Fitch Rates BAFC $101.4MM RMBS Series 2007-3

Business Wire, April 30, 2007

NEW YORK -- Fitch Ratings has assigned Banc of America Funding Corporation's (BAFC) mortgage pass-through certificates, series 2007-3, the following ratings:

--$99,746,000 classes 3-A-1 through 3-A-3 senior certificates 'AAA';

--$963,000 class 3-B-1 'AA';

--$203,000 class 3-B-2 'A';

--$202,000 class 3-B-3 'BBB';

--$102,000 class 3-B-4 'BB';

--$50,000 class 3-B-5 'B'.

The 'AAA' ratings on the senior certificates reflect the 1.6% subordination provided by the 0.95% class 3-B-1, the 0.2% class 3-B-2, the 0.2% class 3-B-3, the 0.1% privately offered class 3-B-4, the 0.05% privately offered class 3-B-5, and the 0.1% privately offered class 3-B-6. The ratings on the class 3-B-1, 3-B-2, 3-B-3, 3-B-4 and 3-B-5 certificates reflect each certificate's respective level of subordination. Class 3-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 consists of 281 fully amortizing, fixed interest rate, first lien mortgage loans, with original terms to maturity of 120 to 180 months. The aggregate unpaid principal balance of the pool is $101,368,302 as of April 1, 2007 (the cut-off date) and the average principal balance is $360,741. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 61.6; none of the loans have an OLTV greater than 80%. The weighted average coupon (WAC) of the mortgage loans is 5.443% and the weighted average FICO score is 745. Cash-out and rate/term refinance loans represent 25.58% and 54.54% of the loan pool, respectively. The states that represent the largest geographic concentration are California (24.29%), Texas (13.53%), Florida (9.17%), and Washington (5.04%). All other states have a concentration of less than 5%.

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 ABN AMRO Mortgage Group, Inc. and Countrywide Home Loans Inc., 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 and as securities administrator. U.S. Bank, N.A. will serve as trustee. For federal income tax purposes, elections will be made to treat the trust as multiple real estate mortgage investment conduits (REMICS).

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.