Fitch Rates Bank Of America Mortgage Securities $636MM Series 2002-L

Business Wire, Dec 20, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 20, 2002

Bank of America Mortgage Securities, Inc., (BoAMSI) series 2002-L mortgage pass-through certificates, classes 1-A-1 through 1-A-3, 1-A-R, 1-A-LR; 2-A-1 through 2-A-4; 3-A-1; and A-P (senior certificates, $619,655,555)are rated 'AAA' by Fitch Ratings. In addition, Fitch rates class B-1 ($8,285,000) 'AA', class B-2 ($3,823,000) 'A', class B-3 ($1,911,000) 'BBB', class B-4 ($1,275,000) 'BB' and class B-5 ($955,000) 'B'.

The 'AAA' rating on the senior certificates reflects the 2.75% subordination provided by the 1.30% class B-1, the 0.60% class B-2, the 0.30% class B-3, the 0.20% privately offered class B-4, the 0.15% privately offered class B-5, and the 0.20% privately offered class B-6 (which is not rated by Fitch). Classes B-1, B-2, B-3, B-4, B-5 are rated 'AA', 'A', 'BBB', 'BB', and 'B', respectively, based on their respective subordination.

The ratings also reflect the quality of the underlying mortgage collateral, the capabilities of Bank of America Mortgage, Inc. as servicer (rated 'RPS1' by Fitch), and Fitch's confidence in the integrity of the legal and financial structure of the transaction.

This transaction has a unique structural aspect relating to servicing compensation. Traditionally, servicers of prime-credit mortgage loans receive a monthly servicing fee equal to a rate of 0.25% per annum, or a higher amount for hybrid ARM loans, of the outstanding principal balance of the mortgage loans. Bank of America, as servicer in this transaction, will receive an equivalent value of 0.375% per annum for group 1, and 0.25% per annum for groups 2 and 3 on a monthly basis but in two separate components. Monthly servicing compensation will equal a rate of 0.05% per annum. The remaining 0.325% per annum for group 1 and 0.20% per annum for groups 2 and 3 will be paid through an interest-only certificate. The class SES certificates are unrated certificates that are paid prior to any other certificates, including the AAA-rated certificates.

The monthly servicing fee of 0.05% per annum and the class SES interest-only certificates will be available to any successor servicer in the event Bank of America resigns or is terminated as servicer.

The transaction is secured by three pools of mortgage loans. The groups consist of fully amortizing, adjustable-rate mortgage loans that provide for a fixed interest rate during an initial period. Thereafter, the interest rate will adjust on an annual basis based of an index plus a gross margin. The three loan groups are cross-collateralized. The class A-PO consists of three separate components that are not severable.

Group 1 consists of 3/1 hybrid arms. After the initial fixed interest rate period of three years, the interest rate will adjust annually based of the One-Year LIBOR index plus a gross margin. The group has an aggregate principal balance of approximately $180,391,287 as of the cut-off date and a weighted average remaining term to maturity of 358 months. The weighted average original loan-to-value ratio (OLTV) for the mortgage loans is approximately 65.84%. The weighted average FICO credit score for the group is 735. The state that represents the largest portion of mortgage loans is CA (69.20%), all other states represent less than 5% of the outstanding balance of the pool.

Group 2 consists of 5/1 hybrid arms. After the initial fixed interest rate period of five years, the interest rate will adjust annually based of the One-Year LIBOR index plus a gross margin. The group has an aggregate principal balance of approximately $294,373,137 as of the cut-off date and a weighted average remaining term to maturity of 356 months. The weighted average OLTV for the mortgage loans is approximately 64.10%. The weighted average FICO credit score for the group is 738. The state that represents the largest portion of mortgage loans is CA (74.42%), all other states represent less than 5% of the outstanding balance of the pool.

Group 3 consists of 7/1 hybrid arms. After the initial fixed interest rate period of seven years, the interest rate will adjust annually based of the One-Year LIBOR index plus a gross margin. The group has an aggregate principal balance of approximately $162,415,317 as of the cut-off date and a weighted average remaining term to maturity of 352 months. The weighted average OLTV for the mortgage loans is approximately 60.80%. The weighted average FICO credit score for the group is 746. The states that represent the largest portion of mortgage loans are CA (58.04%), VA (8.25%) and MD (5.41%)

Bank of America Mortgage Securities, Inc. deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, elections will be made to treat the trust as two separate real estate mortgage investment conduits (REMICs). Wells Fargo Bank Minnesota, National Association will act as trustee.