NovaStar Financial and mortgage insurer PMI Group have gone to court in a dispute over alleged unpaid claims on non-conforming low- and no-documentation loans. In a lawsuit filed Oct. 3 in the U.S. District Court for the District of Kansas, NovaStar accused PMI of breach of contract for failing to pay claims on defaulted stated-income loans and on loans where the source of funding and appraisal values were not confirmed by the lender. NovaStar