BAFC's $565.4MM P-T Ctfs Series 2004-B Rated by Fitch.

NEW YORK -- Banc of America Funding Corporation's (BAFC) mortgage pass-through certificates, series 2004-B, are rated by Fitch Ratings as follows:

Group 1 certificates:

-- $122,430,000 classes 1-A-1, 1-A-2, 1-X-1, 1-X-2, 'AAA' ('Group 1 senior certificates');

Group 2 certificates:

-- $89,807,000 classes 2-A-1, 2-A-2, 'AAA' ('Group 2 senior certificates');

Group 3 certificates:

-- $153,825,100 classes 3-A-1, 3-A-2, 3-A-R, 3-A-MR, 3-A-LR, 3-X-1, 3-X-2, 'AAA' ('Group 3 senior certificates');

Group 4 certificates:

-- $90,455,000 classes 4-A-1, 4-A-2, 4-X-1, 4-X-2, 'AAA' ('Group 4 senior certificates');

Group 5 certificates:

-- $107,009,000 class 5-A-1, 'AAA' ('Group 5 senior certificates'); and

Groups 1 and 2 certificates:

-- $886,000 class CB-3, 'BBB';

-- $996,000 class CB-4, 'BB'.

The 'AAA' ratings on the group 1 and group 2 senior certificates reflect the 4.10% subordination provided by the classes CB-1 through CB-6 certificates. The 'BBB' ratings on the class CB-3 certificates reflect the 1% subordination provided by the classes CB-4 through CB-6. The 'BB' ratings on the class CB-4 certificates reflect the 0.55% subordination provided by the classes CB-5 and CB-6. Classes CB-1, CB-2, CB-5 and CB-6 certificates are not rated by Fitch.

The 'AAA' ratings on the groups 3, 4, and 5 senior certificates reflect the 6.75% subordination provided by the classes DB-1 through DB-6 certificates. Classes DB-1, DB-2, DB-3, DB-4, DB-5 and DB-6 certificates are 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 servicing capabilities of Wells Fargo Bank, N.A. (rated 'RPS1' by Fitch), Bank of America, N.A. (rated 'RPS1' by Fitch), Countrywide Home Loans Servicing LP (rated 'RPS1' by Fitch), GreenPoint Mortgage Funding, Inc. (rated 'RPS2-' by Fitch), and National City Mortgage Co. (rated 'RPS2-' by Fitch).

The trust is comprised of seven loan groups of adjustable interest rate, fully-amortizing mortgage loans secured by first liens on one- to four-family residential properties. Loan groups 1 and 2 are cross-collateralized; loan groups 3, 4, and 5 are cross-collateralized; loan group 6 is a stand alone group; and loan group 7 is a stand alone group. Fitch did not rate the certificates collateralized by loan group 6 or loan group 7.

The combined loan groups 1 and 2 consist of 426 mortgage loans that have original terms to maturity (WAM) ranging from 180-360 months. The aggregate unpaid principal balance of the combined pool is $221,312,342 as of Oct. 1, 2004 (the cut-off date) and the average principal balance is $519,513. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 72.29%. The weighted average coupon (WAC) of the mortgage loans is 5.32% and the weighted average FICO score is 736. Cash-out and rate/term refinance loans represent 7.91% and 12.38% of the loan pool, respectively. The state that represents the largest geographic concentration of mortgaged properties is California (56.23%). All other states represent less than 5% of the outstanding balance of the pool.

The combined loan groups 3, 4, and 5 consist of 1,253 mortgage loans that have WAM ranging from 180-360 months. The aggregate unpaid principal balance of the combined pool is $376,718,988 as of the cut-off date and the average principal balance is $300,654. The OLTV of the loan pool is approximately 75.63%. The WAC of the mortgage loans is 5.54% and the weighted average FICO score is 706. Cash-out and rate/term refinance loans represent 24.10% and 14.76% of the loan pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (44.70%), Florida (8.52%), Nevada (6.88%), and Virginia (5.05%). All other states represent less than 5% of the outstanding balance of the pool.

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, deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. Wachovia Bank, N.A. will serve as trustee. Elections will be made to treat the trust as five separate real estate mortgage investment conduits (REMICs) for federal income tax purposes.