Fitch rates Banc of America Funding Corporation (BAFC),
mortgage pass-through certificates, series 2006-2, as follows:
-- $785,511,837 classes 1-A-1, 1-A-2, 1-A-3, 1-A-4 and 1-A-5, 2-AR, 2-A-1, 2-A-2, 2-A-3, 2-A-4, 2-A-5, 2-A-6, 2-A-7, 2-A-8, 2-A-9, 2-A-10, 2-A-11, 2-A-12, 2-A-13, 2-A-14, 2-A-15, 2-A-16, 2-A-17, 2-A-18, 2-A-19, 2-A-20, 2-A-21 and 2-A-22, 3-A-1, 3-A-2, 4-A-1, 4-A-2, and 4-A-3, 5-A-1, 5-A-2, and 5-A-3, 6-A-1, 6-A-2, 6-A-3 and 6-A-4, X-IO and X-PO 'AAA' ('senior certificates');
-- $9,910,000 class X-M-1 'AA+';
-- $4,600,000 class X-B-1 'AA';
-- $2,923,000 class B-1 'AA';
-- $4,247,000 class X-B-2 'A';
-- $596,000 class B-2 'A';
-- $2,831,000 class X-B-3 'BBB';
-- $324,000 class B-3 'BBB';
-- $1,770,000 class X-B-4 'BB';
-- $217,000 class B-4 'BB';
-- $1,061,000 class X-B-5 'B';
-- $162,000 class B-5 'B'.
The mortgage pool consists of six groups of mortgages loans. Groups 1, 2, 4, 5 and 6 are crossed (the "Crossed Group") and are supported by the X-M-1, X-B-1, X-B-2, X-B-3, X-B-4, X-B-5 and X-B-6 certificates. Group 3 is supported by the B-1, B-2, B-3, B-4, B-5 and B-6 certificates.
The 'AAA' ratings on the Crossed Group senior certificates reflect the 2.9% subordination provided by the 1.4% class X-M-1, the 0.65% class X-B-1, the 0.6% class X-B-2, the 0.4% class X-B-3, the 0.25% privately offered class X-B-4, the 0.15% privately offered class X-B-5, and the 0.2% privately offered class X-B-6. The ratings on class X-M-1, X-B-1, X-B-2, X-B-3, X-B-4, and X-B-5 certificates reflect each certificate's respective level of subordination. Class X-B-6 is not rated by Fitch.
The 'AAA' ratings on the Group 3 senior certificates reflect the 2.5% subordination provided by the 2.95% class B-1, the 0.55% class B-2, the 0.3% class B-3, the 0.2% privately offered class B-4, the 0.15% privately offered class X-B-5, and the 0.15% privately offered class B-6. The ratings on class B-1, B-2, B-3, B-4, and B-5 certificates reflect each certificate's respective level of subordination. Class B-6 is not rated by Fitch.
Fitch believes the amount of credit enhancement will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral purchased by Banc of America Funding Corporation, the integrity of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A. (rated 'RMS1' by Fitch).
The collateral for the Crossed Group consists of 1,227 fully amortizing, fixed interest rate, first lien mortgage loans, with original terms to maturity (WAM) of 180 to 360 months. The aggregate unpaid principal balance of the pool is $707,785,263 as of Feb. 1, 2006, (the cut-off date) and the average principal balance is $576,842. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 67.19%; approximately 0.93% of the loans have an OLTV greater than 80%. The weighted average coupon (WAC) of the mortgage loans is 6.023% and the weighted average FICO score is 740. Cash-out and rate/term refinance loans represent 37.9% and 21.05% of the loan pool, respectively. The states that represent the largest geographic concentration are California (48.7%), Maryland (5.9%), New York (5.7%) and Virginia (5.22%). All other states represent less than 5% of the outstanding balance of the pool.
The collateral for Group 3 consists of 179 fully amortizing, fixed interest rate, first lien mortgage loans, with original terms to maturity (WAM) of 360 months. The aggregate unpaid principal balance of the pool is $108,215,724 as of Feb. 1, 2006, (the cut-off date) and the average principal balance is $604,557. The weighted average OLTV of the loan pool is approximately 70.08%; none of the loans have an OLTV greater than 80%. The weighted average coupon (WAC) of the mortgage loans is 6.115% and the weighted average FICO score is 750. Cash-out and rate/term refinance loans represent 31.29% and 19.47% of the loan pool, respectively. The states that represent the largest geographic concentration are California (43.8%), Virginia (15.96%) and Maryland (6%). All other states represent less than 5% of the outstanding balance of the pool.
None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation,' available on the Fitch Ratings web site at www.fitchratings.com.
BAFC, a special purpose corporation, purchased the mortgage loans from Bank of America, National City Mortgage Company, SunTrust Mortgage Corporation, Washington Mutual Bank, and Wells Fargo Bank, N.A. and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. Wells Fargo Bank, N.A. will serve as master servicer, custodian, and as securities administrator. U.S. Bank National Association will serve as trustee. For federal income tax purposes, elections will be made to treat the trust as one or more real estate mortgage investment conduits (REMIC).
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.
-- $785,511,837 classes 1-A-1, 1-A-2, 1-A-3, 1-A-4 and 1-A-5, 2-AR, 2-A-1, 2-A-2, 2-A-3, 2-A-4, 2-A-5, 2-A-6, 2-A-7, 2-A-8, 2-A-9, 2-A-10, 2-A-11, 2-A-12, 2-A-13, 2-A-14, 2-A-15, 2-A-16, 2-A-17, 2-A-18, 2-A-19, 2-A-20, 2-A-21 and 2-A-22, 3-A-1, 3-A-2, 4-A-1, 4-A-2, and 4-A-3, 5-A-1, 5-A-2, and 5-A-3, 6-A-1, 6-A-2, 6-A-3 and 6-A-4, X-IO and X-PO 'AAA' ('senior certificates');
-- $9,910,000 class X-M-1 'AA+';
-- $4,600,000 class X-B-1 'AA';
-- $2,923,000 class B-1 'AA';
-- $4,247,000 class X-B-2 'A';
-- $596,000 class B-2 'A';
-- $2,831,000 class X-B-3 'BBB';
-- $324,000 class B-3 'BBB';
-- $1,770,000 class X-B-4 'BB';
-- $217,000 class B-4 'BB';
-- $1,061,000 class X-B-5 'B';
-- $162,000 class B-5 'B'.
The mortgage pool consists of six groups of mortgages loans. Groups 1, 2, 4, 5 and 6 are crossed (the "Crossed Group") and are supported by the X-M-1, X-B-1, X-B-2, X-B-3, X-B-4, X-B-5 and X-B-6 certificates. Group 3 is supported by the B-1, B-2, B-3, B-4, B-5 and B-6 certificates.
The 'AAA' ratings on the Crossed Group senior certificates reflect the 2.9% subordination provided by the 1.4% class X-M-1, the 0.65% class X-B-1, the 0.6% class X-B-2, the 0.4% class X-B-3, the 0.25% privately offered class X-B-4, the 0.15% privately offered class X-B-5, and the 0.2% privately offered class X-B-6. The ratings on class X-M-1, X-B-1, X-B-2, X-B-3, X-B-4, and X-B-5 certificates reflect each certificate's respective level of subordination. Class X-B-6 is not rated by Fitch.
The 'AAA' ratings on the Group 3 senior certificates reflect the 2.5% subordination provided by the 2.95% class B-1, the 0.55% class B-2, the 0.3% class B-3, the 0.2% privately offered class B-4, the 0.15% privately offered class X-B-5, and the 0.15% privately offered class B-6. The ratings on class B-1, B-2, B-3, B-4, and B-5 certificates reflect each certificate's respective level of subordination. Class B-6 is not rated by Fitch.
Fitch believes the amount of credit enhancement will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral purchased by Banc of America Funding Corporation, the integrity of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A. (rated 'RMS1' by Fitch).
The collateral for the Crossed Group consists of 1,227 fully amortizing, fixed interest rate, first lien mortgage loans, with original terms to maturity (WAM) of 180 to 360 months. The aggregate unpaid principal balance of the pool is $707,785,263 as of Feb. 1, 2006, (the cut-off date) and the average principal balance is $576,842. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 67.19%; approximately 0.93% of the loans have an OLTV greater than 80%. The weighted average coupon (WAC) of the mortgage loans is 6.023% and the weighted average FICO score is 740. Cash-out and rate/term refinance loans represent 37.9% and 21.05% of the loan pool, respectively. The states that represent the largest geographic concentration are California (48.7%), Maryland (5.9%), New York (5.7%) and Virginia (5.22%). All other states represent less than 5% of the outstanding balance of the pool.
The collateral for Group 3 consists of 179 fully amortizing, fixed interest rate, first lien mortgage loans, with original terms to maturity (WAM) of 360 months. The aggregate unpaid principal balance of the pool is $108,215,724 as of Feb. 1, 2006, (the cut-off date) and the average principal balance is $604,557. The weighted average OLTV of the loan pool is approximately 70.08%; none of the loans have an OLTV greater than 80%. The weighted average coupon (WAC) of the mortgage loans is 6.115% and the weighted average FICO score is 750. Cash-out and rate/term refinance loans represent 31.29% and 19.47% of the loan pool, respectively. The states that represent the largest geographic concentration are California (43.8%), Virginia (15.96%) and Maryland (6%). All other states represent less than 5% of the outstanding balance of the pool.
None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation,' available on the Fitch Ratings web site at www.fitchratings.com.
BAFC, a special purpose corporation, purchased the mortgage loans from Bank of America, National City Mortgage Company, SunTrust Mortgage Corporation, Washington Mutual Bank, and Wells Fargo Bank, N.A. and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. Wells Fargo Bank, N.A. will serve as master servicer, custodian, and as securities administrator. U.S. Bank National Association will serve as trustee. For federal income tax purposes, elections will be made to treat the trust as one or more real estate mortgage investment conduits (REMIC).
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.