Mortgage company cuts 350 jobs: 200 lost positions are in Northeast Ohio as Novastar Financial reacts to industry decline.

Byline: Betty Lin-Fisher

Mar. 20--A Kansas City, Mo., subprime lender with two offices in Northeast Ohio has reduced its regional staff by 200, citing the downturn in the mortgage industry. Novastar Financial, the parent company for Novastar Mortgage, laid off 350, or 17 percent of its work force, on Friday. The layoffs were in four offices -- the Kansas City headquarters and operation centers in Richfield, Independence and one in California.

The layoffs were immediate, Novastar spokesman Dick Johnson said.

The Richfield office is being closed and the remaining employees are moving to the Independence office, Johnson said. He said he did …