NovaStar Home Mortgage Inc. is preparing to seek dismissal of class action complaints filed in Georgia federal district court alleging use of unlicensed business entities to deceive borrowers and conceal illegal fee splitting. According to a Sept. 22 complaint filed by borrowers Harry and Mary Pitts, NovaStar’s mortgage subsidiary and its publicly traded parent, NovaStar Financial Inc., illegally employed limited liability structures in net branching arrangements, which amounted to a violation of the Real