Fitch Rates BAFC $260.1MM P-T Certificates Series 2008-1

2008-05-30 22:50:23 -

- Fitch rates Banc of America Funding Corporation (BAFC) Mortgage pass-through certificates, series 2008-1, as follows:

--$228.46MM classes A-1, A-R, and non-offered class A-2 senior certificates 'AAA';

--$8.84MM non-offered class M-1 'AA+';

--$6.77MM non-offered class M-2 'AA';

--$2.35MM non-offered class M-3 'AA-';

--$3.45MM non-offered class M-4 'A+';

--$2.90MM non-offered class M-5 'A';

--$1.80MM

non-offered class M-6 'A-';

--$1.38MM non-offered class M-7 'BBB+';

--$1.52MM non-offered class M-8 'BBB';

--$2.62MM non-offered class M-9 'BBB-'.

The 'AAA' ratings on the senior certificates reflect the 17.30% subordination provided by the 3.20% class M-1, the 2.45% class M-2, the 0.85% class M-3, the 1.25% class M-4, the 1.05% class M-5, the 0.65% class M-6, the 0.50% class M-7, the 0.55% class M-8, the 0.95% class M-9, and the 5.85% initial and target overcollateralization amount.

Fitch believes the amount of credit enhancement will be sufficient to cover credit losses. The ratings also reflect the 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 LaSalle Bank, N.A.

The collateral consists of 701 fully amortizing, fixed- and adjustable-interest rate, first lien mortgage loans, with original terms to maturity of 120 to 480 months. The aggregate unpaid principal balance of the pool is $276,247,023 as of May 1, 2008 (the cut-off date) and the average principal balance is $394,076. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 73.49%. The weighted average coupon (WAC) of the mortgage loans is 6.501% and the weighted average FICO score is 711. Cash-out and rate/term refinance loans represent 35.03% and 27.83% of the loan pool, respectively. The states that represent the largest geographic concentration are California (29.67%), Florida (7.93%), and New York (7.03%). All other states have a concentration of less than 5.0%.

None of the mortgage loans is a 'high cost' loan 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.

Banc of America Funding Corporation, a special purpose entity, purchased the mortgage loans from Bank of America, National Association and American Home Mortgage Corporation, and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. All other originators are less than 10% of the mortgage pool. LaSalle 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.

Fitch Ratings, New York
Kei Ishidoya, 212-908-0238
Stefan Hilts, 212-908-9137
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