Rodney Schwatken notified the Board of Directors of Novation Companies, Inc. of his resignation from his position as Chief Executive Officer of the Company, effective October 1, 2017. Effective upon Mr. Schwatken's resignation, the Board appointed Jeffrey E. Eberwein, the Company's Executive Chairman, to serve as the Company's principal executive officer. Mr. Eberwein has been a member of the Board since April 2015, and has been Executive Chairman since August 2017.