BoAMSI $710.8MM Series 2003-K Rated By Fitch Ratings.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 9, 2003

Fitch rates Banc of America Mortgage Securities, Inc.'s (BoAMSI) mortgage pass-through certificates, series 2003-K, as follows:

-- $698,525,100 classes 1-A-1 through 1-A-3, 1-A-R, 1-A-LR, 2-A-1,

2-A-2, and 3-A-1 'AAA';

-- $10,098,000 class B-1 'AA';

-- $1,082,000 class B-4 'BB';

-- $1,082,000 class B-5 'B'.

The classes B-2, B-3 and B-6 certificates are not rated by Fitch.

The 'AAA' rating on the senior certificates reflects the 3.15% subordination provided by the 1.40% class B-1, 0.80% class B-2, 0.40% class B-3, 0.15% privately offered class B-4, 0.15% privately offered class B-5 and 0.25% privately offered class B-6. The ratings on classes B-1, B-4 and B-5 reflect the amount of its respective subordination.

The ratings also reflect the quality of the underlying mortgage collateral, the capabilities of Bank of America Mortgage, Inc. as servicer (rated 'RPS1' by Fitch), and Fitch's confidence in the integrity of the legal and financial structure of the transaction.

The transaction comprises three groups of mortgage loans, secured by first liens on one- to four-family properties, with a total of 1,401 loans and an aggregate principal balance of $721,245,548. The three loan groups are cross-collateralized.

Group 1 consists of 3/1 hybrid adjustable-rate mortgage loans (ARMs). After the initial fixed interest rate period of three years, the interest rate will adjust annually based on the One-Year LIBOR index plus a gross margin. The group has an aggregate principal balance of approximately $148,971,132 as of the cut-off date (Nov. 1) and a weighted average remaining term to maturity (WAM) of 358 months. The weighted average original loan-to-value ratio (OLTV) for the mortgage loans is approximately 71.08%. Rate/Term and cashout refinances account for 46.77% and 13.96% of the loans in Group 1, respectively. The weighted average FICO credit score for the group is 730. Second home and investor-occupied properties comprise 7.04% and 2.11% of the loans in Group 1, respectively. The states that represent the largest geographic concentration are California (66.93%) and Florida (5.91%). All other states represent less than 5% of the outstanding balance of the pool.

Group 2 consists of 5/1 hybrid ARMs. After the initial fixed interest rate period of five years, the interest rate will adjust annually based on the One-Year LIBOR index plus a gross margin. Approximately 27.17% of Group 2 loans are Net 5 mortgage loans, which require interest-only payments until the month following the first adjustment date. The group has an aggregate principal balance of approximately $523,970,609 as of the cut-off date and a WAM of 358 months. The weighted average OLTV for the mortgage loans is approximately 69.03%. Rate/Term and cashout refinances account for 43.68% and 11.28% of the loans in Group 2, respectively. The weighted average FICO credit score for the group is 733. Second home and investor-occupied properties comprise 6.44% and 0.77% of the loans in Group 2, respectively. The state that represents the largest geographic concentration is California (67.43%). All other states represent less than 5% of the outstanding balance of the pool.

Group 3 consists of 7/1 hybrid ARMs. After the initial fixed interest rate period of seven years, the interest rate will adjust annually based on the One-Year LIBOR index plus a gross margin. Approximately 0.83% of Group 3 loans are Net 7 mortgage loans, which require interest-only payments until the month following the first adjustment date. The group has an aggregate principal balance of approximately $48,303,808 as of the cut-off date and a WAM of 356 months. The weighted average OLTV for the mortgage loans is approximately 67.03%. Rate/Term and cashout refinances account for 59.10% and 10.08% of the loans in Group 3, respectively. The weighted average FICO credit score for the group is 735. Second homes comprise 4.30% and there are no investor-occupied properties in Group 3, respectively. The states that represent the largest geographic concentration are California (55.75%), Florida (6.80%), Georgia (6.08%), and Maryland (5.64%). 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'.

Banc of America Mortgage Securities, Inc. deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, elections will be made to treat the trust as two separate real estate mortgage investment conduits (REMICs). Wells Fargo Bank Minnesota, National Association will act as trustee.