BAFC $531.4MM P-T Ctfs Series 2004-1 Rated by Fitch.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 30, 2004

Banc of America Funding Corporation's (BAFC) mortgage pass-through certificates, series 2004-1, classes 1-A-1, 1-A-R, 1-A-LR, 2-A-1, 3-A-1, 4-A-1, 5-A-1, 6-A-1, 7-A-1, 8-A-1, CB-IO, NC-IO, 8-IO, and PO, ($499,831,278) are rated 'AAA' by Fitch Ratings. The class B-1 ($16,575,000) is rated 'AA', the class B-2 ($5,345,000) is rated 'A', the class B-3 ($5,079,000) is rated 'BBB', the class B-4 ($2,673,000) is rated 'BB', and the class B-5 ($1,871,000) is rated 'B'. The class B-6 certificates are not rated by Fitch.

The 'AAA' rating on the senior certificates reflects the 6.50% subordination provided by the 3.10% class B-1, the 1.00% class B-2, the 0.95% class B-3, the 0.50% privately offered class B-4, the 0.35% privately offered class B-5, and the 0.60% privately offered class 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 servicing capabilities of Wells Fargo Home Mortgage, Inc. (WFHM) (rated 'RPS1' by Fitch).

WFHM originated or acquired all of the mortgage loans, which were subsequently sold to BAFC. The mortgage loans were underwritten in accordance with WFHM's 'Alternative A' underwriting guidelines that are less stringent than the general underwriting policies of WFHM. As a result, the mortgage loans may experience higher rates of delinquencies, defaults, and losses.

The trust is comprised of eight loans groups of conventional, fixed-rate mortgage loans that are secured by first liens on one- to four-family residential properties. All of the loan groups are cross collateralized by the subordinate classes B-1 through B-6 certificates. The class PO consists of eight separate components for distribution purposes that are not severable. The class CB-IO consists of four separate components for distribution purposes only that are not severable. The class NC-IO consists of three separate components for distribution purposes only that are not severable.

The combined loan groups consist of 2,923 mortgage loans that have original terms to maturity of approximately 15- to 30-years. The aggregate unpaid principal balance of the pool is $534,582,194 as of April 1, 2004 (the cut-off date), and the average principal balance is $182,888. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 76.98%; approximately 40.73% of the mortgage loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 6.574% and the weighted average FICO score is 704. Cash-out and rate/term refinance loans represent 37.41% and 16.71% of the loan pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (24.08%), New York (6.62%), Florida (5.72%), and New Jersey (5.09%). 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 research 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 two separate real estate mortgage investment conduits (REMICs) for federal income tax purposes.