BAFC $366.0MM P-T Certificates Series 2004-3 Rated by Fitch.

NEW YORK -- Banc of America Funding Corporation (BAFC) mortgage pass-through certificates, series 2004-3, are rated by Fitch Ratings as follows:

Group 1 certificates:

--$243,508,918 classes 1-A-1 through 1-A-11, 30-IO, and 1-A-R, 'AAA'; ('Group 1 senior certificates')

Group 2 certificates:

--$118,310,525 classes 2-A-1 through 2-A-2, 15-IO, and 15-PO, 'AAA'; ('Group 2 senior certificates')

Groups 1 and 2 certificates:

--$4,199,615 class X-PO, 'AAA'; (consisting of classes 1-X-PO and 2-X-PO components)

The 'AAA' rating on the Group 1 senior certificates reflects the 3.00% subordination provided by the 1.60% class 30-B-1, the 0.60% class 30-B-2, the 0.25% class 30-B-3, the 0.22% privately offered class 30-B-4, the 0.23% privately offered class 30-B-5, and the 0.10% privately offered class 30-B-6.

The 'AAA' rating on the Group 2 senior certificates reflects the 1.15% subordination provided by the 0.55% class 15-B-1, the 0.20% class 15-B-2, the 0.15% class 15-B-3, the 0.10% privately offered class 15-B-4, the 0.10% privately offered class 15-B-5, and the 0.05% privately offered class 15-B-6.

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 Washington Mutual Mortgage Securities Corp. (rated 'RMS2+' by Fitch).

The trust is comprised of two loan groups of conventional, fixed-rate mortgage loans that are secured by first liens on one- to two-family residential properties. The two loan groups respectively collateralize the Group 1 and Group 2 certificates and components. The class X-PO consists of two separate components that are not severable.

Loan Group 1 is comprised of 518 mortgage loans that have original terms to maturity of approximately 30 years. The aggregate unpaid principal balance of the pool is $255,349,884 as of September 1, 2004, (the cut-off date) and the average principal balance is $492,953. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 67.66%; approximately 0.61% of the loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 5.829% and the weighted average FICO score is 739. Cash-out and rate/term refinance loans represent 25.09% and 56.01% of the loan pool, respectively. The state that represents the largest geographic concentration is California (87.56%). All other states represent less than 5% of the outstanding balance of the pool.

Loan Group 2 is comprised of 234 mortgage loans that have original terms to maturity of approximately 15 years. The aggregate unpaid principal balance of the pool is $119,707,412 as of the cut-off date and the average principal balance is $511,570. The weighted average OLTV of the loan pool is approximately 57.52% and none of the mortgage loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 5.230% and the weighted average FICO score is 739. Cash-out and rate/term refinance loans represent 26.51% and 61.12% of the loan pool, respectively. The states that represent the largest geographic concentration are California (62.93%) and Washington (5.59%). 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 purchased the mortgage loans from Bank of America, N.A. through Washington Mutual Mortgage Securities Corp., which acquired the loans from LoanCity.com, American Home Mortgage, and Alliance Home Mortgage. Wells Fargo Bank, N.A. will serve as trustee. BAFC, a special purpose corporation, deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, an election will be made to treat the trust as a real estate mortgage investment conduit (REMIC).