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Latest world business news Press Digest. BETA

   The 'AAA' ratings on the senior certificates reflect the 4.80% subordination provided by the 1.70% class M-1, the 0.85% class B-1, the 0.75% class B-2, the 0.55% class B-3, the 0.40% privately offered class B-4, the 0.30% privately offered class B-5, and the 0.25% privately offered class B-6.The ratings on the class M-1, B-1, B-2, B-3, B-4 and B-5 certificates reflect each certificate's respective level of subordination.

Class B-6 is not rated by Fitch. This transaction contains certain classes designated as exchangeable REMIC certificates and exchangeable certificates. All other classes are regular certificates.

All or a portion of certain classes of offered exchangeable REMIC certificates may be exchanged for a proportionate interest in the related exchangeable certificates.All or a portion of the exchangeable certificates may also be exchanged for the related offered exchangeable REMIC certificates in the same manner.This process may occur repeatedly.

The classes of offered exchangeable REMIC certificates and of exchangeable certificates that are outstanding at any given time, and the outstanding principal balances and notional amounts of these classes, will depend upon any related distributions of principal, as well as any exchanges that occur.Offered exchangeable REMIC certificates and exchangeable certificates in any combination may be exchanged only in the proportions shown in the governing documents.Holders of exchangeable certificates will be the beneficial owners of a proportionate interest in the certificates in the related combination group and will receive a proportionate share of the distributions on those certificates.

With respect to any distribution date, the aggregate amount of principal and interest distributable to, and amount of principal and interest losses and interest shortfalls on, all of the exchangeable certificates in any exchangeable combination on such distribution date will be identical to the aggregate amount of principal and interest distributable to, and amount of principal and interest losses and interest shortfalls on, all of the exchangeable REMIC certificates in the related REMIC combination on such distribution date. Fitch believes the amount of credit enhancement will be sufficient to cover credit losses.The ratings also reflect the high quality of the underlying collateral purchased by Banc of America Funding Corporation, the integrity of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A.

(rated 'RMS1' by Fitch). The collateral consists of 973 fully amortizing, fixed interest rate, first lien mortgage loans, with original terms to maturity of 120 to 360 months.The aggregate unpaid principal balance of the pool is $569,257,532 as of Feb.

1, 2007 (the cut-off date) and the average principal balance is $585,054.The weighted average original loan-to-value ratio (OLTV) of the loan pool is approximately 72.70; approximately 3.04% of the loans have an OLTV greater than 80%.The weighted average coupon (WAC) of the mortgage loans is 6.514% and the weighted average FICO score is 734.

Cash-out and rate/term refinance loans represent 33.25% and 21.02% of the loan pool, respectively.The states that represent the largest geographic concentration are California (30.51%), Texas (13.70%), and Florida (13.54%).All other states have a concentration of less than 5%.

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. BAFC, a special purpose corporation, purchased the mortgage loans from Bank of America, National Association; Wells Fargo Bank, National Association; and National City Mortgage Co., and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust.

All other originators are less than 5% of the mortgage pool.Wells Fargo Bank N.A.will serve as master servicer and as securities administrator.

U.S.Bank, N.A.will serve as trustee.

For federal income tax purposes, elections will be made to treat the trust 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..

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