Fitch Rates Asset Backed Funding Asset-Backed Ctfs, Series 2006-OPT3.

NEW YORK -- Fitch rates Asset Backed Funding Corp. Asset-Backed Certificates, $813.3 million mortgage pass-through certificates, series 2006-OPT3 (which closed on November 14, 2006) as follows:

-- $635.65 million classes A1, A2 and A-3A through A-3C 'AAA';

-- $35.03 million class M1 'AA+';

-- $32.08 million class M2 'AA';

-- $18.57 million class M3 'AA-';

-- $16.04 million class M4 'A+';

-- $15.62 million class M5 'A';

-- $13.98 million class M6 'A-';

-- $13.51 million class M7 'BBB+';

-- $12.24 million class M8 'BBB';

-- $10.55 million class M9 'BBB-';

-- $10.13 million privately offered class B 'BB+'.

The 'AAA' rating on the senior certificates reflects the 24.70% total credit enhancement provided by the 4.15% class M1, the 3.80% class M2, the 2.20% class M3, the 1.90% class M4, the 1.85% class M5, the 1.65% class M6, the 1.60% class M7, the 1.45% class M8, the 1.25% class M9, 1.20% privately offered class B and the initial and target overcollateralization (OC) of 3.65%. 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, N.A., as Trustee.

The certificates are supported by three collateral groups. Group I will consist of 841 mortgage loans that have original principal balances that conform to Fannie Mae guidelines. The Group I mortgage pool consists of first lien, adjustable-rate and fixed-rate mortgage loans that have a cut-off date pool balance of $151,756,592. Approximately 10.17% of the mortgage loans are fixed-rate mortgage loans and 89.83% are adjustable-rate mortgage loans. The weighted average current loan rate is approximately 8.810%. The weighted average remaining term to maturity is 357 months. The average principal balance of the loans is $180,448. The weighted average original loan-to-value ratio (OLTV) is 97.68%. The weighted average FICO score is 634. The properties are primarily located in California (12.23%), Florida (11.62%), and Massachusetts (5.45%).

Group II will consist of 640 mortgage loans that have original balances that conform to Freddie Mac guidelines. The Group II mortgage pool consists of first lien, adjustable-rate and fixed-rate mortgage loans that have a cut-off date pool balance of $151,850,026. Approximately 9.85% of the mortgage loans are fixed-rate mortgage loans and 90.15% are adjustable-rate mortgage loans. The weighted average current loan rate is approximately 8.807%. The weighted average remaining term to maturity is 357 months. The average principal balance of the loans equals $237,266. The weighted average original loan-to-value ratio (OLTV) is 97.71%. The weighted average FICO score is 634. The properties are primarily located in California (12.54%), Massachusetts (9.25%), and Florida (7.64%).

Group III will consist of 1,917 mortgage loans that have original balances that may or may not conform to Fannie Mae and/or Freddie Mac guidelines. The Group III mortgage pool consists of first lien, adjustable-rate and fixed-rate mortgage loans that have a cut-off date pool balance of $540,552,843. Approximately 7.80% of the mortgage loans are fixed-rate mortgage loans and 92.20% are adjustable-rate mortgage loans. The weighted average current loan rate is approximately 8.776%. The weighted average remaining term to maturity is 357 months. The average principal balance of the loans equals $281,979. The weighted average original loan-to-value ratio (OLTV) is 98.37%. The weighted average FICO score is 643. The properties are primarily located in California (37.03%), New York (9.05%), and Florida (7.31%).

For federal income tax purposes, multiple real estate mortgage investment conduit (REMIC) elections will be made with respect to the trust estate.

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.

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.