NovaStar Home Mortgage has used the last several months to overhaul its net branch operations after an audit by the Office of the Inspector General found prohibited language in its business agreements and that it used independent contract loan officers to originate FHA mortgages. According to the IG audit report, in 2003 NovaStar allowed 122 independent contract non-employees to serve as loan officers during FY 2003 and did not take the proper precautions to…