Filed Pursuant to Rule 433
Registration No. 333-118843
[Banc of America Securities Logo]
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Because the asset-backed securities are being offered on a "when, as and
if issued" basis, any contract of sale will terminate, by its terms, without any
further obligation or liability between us, if the securities themselves, or the
particular class to which the contract relates, are not issued. Because the
asset-backed securities are subject to modification or revision, any such
contract also is conditioned upon the understanding that no material change will
occur with respect to the relevant class of securities prior to the closing
date. If a material change does occur with respect to such class, our contract
will terminate, by its terms, without any further obligation or liability
between us (the "Automatic Termination"). If an Automatic Termination occurs, we
will provide you with revised offering materials reflecting the material change
and give you an opportunity to purchase such class. To indicate your interest in
purchasing the class, you must communicate to us your desire to do so within
such timeframe as may be designated in connection with your receipt of the
revised offering materials.
Mortgage Pass-Through Certificates, Series 2006-2
Banc of America Alternative Loan Trust 2006-2
Issuing Entity
Banc of America Mortgage Securities, Inc.
Depositor
Bank of America, National Association
Sponsor and Servicer
[Bank of America Logo]
February 10, 2006
Banc of America Securities LLC
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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DISCLAIMER
----------
This free writing prospectus is being delivered to you solely to provide you
with information about the offering of the securities referred to in this free
writing prospectus and to solicit an offer to purchase the securities, when, as
and if issued. Any such offer to purchase made by you will not be accepted and
will not constitute a contractual commitment by you to purchase any of the
securities until we have accepted your offer to purchase securities. We will not
accept any offer by you to purchase the securities, and you will not have any
contractual commitment to purchase any of the securities until after you have
received the preliminary prospectus. You may withdraw your offer to purchase
securities at any time prior to our acceptance of your offer.
The information in this free writing prospectus supersedes information contained
in any prior similar free writing prospectus relating to these securities prior
to the time of your commitment to purchase.
This free writing prospectus is not an offer to sell or solicitation of an offer
to buy these securities in any state where such offer, solicitation or sale is
not permitted.
IRS CIRCULAR 230 NOTICE
THIS FREE WRITING PROSPECTUS IS NOT INTENDED OR WRITTEN TO BE USED,
AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING U.S. FEDERAL, STATE
OR LOCAL TAX PENALTIES. THIS FREE WRITING PROSPECTUS IS WRITTEN AND
PROVIDED BY THE UNDERWRITER IN CONNECTION WITH THE PROMOTION OR
MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN. INVESTORS
SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN
INDEPENDENT TAX ADVISOR.
ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW THIS DOCUMENT ARE NOT
APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR
OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION
BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.
Banc of America Securities LLC
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
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Preliminary Summary of Terms
----------------------------
Transaction: Banc of America Alternative Loan Trust
2006-2
Mortgage Pass-Through Certificates, Series
2006-2
Issuing Entity: Banc of America Alternative Loan Trust
2006-2
Depositor: Banc of America Mortgage Securities, Inc.
Underwriter: Banc of America Securities LLC
Sponsor and Servicer: Bank of America, National Association
Trustee: Wells Fargo Bank, N.A.
Rating Agencies: Two of Standard & Poor's, Moody's and/or
Fitch Ratings will rate the offered Senior
Certificates. At least one of the above
Rating Agencies will rate the offered
Subordinate Certificates.
Senior Certificates: The Senior Certificates will consist of
three or more classes of certificates, one
of which will be the residual certificate
and at least one of which will be ratio
strip certificates. One or more classes of
certificates may be comprised of two or more
components. The components of a class are
not severable. The Senior Certificates (or
in the case of a class of Senior
Certificates comprised of components, the
components) may be divided into two or more
groups in which case each group will have a
corresponding group of Subordinate
Certificates which may or may not be shared
with one or more other groups of Senior
Certificates.
Subordinate Certificates: If the Senior Certificates are divided into
multiple groups, the Subordinate
Certificates may or may not consist of
multiple groups. If there is only one group
of Subordinate Certificates, the Subordinate
Certificates will support all of the Senior
Certificates. If there are multiple groups
of Subordinate Certificates, each group will
support one or more groups of Senior
Certificates. Each class of Subordinate
Certificates is also subordinated to each
class of Subordinate Certificates within its
group, if any, with a lower number.
Offered Certificates: Senior Certificates and Subordinate
Certificates rated BBB- or Baa3 or better
Expected Closing Date: February 27, 2006
Expected Investor Closing Date: February 28, 2006
Distribution Date: 25th of each month, or the next succeeding
business day (First Distribution Date: March
27, 2006)
Cut-off Date: February 1, 2006.
Determination Date: For any Distribution Date, the 16th day of
the month in which the Distribution Date
occurs or, if that day is not a business
day, the immediately preceding business day.
Banc of America Securities LLC 3
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
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Preliminary Summary of Terms
----------------------------
Record Date: For any Distribution Date, the close of
business on the last business day of the
month preceding the month of that
Distribution Date.
Day Count: 30/360
Clearing: DTC, Clearstream and Euroclear.
Denominations: Original Minimum Incremental
Certificate Denominations Denominations
Form
Senior Certificates (other than Book Entry $1,000 $1
any Principal Only Certificates,
Interest Only Certificates and
Special Retail Certificates)
Interest Only Certificates Book Entry $1,000,000 $1 or N/A
(notional amount)
or size of class,
if less than
$1,000,000
Special Retail Certificates Book Entry $1,000 $1,000
Principal Only Certificates and Book Entry $25,000 $1
Subordinate Certificates
SMMEA Eligibility: The Senior Certificates and the most senior
class or classes of Subordinate Certificates
are expected to constitute "mortgage related
securities" for purposes of SMMEA.
Banc of America Securities LLC 4
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
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Preliminary Summary of Terms
----------------------------
ERISA Eligibility: A fiduciary or other person acting on behalf
of any employee benefit plan or arrangement,
including an individual retirement account ,
subject to the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"),
the Code or any federal, state or local law
("Similar Law") which is similar to ERISA or
the Code (collectively, a "Plan") should
carefully review with its legal advisors
whether the purchase or holding of an
Offered Certificate could give rise to a
transaction prohibited or not otherwise
permissible under ERISA, the Code or Similar
Law.
The U.S. Department of Labor has extended to
Banc of America Securities LLC an
administrative exemption (the "Exemption")
from certain of the prohibited transaction
rules of ERISA and the related excise tax
provisions of Section 4975 of the Code with
respect to the initial purchase, the holding
and the subsequent resale by certain Plans
of certificates in pass-through trusts that
consist of certain receivables, loans and
other obligations that meet the conditions
and requirements of the Exemption.
The Exemption may cover the acquisition and
holding of the Offered Certificates by the
Plans to which it applies provided that all
conditions of the Exemption other than those
within the control of the investors are met.
In addition, as of the date hereof, there is
no single mortgagor that is the obligor on
5% of the initial balance of the Mortgage
Pool.
If there are Mortgage Loans with
loan-to-value ratios in excess of 100% in
the Mortgage Pool or in a loan group within
the Mortgage Pool, the Exemption will not
cover the acquisition and holding of the
related offered Super Senior Support or
Subordinate Certificates.
Prospective Plan investors should consult
with their legal advisors concerning the
impact of ERISA, the Code and Similar Law,
the applicability of PTE 83-1 and the
Exemption, and the potential consequences in
their specific circumstances, prior to
making an investment in the Offered
Certificates. Moreover, each Plan fiduciary
should determine whether under the governing
plan instruments and the applicable
fiduciary standards of investment prudence
and diversification, an investment in the
Offered Certificates is appropriate for the
Plan, taking into account the overall
investment policy of the Plan and the
composition of the Plan's investment
portfolio.
Banc of America Securities LLC 5
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
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Preliminary Summary of Terms
----------------------------
Tax Structure: For federal income tax purposes, the Trust
will be treated as one or more "real estate
mortgage investment conduits" (each, a
"REMIC").
o The Offered Certificates (other than
the residual certificate) and the
Subordinate Certificates will
constitute "regular interests" in a
REMIC and will be treated as
newly-originated debt instruments for
most federal income tax purposes.
o Generally, for a class of component
certificates, each component, rather
than the class itself, will constitute
a regular interest in a REMIC.
o The residual certificate will
represent the sole "residual interest"
in each REMIC.
You must report income received on your
Offered Certificates as it accrues from
Distribution Date to Distribution Date, even
if it is before such income is distributed
in cash to you.
Certain classes of Offered Certificates may
be issued with "original issue discount." If
your class of Offered Certificates is issued
with original issue discount, you must
report original issue discount income over
the life of your Certificate, often well
before such income is distributed in cash to
you.
If you hold an Offered Certificate
that has the benefit of a yield maintenance
agreement and is entitled to certain
payments from a reserve account, you will be
treated as owning two assets, a REMIC
regular interest and the right to receive
payments from the reserve fund and will be
required to account separately for each of
these assets for federal income tax
purposes.
Banc of America Securities LLC 6
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
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Preliminary Summary of Terms
----------------------------
Optional Termination Date: On any Distribution Date on which the
aggregate Stated Principal Balance of the
Mortgage Loans is less than 10% of the
initial aggregate unpaid principal balance
of the Mortgage Loans as of the Cut-off
Date, the Depositor may, at its option,
subject to certain conditions, purchase the
Mortgage Loans, which would effect an early
retirement of the Certificates.
If the Mortgage Loans are divided into
multiple loan groups with more than one set
of Subordinate Certificates, the Depositor
may, at its option, subject to certain
conditions, purchase the Mortgage Loans in
one or some of the loan groups, which would
effect an early retirement of only the
related Certificates.
The Pooling Agreement: The Certificates will be issued pursuant to
a Pooling and Servicing Agreement (the
"Pooling Agreement") to be dated the Closing
Date, among the Depositor, the Servicer and
the Trustee.
The Mortgage Pool: The "Mortgage Pool" will consist of fixed
rate, conventional, fully-amortizing
mortgage loans (the "Mortgage Loans")
secured by first liens on one- to
four-family properties. All of the Mortgage
Loans were originated or acquired by Bank of
America, National Association, which is an
affiliate of the Depositor and Banc of
America Securities LLC. In addition, certain
of the Mortgage Loans were originated using
underwriting standards that are different
from, and in certain respects, less
stringent than the general underwriting
standards of Bank of America, National
Association. See "Underwriting Guidelines of
Bank of America" below.
The Mortgage Pool may be divided into
multiple loan groups.
The Mortgage Loans: The Mortgage Loans consist of fixed rate,
conventional, fully amortizing mortgage
loans secured by first liens on one- to
four-family residential properties.
Substantially all of the Mortgage Loans will
have original terms to stated maturity of
approximately 20 to 30 years. Borrowers are
permitted to prepay their Mortgage Loans, in
whole or in part, at any time. If indicated
in the Collateral Summary at the end of this
Free Writing Prospectus, certain of the
Mortgage Loans may be subject to prepayment
premiums. Accordingly, the actual date on
which any Mortgage Loan is paid in full may
be earlier than the stated maturity date due
to unscheduled payments of principal. See
the Collateral Summary at the end of this
Free Writing Prospectus for more information
about the Mortgage Loans.
Banc of America Securities LLC 7
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
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Preliminary Summary of Terms
----------------------------
Yield Maintenance Agreements: The Trustee on behalf of the Trust may enter
into one or more yield maintenance
agreements (each, a "Yield Maintenance
Agreement") with one or more counterparties
(each, a "Counterparty"). With respect to
each Yield Maintenance Agreement for any
Distribution Date (other than the initial
Distribution Date) if LIBOR, as calculated
for the Interest Accrual Period related to
such Distribution Date, exceeds a designated
strike percentage, the Counterparty will be
obligated to pay to the Trustee, for deposit
into the related Reserve Fund, an amount
equal to the product of (a) the amount by
which (i) the lesser of LIBOR and a
designated maximum percentage exceeds (ii)
the designated strike percentage, (b) the
related notional amount as set forth for
such Distribution Date in the related Yield
Maintenance Agreement and (c) one-twelfth.
Pursuant to the Pooling Agreement, the
Trustee will establish a separate trust
account (the "Reserve Fund") for deposit of
any payments that it may receive under a
Yield Maintenance Agreement. Each Reserve
Fund is part of the trust fund but will not
be an asset of any REMIC.
Compensating Interest: Amounts on deposit in a Reserve Fund will be
used to make certain payments on a specified
Class of Certificates that has the benefit
of a Yield Maintenance Agreement. Pursuant
to the Pooling Agreement, the aggregate
Servicing Fee payable to the Servicer for
any month will be reduced (but not below
zero) by an amount equal to the lesser of
(i) the aggregate of the Prepayment Interest
Shortfalls for such Distribution Date and
(ii) one-twelfth of 0.25% of the aggregate
Stated Principal Balance of the Mortgage
Loans as of the due date in the month
preceding the month of such Distribution
Date (such amount, the "Compensating
Interest").
If a group of Subordinate Certificates
supports multiple groups of Senior
Certificates, Compensating Interest will be
determined on an aggregate basis with
respect to all related loan groups. If a
group of Subordinate Certificates supports
one group of Senior Certificates,
Compensating Interest will be determined for
the related loan group.
Advances: Subject to the certain limitations, the
Servicer will be required pursuant to the
Pooling Agreement to advance (any such
advance, an "Advance") prior to each
Distribution Date an amount equal to the
aggregate of payments of principal and
interest (net of the Servicing Fee) which
were due on the related due date on the
Mortgage Loans and which were delinquent on
the related Determination Date. Advances
made by the Servicer will be made from its
own funds or funds available for future
distribution. The obligation to make an
Advance with respect to any Mortgage Loan
will continue until the ultimate disposition
of the REO Property or Mortgaged Property
relating to such Mortgage Loan.
Banc of America Securities LLC 8
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Interest Accrual: Interest will accrue on the Certificates
during each one-month period (i) ending on
the last day of the month preceding the
month in which each Distribution Date occurs
(each, a "Regular Interest Accrual Period")
or (ii) commencing on the 25th day of the
month preceding the month in which each
Distribution Date occurs and ending on the
24th day of the month in which each
Distribution Date occurs (each, a "LIBOR
Based Interest Accrual Period" or "No Delay
Interest Accrual Period" and together with a
Regular Interest Accrual Period, an
"Interest Accrual Period"). The initial
Regular Interest Accrual Period will be
deemed to have commenced on February 1, 2006
and any initial LIBOR Based Interest Accrual
Period or No Delay Interest Accrual Period
will be deemed to have commenced on February
25, 2006.
On each Distribution Date, to the extent of
the applicable Pool Distribution Amount or
Amounts, each class of interest-bearing
Certificates will be entitled to receive
interest (as to each such class, the
"Interest Distribution Amount") with respect
to the related Interest Accrual Period. The
Interest Distribution Amount for any
interest-bearing class of Certificates will
be equal to the sum of (i) interest accrued
during the related Interest Accrual Period
at the applicable pass-through rate on the
related Class Balance or notional amount and
(ii) the sum of the amounts, if any, by
which the amount described in clause (i)
above on each prior Distribution Date
exceeded the amount actually distributed in
respect of interest on such prior
Distribution Dates and not subsequently
distributed.
The interest entitlement described in clause
(i) of the Interest Distribution Amount for
each class of interest-bearing Senior
Certificates and each class of Subordinate
Certificates will be reduced by the amount
of Net Interest Shortfalls for the related
Mortgage Loans for such Distribution Date.
Allocations of the interest portion of
Realized Losses on the Mortgage Loans in a
loan group first to the related Subordinate
Certificates in reverse numerical order will
result from the priority of distributions
first to the related Senior Certificates and
then to the classes of related Subordinate
Certificates in numerical order of the
applicable Pool Distribution Amount as
described below under "Priority of
Distributions." After the date on which the
aggregate Class Balance of the related
Subordinate Certificates has been reduced to
zero, the interest-bearing related Senior
Certificates will bear the interest portion
of any Realized Losses on such Mortgage
Loans pro rata based on the interest
entitlement described in clause (i) of the
applicable Interest Distribution Amount.
Banc of America Securities LLC 9
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Distributions to the On each Distribution Date, each class of
Subordinate Certificates: Subordinate Certificates that is entitled to
receive a principal distribution will
receive its pro rata share (based on the
Class Balances of all the Subordinate
Certificates (or the Subordinate
Certificates in the same group, if there is
more than one group of Subordinate
Certificates) that are entitled to receive a
principal distribution) of the Subordinate
Principal Distribution Amount(s), to the
extent that the remaining Pool Distribution
Amount(s) are sufficient therefor. With
respect to each class of Subordinate
Certificates, if on any Distribution Date
the Fractional Interest is less than the
Fractional Interest for that class on the
Closing Date, no classes of Subordinate
Certificates in the same group, if there is
more than one group of Subordinate
Certificates, junior to such class will be
entitled to receive a principal
distribution.
Distributions of principal on the
Subordinate Certificates that are entitled
to receive a principal distribution on a
Distribution Date will be made sequentially
to each class of Subordinate Certificates in
the order of their numerical class
designations until each such class has
received its respective pro rata share for
the Distribution Date. However, the Class PO
Deferred Amounts will be paid to the ratio
strip components or certificates from
amounts otherwise payable as principal to
the related Subordinate Certificates,
beginning with the amounts otherwise
distributable as principal to the class of
related Subordinate Certificates with the
highest numerical designation.
Shifting Interest Structure: Additional credit enhancement is provided by
the allocation of the applicable Non-PO
Percentages of principal prepayments on the
Mortgage Loans in the Mortgage Pool or a
loan group in the Mortgage Pool to the
related Senior Certificates for the first
five years and the disproportionately
greater allocation of prepayments to such
Senior Certificates over the following four
years. The disproportionate allocation of
the applicable Non-PO Percentages of
prepayments on the Mortgage Loans in the
Mortgage Pool or a loan group in the
Mortgage Pool will accelerate the
amortization of those Senior Certificates
relative to the amortization of the
Subordinate Certificates. As a result, the
credit support percentage for the Senior
Certificates should be maintained and may be
increased during the first nine years.
Banc of America Securities LLC 10
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Allocation of Losses: On each Distribution Date, the applicable PO
Percentage of any Realized Loss on a
Discount Mortgage Loan will be allocated to
the ratio strip certificate or ratio strip
component of the related group until its
Class Balance or principal balance is
reduced to zero. Such allocation will be
effected on each Distribution Date by
reducing the Class Balance of the ratio
strip certificate or principal balance of
the ratio strip component of the related
group if and to the extent that such balance
(after taking into account the amount of all
distributions to be made on such
Distribution Date) exceeds the Adjusted Pool
Amount (PO Portion) for such Distribution
Date. The amount of any such Realized Loss
allocated to a ratio strip certificate or
ratio strip component of the related group
will be treated as a "Class PO Deferred
Amount." To the extent funds are available
on such Distribution Date or on any future
Distribution Date from amounts that would
otherwise be allocable to the related
Subordinate Principal Distribution Amount or
Amounts, the Class PO Deferred Amounts for
the ratio strip certificate or ratio strip
component of the related group will be paid
on such ratio strip certificate or ratio
strip component of the related group prior
to distributions of principal on the related
Subordinate Certificates. Payments of the
Class PO Deferred Amounts will be made from
the principal payable to the related
Subordinate Certificates beginning with the
principal payable to the class of
Subordinate Certificates with the highest
numerical class designation. Any
distribution in respect of unpaid Class PO
Deferred Amounts for a ratio strip
certificate or ratio strip component of the
related group will not further reduce the
principal balance of such ratio strip
certificate or ratio strip component of the
related group. The Class PO Deferred Amounts
will not bear interest. The Class Balance of
the class of related Subordinate
Certificates then outstanding with the
highest numerical class designation will be
reduced by the amount of any payments in
respect of Class PO Deferred Amounts for the
ratio strip certificate or ratio strip
component of the related group. Any excess
of these Class PO Deferred Amounts over the
Class Balance of that class will be
allocated to the next most subordinate class
of related Subordinate Certificates to
reduce its Class Balance and so on, as
necessary.
On each Distribution Date, the applicable
Non-PO Percentage of any Realized Loss will
be allocated first to the related
Subordinate Certificates in the reverse
order of their numerical class designations
(beginning with the class of related
Subordinate Certificates then outstanding
with the highest numerical class
designation), in each case until the Class
Balance of such class of Certificates has
been reduced to zero, and then to the Senior
Certificates or to the Senior Certificates
of the related group, if there are multiple
groups of Senior Certificates pro rata based
on their respective Class Balances.
Banc of America Securities LLC 11
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Allocation of Losses Such allocation will be effected on each
(Continued): such Distribution Date by reducing the Class
Balance of the class of related Subordinate
Certificates then outstanding with the
highest numerical class designation if and
to the extent that the aggregate of the
Class Balances of all classes of Senior
Certificates or the Senior Certificates in a
group (other than any ratio strip class or
component) and the related Subordinate
Certificates (after taking into account the
amount of all distributions to be made on
such Distribution Date) exceeds the Adjusted
Pool Amount (Non-PO Portion) or sum of the
Adjusted Pool Amounts (Non-PO Portion) for
such Distribution Date.
After the date on which the aggregate Class
Balance of the related Subordinate
Certificates has been reduced to zero, on
each Distribution Date, the aggregate of the
Class Balances of all classes of Senior
Certificates or all Senior Certificates of a
group then outstanding will be reduced if
and to the extent that such aggregate Class
Balance (after taking into account the
amount of all distributions to be made on
such Distribution Date) exceeds the Adjusted
Pool Amount (Non-PO Portion) for such
Distribution Date. The amount of any such
reduction will be allocated among the Senior
Certificates or Senior Certificates of such
group pro rata based on their respective
Class Balances (or their initial Class
Balances, if lower, in the case of a class
of Accrual Certificates).
After the date on which the aggregate Class
Balance of the related Subordinate
Certificates has been reduced to zero, the
Class Balance of any class of Super Senior
Support Certificates will be reduced not
only by the principal portion of Realized
Losses allocated to such class as provided
in the preceding paragraph, but also by the
portion allocated to the related class or
classes of Super Senior Certificates.
Banc of America Securities LLC 12
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Cross-Collateralization: If one group of Subordinate Certificates
support multiple groups of Senior
Certificates, on each Distribution Date
prior to the date on which the aggregate
Class Balance of such Subordinate
Certificates has been reduced to zero but on
or after the date on which the Class
Balances of the Senior Certificates of a
group have been reduced to zero, amounts
otherwise distributable as principal
payments on such Subordinate Certificates
will be paid as principal to the remaining
classes of Senior Certificates of each group
supported by such Subordinate Certificates
together with the Senior Principal
Distribution Amount(s) in accordance with
the principal payment priorities provided
that on such Distribution Date (a) the
Aggregate Subordinate Percentage for such
Distribution Date is less than twice the
initial Aggregate Subordinate Percentage or
(b) the average outstanding principal
balance of the Mortgage Loans (including,
for this purpose, any Mortgage Loan in
foreclosure, any REO Property and any
Mortgage Loan for which the mortgagor has
filed for bankruptcy after the Closing Date)
delinquent 60 days or more over the last six
months as a percentage of the aggregate
Class Balance of the Subordinate
Certificates is greater than or equal to
50%. If the Senior Certificates of two or
more groups remain outstanding, the
distributions described above will be made
to such Senior Certificates of such groups,
pro rata, in proportion to the aggregate
Class Balance of such Senior Certificates.
The "Aggregate Subordinate Percentage" for
any Distribution Date will be the percentage
equal to the aggregate Class Balance of the
Subordinate Certificates divided by the
related aggregate Pool Principal Balance
(Non-PO Portion).
In addition, if on any Distribution Date,
after giving effect to the preceding
paragraph, the aggregate Class Balance of
the Senior Certificates after giving effect
to distributions to be made on such
Distribution Date is greater than the
Adjusted Pool Amount (Non-PO Portion) (any
such group, the "Undercollateralized Group"
and any such excess, the
"Undercollateralized Amount"), all amounts
otherwise distributable as principal on the
Subordinate Certificates, in reverse order
of their numerical designations, will be
paid as principal to the Senior Certificates
of the Undercollateralized Group together
with the Senior Principal Distribution
Amount(s) in accordance with the principal
payment priorities until the aggregate Class
Balance of the Senior Certificates of the
Undercollateralized Group equals the
Adjusted Pool Amount (Non-PO Portion). If
two or more groups are Undercollateralized
Groups, the distributions described above
will be made, pro rata, in proportion to the
amount by which the aggregate Class Balance
of the Senior Certificates of each such
group exceeds the related Pool Principal
Balance (Non-PO Portion).
The amount of any unpaid interest shortfall
amounts with respect to the
Undercollateralized Group (including any
interest shortfall amount for such
Distribution Date) will be paid to the
Undercollateralized Group, including the
interest only component of such group, if
any, prior to the payment of any
Undercollateralized Amount from amounts
otherwise distributable as principal on the
Subordinate Certificates, in reverse order
of their numerical designations.
Banc of America Securities LLC 13
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Adjusted Pool Amount: The "Adjusted Pool Amount" of the Mortgage
Pool or a loan group in the Mortgage Pool
will equal the aggregate unpaid principal
balance of the Mortgage Loans in the
Mortgage Pool or a loan group in the
Mortgage Pool as of the Cut-off Date minus
the sum of (i) all amounts in respect of
principal received in respect of such
Mortgage Loans (including amounts received
as Advances, principal prepayments and
Liquidation Proceeds in respect of
principal) and distributed on the
Certificates on such Distribution Date and
all prior Distribution Dates and (ii) the
principal portion of all Realized Losses
(other than debt service reductions)
incurred on such Mortgage Loans from the
Cut-off Date through the end of the month
preceding the month in which such
Distribution Date occurs.
Adjusted Pool Amount (PO The "Adjusted Pool Amount (PO Portion)" of
Portion): the Mortgage Pool or a loan group in the
Mortgage Pool will equal the sum as to each
Mortgage Loan in the Mortgage Pool or a loan
group in the Mortgage Pool as of the Cut-off
Date of the product of (A) the PO Percentage
for such Mortgage Loan and (B) the principal
balance of such Mortgage Loan as of the
Cut-off Date less the sum of (i) all amounts
in respect of principal received in respect
of such Mortgage Loan (including amounts
received as Advances, principal prepayments
and Liquidation Proceeds in respect of
principal) and distributed on the
Certificates on such Distribution Date and
all prior Distribution Dates and (ii) the
principal portion of any Realized Loss
(other than a debt service reduction)
incurred on such Mortgage Loan from the
Cut-off Date through the end of the month
preceding the month in which such
Distribution Date occurs.
Adjusted Pool Amount (Non-PO The "Adjusted Pool Amount (Non-PO Portion)"
Portion): of the Mortgage Pool or a loan group in the
Mortgage Pool will equal the difference
between the Adjusted Pool Amount of the
Mortgage Pool or a loan group in the
Mortgage Pool and the Adjusted Pool Amount
(PO Portion) of the Mortgage Pool or a loan
group in the Mortgage Pool.
Class Balance: The "Class Balance" of a class of
Certificates at any time will equal (a) its
initial Class Balance less (i) all
distributions of principal made to such
class, and (ii) losses allocated to such
class plus (b) in the case of a class of
Accrual Certificates, any amounts added to
such class balance as a result of the
application of the accrual distribution
amount.
Fractional Interest: The "Fractional Interest" with respect to
any Distribution Date and each class of
Subordinate Certificates will equal (i) the
aggregate of the Class Balances immediately
prior to such Distribution Date of all
classes of Subordinate Certificates in the
same group that have higher numerical class
designations than such class, divided by
(ii) the aggregate Pool Principal Balance
(Non-PO Portion) (if there is only one group
of Subordinate Certificates) or the related
Pool Principal Balance (Non-PO Portion) or
sum of the related Pool Principal Balance
(Non-PO Portion) (if there is more than one
group of Subordinate Certificates).
Banc of America Securities LLC 14
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Net Interest Shortfall: With respect to any Distribution Date, the
"Net Interest Shortfall" is equal to the sum
of (i) the shortfall in interest received
with respect to any Mortgage Loan as a
result of a Relief Act Reduction and (ii)
any Non-Supported Interest Shortfalls. Net
Interest Shortfalls on any Distribution Date
will be allocated pro rata among all such
classes of interest-bearing Senior
Certificates or if there are Crossed Groups,
the interest-bearing Senior Certificates of
the Crossed Groups and each class of related
Subordinate Certificates, based on the
amount of interest accrued on each such
class of Certificates on such Distribution
Date before taking into account any
reduction in such amounts resulting from
such Net Interest Shortfalls.
Net Mortgage Interest Rate: The "Net Mortgage Interest Rate" of a
Mortgage Loan is the excess of its mortgage
interest rate over the sum of the servicing
fee rate (which is 0.25%) and the trustee
fee rate (which is 0.0065%).
Non-PO Percentage: The "Non-PO Percentage" with respect to any
Mortgage Loan in the Mortgage Pool or loan
group in the Mortgage Pool with a Net
Mortgage Interest Rate as of the Cut-off
Date less than [ ]% (each such Mortgage
Loan, a "Discount Mortgage Loan") will be
equal to the Net Mortgage Interest Rate as
of the Cut-off Date divided by [ ]%. The
Non-PO Percentage with respect to any
Mortgage Loan in the Mortgage Pool or loan
group in the Mortgage Pool with a Net
Mortgage Interest Rate as of the Cut-off
Date equal to or greater than [ ]% will be
100%. The "PO Percentage" for any Discount
Mortgage Loan will be equal to 100% minus
the Non-PO Percentage for such Mortgage
Loan.
Banc of America Securities LLC 15
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Non-PO Principal Amount: The "Non-PO Principal Amount" for any
Distribution Date and the Mortgage Pool or
any loan group in the Mortgage Pool will
equal the sum of the applicable Non-PO
Percentage of:
(a) all monthly payments of principal
due on each Mortgage Loan in the Mortgage
Pool or loan group in the Mortgage Pool on
the related due date;
(b) the principal portion of the
purchase price (net of unreimbursed Advances
and other amounts as to which the Servicer
is entitled to be reimbursed pursuant to the
Pooling Agreement) of each Mortgage Loan in
the Mortgage Pool or loan group in the
Mortgage Pool that was repurchased by the
Depositor pursuant to the Pooling Agreement
during the calendar month preceding the
month of that Distribution Date;
(c) amounts received with respect to
such Distribution Date as a substitution
adjustment amount (net of unreimbursed
Advances and other amounts as to which the
Servicer is entitled to be reimbursed
pursuant to the Pooling Agreement) in
connection with a Mortgage Loan in the
Mortgage Pool or loan group in the Mortgage
Pool received during the calendar month
preceding the month of that Distribution
Date;
(d) any Liquidation Proceeds (net of
unreimbursed expenses and unreimbursed
Advances, if any) allocable to recoveries of
principal of the Mortgage Loans in the
Mortgage Pool or loan group in the Mortgage
Pool that have not yet been liquidated
received during the calendar month preceding
the month of that Distribution Date;
(e) with respect to each Mortgage Loan
in the Mortgage Pool or loan group in the
Mortgage Pool that was liquidated during the
calendar month preceding the month of that
Distribution Date, the amount of the
Liquidation Proceeds (other than any profits
retained by the Servicer in connection with
the foreclosure and net of unreimbursed
expenses and unreimbursed Advances, if any)
allocable to principal received with respect
to that Mortgage Loan; and
(f) all partial and full principal
prepayments on the Mortgage Loans in the
Mortgage Pool or loan group in the Mortgage
Pool by mortgagors received during the
calendar month preceding the month of that
Distribution Date.
The amounts described in clauses (a) through
(d) are referred to as "Scheduled Principal
Payments." The amounts described in clauses
(e) and (f) are referred to as "Unscheduled
Principal Payments."
Banc of America Securities LLC 16
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Non-Supported Interest With respect to any Distribution Date, the
Shortfall: "Non-Supported Interest Shortfall" is the
amount by which the aggregate of Prepayment
Interest Shortfalls for the Mortgage Loans
in the Mortgage Pool or the Mortgage Loans
in any Crossed Loan Groups during the
calendar month preceding the month of such
Distribution Date exceeds the applicable
Compensating Interest for such period.
Notional Amount: The "Notional Amount" of any Interest Only
Certificates (or any components of an
Interest Only Certificates) will be equal to
either (I) the product of (i) the aggregate
of the Stated Principal Balances of the
Mortgage Loans in the Mortgage Pool or loan
group with Net Mortgage Interest Rates as of
the Cut-off Date greater than or equal to [
]% as of the due date in the month preceding
the month of such Distribution Date and (ii)
a fraction, (a) the numerator of which is
equal to the weighted average of the Net
Mortgage Interest Rates of the these
Mortgage Loans (based on the Stated
Principal Balances of these Mortgage Loans
as of the due date in the month preceding
the month of such Distribution Date) minus [
]% and (b) the denominator of which is equal
to [ ]% or (II) a percentage or all of the
Class Balance(s) of another class or
classes.
Banc of America Securities LLC 17
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Pool Distribution Amount: The "Pool Distribution Amount" with respect
to any Distribution Date will be determined
by reference to amounts received and
expenses incurred in connection with the
Mortgage Loans in the Mortgage Pool or any
loan group in the Mortgage Pool and will be
equal to the sum of:
(i) all scheduled installments of
interest (net of the related Servicing Fee)
and principal due on such Mortgage Loans on
the due date in the month in which such
Distribution Date occurs and received prior
to the related Determination Date, together
with any Advances in respect thereof and any
Compensating Interest allocable to such
Mortgage Loans;
(ii) all proceeds of any primary
mortgage guaranty insurance policies and any
other insurance policies with respect to
such Mortgage Loans, to the extent such
proceeds are not applied to the restoration
of the related mortgaged property or
released to the mortgagor in accordance with
the Servicer's normal servicing procedures
and all other cash amounts received and
retained in connection with the liquidation
of defaulted Mortgage Loans in the Mortgage
Pool or any loan group in the Mortgage Pool,
by foreclosure or otherwise (collectively,
"Liquidation Proceeds"), during the calendar
month preceding the month of such
Distribution Date (in each case, net of
unreimbursed expenses incurred in connection
with a liquidation or foreclosure and
unreimbursed Advances, if any);
(iii) all partial or full prepayments
received on such Mortgage Loans during the
calendar month preceding the month of such
Distribution Date; and
(iv) amounts received with respect to
such Distribution Date as a substitution
adjustment amount or purchase price in
respect of any deleted Mortgage Loan in the
Mortgage Pool or any loan group in the
Mortgage Pool or amounts received in
connection with the optional termination of
the Trust or a portion of the Trust as of
such Distribution Date, reduced by amounts
in reimbursement for Advances previously
made and other amounts as to which the
Servicer is entitled to be reimbursed
pursuant to the Pooling Agreement.
Banc of America Securities LLC 18
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Pool Principal Balance: The "Pool Principal Balance" for the
Mortgage Pool or a loan group in the
Mortgage Pool with respect to any
Distribution Date equals the aggregate
Stated Principal Balances of the Mortgage
Loans in the Mortgage Pool or loan group in
the Mortgage Pool outstanding on the due
date in the month preceding the month of
such Distribution Date.
Pool Principal Balance (Non-PO The "Pool Principal Balance (Non-PO
Portion): Portion)" for the Mortgage Pool or a loan
group in the Mortgage Pool and any
Distribution Date equals the sum of the
product, for each Mortgage Loan in the
Mortgage Pool or loan group in the Mortgage
Pool, of the Non-PO Percentage of such
Mortgage Loan multiplied by its Stated
Principal Balance on the due date in the
month preceding the month of such
Distribution Date.
Prepayment Interest Shortfall: A "Prepayment Interest Shortfall" on a
Mortgage Loan is equal to the difference
between (x) 30 days' interest at the
mortgage interest rate (less the servicing
fee rate) on the amount of the prepayment on
such Mortgage Loan minus (y) the amount of
interest actually paid by the related
mortgagor on the amount of such prepayment
during the preceding month.
Realized Loss: In general, a "Realized Loss" means, (a)
with respect to a Mortgage Loan that has
been liquidated, the amount by which the
remaining unpaid principal balance of the
Mortgage Loan exceeds the amount of proceeds
from the liquidation applied to the
principal balance of the related Mortgage
Loan and (b) a losses due to the bankruptcy
of the mortgagor.
Relief Act Reduction: A "Relief Act Reduction" is a reduction in
the amount of monthly interest payment on a
Mortgage Loan pursuant to the Servicemembers
Civil Relief Act or similar state
legislation.
REO Property: An "REO Property" is a Mortgaged Property
that has been acquired by the Trust through
foreclosure or grant of a deed in lieu of
foreclosure.
Banc of America Securities LLC 19
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Senior Percentage: The Senior Percentage for the Mortgage Pool
or loan group in the Mortgage Pool will
equal (i) the aggregate Class Balance of the
related Senior Certificates immediately
prior to such date, divided by (ii) the Pool
Principal Balance (Non-PO Portion) for the
Mortgage Pool or loan group in the Mortgage
Pool for such date.
Senior Prepayment Percentage: For the following Distribution Dates, will
be as follows:
Distribution Date Senior Prepayment Percentage
----------------- ----------------------------
March 2006 through 100%;
February 2011
March 2011 through the applicable Senior Percentage plus, 70% of the
February 2012 applicable Subordinate Percentage;
March 2012 through the applicable Senior Percentage plus, 60% of the
February 2013 applicable Subordinate Percentage;
March 2013 through the applicable Senior Percentage plus, 40% of the
February 2014 applicable Subordinate Percentage;
March 2014 through the applicable Senior Percentage plus, 20% of the
February 2015 applicable Subordinate Percentage;
March 2015 and thereafter the applicable Senior Percentage;
provided, however, that (A) if on any
Distribution Date the percentage equal to
(x) the aggregate Class Balances of the
Senior Certificates of multiple groups with
one set of Subordinate Certificates (such
groups, "Crossed Groups") divided by (y) the
sum of the Pool Principal Balances (Non-PO
Portion) for the loan groups relating to the
Crossed Groups (such loan groups, the
"Crossed Loan Groups" and such percentage,
the "Crossed Group Total Senior Percentage")
exceeds such percentage as of the Closing
Date, then the Senior Prepayment Percentages
for the Crossed Loan Groups for such
Distribution Date will equal 100% and (B) in
the case of one group of Senior Certificates
with its own set of Subordinate Certificates
or if the Mortgage Pool is not divided into
loan groups, if on any Distribution Date the
Senior Percentage for the Mortgage Pool or
the related loan group of the Mortgage Pool
(the Mortgage Loans in the Mortgage Pool or
such loan group, "Non-Crossed Mortgage
Loans") exceeds such percentage as of the
Closing Date, then the Senior Prepayment
Percentage(s) for the Mortgage Pool or such
loan group for such Distribution Date will
equal 100%.
Banc of America Securities LLC 20
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Senior Prepayment Percentage No decrease in the Senior Prepayment
(Continued): Percentages for the Crossed Loan Groups will
occur if the following occurs as of any
Distribution Date as to which any such
decrease applied with respect to the Crossed
Loan Group Mortgage Loans, and no decrease
in the Senior Prepayment Percentage for the
Non-Crossed Mortgage Loans will occur if the
following occurs as of any Distribution Date
as to which any such decrease applied with
respect to the Non-Crossed Mortgage Loans:
(i) the outstanding principal balance of all
Mortgage Loans in the Crossed Loan Groups or
all Non-Crossed Mortgage Loans (including,
for this purpose, any Mortgage Loans in
foreclosure, any REO Property in such loan
group or loan groups and any Mortgage Loan
for which the mortgagor has filed for
bankruptcy after the Closing Date)
delinquent 60 days or more (averaged over
the preceding six-month period), as a
percentage of the aggregate Class Balance of
the related Subordinate Certificates, is
equal to or greater than 50%, or (ii)
cumulative Realized Losses with respect to
the Mortgage Loans in the Crossed Loan
Groups or all Non-Crossed Mortgage Loans
exceed the percentages of the aggregate
balance of the related Subordinate
Certificates as of the Closing Date (with
respect to the related Subordinate
Certificates, the "Original Subordinate
Principal Balance") indicated below:
% of Original
Subordinate
Distribution Date Occurring Principal Balance
--------------------------- -----------------
March 2011 through February 2012 30%
March 2012 through February 2013 35%
March 2013 through February 2014 40%
March 2014 through February 2015 45%
March 2015 and thereafter 50%
The Subordinate Prepayment Percentage for
the Mortgage Pool or loan group in the
Mortgage Pool for any Distribution Date will
equal 100% minus the Senior Prepayment
Percentage for the Mortgage Pool or such
loan group in the Mortgage Pool for such
date.
Banc of America Securities LLC 21
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Senior Principal Distribution The "Senior Principal Distribution Amount"
Amount: for the Mortgage Pool or loan group in the
Mortgage Pool and any Distribution Date will
equal the sum of (i) the Senior Percentage
for the Mortgage Pool or loan group in the
Mortgage Pool of the applicable Non-PO
Percentage of Scheduled Principal Payments
for such Distribution Date and (ii) the
Senior Prepayment Percentage for the
Mortgage Pool or loan group in the Mortgage
Pool of the applicable Non-PO Percentage of
Unscheduled Principal Payments for such
Distribution Date subject to certain
reductions due to losses.
Stated Principal Balance: The "Stated Principal Balance" means, as to
any Mortgage Loan and due date, the unpaid
principal balance of such Mortgage Loan as
of such due date, as specified in the
amortization schedule at the time relating
thereto (before any adjustment to such
amortization schedule by reason of any
moratorium or similar waiver or grace
period), after giving effect to any previous
partial principal prepayments and
Liquidation Proceeds (net of unreimbursed
expenses and unreimbursed Advances)
allocable to principal received and to the
payment of principal due on such due date
and irrespective of any delinquency in
payment by the related mortgagor and after
giving effect to any deficient valuation by
a court in connection with a bankruptcy .
Subordinate Percentage: The Subordinate Percentage for the Mortgage
Pool or loan group in the Mortgage Pool for
any Distribution Date will equal 100% minus
the Senior Percentage for such date.
Subordinate Prepayment The Subordinate Prepayment Percentage for
Percentage: the Mortgage Pool or loan group in the
Mortgage Pool for any Distribution Date will
equal 100% minus the Senior Prepayment
Percentage for the Mortgage Pool or such
loan group in the Mortgage Pool for such
date.
Subordinate Principal The "Subordinate Principal Distribution
Distribution Amount: Amount" for the Mortgage Pool or loan group
in the Mortgage Pool for any Distribution
Date will equal the sum of (i) the
Subordinate Percentage for the Mortgage Pool
or loan group in the Mortgage Pool of the
applicable Non-PO Percentage of Scheduled
Principal Payments for such Distribution
Date and (ii) the Subordinate Prepayment
Percentage for the Mortgage Pool or loan
group in the Mortgage Pool of the applicable
Non-PO Percentage of Unscheduled Principal
Payments for such Distribution Date
Banc of America Securities LLC 22
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Credit Support
--------------------------
Subordinate Certificates provide credit support for Senior Certificates. If the
Senior Certificates are divided into multiple groups, the Subordinate
Certificates may or may not consist of multiple groups. If there are multiple
groups of Subordinate Certificates, each group will support one or more groups
of Senior Certificates. Additional credit enhancement is provided by the
allocation of the applicable Non-PO Percentages of all principal prepayments on
the applicable Mortgage Loans to the related Senior Certificates, subject to
certain exceptions, for the first five years and the disproportionately greater
allocation of prepayments to such Senior Certificates over the following four
years. The disproportionate allocation of the applicable Non-PO Percentages of
prepayments on the Mortgage Loans will accelerate the amortization of those
Senior Certificates relative to the amortization of the related Subordinate
Certificates. As a result, the credit support percentage for the Senior
Certificates should be maintained and may be increased during the first nine
years. If there is one group of Subordinate Certificates, the initial credit
support percentage for the Senior Certificates (calculated by dividing the
initial Class Balance of the Subordinate Certificates by the aggregate Pool
Principal Balance) is expected to be 3.95% (+/- 50 basis points). If there are
two groups of Subordinate Certificates, the initial credit support percentage
for the Senior Certificates related to the 20 to 30 year Mortgage Loans
(calculated by dividing the initial Class Balance of the related Subordinate
Certificates by the related Pool Principal Balance) is expected to be 4.25% (+/-
50 basis points) and the initial credit support percentage for the Senior
Certificates related to the 10 to 15 year Mortgage Loans (calculated by dividing
the initial Class Balance of the related Subordinate Certificates by the related
Pool Principal Balance) is expected to be 2.60% (+/- 50 basis points).
Priority of Distributions
-------------------------
Distributions will be made on each Distribution Date from the Pool Distribution
Amount (if the Mortgage Pool is not divided into loan groups) or Amounts (if
there are multiple loan groups, in which case the Senior Certificates and any
components of a group will be paid from the related Pool Distribution Amount) in
the following order of priority:
------------------------------------------------------------
First, to the classes of Senior Certificates and component
(if any) entitled to payments of interest, to pay interest;
------------------------------------------------------------
|
|
|
V
------------------------------------------------------------
Second, pro rata, to the Senior Certificates (other
than any ratio strip certificates) and any ratio
strip component or ratio strip certificates entitled
to payments of principal, to pay principal;
------------------------------------------------------------
|
|
|
V
------------------------------------------------------------
Third, to any ratio strip component or ratio
strip certificates, to pay any Class PO Deferred
Amounts, from
amounts otherwise payable as principal to the related
Subordinate Certificates;
------------------------------------------------------------
|
|
|
V
------------------------------------------------------------
Fourth, subject to any cross-collateralization payments,
sequentially, to each class of Subordinate Certificates from
the related Pool Distribution Amount or Amounts to pay
interest and principal in the order of numerical class
designations, until each Class Balance is zero; and
------------------------------------------------------------
|
|
|
V
------------------------------------------------------------
Fifth, to the residual certificate,
any remaining amounts.
------------------------------------------------------------
Banc of America Securities LLC 23
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
The Sponsor and Servicer: Bank of America, National Association ("Bank
of America") will serve as the sponsor (the
"Sponsor") of the Certificates. Bank of
America is an indirect wholly-owned
subsidiary of Bank of America Corporation.
Bank of America is engaged in a general
consumer banking, commercial banking, and
trust business, offering a wide range of
commercial, corporate, international,
financial market, retail and fiduciary
banking services. Bank of America is a
national banking association chartered by
the Office of the Comptroller of the
Currency (the "OCC") and is subject to the
regulation, supervision and examination of
the OCC.
Bank of America and its affiliates have been
active in the securitization market since
inception. Bank of America has sponsored
publicly offered securitization transactions
since 1977. Bank of America and its
affiliates have been involved with the
origination of auto loans, student loans,
home equity loans, credit card receivables,
manufactured housing contracts, residential
mortgage loans and commercial mortgage
loans, as well as less traditional asset
classes. Bank of America and its affiliates
have also participated in a variety of
collateralized loan obligation transactions,
synthetic securitizations, and asset-backed
commercial paper programs. Bank of America
and its affiliates have served as sponsors,
issuers, dealers, and servicers in a wide
array of securitization transactions.
The Depositor's securitization program
principally is used to fund Bank of
America's consumer real estate business
unit's self-originated portfolio of fully
amortizing mortgage loans secured by first
liens on one- to four-family residential
properties. The Depositor's securitization
program may also include mortgage loans
originated through correspondent
arrangements. While Bank of America
currently does not rely on securitization as
a material funding source, the Depositor's
securitization program is a material funding
source for Bank of America's portfolio of
consumer real estate mortgage loans similar
to the Mortgage Loans.
Bank of America's headquarters and its
executive offices are located at 101 South
Tryon Street, Charlotte, North Carolina
28255, and the telephone number is (704)
386-5478.
Banc of America Securities LLC 24
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Static Pool Information: Information concerning the Sponsor's prior
residential mortgage loan securitizations
involving both fixed-rate first lien
mortgage loans underwritten in accordance
with the Sponsor's general underwriting
standards described below under
"Underwriting Guidelines of Bank of
America--Bank of America General
Underwriting Standards" and first lien
mortgage loans underwritten in accordance
with the Sponsor's alternative underwriting
standards described below under --Bank of
America Alternative Underwriting Standards,"
and, in each case, issued by the Depositor
or the Depositor's predecessor is available
on the internet at http://www.bofa.com/
boams. Although those securitizations
involve the most comparable type of mortgage
loans to the type of Mortgage Loans
contained in the Mortgage Pool, the Sponsor
also maintains on that website, for the
information of investors, statistical data
concerning the Sponsor's prior residential
mortgage loan securitizations involving
either fixed-rate first lien mortgage loans
or adjustable-rate first lien mortgage loans
underwritten in accordance with the
Sponsor's general underwriting standards
issued by the Depositor or the Depositor's
predecessor.
Without charge or registration,
investors can view on this website the
following information for each of those
securitizations:
o summary initial pool information; and
o delinquency, cumulative loss, and
prepayment information as of each
Distribution Date for the five years
preceding the date of first use of the
prospectus supplement.
In the event any changes or updates
are made to the information available on the
Sponsor's website, the Depositor will
provide a copy of the original information
upon request to any person who writes or
calls the Depositor. The Depositor's address
is 214 North Tryon Street, Mail Code
NC1-027-22-02, Charlotte, North Carolina
28255, Attention: Senior Vice President,
telephone number (704) 387-8239.
This static pool data may have been
influenced in the past by factors beyond the
Sponsor's control, such as unusually robust
housing prices, low interest rates and
changes in product type. Therefore, the
performance of prior residential mortgage
loan securitizations may not be indicative
of the future performance of the Mortgage
Loans.
Banc of America Securities LLC 25
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines Bank of America General Underwriting
of Bank of America: Standards
Origination Channels
--------------------
Bank of America originates mortgage
loans (i) directly to consumers; (ii)
indirectly through brokers; and (iii)
through other loan originators. Bank of
America's direct-to-consumer originations
include mortgage loans made to:
o customers applying for a
mortgage at one of Bank of
America's banking center
locations;
o customers applying for a Bank of
America mortgage via telephone;
o customers applying for a
mortgage utilizing Bank of
America's internet site; and
o customers applying for a
mortgage with one of Bank of
America's retail mortgage
account executives, who obtain
customers by networking with
realtors and builders in their
local markets.
Bank of America also originates loans
indirectly through its wholesale channel
where:
o the initial application is
processed by an independent
mortgage broker approved to sell
loans to Bank of America; or
o applications are processed and
the mortgage loan is originated
by another entity and
subsequently acquired by Bank of
America after closing.
The real estate lending processes for
one- to four-family mortgage loans in all
origination channels follow standard
procedures, designed to comply with
applicable federal, state and local laws and
regulations.
Banc of America Securities LLC 26
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
The Application and Use of Credit Scoring
-----------------------------------------
Underwriting Guidelines of Bank Regardless of the channel in which the loan
of America (Continued): was originated, a mortgage application is
completed containing information that
assists in evaluating the mortgagor's credit
standing, capacity to repay the loan and
adequacy of the mortgaged property as
collateral for the loan. During the
application process, the applicant is
required to authorize Bank of America to
obtain a credit report that summarizes the
applicant's credit history with merchants
and lenders and any record of bankruptcy or
prior foreclosure. This credit information
may be obtained from either a single credit
repository or from up to three credit
repositories. The credit bureau inquiry also
includes a request for the applicant's
Credit Score. "Credit Scores" are
statistical credit scores obtained by many
mortgage lenders in connection with the loan
application to help assess a borrower's
creditworthiness. Credit Scores are
generated by models developed by a third
party and are made available to lenders
through three national credit bureaus,
Experian (FICO), Equifax (Beacon) and
TransUnion (Empirica). The models were
derived by analyzing data on consumers in
order to establish patterns which are
believed to be indicative of the borrower's
probability of default. A Credit Score is
based on a borrower's historical credit
data, including, among other things, payment
history, delinquencies on accounts, levels
of outstanding indebtedness, length of
credit history, types of credit, and
bankruptcy experience. Credit Scores range
from approximately 300 to approximately 850,
with higher scores indicating an individual
with a more favorable credit history
compared to an individual with a lower
score. If the credit bureaus cannot generate
a Credit Score due to insufficient
information about an applicant, Bank of
America will consider proof of an
applicant's alternative credit history, such
as a history of consistent rent and utility
payments.
In addition to a Credit Score, Bank of
America may obtain a Custom Mortgage Score.
In order to generate a Custom Mortgage
Score, the applicant must have at least one
trade line on his or her credit report and
also have a Credit Score. The "Custom
Mortgage Score" was developed on a
population of mortgage loans serviced by
Bank of America and is designed to assess
the likelihood that a mortgage loan will
become 60 days or more delinquent within two
years of application. The Custom Mortgage
Score used by Bank of America will either
have been developed by Bank of America
individually or with the assistance of a
third party. The Custom Mortgage Score
requires a Credit Score and utilizes
information obtained from one of the three
major credit bureaus. The credit bureau used
depends on the geographic location of the
applicant's residence at the time of
application. Bank of America may evaluate a
prospective borrower's creditworthiness with
either (i) a Credit Score, (ii) a Custom
Mortgage Score or (iii) a combination of a
Credit Score and a Custom Mortgage Score.
Banc of America Securities LLC 27
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Evaluation by Automated
Underwriting Decision Engine or Manual
Underwriter
--------------------------------------
Underwriting Guidelines of Each mortgage loan underwritten to Bank of
Bank of America (Continued): America's general underwriting standards is
underwritten in accordance with guidelines
established in Bank of America's Product and
Policy Guides (the "Product Guides"). These
underwriting standards applied by Bank of
America in originating or acquiring mortgage
loans are intended to evaluate the
applicants' repayment ability, credit
standing, and the adequacy of the mortgage
property as collateral for the mortgage
loan. The underwriting standards as
established in the Product Guides are
continuously updated to reflect prevailing
conditions in the residential market, new
mortgage products, and the investment market
for residential mortgage loans.
Each mortgage application is evaluated by
either an automated underwriting decision
engine and/or a human underwriter to
determine the appropriate credit decision
and documentation requirements for the loan
transaction. The automated underwriting
decision engine may be an engine developed
by an outside company and updated by Bank of
America risk management personnel to
facilitate automated decisions on Bank of
America loan transactions. Alternatively, it
may be an external decision engine such as
Fannie Mae's Desktop Underwriter(R) or
Freddie Mac's Loan Prospector(R) decision
engines. If the loan is not automatically
approved or declined by the automated
underwriting decision engine, it is directed
to an underwriter who evaluates the
application against a set of specific
criteria. The underwriter may be an employee
of the lender or may be an individual
performing underwriting on a contract basis
through a third party firm such as a
mortgage insurance company.
Desktop Underwriter(R) is an automated
underwriting system developed by Fannie Mae
for conventional conforming loans. Desktop
Underwriter(R) indicates the minimum income
and asset verification, credit-related
documentation and other requirements
necessary to complete processing of the loan
file. These requirements are based on the
specific risk factors present in each loan
file. Bank of America utilizes Fannie Mae's
Custom Desktop Underwriter(R) which allows
Bank of America's conditions and policies to
display on a customized findings report
specific to it.
Loan Prospector(R) is an automated
underwriting system developed by Freddie Mac
for conventional conforming loans. Loan
Prospector(R) indicates the minimum income
and asset verification, credit-related
documentation and other requirements
necessary to complete processing of the loan
file. These requirements are based on the
specific risk factors present in each
mortgage application.
Banc of America Securities LLC 28
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines of Bank Either the automated underwriting decision
of America (Continued): engine or the underwriter evaluates the
application information to the guidelines
for the product type under which the
applicant has applied. As part of the
underwriting evaluation, the Loan-to-Value
Ratio is calculated. The "Loan to Value
Ratio" is the percentage equal to (i) the
principal balance of the mortgage loan at
origination divided by (ii) the lesser of
(a) the appraised value of the related
mortgaged property determined in an
appraisal obtained at origination of the
mortgage loan or an automated valuation
model or tax assessed value (if permitted by
the applicable product type) and (b) except
for mortgage loans made for refinancing
purposes, the sales price for the mortgaged
property. In addition to evaluating the
Loan-to-Value Ratio, the automated
underwriting decision engine or human
underwriter will also evaluate the
applicant's credit history and/or Credit
Score and/or Custom Mortgage Score, the
amount of the applicant's debts (including
proposed housing payment and related
expenses such as property taxes and hazard
insurance) to his or her gross monthly
income, the intended occupancy of the
subject property, the property type, and the
purpose of the loan transaction to determine
whether the mortgage loan generally meets
the guidelines established for the program
under which the applicant is applying. If
there are multiple applicants on a loan
transaction, Bank of America generally
utilizes the Credit Score and/or Custom
Mortgage Score associated with the highest
wage-earner on the transaction as the
representative score(s) for the transaction.
The automated underwriting decision engine
and/or the underwriter may utilize
compensating factors to offset one or more
features of the loan transaction that may
not specifically comply with the product
guidelines. Therefore, the application of
the underwriting guidelines for a product
type by either an underwriter or an
automated decision engine does not imply
that each specific standard was satisfied
individually. A loan is considered to be
underwritten in accordance with a given set
of guidelines if, based on an overall
qualitative evaluation, the loan is in
substantial compliance with such
underwriting guidelines.
Banc of America Securities LLC 29
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines of Bank As part of the underwriting evaluation, the
of America (Continued): applicant's "Debt to Income Ratio" is
calculated as the amount of the monthly debt
obligations (including the proposed new
housing payment and related expenses such as
property taxes and hazard insurance) to his
or her gross monthly income. Bank of
America's Debt-to-Income Ratio guidelines
are based on the loan instrument, loan term,
Credit Score, Loan-to-Value Ratio, property
type, and occupancy characteristics of the
subject loan transaction. Bank of America
permits ratios to exceed guidelines when the
applicant has documented compensating
factors for exceeding ratio guidelines such
as documented excess funds in reserves after
closing, a history of making a similar sized
monthly debt payment on a timely basis,
substantial residual income after monthly
obligations are met, evidence that ratios
will be reduced shortly after closing when a
financed property under contract for sale is
sold, or additional income has been verified
for one or more applicants that is
ineligible for consideration as qualifying
income.
For certain mortgage loans, underwriting may
be based on data obtained by third parties
that are involved at various stages in the
mortgage origination or acquisition process.
This typically occurs under circumstances in
which loans are subject to more than one
approval process, as when correspondents,
certain mortgage brokers or similar entities
that have been approved by Bank of America
to underwrite loans on its behalf, or
independent contractors hired by these
parties to perform underwriting services on
Bank of America's behalf, make initial
determinations as to the consistency of
loans with established underwriting
guidelines. The underwriting of mortgage
loans acquired from another lender generally
relies on the representations from the
originating lender that the mortgage loans
were underwritten in accordance with agreed
upon underwriting standards that are
materially similar to Bank of America's. In
the event these standards differ materially
from those set forth in this prospectus, the
related prospectus supplement will describe
the applicable standards. Generally, Bank of
America conducts a post-purchase review of a
sampling of all mortgage loans acquired from
another lender to determine whether agreed
upon requirements were met. In order to be
eligible to sell mortgage loans under a
delegated underwriting arrangement, the
lender must meet certain requirements
including, among other things, certain
quality, operational and financial
guidelines.
Certain of the mortgage loans may be
purchased by Bank of America in negotiated
transactions, and these negotiated
transactions may be governed by contractual
agreements. The contractual agreements may
provide the commitment by Bank of America to
accept the delivery of a certain dollar
amount of mortgage loans over a specific
period of time; this commitment may allow
for the delivery of mortgage loans one at a
time or in multiples as aggregated by the
seller. Many of the contractual agreements
allow the delegation of all underwriting
functions to the seller, who will represent
that the mortgage loans have been originated
in accordance with underwriting standards
agreed to by Bank of America.
Banc of America Securities LLC 30
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Loans with Secondary Financing
------------------------------
Underwriting Guidelines of Bank First lien purchase money mortgage loans may
of America (Continued): have secondary financing to the borrower
contemporaneously with the origination of
the first lien mortgage loan. First lien
refinance transactions may have existing
secondary financing with the applicant that
is resubordinated to the new first lien
transaction or may have new secondary
financing originated simultaneously with the
first lien mortgage. The secondary financing
may or may not be provided by Bank of
America. The Total Loan-to-Value Ratio and
Combined Loan-to-Value Ratio are evaluated
on each loan with subordinate financing. The
"Total Loan-to-Value Ratio" is the principal
balance of the first lien mortgage loan at
origination plus any secondary financing
that was drawn upon at that time divided by
the value of the mortgaged property. The
"Combined Loan-to-Value Ratio" is the
principal balance of the first lien mortgage
loan at origination plus the total amount of
available secondary financing (including any
unused amount on a home equity line of
credit) divided by the value of the
mortgaged property. A mortgage loan with
secondary financing is evaluated to
determine if the Total Loan-to-Value Ratio
and Combined Loan-to-Value Ratio meet the
requirements for the program under which the
application is submitted or if the
application contains compensating factors to
warrant an exception to the applicable
guidelines. Some applicants request a first
lien mortgage loan with a Loan-to-Value
Ratio of 80% with a simultaneously funded
second lien transaction in order to avoid
the cost of primary mortgage insurance
associated with first lien mortgage loans
with Loan-to-Value Ratios exceeding 80%.
Documentation
-------------
In assessing an applicant, Bank of America
requires supporting documentation (or other
verification) for all material data provided
by the applicant, such as income and source
of down payment, unless the applicant
qualifies for one of the Accelerated
Processing Programs discussed below.
Under Bank of America's standard
documentation process (the "Standard
Documentation Process") the following
verifications are required: a salaried
applicant's income is verified by either
having the applicant provide copies of the
previous year's federal withholding form
(IRS W-2) and a current payroll earnings
statement or by sending a verification of
employment form to the applicant's employer.
A verification of employment form asks the
employer to report the applicant's length of
employment with the employer, the current
salary and an indication as to whether it is
expected that the applicant will continue to
be employed in the future. A self-employed
applicant is required to provide copies of
tax returns for the prior two years. Bank of
America verifies down payment funds by (i)
obtaining bank or other financial statements
covering the most recent 60-day period
confirming the existence of these funds,
(ii) determining electronically that these
funds are on deposit with Bank of America,
(iii) obtaining documentation that these
funds are to be obtained from a gift or sale
of assets or (iv) asking the applicant's
financial institution to complete a
verification of deposit form detailing asset
information. Asset verifications are not
required on refinance transactions.
Banc of America Securities LLC 31
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines of Bank If the applicant lacks a traditional credit
of America (Continued): history, then the loan approval may be of
conditioned upon the documentation of an
acceptable alternative credit history
consisting of at least four references
showing timely payment of utilities,
insurance premiums or rent, or other
alternative credit references in the prior
twelve months. In order to qualify for Bank
of America's general underwriting standards,
applicants must be willing to have the
income and assets stated on their
application verified. Applicants who have
indicated that they do not wish to have
their income and/or assets verified are
directed to other Bank of America programs
outlined in "--Bank of America Alternative
Underwriting Standards" below. While the
applicants under Bank of America's general
underwriting standards are willing to have
income and asset information stated in the
application verified, the level of
verifications required (if any) are based on
the applicant's credit profile, requested
loan terms, and whether the applicant has an
existing loan serviced by Bank of America
that is being refinanced with the new loan
transaction. Bank of America matches
documentation requirements on mortgage loans
to the overall risk parameters of the loan
file under various "Accelerated Processing
Programs" such as: (i) Rapid; (ii)
PaperSaver (also known as Threshold); (iii)
Stated Income, Stated Asset; (iv) All-Ready
Home; (v) Mortgage Rewards programs; (vi) No
Ratio or (vii) Stated Income.
Under Bank of America's "Rapid"
documentation program, only the most recent
pay stub (if salaried) or first two pages of
the most recent tax return (if
self-employed) of an applicant is required
for income verification and only the most
recent bank statement of an applicant is
required for asset verification on purchase
transactions if the applicant meets the
Total Loan-to-Value Ratio and Credit Score
requirements for that program.
Under Bank of America's "PaperSaver"
documentation program, verification of the
applicant's stated income and stated assets
is not requested (with the exception of
self-employed applicants who are required to
sign the IRS form 4506-T (Request for
Transcript of Tax Returns)) if the applicant
meets the designated Credit Score, Custom
Mortgage Score, Loan-to-Value Ratios and
other eligibility requirements. An applicant
with a designated higher Credit Score and
designated higher Custom Mortgage Score
which together indicate a favorable credit
history is eligible for PaperSaver
documentation. The PaperSaver documentation
program has certain limitations relating to
occupancy, property type, purpose and
principal balance.
Under Bank of America's "Stated Income,
Stated Asset" documentation program, which
is only available through the wholesale
channel, income or asset verifications are
not requested from applicants if they meet
the Total Loan-to-Value Ratio, Credit Score
and other eligibility requirements for the
program. Although the Stated Income, Stated
Asset program permits applicants to simply
state their income and assets without
verification, all applicants are required to
sign an IRS form 4506 permitting income
verification from tax return data if the
file is selected as part of Bank of
America's quality assurance audit.
Banc of America Securities LLC 32
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines of Bank Bank of America may originate new mortgage
of America (Continued): loans under its "All-Ready Home" mortgage
refinance program or its "Mortgage Rewards"
refinance program. Under each of these
programs, Bank of America will pay certain
closing costs normally paid by the customer.
Under these programs, a borrower whose
current mortgage loan is serviced by Bank of
America does not need to provide income or
asset verification documentation if the
current mortgage loan has had no 30 day or
more delinquent payments in the previous
twelve months (or since origination if less
than twelve months). In addition, Bank of
America typically requires only a drive-by
appraisal rather than a an interior
inspection appraisal. Because these programs
involve the refinancing of mortgage loans
that Bank of America originally underwrote,
Bank of America will not apply any
significant borrower credit or property
underwriting standards (other than a minimum
Credit Score). Mortgage Loans initially
included in the Trust Estate for a
particular series may have been the subject
of a refinancing described above. To the
extent a borrower becomes eligible for the
All-Ready Home or Mortgage Rewards program
after his or her Mortgage Loan has been
included in a particular Trust Estate, his
or her Mortgage Loan could be more easily
refinanced, resulting in a prepayment of the
Mortgage Loan.
For a description of the No Ratio and Stated
Income programs, see "--Bank of America
Alternative Underwriting Standards" below.
Collateral Valuation
--------------------
Bank of America conducts a valuation of the
mortgaged property as collateral for each
mortgage loan. This collateral valuation may
be determined by (i) an interior inspection
appraisal, (ii) a tax assessed value, (iii)
a desktop appraisal, (iv) a drive-by
appraisal, (v) an automated valuation model,
or (vi) reference to the collateral
valuation obtained in connection with the
origination of the previous loan if the loan
is a refinance of a mortgage loan that was
previously serviced by Bank of America. An
interior inspection appraisal is an
appraisal report based on an interior
inspection of the subject property. A tax
assessed value is a factor applied to the
tax value recorded for the subject property
that reflects the general relationship
between the assessed value and the market
value of the property. These factors are
established for each county by a third party
vendor. A tax assessed value also does not
entail any physical inspection of the
subject property. A desktop appraisal is a
report completed by a certified/licensed
appraiser utilizing a sales comparison
analysis from a local multiple listing
service without conducting a physical
inspection of the property. A drive-by
appraisal report is a limited, summary
appraisal report based on an exterior
inspection of the property and comparable
sales by a certified/licensed appraiser. An
automated valuation model is an
electronically generated valuation that
utilizes real estate information such as
property characteristics, market
demographics, sales price data, and regional
trends to calculate a value for a specific
property. Bank of America utilizes the
automated valuation models of several
vendors. An automated valuation model does
not entail any physical inspection of the
subject property. In addition, no updated
appraisal valuation may be performed if the
loan is a refinance of a loan that was
previously serviced by Bank of America and
the valuation from the time of origination
of the loan being refinanced reflects
adequate value for the mortgaged property.
Banc of America Securities LLC 33
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines of Bank In certain instances, the interior, desktop
of America (Continued): or drive-by appraisal reports may be
conducted by an employee of Bank of America
or an affiliate. The appraisal report,
however, may be performed by an independent
appraiser contracted by Bank of America or
an affiliate of Bank of America on direct
channel originations. Appraisal reports on
indirect channel originations are generally
performed by an appraiser selected by the
originating lender but indirect channel
appraisers cannot be performed by appraisers
that have been deemed to be ineligible to
perform appraisals by Bank of America.
Appraisers may note on their appraisal any
environmental hazard the appraiser becomes
aware of while appraising the property. EPA
Lead Paint requirements for notice and an
inspection period are standard for
properties built before 1978. Properties
containing other hazards may be eligible for
financing if the appraiser can value the
property showing the impact of the hazard,
and the borrower executes a "hold harmless"
letter to the lender. Environmental hazards
are not noted on collateral valuations where
no physical inspection of the property takes
place, such as on loans where the collateral
valuation is conducted by an automated
valuation model or tax assessed value.
Appraisers only note environmental hazards
on a desktop appraisal if they generally are
known in the area.
Certain states have "anti-deficiency" laws
which, in general, require lenders providing
credit on one to four family properties to
look solely to the property for repayment in
the event of foreclosure. The underwriting
guidelines in all states (including anti
deficiency states) require that the value of
the property being financed, as indicated by
the collateral valuation, currently supports
and is anticipated to support in the future
the outstanding loan balance and provides
sufficient value to mitigate the effects of
adverse shifts in real estate values,
although there can be no assurance that the
value will support the outstanding loan
balance in the future.
Flood Determinations and Hazard Insurance
-----------------------------------------
Each mortgage loan is evaluated to determine
if the subject property is located in a
federal flood zone. If the property is
located in a flood zone, then flood
insurance is required on the loan
transaction with an amount of coverage that
meets or exceeds federal law requirements.
Generally, evidence of acceptable hazard
insurance coverage on the subject property
is a requirement for loan approval. This
documentation, however, is not required if
the mortgage loan is a refinance of an
existing Bank of America serviced loan
transaction and hazard insurance was
documented for the previous loan transaction
or the mortgage loan is originated under a
program that does not require the review of
evidence of hazard insurance.
Banc of America Securities LLC 34
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Mortgage Insurance and Title
----------------------------
Underwriting Guidelines of Bank Mortgage loans originated with Loan-to-Value
of America (Continued): Ratios in excess of 80% may be covered by
primary mortgage insurance. Except as noted
below in connection with certain refinance
transactions, mortgage loans will generally
be covered by an appropriate standard form
American Land Title Association ("ALTA")
title insurance policy, or a substantially
similar policy or form of insurance
acceptable to Fannie Mae or Freddie Mac, or
if the related mortgaged property is located
in a jurisdiction where these policies are
generally not available, an opinion of
counsel of the type customarily rendered in
these jurisdiction in lieu of title
insurance will be obtained instead. If
required, the title insurance policy may
include environmental protection lien
endorsement coverage (ALTA Form 8.1 or its
equivalent) excepting only Superliens which
may arise after the loan is made.
Mortgage loans on refinance transactions
generally do not contain title insurance
policies. Title searches are often performed
on these refinance transactions in lieu of
obtaining a title insurance policy. A title
search is a limited search of a specified
parcel of land summarizing information
concerning current owner(s) and all
judgments, mortgages, and tax obligations
filed.
Borrowers Protection Plan(R)
----------------------------
Bank of America's Borrowers Protection
Plan(R) ("BPP") is a debt-cancellation
contract between the borrower and Bank of
America. This optional plan can cancel a
borrower's monthly principal and interest
payment for up to a total of twelve months
if the borrower loses his or her job or
becomes disabled. Additionally, the
outstanding principal balance of a mortgage
loan with BPP will be cancelled if the
borrower dies as a result of an accident.
While Bank of America will cancel payment of
the principal, interest and BPP fees, the
borrower will still be responsible for the
payment of taxes and insurance. Bank of
America will be obligated to pay to the
applicable Trust any amounts cancelled due
to BPP on a Mortgage Loan.
The following three protection options are
available in a BPP contract: (i) disability,
involuntary unemployment and accidental
death; (ii) involuntary unemployment and
accidental death or (iii) disability and
accidental death.
The benefit period ranges from six to twelve
months. A borrower may elect single (i.e.,
one borrower who is named in the mortgage
note) or joint coverage (i.e., any two of
the borrowers named in the mortgage note).
BPP is only available on certain first-lien
fixed-rate and adjustable-rate mortgage loan
products and programs. The term of
protection is the lesser of the loan term
and ten years. Upon expiration, BPP is
discontinued and the monthly BPP fee is no
longer assessed. If the borrower has an
active BPP claim prior to the expiration
date, however, loan protection can extend
beyond the expiration date. BPP is optional
and the borrower's choice regarding BPP is
not considered when evaluating the loan
request. The borrower must select the BPP
plan prior to loan closing.
Banc of America Securities LLC 35
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines of Bank Bank of America Alternative Underwriting
of America (Continued): Standards
In addition to the general underwriting
standards described above under "--Bank of
America General Underwriting Standards,"
Bank of America provides for certain
alternative underwriting programs for
qualified borrowers, some of which enable
the applicant to request reductions in the
verification documentation required for the
mortgage loan.
Bank of America's "Stated Income Program"
provides applicants the ability to request
that income stated on the loan application
not be verified. The Debt to Income Ratio
calculation used by the underwriter to
evaluate the applicant's capacity for the
loan is based on income the applicant
discloses on the application. Under the
Stated Income Program, applicants who have
steady employment and complex sources of
income or rapidly expanding incomes may be
eligible. The Stated Income Program is
designed to meet the needs of applicants
with a traditional credit history who meet
the minimum Credit Score requirement of the
program. A verbal verification of employment
confirming the applicant's date of
employment, job status and title is
required. While income information is not
provided, the applicant must continue to
provide documentation of assets used for
down payment, closing costs, and reserves on
purchase transactions.
Bank of America's "No Ratio Loan Program"
provides applicants with a minimum Credit
Score and a sufficient asset base the
ability to obtain mortgage loans with no
income verification or Debt to Income Ratio
calculation. Under this program, the
applicant does not state his or her income
at the time of loan application. The
applicant must evidence a propensity and
capacity to save and to maintain stable
employment, defined as a minimum of two
years in the same line of work. A verbal
verification of employment information
provided in the application, without
reference to income, takes place under this
program. While income information is not
provided, the applicant must continue to
provide documentation of his or her assets
used for down payment, closing costs, and
reserves on purchase transactions.
Bank of America's "100% LTV Program"
provides applicants the ability to obtain a
mortgage loan with no down payment. The 100%
LTV Program is only available if the primary
borrower has a minimum Credit Score. The
100% LTV Program also permits Loan to Value
Ratios of up to 103% (including closing
costs and prepaid items in an amount up to
3% of the value of the mortgaged property).
Under this program, Bank of America uses the
Standard Documentation Process.
Banc of America Securities LLC 36
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Preliminary Summary of Terms
----------------------------
Underwriting Guidelines of Bank Bank of America's "97% LTV Program" provides
of America. (Continued): applicants with the opportunity to obtain
low down payment mortgage loans. This
program allows an applicant to obtain
financing for a mortgage loan by requiring
only a 3% cash down payment from the
applicant's own funds. The 97% LTV Program
is only available if the primary borrower
has a minimum Credit Score. The 97% LTV
Program is a fully amortizing 30-year
fixed-rate mortgage that is available on
owner-occupied principal residences only.
This program is available on purchase and
rate or term refinance transactions. Under
this program, Bank of America uses the
Standard Documentation Process.
Bank of America's "Condominium Hotel Loan
Program" provides applicants the ability to
purchase a unit in a Condominium Hotel. The
Condominium Hotel Loan Program offers a
fully amortizing 15-year or 30-year
fixed-rate mortgage loan that is available
on a primary residence or second home. The
Condominium Hotel Loan Program is only
available if the primary borrower has a
minimum Credit Score. Condominium Hotel
Mortgage Loans are available on purchase and
rate or term refinance transactions. Under
this program, Bank of America uses the
Standard Documentation Process.
Bank of America's "Non-Resident Alien Loan
Program" provides financing to non-resident
aliens to purchase or refinance second home
properties within the United States.
Applicants without a United States credit
history must document an acceptable credit
history within their primary country of
origin. Under this program, Bank of America
uses the Standard Documentation Process.
Bank of America's "80/20 Program" provides
applicants with an 80% Loan-to-Value Ratio
first lien mortgage that is funded
simultaneously with a 20% Loan-to-Value
Ratio second lien mortgage so that the Total
Loan-to-Value Ratio is 100%. By structuring
loans in such a manner, the applicant is
able to avoid the cost of primary mortgage
insurance on the transaction. The 80/20
Program is only available if the primary
borrower has a minimum Credit Score. Bank of
America may originate both the first and
second lien transactions under an 80/20
transaction or the second lien may be
originated by another lender. Under this
program, Bank of America uses the Standard
Documentation Process.
Banc of America Securities LLC 37
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Risk Factors
------------
Subordination of any Super Subordinate certificateholders are more
Senior Support and Subordinate likely to suffer losses as a result of
Certificates Increases losses or delinquencies on the related
Risk of Loss: Mortgage Loans than are Senior
certificateholders.
o The rights of each class of
Subordinate Certificates to receive
distributions of interest and
principal are subordinated to the
rights of the related Senior
Certificates and each class of related
Subordinate Certificates with a lower
numerical designation.
o Losses that are realized on the
Mortgage Loans will be allocated first
to the class of related Subordinate
Certificates with the highest
numerical designation then to the
class of related Subordinate
Certificates with the next highest
numerical designation and so on, in
reverse numerical order of the class
designation, until the outstanding
Class Balances of such classes have
been reduced to zero.
Any Super Senior Support certificateholders
should consider the risk that after the
related Subordinate Certificates are no
longer outstanding, the principal portion of
losses realized on the applicable Mortgage
Loans that are allocated to a class of Super
Senior Certificates will be borne by the
related class of Super Senior Support
Certificates, rather than such class of
Super Senior Certificates.
The Rate of Principal Payments Because principal payments on the Mortgage
on the Mortgage Loans Loans will be distributed currently on the
Will Affect the Yield on the related Senior Certificates and the related
Offered Certificates: Subordinate Certificates, the rate of
distributions of principal and the yield to
maturity on your Certificates will be
directly related to (i) the rate and timing
of payments of principal on the applicable
Mortgage Loans and (ii) the amount and
timing of defaults by borrowers that result
in losses on the applicable Mortgage Loans.
Borrowers are permitted to prepay their
Mortgage Loans, in whole or in part, at any
time. The principal payments on the Mortgage
Loans may be in the form of scheduled
principal payments or principal prepayments
(for this purpose, the term "principal
prepayment" includes prepayments and any
other recovery of principal in advance of
the scheduled duedate, including repurchases
and liquidations due to default, casualty,
condemnation and the like). Any of these
prepayments will result in distributions to
you of amounts that would otherwise be
distributed over the remaining term of the
Mortgage Loans.
Banc of America Securities LLC 38
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Risk Factors
------------
The Rate of Principal Payments The rate of principal payments on the
on the Mortgage Loans Mortgage Loans will be affected by
Will Affect the Yield the following:
on the Offered
Certificates (Continued): o the amortization schedules of the
Mortgage Loans;
o the rate of partial prepayments and
full prepayments by borrowers due to
refinancing, job transfer, changes in
property values or other factors;
o liquidations of the properties that
secure defaulted Mortgage Loans;
o repurchases of Mortgage Loans by the
Depositor as a result of defective
documentation or breaches of
representations or warranties;
o the exercise of due-on-sale clauses by
the Servicer in connection with
transfers of mortgaged properties;
o the optional repurchase of all the
Mortgage Loans by the Depositor to
effect a termination of the Trust or
certain of the Mortgage Loans in the
Trust when the aggregate Stated
Principal Balance of the related
Mortgage Loans is less than 10% of the
aggregate unpaid principal balance of
such Mortgage Loans as of the cut-off
date; and
o general and targeted solicitations for
refinancing by mortgage originators
(including the Sponsor).
The rate of principal payments on the
Mortgage Loans will depend greatly on the
level of mortgage interest rates:
o If prevailing interest rates for
similar mortgage loans fall below the
interest rates on the Mortgage Loans
in the Trust, the rate of prepayment
is likely to increase.
o Conversely, if prevailing interest
rates for similar mortgage loans rise
above the interest rates on the
Mortgage Loans in the Trust, the rate
of prepayment is likely to decrease.
Banc of America Securities LLC 39
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Risk Factors
------------
The Rate of Principal Payments on If you are purchasing any Offered
the Mortgage Loans Will Affect the Certificates at a discount, and specifically
Yield on the Offered Certificates if you are purchasing principal only
(Continued): certificates, you should consider the risk
that if principal payments on the applicable
Mortgage Loans, or in the case of any ratio
strip certificates, some or all of the
Discount Mortgage Loans, occur at a rate
slower than you expected, your yield will be
lower than you expected. If you are
purchasing any Offered Certificates at a
premium, and specifically if you are
purchasing interest only certificates, you
should consider the risk that if principal
payments on the applicable mortgage loans
or, in the case of interest only
certificates whose notional amount is based
on some or all of the Premium Mortgage
Loans, such Premium Mortgage Loans, occur at
a rate faster than you expected, your yield
may be lower than you expected. You must
make your own decisions as to the
appropriate prepayment assumptions to be
used when purchasing any Offered
Certificates. The applicable Senior
Prepayment Percentage of the applicable
Non-PO Percentage of all principal
prepayments (excluding for this purpose,
partial liquidations due to default,
casualty, condemnation and the like)
initially will be distributed to the classes
of related Senior Certificates then entitled
to receive principal prepayment
distributions. This may result in all (or a
disproportionate percentage) of those
principal prepayments being distributed to
such Senior Certificates and none (or less
than their pro rata share) of such principal
prepayments being distributed to holders of
the related Subordinate Certificates during
the periods of time described in the
applicable definition of "Senior Prepayment
Percentage."
The timing of changes in the rate of
prepayments may significantly affect the
actual yield to you, even if the average
rate of principal prepayments is consistent
with your expectations. In general, the
earlier the payment of principal of the
related Mortgage Loans, the greater the
effect on your yield to maturity. As a
result, the effect on your yield of
principal prepayments occurring at a rate
higher (or lower) than the rate you
anticipate during the period immediately
following the issuance of the certificates
will not be offset by a subsequent like
reduction (or increase) in the rate of
principal prepayments.
Any Yield Maintenance Agreement The Trustee on behalf of the Trust may enter
is Subject to Counterparty Risk: into one or more Yield Maintenance
Agreements with one or more counterparties,
for the benefit of certain Classes of
Certificates. Each Yield Maintenance
Agreement will require the applicable
counterparty to make certain payments in
certain circumstances. To the extent that
payments on such Certificates depend in part
on payments to be received by the Trustee
under the related Yield Maintenance
Agreement, the ability of the Trustee to
make such payments on such Certificates will
be subject to the credit risk of the
applicable counterparty.
Banc of America Securities LLC 40
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Risk Factors
------------
Delinquencies and Losses on the Delinquencies on the mortgage loans which
Mortgage Loans Will Adversely are not advanced by or on behalf of the
Affect Your Yield: Servicer (because the Servicer has
determined that these amounts, if advanced,
would be nonrecoverable), will adversely
affect the yield on the related Senior
Certificates and the related Subordinate
Certificates. The Servicer will determine
that a proposed advance is nonrecoverable
when, in the good faith exercise of its
servicing judgment, it believes the proposed
advance would not be ultimately recoverable
from the related mortgagor, related
liquidation proceeds, or other recoveries in
respect of the Mortgage Loan. Because of the
priority of distributions, shortfalls
resulting from delinquencies that are not
covered by advances will be borne first by
the related Subordinate Certificates (in
reverse numerical order), and then by the
related Senior Certificates.
Net interest shortfalls will adversely
affect the yields on the Offered
Certificates. In addition, losses generally
will be borne by the related Subordinate
Certificates. As a result, the yields on the
Offered Certificates will depend on the rate
and timing of realized losses on the related
Mortgage Loans.
Credits Scores May Not Accurately The Sponsor generally uses Credit Scores as
Predict the Likelihood of Default: part of its underwriting process. The
attached collateral summary shows credit
scores for the mortgagors obtained at the
time of origination of their mortgage loans.
A credit score purports only to be a
measurement of the relative degree of risk a
borrower represents to a lender, i.e., that
a borrower with a higher score is
statistically expected to be less likely to
default in payment than a borrower with a
lower score. In addition, it should be noted
that credit scores were developed to
indicate a level of default probability over
a two-year period, which does not correspond
to the life of most mortgage loans.
Furthermore, credit scores were not
developed specifically for use in connection
with mortgage loans, but for consumer loans
in general. Therefore, credit scores do not
address particular mortgage loan
characteristics that influence the
probability of repayment by the borrower.
Neither the Depositor nor the Sponsor makes
any representations any mortgage loan or
that a particular credit score should be
relied upon as a basis for an expectation
that a borrower will repay its mortgage loan
according to its terms.
Geographic Concentrations May At various times, certain geographic regions
Increase Risk of Loss Due to will experience weaker economic conditions
Adverse Economic Conditions and housing markets and, consequently, will
or Natural Disasters: experience higher rates of delinquency and
loss on mortgage loans generally. In
addition, certain states have experienced
natural disasters, including earthquakes,
fires, floods and hurricanes, which may
adversely affect property values. Although
mortgaged properties located in certain
identified flood zones will be required to
be covered, to the maximum extent available,
by flood insurance, no mortgaged properties
will otherwise be required to be insured
against earthquake damage or any other loss
not covered by standard hazard insurance
policies. Any concentration of mortgaged
properties in a state or region may present
unique risk considerations. See the tables
entitled "Geographic Distribution of
Mortgaged Properties of the Mortgage Loans"
in the attached collateral summary for a
listing of the locations and concentrations
of the mortgaged properties.
Banc of America Securities LLC 41
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Banc of America Securities LLC 10
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Risk Factors
------------
Banc of America Securities LLC 42
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Geographic Concentration May Any deterioration in housing prices in a
Increase Risk of Loss Due to state or region due to adverse economic
Adverse Economic Conditions or conditions, natural disaster or other
Natural Disasters (Continued): factors, and any deterioration of economic
conditions in a state or region that
adversely affects the ability of borrowers
to make payments on the mortgage loans, may
result in losses on the Mortgage Loans. Any
losses may adversely affect the yield to
maturity of the related Offered
Certificates.
Residential Real Estate Values May There can be no assurance that values of the
Fluctuate and Adversely Affect mortgaged properties have remained or will
Your Investment: remain at their levels on the dates of
origination of the related Mortgage Loans.
The value of any mortgaged property
generally will change over time from its
value on the appraisal or sales date. If
residential real estate values generally or
in a particular geographic area decline, the
loan-to-value ratios shown in the table in
the accompanying collateral annex might not
be a reliable indicator of the rates of
delinquencies, foreclosures and losses that
could occur on the Mortgage Loans. If the
residential real estate market should
experience an overall decline in property
values large enough to cause the outstanding
balances of the Mortgage Loans and any
secondary financing on the related mortgaged
properties to equal or exceed the value of
the mortgaged properties, delinquencies,
foreclosures and losses could be higher than
those now generally experienced in the
mortgage lending industry or in the
Sponsor's prior securitizations involving
the Depositor.
In addition, adverse economic conditions and
other factors (which may or may not affect
real property values) may affect the
mortgagors' timely payment of scheduled
payments of principal and interest on the
Mortgage Loans and, accordingly, the actual
rates of delinquencies, foreclosures and
losses with respect to the mortgage pool.
These other factors could include excessive
building resulting in an oversupply of
housing in a particular area or a decrease
in employment reducing the demand for
housing in an area. To the extent that
credit enhancements do not cover such
losses, your yield may be adversely
impacted.
Risk Factors
------------
Banc of America Securities LLC 43
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
United States Military Operations As a result of military operations in
May Increase Risk of Relief Act Afghanistan and Iraq, the United States has
Shortfalls: placed a substantial number of armed forces
reservists and members of the National Guard
on active duty status. It is possible that
the number of reservists and members of the
National Guard placed on active duty status
may remain at high levels for an extended
time. To the extent that a member of the
military, or a member of the armed forces
reserves or National Guard who is called to
active duty, is a mortgagor of a mortgage
loan in the trust, the interest rate
limitation of the Servicemembers Civil
Relief Act, and any comparable state law,
will apply. This may result in interest
shortfalls on the Mortgage Loans in the
trust, which will be borne by all classes of
interest bearing Certificates and
components. Neither the Sponsor nor the
Depositor has taken any action to determine
whether any of the Mortgage Loans would be
affected by these interest rate limitations.
The Certificates May Not Receive Any "Yield Maintenance Amount" for any
Amounts Expected from any Yield Distribution Date is based on the related
Maintenance Agreements: notional amount, which decreases for each
Distribution Date during the life of the
related Yield Maintenance Agreement. The
notional amounts specified in the related
Yield Maintenance Agreement for each
Distribution Date were derived by using an
assumed prepayment rate. The actual rates of
prepayment on the applicable Mortgage Loans
are likely to differ from the rates assumed.
If prepayments on the applicable Mortgage
Loans occur at a rate slower than the rates
used in determining the notional amounts
specified in the related Yield Maintenance
Agreement, the Class Balance(s) of the
applicable Certificates will be greater than
the related notional amount for a
Distribution Date. For any Distribution Date
on which the notional amount is lower than
the actual Class Balance(s) of the related
Certificates, the Yield Maintenance Amount
will be greater than the payment the
Counterparty is required to make under the
applicable Yield Maintenance Agreement for
such Distribution Date and therefore, a
holder of the related Certificate may not
receive its full Yield Maintenance Amount
for such Distribution Date. However, to the
extent that a holder of a class of related
Certificates does not receive the full Yield
Maintenance Amount for a Distribution Date,
such shortfall may be paid to the related
class of Certificates from amounts in the
related Reserve Fund on future Distribution
Dates, to the extent funds are available
therefore.
Risk Factors
------------
Banc of America Securities LLC 44
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
There is a Risk that Interest When a Mortgage Loan is prepaid in full, the
Payments on the Mortgage Loans mortgagor is charged interest only up to the
May Be Insufficient to Pay date on which payment is made, rather than
Interest on Your Certificates: for an entire month. When a mortgagor makes
a partial principal prepayment on a Mortgage
Loan, the mortgagor is not charged interest
on the prepayment for the month in which the
principal prepayment was received. This may
result in a shortfall in interest
collections available for payment on the
next Distribution Date. The Servicer is
required to cover a portion of the shortfall
in interest collections that are
attributable to prepayments in full and
partial prepayments on the Mortgage Loans,
but in each case only up to the amount of
Compensating Interest related to such
Mortgage Loans for such Distribution Date.
To the extent these shortfalls are not
covered by the amount of related
Compensating Interest, they will be
allocated pro rata to the related classes of
interest-bearing Certificates and any
related components.
Certificates May Not Be If you are an individual investor who does
Appropriate for Individual not have sufficient resources or expertise
Investors: to evaluate the particular characteristics
of a class of Offered Certificates, the
Offered Certificates may not be an
appropriate investment for you. This may be
the case because, among other things:
o if you purchase your Certificates at a
price other than par, your yield to
maturity will be sensitive to the
uncertain rate and timing of principal
prepayments on the applicable Mortgage
Loans;
o the rate of principal distributions
on, and the weighted average lives of,
the Offered Certificates will be
sensitive to the uncertain rate and
timing of principal prepayments on the
applicable Mortgage Loans and the
priority of principal distributions
among the classes of Certificates, and
as such, the Offered Certificates and,
in particular, any class of special
retail certificates, may be
inappropriate investments for you if
you require a distribution of a
particular amount of principal on a
specific date or an otherwise
predictable stream of distributions;
o you may not be able to reinvest
amounts distributed in respect of
principal on your Certificates (which
distributions, in general, are
expected to be greater during periods
of relatively low interest rates) at a
rate at least as high as the
applicable pass-through rate or your
expected yield;
o a secondary market for the Offered
Certificates may not develop or
provide you with liquidity of
investment; and
o you must pay tax on any interest or
original issue discount in the year it
accrues, even if the cash is paid to
you in a different year.
Risk Factors
------------
Banc of America Securities LLC 45
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Limited Source of Payments -- Proceeds of the Mortgage Loans (and any
No Recourse to Depositor, insurance policy with respect to a class of
Seller, Servicer or Trustee: insured special retail certificates) will be
the sole source of payments on the
Certificates. The Certificates do not
represent an interest in or obligation of
the Depositor, the Servicer, the Sponsor,
the Trustee or any of their affiliates.
There are, however, limited obligations of
the Depositor with respect to certain
breaches of representations and warranties,
and limited obligations of the Servicer with
respect to its servicing obligations.
Neither the Certificates nor the Mortgage
Loans will be guaranteed by or insured by
any governmental agency or instrumentality,
the Depositor, the Sponsor, the Servicer,
the Trustee or any of their affiliates.
Consequently, if payments on the Mortgage
Loans are insufficient or otherwise
unavailable to make all payments required on
the Certificates, there will be no recourse
to the Depositor, the Sponsor, the Servicer,
the Trustee or any of their affiliates.
Limited Liquidity: The Underwriter intends to make a market for
purchase and sale of the Offered
Certificates after their initial issuance,
but the Underwriter has no obligation to do
so. There is no assurance that such a
secondary market will develop or, if it does
develop, that it will provide you with
liquidity of investment or that it will
continue for the life of the Offered
Certificates. As a result, you may not be
able to sell your Certificates or you may
not be able to sell your Certificates at a
high enough price to produce your desired
return on investment.
The secondary market for mortgage-backed
securities has experienced periods of
illiquidity and can be expected to do so in
the future. Illiquidity means that there may
not be any purchasers for your class of
Certificates. Although any class of
Certificates may experience illiquidity, it
is more likely that classes of Certificates
that are more sensitive to prepayment,
credit or interest rate risk (such as the
Interest Only, Super Senior Support,
Companion, Inverse Floating Rate, Principal
Only, or Subordinated Certificates) will
experience illiquidity.
Alternative Underwriting Certain of the Mortgage Loans may have been
Standards May Increase Risk originated using the Sponsor's "Alternative
of Loss: A" underwriting guidelines. See
"Underwriting Guidelines of Bank of
America--Bank of America Alternative
Underwriting Standards" above. These
underwriting guidelines are different from
and, in certain respects, less stringent
than the general underwriting guidelines
employed by the sponsor. For example,
certain of the mortgage loans may have been
originated with less than standard
documentation or with higher maximum
loan-to-value ratios. Accordingly, the
mortgage loans may experience rates of
delinquencies, defaults, foreclosure,
bankruptcy and loss that are higher than
those experienced by mortgage loans
underwritten using the Sponsor's general
underwriting standards.
Banc of America Securities LLC 46
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Risk Factors
------------
The Rate of Default on Mortgage Certain of the Mortgage Loans may be secured
Loans that Are Secured by Investor by investor properties. An investor property
Properties May be Higher than on is a property which, at the time of
Other Mortgage Loans: origination, the mortgagor represented would
not be used as the mortgagor's primary
residence or second home. Because the
mortgagor is not living on the property, the
mortgagor may be more likely to default on
the mortgage loan than on a comparable
mortgage loan secured by a primary
residence, or to a lesser extent, a second
home. In addition, income expected to be
generated from an investor property may have
been considered for underwriting purposes in
addition to the income of the mortgagor from
other sources. Should this income not
materialize, it is possible the mortgagor
would not have sufficient resources to make
payments on the mortgage loan.
There Are Risks Relating to At the time of origination of certain of the
Mortgaged Properties Subject to Mortgage Loans, a lender other than the
Second Lien Mortgage Sponsor may have originated a second lien
Loans: mortgage loan. Mortgage Loans that have
second lien mortgage loans encumbering the
same mortgaged property may have higher
rates of delinquency and foreclosure
relative to mortgage loans that do not have
second lien mortgage loans behind them. This
may be due to changes in the mortgagor's
debt-to-income profile, the fact that
mortgagors may then have less equity in the
mortgaged property or other factors. You
should also note that any mortgagor could
obtain a second lien mortgage loan at any
time subsequent to the date of origination
of their first lien mortgage loan from any
lender.
Subordinate Certificates May The Subordinate Certificates may provide
Provide Subordination for credit support for more than one Groups of
All Groups Senior Certificates and thus the outstanding
Class Balances of such Subordinate
Certificates could be reduced to zero as a
result of a disproportionate amount of
principal losses on the Mortgage Loans in
one Loan Group. Therefore, these losses on
the Mortgage Loans in one Loan Group will
reduce the subordination provided by the
Subordinate Certificates to the other Groups
of Senior Certificates and increase the
likelihood that losses may be allocated to
the other Groups of Senior Certificates.
Under certain circumstances due to a
cross-collateralization mechanism, principal
otherwise payable to these Subordinate
Certificates will be paid to certain Senior
Certificates.
High Rates of LIBOR or Another If you are purchasing any inverse floating
Index May Result in a Lower or rate interest only certificates, in addition
Negative Yield on any Inverse to the risk that a rapid rate of prepayments
Floating Rate Interest Only on the related Mortgage Loans may result in
Certificates a lower actual yield than you expected or a
negative yield, you should also consider the
risk that high rates of LIBOR or high rates
of another applicable index for your
certificates may result in the failure to
recover your initial investment.
Banc of America Securities LLC 47
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Categories of Classes of Certificates
-------------------------------------
The Certificates of any series may be comprised of one or more Classes.
The Classes, in general, fall into different categories. The following chart
identifies and generally defines certain of the more typical categories. The
prospectus supplement for a series of Certificates may identify the Classes
which comprise that series by reference to the following categories or another
category specified in the prospectus supplement.
PRINCIPAL TYPES
---------------
Categories of Classes ............ Definitions
Accretion Directed
Certificates .................. A Class of Certificates that receives
principal payments from amounts that would
otherwise be distributed as interest on
specified Accrual Certificates. These
principal payments may be in lieu of or in
addition to principal payments from
principal receipts on the Mortgage Loans for
the related series.
Companion Certificates (also
sometimes referred to as
"Support Certificates") ....... A Class of Certificates that is entitled to
receive principal payments on any
Distribution Date only if scheduled payments
have been made on specified Planned
Amortization Certificates, Targeted
Amortization Certificates and/or Scheduled
Amortization Certificates.
Component Certificates ........... A Class of Certificates consisting of two or
more specified components (each, a
"Component"), as described in the applicable
prospectus supplement. The Components of a
Class of Component Certificates may have
different principal and/or interest payment
characteristics but together constitute a
single class and do not represent severable
interests. Each Component of a Class of
Component Certificates may be identified as
falling into one or more of the categories
in this chart.
Lockout Certificates ............. A Class of Senior Certificates that is
designed not to participate in or to
participate to a limited extent in (i.e., to
be "locked out" of ), for a specified
period, the receipt of (1) principal
prepayments on the Mortgage Loans that are
allocated disproportionately to the Classes
of Senior Certificates of its series as a
group pursuant to a "shifting interest"
structure and/or (2) scheduled principal
payments on the Mortgage Loans that are
allocated to the senior Classes as a group.
A Class of Lockout Certificates will
typically not be entitled to receive, or
will be entitled to receive only a
restricted portion of, distributions of
principal prepayments and/or scheduled
principal prepayments, as applicable, for a
period of several years, during which time
all or a portion of the principal payments
that it would otherwise be entitled to
receive in the absence of a "lockout"
structure will be distributed in reduction
of the Class Balances of other Senior
Certificates. Lockout Certificates are
designed to minimize weighted average life
volatility during the lockout period.
Banc of America Securities LLC 48
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Notional Amount
Certificates................... A Class of Certificates having no Class
Balance and bearing interest on a notional
amount. The notional amount is a
hypothetical balance used for calculating
interest distributions.
Pass-Through Certificates ........ A Class of Senior Certificates that is
entitled to receive a specified percentage
of the principal payments that are
distributable to the Senior Certificates or
applicable group of Senior Certificates
(other than any Ratio Strip Certificates) in
the aggregate on a Distribution Date and
that is not designated as a Class of
Sequential Pay Certificates.
Planned Amortization
Certificates (also sometimes
referred to as "PAC
Certificates") ................ A Class of Certificates that is designed to
receive principal payments using a
predetermined principal balance schedule
derived by assuming two constant prepayment
rates for the underlying Mortgage Loans.
These two rates are the endpoints for the
"structuring range" for a Class of Planned
Amortization Certificates. The Classes of
Planned Amortization Certificates in any
series may be subdivided into different
categories (e.g., Planned Amortization I
Certificates or PAC I Certificates, Planned
Amortization II Certificates or PAC II
Certificates and so forth) derived using
different structuring ranges and/or payment
priorities. A Class of PAC Certificates is
designed to provide protection against
prepayments occurring at a constant rate
within the structuring range.
Ratio Strip Certificates ......... A Class of Certificates that is entitled to
receive a constant proportion, or "ratio
strip," of the principal payments on the
underlying Mortgage Loans.
Scheduled Amortization
Certificates .................. A Class of Certificates that is designed to
receive principal payments using a
predetermined principal balance schedule but
is not designated as a Class of Planned
Amortization Certificates or Targeted
Amortization Certificates. The schedule is
derived by assuming either two constant
prepayment rates or a single constant
prepayment rate for the underlying Mortgage
Loans. In the former case, the two rates are
the endpoints for the "structuring range"
for a Class of Scheduled Amortization
Certificates and the range generally is
narrower than that for a Class of Planned
Amortization Certificates. Typically, the
Companion Certificates for the applicable
series of Certificates generally will
represent a smaller percentage of a Class of
Scheduled Amortization Certificates than the
Companion Certificates generally would
represent in relation to a Class of Planned
Amortization Certificates or Targeted
Amortization Certificates. A Class of
Scheduled Amortization Certificates is
generally less sensitive to prepayments than
a Class of Companion Certificates, but more
sensitive than a Class of Planned
Amortization Certificates or Targeted
Amortization Certificates.
Banc of America Securities LLC 49
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Senior Certificates .............. A Class of Certificates that is entitled to
receive payments of principal and interest
on each Distribution Date prior to the
Classes of Subordinate Certificates.
Sequential Pay Certificates ...... Classes of Certificates that are entitled to
receive principal payments in a prescribed
sequence, that do not have predetermined
principal balance schedules and that, in
most cases, are entitled to receive payments
of principal continuously from the first
Distribution Date on which they receive
principal until they are retired. A Class of
Sequential Pay Certificates may receive
principal payments concurrently with one or
more other Classes of Sequential Pay
Certificates.
Subordinate Certificates ......... A Class of Certificates that is entitled to
receive payments of principal and interest
on each Distribution Date only after the
Senior Certificates and Classes of
Subordinate Certificates with higher
priority of distributions have received
their full principal and interest
entitlements.
Super Senior Certificates ........ A Class of Senior Certificates that will not
bear its share of certain losses after the
Classes of Subordinate Certificates are no
longer outstanding for so long as one or
more specified Classes of Senior
Certificates are outstanding.
Super Senior Support
Certificates .................. A Class of Senior Certificates that bears
certain losses allocated to one or more
Classes of Super Senior Certificates.
Targeted Amortization
Certificates (also sometimes
referred to as "TAC
Certificates") ................ A Class of Certificates that is designed to
receive principal payments using a
predetermined principal balance schedule
derived by assuming a single constant
prepayment rate for the underlying Mortgage
Loans. A Class of TAC Certificates is
designed to provide some protection against
prepayments at a rate exceeding the assumed
constant prepayment rate used to derive that
Class's principal balance schedule.
Special Retail Certificates....... Although there can be no assurance as to the
rate at which principal distributions will
be made on any class of Offered
Certificates, special retail certificates,
in particular, may be inappropriate
investments for you if you require a
distribution of a particular amount of
principal on a specific date or an otherwise
predictable stream of distributions. If you
own special retail certificates, funds
available for distributions of principal may
not be sufficient to permit the
distributions you request within any
specific period of time after your request.
During periods in which prevailing interest
rates are generally higher than the
pass-through rate for a class of special
retail certificates, greater numbers of
beneficial owners may request distributions
of principal in respect of the special
retail certificates to take advantage of
higher interest rates. During such periods
there may, however, be a concurrent
reduction in the rate of prepayments of the
related Mortgage Loans, thus limiting the
funds available for such distributions.
Banc of America Securities LLC 50
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
In addition, because of the random lot
procedure for distributing principal, you
may receive a principal distribution on your
special retail certificates on a
Distribution Date (even if you have not
requested such a distribution) if the amount
available for distribution in respect of
principal on such Distribution Date on a
class of special retail certificates exceeds
the aggregate amount requested for
distribution of principal by all holders of
the class of special retail certificates. It
is more likely that amounts will be
distributed by random lot during the periods
of the relatively low interest rates and,
correspondingly, higher prepayment rates.
Under such circumstances you may have
difficulty reinvesting these principal
distributions at rates as high as the
pass-through rate of your Certificates or
your expected yield.
INTEREST TYPES
--------------
Categories of Class .............. Definitions
Accrual Certificates ............. A Class of Certificates that accretes the
amount of accrued interest otherwise
distributable on that Class, which amount
will be added as principal to the Class
Balance of that Class on each applicable
Distribution Date. This accretion may
continue until some specified event has
occurred or until the Class of Accrual
Certificates is retired.
Fixed Rate Certificates .......... A Class of Certificates with an interest
rate that is fixed throughout the life of
the Class.
Floating Rate Certificates ....... A Class of Certificates with an interest
rate that resets periodically based upon a
designated index and that varies directly
with changes in that index.
Interest Only Certificates ....... A Class of Certificates that is entitled to
receive some or all of the interest payments
made on the Mortgage Loans and little or no
principal. Interest Only Certificates have
either a nominal Class Balance or a notional
amount. A nominal Class Balance represents
actual principal that will be paid on the
Class. It is referred to as nominal since it
is extremely small compared to other
Classes. A notional amount is the amount
used as a reference to calculate the amount
of interest due on a Class of Interest Only
Certificates that is not entitled to any
distributions in respect of principal.
Inverse Floating Rate
Certificates .................. A Class of Certificates with an interest
rate that resets periodically based upon a
designated index and that varies inversely
with changes in that index and with changes
in the interest rate payable on the related
Class of Floating Rate Certificates.
Principal Only Certificates ...... A Class of Certificates that does not bear
interest and is entitled to receive only
distributions of principal.
Banc of America Securities LLC 51
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Alternative Loan Trust 2006-2
Mortgage Pass-Through Certificates, Series 2006-2
- --------------------------------------------------------------------------------
Step Coupon Certificates ......... A Class of Certificates with a fixed
interest rate that is reduced to a lower
fixed rate after a specified period of time.
The difference between the initial interest
rate and the lower interest rate will be
supported by a reserve fund established on
the Closing Date.
Variable Rate Certificates ....... A Class of Certificates with an interest
rate that resets periodically and is
calculated by reference to the rate or rates
of interest applicable to the Mortgage
Loans.
Banc of America Securities LLC 52
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
[Banc of America Securities Logo]
- --------------------------------------------------------------------------------
Because the asset-backed securities are being offered on a "when, as and
if issued" basis, any contract of sale will terminate, by its terms, without any
further obligation or liability between us, if the securities themselves, or the
particular class to which the contract relates, are not issued. Because the
asset-backed securities are subject to modification or revision, any such
contract also is conditioned upon the understanding that no material change will
occur with respect to the relevant class of securities prior to the closing
date. If a material change does occur with respect to such class, our contract
will terminate, by its terms, without any further obligation or liability
between us (the "Automatic Termination"). If an Automatic Termination occurs, we
will provide you with revised offering materials reflecting the material change
and give you an opportunity to purchase such class. To indicate your interest in
purchasing the class, you must communicate to us your desire to do so within
such timeframe as may be designated in connection with your receipt of the
revised offering materials.
Mortgage Pass-Through Certificates, Series 2006-2
Banc of America Alternative Loan Trust 2006-2
Issuing Entity
Banc of America Mortgage Securities, Inc.
Depositor
Bank of America, National Association
Sponsor and Servicer
[Bank of America Logo]
February 10, 2006
Banc of America Securities LLC
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the issuer has filed with the SEC for more complete information about
the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the issuer.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
DISCLAIMER
----------
This free writing prospectus is being delivered to you solely to provide you
with information about the offering of the securities referred to in this free
writing prospectus and to solicit an offer to purchase the securities, when, as
and if issued. Any such offer to purchase made by you will not be accepted and
will not constitute a contractual commitment by you to purchase any of the
securities until we have accepted your offer to purchase securities. We will not
accept any offer by you to purchase the securities, and you will not have any
contractual commitment to purchase any of the securities until after you have
received the preliminary prospectus. You may withdraw your offer to purchase
securities at any time prior to our acceptance of your offer.
The information in this free writing prospectus supersedes information contained
in any prior similar free writing prospectus relating to these securities prior
to the time of your commitment to purchase.
This free writing prospectus is not an offer to sell or solicitation of an offer
to buy these securities in any state where such offer, solicitation or sale is
not permitted.
IRS CIRCULAR 230 NOTICE
THIS FREE WRITING PROSPECTUS IS NOT INTENDED OR WRITTEN TO BE USED,
AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING U.S. FEDERAL, STATE
OR LOCAL TAX PENALTIES. THIS FREE WRITING PROSPECTUS IS WRITTEN AND
PROVIDED BY THE UNDERWRITER IN CONNECTION WITH THE PROMOTION OR
MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN. INVESTORS
SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN
INDEPENDENT TAX ADVISOR.
ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW THIS DOCUMENT ARE NOT
APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR
OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION
BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Selected 15 Year Mortgage Loan Data as of February 1, 2006
Range or Total Weighted Average
--------------------------- ---------------------------
Number of 15Year Mortgage Loans (1) 609
Aggregate Unpaid Principal Balance (1) $78,692,714.84
Unpaid Principal Balance (1) $9,630.00 to $1,433,000.00 $129,216.28
Mortgage Interest Rate (1) 4.625% to 7.375% 6.08%
Servicing Fee Rate (1) 0.2500%
Trustee Fee Rate (1) 0.0045%
Administrative Fee Rate (1) 0.2545%
Remaining Terms to Stated Maturity (1) 118 to 180 months 178 months
Original Term (1) 120 to 180 months 179 months
Number of Months Since Origination (1) 1 to 14 months 2 months
Original Loan-to-Value Ratio (1) 9.57% to 95.00% 61.64%
Credit Scores (1) 602 to 839 734
Latest Maturity Date (1) 2021-02-01
Number of Buy-Down Loans (1) 0
Aggregate Unpaid Principal Balance of Buy-Down
Loans (1) $0.00
Unpaid Principal Balance of Buy-Down Loans (1) $0.00 to $0.00 $0.00
Number of BPP Mortgage Loans (1) 29
Aggregate Unpaid Principal Balance of BPP Mortgage
Loans (1) $1,979,130.85
Unpaid Principal Balance of BPP Mortgage Loans (1) $30,868.16 to $155,979.00 $68,245.89
Number of Mortgage Loans underwritten using
"Alternative A" underwriting standards (1) 190
Aggregate Unpaid Principal Balance of Mortgage
Loans underwritten using "Alternative A"
underwriting standards (1) $33,954,572.78
Unpaid Principal Balance of Mortgage Loans
underwritten using "Alternative A" underwriting
standards (1) $19,200.00 to $1,433,000.00 $178,708.28
Number of Mortgage Loans secured by leases on real
property (1) 0
Aggregate Unpaid Principal Balance of Mortgage
Loans secured by leases on real property (1) $0.00
Unpaid Principal Balance of Mortgage Loans secured
by leases on real property (1) $0.00 to $0.00 $0.00
Geographic Concentration of Mortgaged Properties in
Excess of 5.00% of the Aggregate Unpaid
Principal Balance (1)
California............................. 26.67%
Florida................................ 12.09%
Texas.................................. 8.16%
Maximum Single Five-Digit Zip Code Concentration 1.82%
- ----------
(1) Approximate (+/-5%).
Banc of America Securities LLC
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Occupancy of Mortgaged Properties(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Occupancy(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Property 452 $48,332,682.36 61.42%
Primary Residence 146 28,670,605.84 36.43
Second Home 11 1,689,426.64 2.15
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
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(1) Based solely on representations of the mortgagor at the time of
origination of the related 15 Year Mortgage Loan.
(2) Approximate (+/-5%).
Property Type(1)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Property Type (1) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Single Family Residence 395 $47,057,942.81 59.80%
2-Family 90 12,161,609.58 15.45
Condominium 55 7,303,386.73 9.28
PUD-Detached 26 4,868,781.62 6.19
4-Family 20 3,771,360.20 4.79
3-Family 6 1,344,294.83 1.71
Townhouse 9 1,332,441.07 1.69
PUD-Attached 8 852,898.00 1.08
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Total 609 $78,692,714.84 100.00%
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(1) Approximate (+/-5%).
Mortgage Loan Purposes(3)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Purpose (3) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Refinance--Cashout(1) 266 $37,916,108.57 48.18%
Purchase 207 23,203,369.02 29.49
Refinance--Rate/Term(2) 136 17,573,237.25 22.33
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
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(1) "Refinance--Cashout" means a mortgage loan originated in connection with a
refinancing that has a principal balance in excess of the principal
balance on the old loan plus settlement costs where cash is distributed to
the mortgagor.
(2) "Refinance--Rate/Term" means a mortgage loan originated in connection with
a refinancing to reduce the mortgage interest rate or reduce or increase
the term.
(3) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the issuer has filed with the SEC for more complete information about
the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the issuer.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
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Documentation Type(1)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Documentation Type (1) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Accelerated - Stated 162 $30,274,469.81 38.47%
Accelerated - Paper Saver/Threshold 202 18,440,903.10 23.43
Standard 133 17,343,841.39 22.04
Desktop Underwriter/Loan Prospector 54 5,763,261.73 7.32
Accelerated - No Ratio 28 3,680,102.97 4.68
Accelerated - All Ready Home 21 1,852,142.71 2.35
Accelerated - Rapid 4 877,102.07 1.11
Accelerated - Stated Income/Stated Asset 5 460,891.06 0.59
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Geographical Distribution of the Mortgaged Properties(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Geographical Area (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Alabama 3 $342,808.02 0.44%
Arizona 14 1,796,029.39 2.28
Arkansas 7 330,519.63 0.42
California 102 20,983,806.36 26.67
Connecticut 4 421,600.42 0.54
District of Columbia 3 325,881.50 0.41
Florida 72 9,511,195.72 12.09
Georgia 21 1,995,165.96 2.54
Hawaii 1 223,204.84 0.28
Idaho 3 271,116.92 0.34
Illinois 9 2,230,555.63 2.83
Indiana 4 232,969.35 0.30
Iowa 4 213,410.30 0.27
Kansas 13 745,518.31 0.95
Kentucky 1 79,000.00 0.10
Maine 2 150,220.66 0.19
Maryland 18 2,172,062.53 2.76
Massachusetts 12 3,046,385.34 3.87
Michigan 6 624,483.66 0.79
Minnesota 2 230,457.84 0.29
Mississippi 1 79,814.55 0.10
Missouri 19 1,469,498.64 1.87
Nebraska 2 156,167.23 0.20
Nevada 12 2,142,242.56 2.72
New Hampshire 2 453,200.00 0.58
New Jersey 18 3,548,135.82 4.51
New Mexico 5 377,161.66 0.48
New York 26 3,437,807.54 4.37
North Carolina 45 3,672,431.62 4.67
Ohio 7 474,642.62 0.60
Oklahoma 9 421,616.66 0.54
Oregon 11 1,152,024.00 1.46
Pennsylvania 9 600,421.59 0.76
Rhode Island 1 158,943.93 0.20
South Carolina 16 1,597,527.79 2.03
Tennessee 20 1,760,612.60 2.24
Texas 75 6,421,009.67 8.16
Utah 2 341,062.18 0.43
Vermont 1 174,417.25 0.22
Virginia 14 2,309,370.38 2.93
Washington 7 843,206.00 1.07
Wisconsin 6 1,175,008.17 1.49
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, no more than approximately 1.82% of the 15 Year
Mortgage Loans are expected to be secured by Mortgaged Properties located
in any one five-digit postal zip code.
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Current Mortgage Loan Principal Balances(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Current Mortgage Loan Principal Balances(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
0.01 - 50,000.00 103 $3,908,903.80 4.97%
50,000.01 - 100,000.00 232 16,984,882.72 21.58
100,000.01 - 150,000.00 122 15,132,088.89 19.23
150,000.01 - 200,000.00 57 9,849,467.21 12.52
200,000.01 - 250,000.00 26 5,722,448.71 7.27
250,000.01 - 300,000.00 26 7,201,273.80 9.15
300,000.01 - 350,000.00 9 2,939,692.69 3.74
350,000.01 - 400,000.00 10 3,780,043.20 4.80
400,000.01 - 450,000.00 7 2,954,593.87 3.75
450,000.01 - 500,000.00 5 2,347,492.74 2.98
500,000.01 - 550,000.00 6 3,154,173.82 4.01
550,000.01 - 600,000.00 1 561,886.75 0.71
600,000.01 - 650,000.00 2 1,281,788.64 1.63
650,000.01 - 700,000.00 1 700,000.00 0.89
700,000.01 - 750,000.00 1 740,978.00 0.94
1,000,000.01 - 1,500,000.00 1 1,433,000.00 1.82
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the average outstanding principal balance of the
15 Year Mortgage Loans is expected to be approximately $129.216.
(2) Approximate (+/-5%).
Original Debt-to-Income Ratios(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Original Debt-to-Income Ratios(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
= 0.00% 26 $3,005,343.10 3.82%
0.01% - 10.00% 16 2,024,241.86 2.57
10.01% - 20.00% 82 8,777,311.00 11.15
20.01% - 30.00% 110 16,299,359.97 20.71
30.01% - 40.00% 178 24,215,804.44 30.77
40.01% - 50.00% 137 16,790,212.51 21.34
50.01% - 60.00% 56 7,234,150.34 9.19
60.01% - 70.00% 3 188,966.62 0.24
70.01% - 80.00% 1 157,325.00 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average Debt-to-Income Ratio at
origination of the 15 Year Mortgage Loans is expected to be approximately
34.20%.
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Original Loan-to-Value Ratios(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Original Loan-to-Value Ratios (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
5.01 - 10.00 1 $134,000.00 0.17%
10.01 - 15.00 11 1,203,785.68 1.53
15.01 - 20.00 15 1,312,172.78 1.67
20.01 - 25.00 17 1,496,474.44 1.90
25.01 - 30.00 22 2,237,783.63 2.84
30.01 - 35.00 21 2,532,043.41 3.22
35.01 - 40.00 24 3,586,208.13 4.56
40.01 - 45.00 35 5,156,109.60 6.55
45.01 - 50.00 20 2,427,391.73 3.08
50.01 - 55.00 17 2,584,066.82 3.28
55.01 - 60.00 37 6,042,026.60 7.68
60.01 - 65.00 46 8,352,059.03 10.61
65.01 - 70.00 89 12,493,773.44 15.88
70.01 - 75.00 52 7,420,932.25 9.43
75.01 - 80.00 164 18,982,021.86 24.12
80.01 - 85.00 5 565,967.96 0.72
85.01 - 90.00 31 1,861,042.75 2.36
90.01 - 95.00 2 304,854.73 0.39
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average Loan-to-Value Ratio at
origination of the 15 Year Mortgage Loans is expected to be approximately
61.64%.
(2) Approximate (+/-5%).
Mortgage Interest Rates(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Mortgage Interest Rates (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
4.501 - 4.750 2 $230,310.62 0.29%
4.751 - 5.000 3 464,085.37 0.59
5.001 - 5.250 4 730,795.46 0.93
5.251 - 5.500 33 5,292,779.62 6.73
5.501 - 5.750 61 9,808,241.99 12.46
5.751 - 6.000 164 24,126,206.29 30.66
6.001 - 6.250 153 18,680,882.01 23.74
6.251 - 6.500 138 13,445,046.53 17.09
6.501 - 6.750 31 2,545,127.59 3.23
6.751 - 7.000 14 1,560,760.96 1.98
7.001 - 7.250 5 1,729,719.62 2.20
7.251 - 7.500 1 78,758.78 0.10
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average mortgage interest rate of the
15 Year Mortgage Loans is expected to be approximately 6.077% per annum.
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Number of Months Since Origination(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Months Since Origination (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
1 - 2 428 $56,259,973.76 71.49%
3 - 4 169 20,689,277.83 26.29
5 - 6 7 776,596.75 0.99
7 - 8 2 130,930.93 0.17
9 - 10 1 248,202.13 0.32
13 - 14 2 587,733.44 0.75
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average number of months since
origination of the 15 Year Mortgage Loans is expected to be approximately
2.21 months.
(2) Approximate (+/-5%).
Remaining Terms(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Remaining Terms (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
101 - 120 12 $767,240.09 0.97%
141 - 160 7 478,172.78 0.61
161 - 180 590 77,447,301.97 98.42
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average remaining term to stated
maturity of the 15 Year Mortgage Loans is expected to be approximately 178
months.
(2) Approximate (+/-5%).
Credit Scores of Mortgagors(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as Date Pool Principal
Credit Scores(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
801 - 850 34 $3,721,211.16 4.73%
751 - 800 219 27,213,048.86 34.58
701 - 750 196 25,946,696.19 32.97
651 - 700 124 18,220,134.53 23.15
601 - 650 32 3,189,862.11 4.05
= 0 4 401,761.99 0.51
- ------------------------------------------------------------------------------------------------------------------------------------
Total 609 $78,692,714.84 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) The scores shown are Bureau Credit Scores from Experian (FICO), Equifax
(Beacon) and TransUnion (Empirica).
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Selected 30 Year Mortgage Loan Data as of February 1, 2006
Range or Total Weighted Average
--------------------------- ---------------------------
Number of 30 Year Mortgage Loans (1) 1,943
Aggregate Unpaid Principal Balance (1) $366,391,631.78
Unpaid Principal Balance (1) $15,486.97 to $2,940,000.00 $188,570.06
Mortgage Interest Rate (1) 5.500% to 7.875% 6.58%
Servicing Fee Rate (1) 0.2500%
Trustee Fee Rate (1) 0.0045%
Administrative Fee Rate (1) 0.2545%
Remaining Terms to Stated Maturity (1) 237 to 360 months 358 months
Original Term (1) 240 to 360 months 358 months
Number of Months Since Origination (1) 1 to 18 months 2 months
Original Loan-to-Value Ratio (1) 3.38% to 103.00% 71.83%
Credit Scores (1) 601 to 832 731
Latest Maturity Date (1) 2036-02-01
Number of Buy-Down Loans (1) 0
Aggregate Unpaid Principal Balance of Buy-Down
Loans (1) $0.00
Unpaid Principal Balance of Buy-Down Loans (1) $0.00 to $0.00 $0.00
Number of BPP Mortgage Loans (1) 101
Aggregate Unpaid Principal Balance of BPP Mortgage
Loans (1) $14,933,692.39
Unpaid Principal Balance of BPP Mortgage Loans (1) $27,200.00 to $504,031.95 $147,858.34
Number of Mortgage Loans underwritten using
"Alternative A" underwriting standards (1) 680
Aggregate Unpaid Principal Balance of Mortgage
Loans underwritten using "Alternative A"
underwriting standards (1) $182,503,123.86
Unpaid Principal Balance of Mortgage Loans
underwritten using "Alternative A" underwriting
standards (1) $27,920.00 to $2,940,000.00 $268,386.95
Number of Mortgage Loans secured by leases on real
property (1) 0
Aggregate Unpaid Principal Balance of Mortgage
Loans secured by leases on real property (1) $0.00
Unpaid Principal Balance of Mortgage Loans secured
by leases on real property (1) $0.00 to $0.00 $0.00
Geographic Concentration of Mortgaged Properties in
Excess of 5.00% of the Aggregate Unpaid
Principal Balance (1)
California............................. 23.91%
Florida................................ 16.69
Texas.................................. 6.46
Maximum Single Five-Digit Zip Code Concentration 0.80%
- ----------
(1) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Occupancy of Mortgaged Properties(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Occupancy(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Primary Residence 911 $213,733,542.80 58.33%
Investor Property 963 137,147,484.05 37.43
Second Home 69 15,510,604.93 4.23
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Based solely on representations of the mortgagor at the time of
origination of the related 30 Year Mortgage Loan.
(2) Approximate (+/-5%).
Property Type(1)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Property Type (1) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Single Family Residence 1,168 $213,964,780.79 58.40%
PUD-Detached 187 46,863,199.76 12.79
2-Family 195 36,056,361.85 9.84
Condominium 210 34,544,074.71 9.43
4-Family 50 13,365,374.87 3.65
PUD-Attached 61 8,485,815.76 2.32
3-Family 31 6,944,561.06 1.90
Townhouse 36 5,063,932.55 1.38
Condotel 5 1,103,530.43 0.30
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Approximate (+/-5%).
Mortgage Loan Purposes(3)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Purpose (3) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Purchase 1,157 $197,022,374.79 53.77%
Refinance--Cashout(1) 580 129,021,197.66 35.21
Refinance--Rate/Term(2) 206 40,348,059.33 11.01
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) "Refinance--Cashout" means a mortgage loan originated in connection with a
refinancing that has a principal balance in excess of the principal
balance on the old loan plus settlement costs where cash is distributed to
the mortgagor.
(2) "Refinance--Rate/Term" means a mortgage loan originated in connection with
a refinancing to reduce the mortgage interest rate or reduce or increase
the term.
(3) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Documentation Type(1)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Documentation Type (1) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Accelerated - Stated 569 $163,831,896.34 44.71%
Standard 602 96,770,693.84 26.41
Accelerated - Paper Saver/Threshold 376 43,814,903.31 11.96
Desktop Underwriter/Loan Prospector 277 41,746,223.67 11.39
Accelerated - No Ratio 107 18,400,708.56 5.02
Accelerated - Stated Income/Stated Asset 6 1,180,526.19 0.32
Accelerated - Rapid 5 588,379.94 0.16
Accelerated - All Ready Home 1 58,299.93 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Geographical Distribution of the Mortgaged Properties(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Geographical Area (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Alabama 6 $1,006,097.25 0.27%
Arizona 45 8,527,826.20 2.33
Arkansas 16 2,450,992.50 0.67
California 278 87,615,788.08 23.91
Colorado 24 6,074,671.92 1.66
Connecticut 20 3,861,141.28 1.05
Delaware 1 69,938.24 0.02
District of Columbia 8 2,729,834.78 0.75
Florida 309 61,147,999.51 16.69
Georgia 67 8,832,321.51 2.41
Hawaii 16 3,646,670.20 1.00
Idaho 6 711,972.56 0.19
Illinois 49 8,947,066.38 2.44
Indiana 21 2,163,548.99 0.59
Iowa 10 1,108,768.02 0.30
Kansas 25 3,057,234.47 0.83
Kentucky 8 885,477.55 0.24
Louisiana 3 413,801.38 0.11
Maine 16 1,822,264.25 0.50
Maryland 61 9,248,901.97 2.52
Massachusetts 39 9,861,989.97 2.69
Michigan 26 6,849,133.85 1.87
Minnesota 14 3,319,818.78 0.91
Mississippi 1 96,716.65 0.03
Missouri 83 11,459,034.99 3.13
Montana 4 561,788.23 0.15
Nebraska 3 572,124.50 0.16
Nevada 25 6,390,320.70 1.74
New Hampshire 7 1,326,820.72 0.36
New Jersey 32 8,766,951.78 2.39
New Mexico 12 1,802,008.41 0.49
New York 57 12,321,019.63 3.36
North Carolina 115 14,708,620.08 4.01
North Dakota 1 137,305.75 0.04
Ohio 10 914,552.69 0.25
Oklahoma 24 2,098,264.89 0.57
Oregon 23 4,327,749.92 1.18
Pennsylvania 51 6,448,607.92 1.76
Rhode Island 2 436,500.00 0.12
South Carolina 55 7,468,011.01 2.04
South Dakota 1 369,600.00 0.10
Tennessee 33 3,296,497.94 0.90
Texas 190 23,686,767.96 6.46
Utah 17 2,283,092.74 0.62
Vermont 7 1,545,094.11 0.42
Virginia 58 11,405,659.03 3.11
Washington 33 6,356,182.09 1.73
West Virginia 5 247,728.25 0.07
Wisconsin 26 3,011,352.15 0.82
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, no more than approximately 0.80% of the 30 Year
Mortgage Loans are expected to be secured by Mortgaged Properties located
in any one five-digit postal zip code.
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Current Mortgage Loan Principal Balances(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Current Mortgage Loan Principal Balances(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
0.01 - 50,000.00 111 $4,414,336.84 1.20%
50,000.01 - 100,000.00 495 38,293,875.94 10.45
100,000.01 - 150,000.00 483 60,203,658.69 16.43
150,000.01 - 200,000.00 279 48,382,150.48 13.21
200,000.01 - 250,000.00 136 30,644,811.08 8.36
250,000.01 - 300,000.00 120 33,471,489.14 9.14
300,000.01 - 350,000.00 58 18,864,245.85 5.15
350,000.01 - 400,000.00 104 39,275,302.48 10.72
400,000.01 - 450,000.00 42 17,986,571.19 4.91
450,000.01 - 500,000.00 35 16,651,866.77 4.54
500,000.01 - 550,000.00 19 10,026,921.95 2.74
550,000.01 - 600,000.00 14 8,118,725.20 2.22
600,000.01 - 650,000.00 12 7,605,549.42 2.08
650,000.01 - 700,000.00 7 4,681,594.87 1.28
700,000.01 - 750,000.00 4 2,914,319.93 0.80
750,000.01 - 800,000.00 3 2,349,346.07 0.64
800,000.01 - 850,000.00 4 3,288,826.96 0.90
850,000.01 - 900,000.00 4 3,497,756.94 0.95
900,000.01 - 950,000.00 1 929,074.18 0.25
950,000.01 - 1,000,000.00 7 6,924,103.49 1.89
1,000,000.01 - 1,500,000.00 4 4,927,104.31 1.34
2,500,000.01 - 3,000,000.00 1 2,940,000.00 0.80
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the average outstanding principal balance of the
30 Year Mortgage Loans is expected to be approximately $188,570.
(2) Approximate (+/-5%).
Original Debt-to-Income Ratios(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Original Debt-to-Income Ratios(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
= 0.00% 27 $6,023,888.11 1.64%
0.01% - 10.00% 23 4,062,339.95 1.11
10.01% - 20.00% 143 21,222,983.61 5.79
20.01% - 30.00% 336 59,458,690.23 16.23
30.01% - 40.00% 641 123,927,276.46 33.82
40.01% - 50.00% 592 120,034,955.35 32.76
50.01% - 60.00% 143 24,888,064.09 6.79
60.01% - 70.00% 35 6,270,481.20 1.71
70.01% - 80.00% 3 502,952.78 0.14
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average Debt-to-Income Ratio at
origination of the 30 Year Mortgage Loans is expected to be approximately
37.04%.
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Original Loan-to-Value Ratios(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Original Loan-to-Value Ratios (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
0.01 - 5.00 3 $225,824.71 0.06%
5.01 - 10.00 1 52,933.00 0.01
10.01 - 15.00 3 412,204.63 0.11
15.01 - 20.00 4 351,123.03 0.10
20.01 - 25.00 12 2,341,136.43 0.64
25.01 - 30.00 15 2,809,373.70 0.77
30.01 - 35.00 25 4,426,635.25 1.21
35.01 - 40.00 19 3,726,683.16 1.02
40.01 - 45.00 36 4,932,308.61 1.35
45.01 - 50.00 60 13,999,552.72 3.82
50.01 - 55.00 52 10,603,761.47 2.89
55.01 - 60.00 70 14,869,560.52 4.06
60.01 - 65.00 103 23,402,189.05 6.39
65.01 - 70.00 181 43,038,280.49 11.75
70.01 - 75.00 188 47,060,760.54 12.84
75.01 - 80.00 1,005 173,323,221.24 47.31
80.01 - 85.00 12 3,013,115.11 0.82
85.01 - 90.00 140 15,862,013.14 4.33
90.01 - 95.00 7 1,104,977.30 0.30
95.01 - 100.00 4 609,458.72 0.17
over 100.01 3 226,518.96 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average Loan-to-Value Ratio at
origination of the 30 Year Mortgage Loans is expected to be approximately
71.83%.
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Mortgage Interest Rates(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Mortgage Interest Rates (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
5.251 - 5.500 1 $195,000.00 0.05%
5.501 - 5.750 25 5,786,667.61 1.58
5.751 - 6.000 84 19,454,764.74 5.31
6.001 - 6.250 298 64,469,173.42 17.60
6.251 - 6.500 477 94,291,906.42 25.74
6.501 - 6.750 597 98,786,785.24 26.96
6.751 - 7.000 298 50,119,127.56 13.68
7.001 - 7.250 102 17,945,856.27 4.90
7.251 - 7.500 33 8,658,757.39 2.36
7.501 - 7.750 27 6,091,093.13 1.66
7.751 - 8.000 1 592,500.00 0.16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average mortgage interest rate of the
30 Year Mortgage Loans is expected to be approximately 6.582% per annum.
(2) Approximate (+/-5%).
Number of Months Since Origination(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Months Since Origination (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
1 - 2 1,831 $321,744,037.27 87.81%
3 - 4 96 38,644,894.25 10.55
5 - 6 8 2,041,639.49 0.56
7 - 8 1 357,770.63 0.10
11 - 12 3 1,877,692.74 0.51
13 - 14 1 462,765.06 0.13
15 - 16 1 403,839.12 0.11
17 - 18 2 858,993.22 0.23
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average number of months since
origination of the 30 Year Mortgage Loans is expected to be approximately
1.79 months.
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[Banc of America Securities Logo] Banc of America Mortgage Securities, Inc.
Mortgage Pass=Through Certificates, 2006-2
- --------------------------------------------------------------------------------
Remaining Terms(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Remaining Terms (2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
221 - 240 22 $4,532,012.54 1.24%
261 - 280 2 158,884.29 0.04
281 - 300 11 834,402.53 0.23
341 - 360 1,908 360,866,332.42 98.49
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) As of the Cut-off Date, the weighted average remaining term to stated
maturity of the 30 Year Mortgage Loans is expected to be approximately 358
months.
(2) Approximate (+/-5%).
Credit Scores of Mortgagors(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as Date Pool Principal
Credit Scores(2) Mortgage Loans of Cut-off Date Balance
- ------------------------------------------------------------------------------------------------------------------------------------
801 - 850 89 $13,909,259.67 3.80%
751 - 800 628 115,485,919.69 31.52
701 - 750 702 132,991,958.47 36.30
651 - 700 467 92,334,966.06 25.20
601 - 650 47 8,257,829.86 2.25
= 0 10 3,411,698.03 0.93
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,943 $366,391,631.78 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) The scores shown are Bureau Credit Scores from Experian (FICO), Equifax
(Beacon) and TransUnion (Empirica).
(2) Approximate (+/-5%).
Banc of America Securities LLC
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------