Novastar is still on the ropes and is laying off 85 percent of its remaining work force, or 170 jobs. The annoying lender reportedly was calling homeowners at the beginning of each month. Some analysts think Novastar was trying to determine if they would be able to operate. In a U.S. Securities and Exchange Commission filing, the Kansas City, Missouri-based company said the cuts are tied to its decision to quit its retail mortgage lending and brokerage operations.

All of the blame cannot be placed directly on Novastar. The company bought loans from a network of mortgage brokers, some of which did not meet the criteria of other lenders.