Banc of America Mortgage Securities $724.7MM Series 2004-C Rated By Fitch

Business Wire, March 31, 2004

Business Editors

NEW YORK--(BUSINESS WIRE)--March 31, 2004

Banc of America Mortgage Securities, Inc., (BoAMSI) series 2004-C mortgage pass-through certificates, classes 1-A-1, 1-A-R, 1-A-LR, 2-A-1, 2-A-2, and 3-A-1 (senior certificates, $707,313,100) are rated 'AAA' by Fitch Ratings. In addition, Fitch rates class B-1 ($9,456,000) 'AA', class B-2 ($4,364,000) 'A', class B-3 ($1,819,000) 'BBB', and class B-4 ($1,818,000) 'BB'. The class B-5 ($1,454,000) and class B-6 ($1,091,903) certificates are not rated by Fitch.

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 0.25% class B-3, the 0.25% privately offered class B-4, the 0.20% privately offered class B-5, and the 0.15% privately offered class B-6. The ratings on class B-1, B-2, B-3 and B-4 certificates reflect each certificate's respective level of subordination.

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

The transaction consists of three groups of adjustable interest rate, fully amortizing mortgage loans, secured by first liens on one- to four-family properties, with a total of 1,318 loans and an aggregate principal balance of $727,316,003. The three loan groups are cross-collateralized.

The group 1 collateral consists of 3/1 hybrid ARM mortgage loans. After the initial fixed interest rate period of three years, the interest rate will adjust annually based on the sum of One-Year LIBOR index and a gross margin specified in the applicable mortgage note. As of the cut-off date, March 1, 2004, the group has an aggregate principal balance of approximately $72,913,183 and a weighted average remaining term to maturity of 355 months. The weighted average original loan-to-value ratio (OLTV) for the mortgage loans is approximately 68.73%. The weighted average FICO credit score for the group is 736. Second homes comprise 6.24% of the loans and there are no investor-occupied properties in the group. Rate/Term and cashout refinances account for 58.93% and 15.46% of the loans in group 1, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (70.88%) and Illinois (6.65%). All other states represent less than 5% of the outstanding balance of the group.

The group 2 collateral consists of 5/1 hybrid ARM mortgage loans. After the initial fixed interest rate period of five years, the interest rate will adjust annually based on the sum of One-Year LIBOR index and a gross margin specified in the applicable mortgage note. Approximately 68.63% of group 2 loans are Net 5 mortgage loans, which require interest-only payments until the month following the first adjustment date. As of the cut-off date, the group has an aggregate principal balance of approximately $625,885,440 and a weighted average remaining term to maturity of 359 months. The weighted average OLTV for the mortgage loans is approximately 67.16%. The weighted average FICO credit score for the group is 743. Second home and investor-occupied properties comprise 5.36% and 0.60% of the loans in group 2, respectively. Rate/Term and cashout refinances account for 54.50% and 9.63% of the loans in group 2, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (71.31%) and Illinois (6.11%). All other states represent less than 5% of the outstanding balance of the pool.

The group 3 collateral consists of 7/1 hybrid ARM mortgage loans. After the initial fixed interest rate period of seven years, the interest rate will adjust annually based on the sum of One-Year LIBOR index and a gross margin specified in the applicable mortgage note. As of the cut-off date, the group has an aggregate principal balance of approximately $28,517,381 and a weighted average remaining term to maturity of 357 months. The weighted average OLTV for the mortgage loans is approximately 68.52%. The weighted average FICO credit score for the group is 730. Second homes comprise 5.88% of the loans and there are no investor-occupied properties in the group. Rate/Term and cashout refinances account for 35.53% and 13.68% of the loans in group 3, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (46.65%), Virginia (8.41%), Florida (8.10%), Washington (7.11%), and the District of Columbia (5.06%). All other states represent less than 5% of the outstanding balance of the pool.

Approximately 77.33%, 70.66%, and 66.05% of the groups 1, 2, and 3 mortgage loans, respectively, were originated under the Accelerated Processing Programs. Loans in the Accelerated Processing Programs, which may include the All-Ready Home and Rate Reduction Refinance programs, are subject to less stringent documentation requirements.