Fitch Rates ABFC's $638.527MM A-B Ctfs Series 2004-OPT3.

Business Editors

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

Fitch has rated Asset-backed Funding Corporation's (ABFC) asset-backed certificates, series 2004-OPT3, as follows:

-$548.7 million classes A-1, A-2, A-3 and A-4 'AAA';

-$34.3 million class M-1 'AA';

-$26.6 million class M-2 'A';

-$8.7 million class M-3 'A';

-$7.4 million class M-4 'A-';

-$6.4 million class M-5 'BBB';

-$6.4 million class M-6 'BBB-'.

The 'AAA' rating on the senior certificates reflects the 14.50% total credit enhancement provided by the 5.35% class M-1, 4.15% class M-2, 1.35% class M-3, 1.15% class M-4, 1% class M-5, 1% class M-6 and 0.50% initial overcollateralization (OC). 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 Option One Mortgage Corp. as servicer and Wells Fargo Bank, National Association, as trustee.

The certificates are supported by two collateral groups, one conforming to Fannie Mae and Freddie Mac, the other non-conforming. The group I mortgage pool consists of adjustable-rate and fixed-rate conforming mortgage loans, with a cut-off date pool balance of $462,585,725. Approximately 38.79% of the mortgage loans are fixed-rate mortgage loans and 61.21% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 7.465%. The weighted average remaining term to maturity (WAM) is 349 months. The average principal balance of the loans is approximately $149,753. The weighted average original loan-to-value ratio (OLTV) is 77.72%. The properties are primarily located in California (19.10%), New York (14.03%) and Massachusetts (9.99%).

The group II mortgage pool consists of adjustable-rate and fixed-rate, conforming and non-conforming first and second lien mortgage loans, with a cut-off date pool balance of $179,151,964. Approximately 37.13% of the mortgage loans are fixed-rate mortgage loans and 62.87% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 7.456%. The WAM is 354 months. The average principal balance of the loans is approximately $84,883. The weighted average original combined LTV is 77.74%. The properties are primarily located in California (22.64%), New York (15.84%) and Massachusetts (10.93%).

In addition, approximately 80.60% of the mortgage loans with combined LTVs greater than 60% will have mortgage insurance policy from PMI Mortgage Insurance Co.

On the closing date, the mortgage loans will be sold to ABFC, the depositor, a wholly-owned, indirect subsidiary of Bank of America Corporation by Bank of America, NA., the seller, an affiliate of the depositor and one of the underwriters, which acquired the mortgage loans from Option One, the originator. Option One was incorporated in 1992, and began originating and servicing subprime loans in February 1993. Option One is a subsidiary of Block Financial, which is in turn a subsidiary of H & R Block, Inc. For federal income tax purposes, multiple real estate mortgage investment conduit (REMIC) elections will be made with respect to the trust estate.