimile  copies of this letter
agreement and the facsimile (or electronic) signature of any such party shall be
deemed an original and fully binding on said party.

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                                                                  EXECUTION COPY

                                          Very truly yours,

                                          WACHOVIA INVESTMENT HOLDINGS, LLC

                                          By:      /s/  Andrew W. Riebe
                                          --------------------------------------

                                          Name:    Andrew W. Riebe
                                                   Director

                                          WACHOVIA CAPITAL MARKETS, LLC

                                          By:      /s/  Goetz Rokahr
                                          --------------------------------------

                                          Name:    Goetz Rokahr
                                                   Vice President
Acknowledged and Agreed:

NOVASTAR MORTGAGE, INC.
By:      /s/  Rodney E. Schwatken
    --------------------------------
Name:    Rodney E. Schwatken
         SVP, CFO & Secretary

NOVASTAR CERTIFICATES FINANCING LLC
By:      /s/  Rodney E. Schwatken
    --------------------------------
Name:    Rodney E. Schwatken
         SVP, CFO & Secretary

NOVASTAR CERTIFICATES FINANCING CORPORATION
By:      /s/  Rodney E. Schwatken
    --------------------------------
Name:    Rodney E. Schwatken
         SVP, CFO & Secretary

NFI HOLDING CORPORATION
By:      /s/  Rodney E. Schwatken
    --------------------------------
Name:    Rodney E. Schwatken
         SVP, CFO & Secretary

NOVASTAR FINANCIAL, INC.
By:      /s/  Rodney E. Schwatken
    --------------------------------
Name:    Rodney E. Schwatken
         SVP, CFO & Secretary

HOMEVIEW LENDING, INC.
By:      /s/  Rodney E. Schwatken
    --------------------------------
Name:    Rodney E. Schwatken
         SVP, CFO & Secretary

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