Fitch Rates $1.38B Asset Backed Funding Asset-Backed Ctfs, 2006-HE1.

NEW YORK -- Asset Backed Funding Corp. asset-backed certificates, $1.38 billion mortgage pass-through certificates, series 2006-HE1, are rated by Fitch Ratings as follows:

--$1.14 billion classes A-1, A-2A through A-2D 'AAA';

--$46.0 million class M-1 'AA+';

--$43.2 million class M-2 'AA';

--$26.9 million class M-3 'AA-';

--$23.4 million class M-4 'A+';

--$22.6 million class M-5 'A';

--$21.2 million class M-6 'A-';

--$18.4 million class M-7 'BBB+';

--$12.0 million class M-8 'BBB';

--$10.6 million class M-9 'BBB-';

--$14.2 million privately offered class B 'BB+'.

The 'AAA' rating on the senior certificates reflects the 19.60% total credit enhancement provided by the 3.25% class M-1, the 3.05% class M-2, the 1.90% class M-3, the 1.65% class M-4, the 1.60% class M-5, the 1.50% class M-6, the 1.30% class M-7, the 0.85% class M-8, the 0.75% class M-9, 1.00% privately offered class B and the initial and target overcollateralization (OC) of 2.75%. All certificates have the benefit of monthly excess cash flow to absorb losses. In addition, the ratings reflect the quality of the loans, the integrity of the transaction's legal structure as well as the capabilities of Wells Fargo Bank, N.A. as master servicer (rated 'RMS1' by Fitch). U.S. Bank, N.A. will serve as trustee.

The mortgage pool consists of first lien, adjustable-rate and fixed-rate mortgage loans that have a cut-off date (Nov. 1, 2006) pool balance of $1,124,547,588. Approximately 27.76% of the mortgage loans are fixed rate mortgage loans and 72.24% are adjustable-rate mortgage loans. The weighted average current loan rate is approximately 8.527%. The weighted average remaining term to maturity (WAM) is 348 months. The average principal balance of the loans is $175,109. The weighted average original combined loan-to-value ratio (CLTV) is 81.01%. The weighted average FICO score is 625. The properties are primarily located in California (24.96%), Florida (16.29%), and Texas (7.99%).

For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits (REMICs).

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.