Mortgage Lenders Associated Press ,

) Inc., said Tuesday it sold the right to collect the payments on the mortgage loans the company currently services to Saxon Mortgage Services Inc. for $175 million. Mortgage lenders often farm out the collection of payments because it requires money, infrastructure and people. Friedman Billings Ramsey analyst Scott Valentin wrote in a client note that while bailing out of this task in exchange for cash buys NovaStar some time, he is still doubtful about the company’s prospects for survival.

He reiterated an “Underperform” rating and a zero-dollar price target on the stock. Shares of NovaStar slipped 20 cents, or 3 percent, to $7.45 in afternoon trading. Shares of Countrywide Financial Corp.

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