Fitch Rates BNC Mortgage Loan Trust 2006-2 $790.4MM Series 2006-2.

NEW YORK -- BNC Mortgage Loan Trust 2006-2 $790.4 million mortgage pass-through certificates, series 2006-2, are rated by Fitch as follows:

--$637.4 million classes A1-A5 'AAA';

--$36.1 million class M1 'AA+';

--$31.2 million class M2 'AA';

--$13.6 million class M3 'AA-';

--$12.4 million class M4 'A+';

--$12.4 million class M5 'A';

--$8 million class M6 'A-';

--$8.4 million class M7 'BBB+';

--$6.4 million class M8 'BBB+';

--$8.0 million class M9 'BBB';

--$9.6 million class B1 'BB+' (144A);

--$6.8 million class B2 'BB' (144A).

The 'AAA' rating on the class A1 through A5 certificates reflects the 20.45% total credit enhancement provided by the 4.50% class M1, 3.90% class M2, 1.70% class M3, 1.55% class M4, 1.55% class M5, 1.00% class M6, 1.05% class M7, 0.80% class M8, 1.00% class M9, the privately offered 1.20% class B1, the privately offered 0.85% B2, as well as the 1.35% initial and target overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Aurora Loan Services LLC as master servicer (rated 'RMS1-' by Fitch). U.S. Bank National Association (rated 'AA-' by Fitch) will act as trustee.

On the closing date, the trust fund will consist of a pool of conventional, first and second lien, adjustable- and fixed-rate, fully amortizing and balloon, residential mortgage loans with a total principal balance as of the cut-off date of approximately $801,222,604. Approximately 23.37% of the mortgage loans are fixed-rate mortgage loans, and 76.63% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 8.392%. The weighted average credit score is 620, and the weighted average remaining term to maturity (WAM) is 350 months. The average principal balance of the loans is approximately $214,574. The weighted average combined loan-to-value ratio (CLTV) is 82.01%. The properties are primarily located in California (40.09%), Florida (7.30%) and Illinois (6.41%).

All of the mortgage loans were acquired by Lehman Brothers Holdings Inc. from BNC Mortgage, Inc.

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

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.