Fitch Rates Banc of America Mortgage Securities $609.5MM Series 2004-K

Business Wire, Nov 30, 2004

NEW YORK -- Banc of America Mortgage Securities, Inc., (BoAMSI) series 2004-K mortgage pass-through certificates, are rated by Fitch as follows:

--$587,881,100 classes 1-A-1, 1-A-2, 1-A-R, 1-A-LR, 2-A-1, 2-A-2, 3-A-1 through 3-A-3, and 4-A-1 (senior certificates) 'AAA';

--$10,973,000 class B-1 'AA';

--$4,267,000 class B-2 'A';

--$2,133,000 class B-3 'BBB';

--$1,829,000 class B-4 'BB';

--$914,000 class B-5 'B'.

The 'AAA' rating on the senior certificates reflects the 3.55% subordination provided by the 1.80% class B-1, the 0.70% class B-2, the 0.35% class B-3, the 0.30% privately offered class B-4, the 0.15% privately offered class B-5, and the 0.25% privately offered class B-6. The ratings on class B-1, B-2, B-3, B-4 and B-5 certificates reflect each certificates 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 four groups of adjustable interest rate, fully amortizing mortgage loans, secured by first liens on one- to four-family properties, with a total of 1,221 loans and an aggregate principal balance of $609,521,251.41 as of Nov. 1, 2004 (the cut-off date). The four loan groups are cross-collateralized.

The group 1 collateral consists of 3/1 hybrid adjustable-rate mortgage (ARM) loans. After the initial fixed interest rate period of three years, the interest rate will adjust annually based on the sum of One-Year CMT index and a gross margin specified in the applicable mortgage note. Approximately 49.71% of group 1 loans 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 $96,271,775 and an average balance of $512,084. The weighted average original loan-to-value ratio (OLTV) for the mortgage loans is approximately 72.20%. The weighted average remaining term to maturity (WAM) is 359 months and the weighted average FICO credit score for the group is 728. Second homes and investor-occupied properties comprise 11.35% and 2.78% of the loans in group 1, respectively. Rate/Term and cashout refinances account for 18.77% and 22.30% of the loans in group 1, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (60.98%) and Florida (9.64%). All other states represent less than 5% of the outstanding balance of the group.

The group 2 collateral consists of 5/1 hybrid ARM loans. After the initial fixed interest rate period of five years, the interest rate will adjust annually based on the sum of One-Year CMT index and a gross margin specified in the applicable mortgage note. Approximately 65.79% of group 2 loans 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 $394,612,731 and an average balance of $484,782. The weighted average OLTV for the mortgage loans is approximately 72.14%. The WAM is 359 months and the weighted average FICO credit score for the group is 734. Second homes and investor-occupied properties comprise 8.35% and 1.78% of the loans in group 2, respectively. Rate/Term and cashout refinances account for 25.93% and 17.35% of the loans in group 2, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (58.45%) and Florida (7.08%). All other states represent less than 5% of the outstanding balance of the pool.

The group 3 collateral consists of 7/1 hybrid ARM loans. After the initial fixed interest rate period of seven years, the interest rate will adjust annually based on the sum of One-Year CMT index and a gross margin specified in the applicable mortgage note. Approximately 43.53% of group 3 loans 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 $59,437,005 and an average balance of $540,336. The weighted average OLTV for the mortgage loans is approximately 71.29%. The WAM is 359 months and the weighted average FICO credit score for the group is 737. Second home properties comprise 11.78% and there are no investor-occupied properties. Rate/Term and cashout refinances account for 25.89% and 17.01% of the loans in group 3, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (45.29%), Florida (7.51%), Maryland (6.72%) and Washington (5.58%). All other states represent less than 5% of the outstanding balance of the group.

The group 4 collateral consists of 10/1 hybrid ARM loans. After the initial fixed interest rate period of 10 years, the interest rate will adjust annually based on the sum of One-Year CMT index and a gross margin specified in the applicable mortgage note. Approximately 64.42% of group 4 loans 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 $59,199,740 and an average balance of $543,117. The weighted average OLTV for the mortgage loans is approximately 71.30%. The WAM is 359 months and the weighted average FICO credit score for the group is 742. Second homes and investor-occupied properties comprise 8.55% and 1.03% of the loans in group 4, respectively. Rate/Term and cashout refinances account for 20.72% and 13.65% of the loans in group 4, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (44.30%), District of Columbia (11.57%), Virginia (9.68%), Maryland (6.21%), Florida (6.08%), and Colorado (5.88%). All other states represent less than 5% of the outstanding balance of the pool.