BAFC $662.8MM P-T Ctfs Series 2004-2 Rated by Fitch.

NEW YORK -- Banc of America Funding Corporation (BAFC) mortgage pass-through certificates, series 2004-2, are rated by Fitch Ratings as follows:

Group 1 certificates:

--$115,506,399 classes 1-CB-1, 1-CB-R, 1-CB-PO, and 1-CB-IO, 'AAA' ('Group 1 senior certificates');

--$1,479,000 class 1-B-2, 'A';

--$863,000 class 1-B-3, 'BBB'.

Group 2 certificates:

--$134,097,020 classes 2-A-1, 2-A-IO, and 2-A-R, 'AAA'; ('Group 2 senior certificates')

--$2,947,000 class 2-B-1, 'AA';

--$561,000 class 2-B-2, 'A';

--$421,000 class 2-B-3, 'BBB';

--$281,000 class 2-B-4, 'BB';

--$140,000 class 2-B-5, 'B'.

Group 3 certificates:

--$399,721,060 classes 3-A-1 through 3-A-17, 3-A-IO, 3-A-R1, 3-A-R2, and 3-A-R3, 'AAA' ('Group 3 senior certificates').

Groups 1 through 3 certificates:

--$6,766,826 class 30-PO, 'AAA' (consisting of classes 1-30-PO, 2-30-PO, and 3-30-PO components).

The 'AAA' rating on the group 1 senior certificates reflects the 6.25% subordination provided by the 2.65% class 1-B-1, the 1.20% class 1-B-2, the 0.70% class 1-B-3, the 0.75% privately offered class 1-B-4, the 0.55% privately offered class 1-B-5, and the 0.40% privately offered class 1-B-6. Classes 1-B-2 and 1-B-3 are rated 'A' and 'BBB', respectively, based on their respective subordination. Classes 1-B-1, 1-B-4, 1-B-5, and 1-B-6 are not rated by Fitch.

The 'AAA' rating on the group 2 senior certificates reflects the 3.25% subordination provided by the 2.10% class 2-B-1, the 0.40% class 2-B-2, the 0.30% class 2-B-3, the 0.20% privately offered class 2-B-4, the 0.10% privately offered class 2-B-5, and the 0.15% privately offered class 2-B-6. Classes 2-B-1, 2-B-2, 2-B-3, and the privately offered classes 2-B-4 and 2-B-5 are rated 'AA', 'A', 'BBB', 'BB', and 'B', respectively, based on their respective subordination. The class 2-B-6 certificates are not rated by Fitch.

The 'AAA' rating on the group 3 senior certificates reflects the 2.90% subordination provided by the 1.70% class 3-B-1, the 0.45% class 3-B-2, the 0.30% class 3-B-3, the 0.20% privately offered class 3-B-4, the 0.15% privately offered class 3-B-5, and the 0.10% privately offered class 3-B-6. Classes 3-B-1 through 3-B-6 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 Home Mortgage, Inc. (WFHM) (rated 'RPS1' by Fitch), CitiMortgage, Inc. (rated 'RPS1' by Fitch), National City Mortgage, Co. (rated 'RPS3+' by Fitch), and Washington Mutual Bank, FA (rated 'RPS2+' by Fitch).

The trust is comprised of three loan groups of conventional, fixed-rate mortgage loans that are secured by first liens on one- to four-family residential properties. The three loan groups respectively collateralize the three bond groups. The class 30-PO consists of three separate components for distribution purposes that are not severable. The class 1-CB-PO represents the right to receive a portion of principal received with respect to the mortgage loans in loan group 1 only.

Loan group 1 consists of 751 mortgage loans that have original terms to maturity of approximately 30 years. The aggregate unpaid principal balance of the pool is $123,228,549 as of August 1, 2004 (the cut-off date), and the average principal balance is $164,086. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 66.45%; approximately 7.85% of the mortgage loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 6.116% and the weighted average FICO score is 727. Cash-out and rate/term refinance loans represent 37.44% and 27.35% of the loan pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (31.37%), Massachusetts (13.29%), Illinois (5.27%), and Florida (5.18%). All other states represent less than 5% of the outstanding balance of the pool.

Loan group 2 consists of 323 seasoned mortgage loans that have original terms to maturity of approximately 10 to 30 years. The aggregate unpaid principal balance of the pool is $140,333,542 as of cut-off date, and the average principal balance is $434,469. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 67.01%; approximately 1.34% of the mortgage loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 6.832% and the weighted average FICO score is 734. On a weighted average basis, the pool is aged 32 months since origination. Cash-out and rate/term refinance loans represent 20.43% and 43.55% of the loan pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (43.72%), Texas (9.46%), Florida (8.51%), and Virginia (5.15%). All other states represent less than 5% of the outstanding balance of the pool.

Loan group 3 consists of 754 mortgage loans that have original terms to maturity of approximately 20 and 30 years. The aggregate unpaid principal balance of the pool is $416,882,541 as of cut-off date, and the average principal balance is $552,895. The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 63.24%; approximately 3.77% of the mortgage loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 5.895% and the weighted average FICO score is 730. Cash-out and rate/term refinance loans represent 13.42% and 54.83% of the loan pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (48.51%) and Texas (6.61%). 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, purchased the mortgage loans from various sellers 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 securities administrator. Wachovia Bank, N.A. will serve as trustee. Elections will be made to treat the trust as separate real estate mortgage investment conduits (REMICs) for federal income tax purposes.