Novastar Financial reported record earnings during the first quarter. The Kansas-based non-conforming lender generated $3 million in net income during the period, up from $1.2 million last year. Company officials pegged the increase on lower interest rates and higher production volume. Earnings aside, Novastar’s first quarter was notable for a couple of reasons. For example, the company generated virtually all of its $245 million in early 2001 volume business via the Internet, through its web-based