EXHIBIT 21.1

SUBSIDIARIES OF THE REGISTRANT

NovaStar Financial, Inc., a Maryland corporation, and its subsidiaries

• NovaStar Assets Corporation, a Delaware corporation

• NovaStar Certificates Financing Corporation, a Delaware corporation

• NovaStar Capital Access Corporation, a Delaware corporation

• NovaStar Financial Repurchase Corporation, a Delaware corporation

• NFI Holding Corporation, a Delaware corporation, and its subsidiaries

a. NovaStar Capital, Inc., a Delaware corporation

b. Ampro Financial Services, Inc., a Delaware corporation

c. NovaStar Credit Services, Inc., a Delaware corporation

d. NovaStar Mortgage, Inc., a Virginia corporation, and its subsidiaries

1. NovaStar Mortgage Funding Corporation, a Delaware corporation

2. NovaStar Mortgage Funding Corporation II, a Delaware corporation

3. NovaStar Mortgage Funding Corporation III, a Delaware corporation

4. NovaStar REMIC Financing Corporation, a Delaware corporation

5. NMI Repurchase Corporation, a Delaware corporation

6. NMI Repurchase Corporation II, a Delaware corporation

e. NovaStar Home Mortgage, Inc., a Delaware corporation, and its subsidiaries

1. NovaStar Home Mortgage of South Carolina, Inc., a Delaware corporation