Filed Pursuant to Rule 433
Registration No.: 333-132249
[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 2006-3
Banc of America Alternative Loan Trust 2006-3
Issuing Entity
Banc of America Mortgage Securities, Inc.
Depositor
Bank of America, National Association
Sponsor and Servicer
[BANK OF AMERICA LOGO]
March 17, 2006
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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. 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.
The information contained in this free writing prospectus should be read in
conjunction with the information contained in the Depositor's most recent base
prospectus and the information provided by Banc of America Securities LLC (the
"Underwriter"). The Depositor's most recent base prospectus referred to in this
free writing prospectus is the base prospectus filed as part of the registration
statement on Form S-3 on March 13, 2006 (SEC File No. 333-132249). You should
carefully read this free writing prospectus and the base prospectus, as well as
the information provided by the Underwriter, before you make any investment
decision. Capitalized terms that are used but not defined in this free writing
prospectus have the meaning given to those terms in the base prospectus.
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.
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[BANC OF AMERICA SECURITIES LOGO] Banc of America Alternative Loan Trust 2006-3
Mortgage Pass-Through Certificates, Series 2006-3
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Preliminary Summary of Terms
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Transaction: Banc of America Alternative Loan Trust 2006-3
Mortgage Pass-Through Certificates, Series 2006-3
Issuing Entity: Banc of America Alternative Loan Trust 2006-3
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.
Senior Non-PO The Senior Certificates (other than any Ratio Strip
Certificates: Certificates or components thereof).
Subordinate If the Senior Certificates are divided into multiple
Certificates: 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: March 30, 2006
Expected Investor March 31, 2006
Closing Date:
Distribution Date: 25th of each month, or the next succeeding business day
(First Distribution Date: April 25, 2006)
Cut-off Date: March 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.
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
Senior Certificates Form
(other than any Book Entry $1,000 $1
Principal Only
Certificates, Interest
Only Certificates and
Special Retail
Certificates)
Interest Only Book Entry $1,000,000 $1 or N/A
Certificates (notional amount)
or size of class,
if less than
$1,000,000
Special Retail Book Entry $1,000 $1,000
Certificates
Principal Only Book Entry $25,000 $1
Certificates and
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.
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.
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.
Optional Termination On any Distribution Date on which the aggregate
Date: 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 residential 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 "The Mortgage Loan Programs--Mortgage
Loan Underwriting" in the base prospectus.
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. Preliminary
Summary of Terms
Yield Maintenance The Trustee on behalf of the Trust may enter into one or
Agreements: more yield maintenance agreements (each, a "Yield
Maintenance Agreement") with one or more counterparties
(each, a "Counterparty") for the benefit of one or more
classes. 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
lesser of the applicable Class Balance(s) and 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.
Amounts on deposit in a Reserve Fund will be used to
make certain payments on a specified Class or Classes of
Certificates that have the benefit of a Yield
Maintenance Agreement.
Compensating Interest: 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.
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 March
1, 2006 and any initial LIBOR Based Interest Accrual
Period or No Delay Interest Accrual Period will be
deemed to have commenced on March 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.
Distributions to the On each Distribution Date, each class of Subordinate
Subordinate Certificates that is entitled to receive a principal
Certificates: 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 Additional credit enhancement is provided by the
Structure: 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 Non-PO Certificates for the first
five years and the disproportionately greater allocation
of prepayments to such Senior Non-PO 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.
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 Non-PO Certificates or to the Senior
Non-PO Certificates of the related group, if there are
multiple groups of Senior Non-PO Certificates pro rata
based on their respective Class Balances.
Such allocation will be effected on each 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 Non-PO Certificates or
the Senior Non-PO Certificates in a group 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 Non-PO
Certificates or all Senior Non-PO 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 Non-PO Certificates or Senior Non-PO 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.
Cross- If one group of Subordinate Certificates support
Collateralization 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 Non-PO
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 Non-PO 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 Non-PO 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 Non-PO 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 Non-PO 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 Non-PO 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 Non-PO 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.
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 The "Adjusted Pool Amount (PO Portion)" of the Mortgage
(PO Portion): 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 The "Adjusted Pool Amount (Non-PO Portion)" of the
(Non-PO Portion): 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).
Net Interest With respect to any Distribution Date, the "Net Interest
Shortfall: 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 The "Net Mortgage Interest Rate" of a Mortgage Loan is
Rate: 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.
Non-PO Principal The "Non-PO Principal Amount" for any Distribution Date
Amount: 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."
Non-Supported With respect to any Distribution Date, the
Interest 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.
Pool Distribution The "Pool Distribution Amount" with respect to any
Amount: 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.
Pool Principal The "Pool Principal Balance" for the Mortgage Pool or a
Balance: 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 The "Pool Principal Balance (Non-PO Portion)" for the
Balance (Non-PO Mortgage Pool or a loan group in the Mortgage Pool and
Portion): 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 A "Prepayment Interest Shortfall" on a Mortgage Loan is
Shortfall: 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.
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 Non-PO 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 For the following Distribution Dates, will be as
Percentage: follows:
Distribution Date Senior Prepayment Percentage
April 2006 through 100%;
March 2011
April 2011 through the applicable Senior Percentage
March 2012 plus, 70% of the applicable
Subordinate Percentage;
April 2012 through the applicable Senior Percentage
March 2013 plus, 60% of the applicable
Subordinate Percentage;
April 2013 through the applicable Senior Percentage
March 2014 plus, 40% of the applicable
Subordinate Percentage;
April 2014 through the applicable Senior Percentage
March 2015 plus, 20% of the applicable
Subordinate Percentage;
April 2015 and the applicable Senior Percentage;
thereafter
provided, however, that (A) if on any Distribution Date
the percentage equal to (x) the aggregate Class Balances
of the Senior Non-PO 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 Non-PO 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%.
No decrease in the Senior Prepayment 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
----------------------------- -------------------------
April 2011 through March 2012 30%
April 2012 through March 2013 35%
April 2013 through March 2014 40%
April 2014 through March 2015 45%
April 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.
Senior Principal The "Senior Principal Distribution Amount" for the
Distribution Amount: 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 The "Stated Principal Balance" means, as to any Mortgage
Balance: 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 The Subordinate Percentage for the Mortgage Pool or loan
Percentage: group in the Mortgage Pool for any Distribution Date
will equal 100% minus the Senior Percentage for such
date.
Subordinate The Subordinate Prepayment Percentage for the Mortgage
Prepayment Percentage: 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 Amount" for the
Distribution Amount: 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
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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 Non-PO Certificates, subject
to certain exceptions, for the first five years and the disproportionately
greater allocation of prepayments to such Senior Non-PO 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 Non-PO 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 3.90% (+/- 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 4.20% (+/-
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 1.90% (+/- 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:
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First, to the classes of Senior Certificates and component (if any) entitled
to payments of interest, to pay interest;
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|
v
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Second, pro rata, to the Senior Non-PO Certificates and any ratio strip
component or ratio strip certificates entitled to payments of principal, to
pay principal;
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|
v
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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;
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|
|
v
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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
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v
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Fifth, to the residual certificate, any remaining amounts.
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The Sponsor and Bank of America, National Association ("Bank of
Servicer: America") will serve as the sponsor (the "Sponsor") and
the servicer (the "Servicer") of the Certificates.
See "The Sponsor," "The Mortgage Loan Programs,"
"Servicing of the Mortgage Loans" and "The Pooling
Agreement" in the base prospectus for more information
about the Sponsor, its securitization programs, its
solicitation and underwriting criteria used to originate
the Mortgage Loans and its material roles and duties in
this transaction.
All of the Mortgage Loans will be serviced by the
Sponsor, as "Servicer," in accordance with the terms of
the Pooling Agreement. The Servicer may perform any of
its obligations under the Pooling Agreement through one
or more subservicers. Despite the existence of
subservicing arrangements, the Servicer will be liable
for its servicing duties and obligations under the
Pooling Agreement as if the Servicer alone were
servicing the Mortgage Loans. See "The Sponsor,"
"Servicing of the Mortgage Loans -- The Servicers," "--
Servicing Experience and Procedures of Bank of America"
and "The Pooling Agreement" in the base prospectus for
more information about the Servicer, the Servicer's
experience, it servicing procedures and its obligations
under the Pooling Agreement.
Static Pool Information concerning the Sponsor's prior residential
Information: mortgage loan securitizations involving both fixed-rate
first lien mortgage loans underwritten in accordance
with the Sponsor's general underwriting standards
described in the base prospectus under "The Mortgage
Loan Programs--Mortgage Loan Underwriting--Bank of
America General Underwriting Standards" and first lien
mortgage loans underwritten in accordance with the
Sponsor's alternative underwriting standards described
in the base prospectus 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, Its telephone number is (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.
- --------------------------------------------------------------------------------
Risk Factors
- --------------------------------------------------------------------------------
YOU SHOULD FULLY CONSIDER THE RISKS ASSOCIATED WITH AN
INVESTMENT IN THE OFFERED CERTIFICATES. BEFORE INVESTING
YOU SHOULD CAREFULLY REVIEW "RISK FACTORS" IN THE BASE
PROSPECTUS TOGETHER WITH THE RISK FACTORS SET FORTH
BELOW.
Subordination of any Subordinate certificateholders are more likely to suffer
Super Senior Support losses as a result of losses or delinquencies on the
and Subordinate related Mortgage Loans than are Senior
Certificates Increases certificateholders.
Risk of Loss:
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 Because principal payments on the Mortgage Loans will be
Payments on the distributed currently on the related Senior Certificates
Mortgage Loans Will and the related Subordinate Certificates, the rate of
Affect the Yield on distributions of principal and the yield to maturity on
the Offered your Certificates will be directly related to (i) the
Certificates: 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
due date, 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.
The rate of principal payments on the Mortgage Loans
will be affected by the following:
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.
If you are purchasing any Offered Certificates at a
discount, and specifically if you are purchasing
principal only 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 Non-PO
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 Non-PO
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 The Trustee on behalf of the Trust may enter into one or
Agreement is Subject more Yield Maintenance Agreements with one or more
to Counterparty Risk: 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.
Delinquencies and Delinquencies on the mortgage loans which are not
Losses on the Mortgage advanced by or on behalf of the Servicer (because the
Loans Will Adversely Servicer has determined that these amounts, if advanced,
Affect Your Yield: 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 The Sponsor generally uses Credit Scores as part of its
Accurately Predict the underwriting process. The attached collateral summary
Likelihood of Default: 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 At various times, certain geographic regions will
Concentration May experience weaker economic conditions and housing
Increase Risk of Loss markets and, consequently, will experience higher rates
Due to Adverse of delinquency and loss on mortgage loans generally. In
Economic Conditions addition, certain states have experienced natural
or Natural Disasters: 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.
Any deterioration in housing prices in a state or region
due to adverse economic conditions, natural disaster or
other 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 (Continued): losses may adversely affect the
yield to maturity of the related Offered Certificates.
Residential Real There can be no assurance that values of the mortgaged
Estate Values May properties have remained or will remain at their levels
Fluctuate and on the dates of origination of the related Mortgage
Adversely Affect Your Loans. The value of any mortgaged property generally
Investment: 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.
United States Military As a result of military operations in Afghanistan and
Operations May Iraq, the United States has placed a substantial number
Increase Risk of of armed forces reservists and members of the National
Relief Act Shortfalls: 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 The yield maintenance agreement payment for any
Receive Amounts Distribution Date will be based on the lesser of (x) the
Expected from any Class Balance(s) of the related Class or Classes or (y)
Yield Maintenance Not the related notional amount, which will decrease for
Agreements: each Distribution Date during the life of the applicable
yield maintenance agreement. The notional amounts are
generally derived by using an assumed prepayment rate
for the applicable mortgage loans. The actual rate of
prepayment on the applicable mortgage loans is likely to
differ from the rate assumed. If prepayments on these
mortgage loans occur at a rate slower than the rate used
in determining the notional amounts, the Class
Balance(s) of the related Class or Classes will be
greater than the related notional amount for a
Distribution Date and a holder of the related
Certificates will receive less than if the counterparty
were required to make payments based on the Class
Balance(s) of the related Class or Classes.
There is a Risk that When a Mortgage Loan is prepaid in full, the mortgagor
Interest Payments on is charged interest only up to the date on which payment
the Mortgage Loans is made, rather than for an entire month. When a
May Be Insufficient mortgagor makes a partial principal prepayment on a
to Pay Interest on Mortgage Loan, the mortgagor is not charged interest on
Your Certificates: 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 If you are an individual investor who does not have
Be Appropriate for sufficient resources or expertise to evaluate the
Individual Investors: 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.
Limited Source of Proceeds of the Mortgage Loans (and any insurance policy
Payments -- No with respect to a class of insured special retail
Recourse to certificates) will be the sole source of payments on the
Depositor, Certificates. The Certificates do not represent an
Seller, Servicer interest in or obligation of the Depositor, the
or Trustee: 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 Certain of the Mortgage Loans may have been originated
Underwriting Standards using the Sponsor's "Alternative A" underwriting
May Increase Risk of guidelines. See "The Mortgage Loan Programs--Mortgage
Loss: Loan Underwriting--Bank of America Alternative
Underwriting Standards" in the base prospectus. 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.
The Rate of Default on Certain of the Mortgage Loans may be secured by investor
Mortgage Loans that properties. An investor property is a property which, at
Are Secured by the time of origination, the mortgagor represented would
Investor not be used as the mortgagor's primary residence or
Properties second home. Because the mortgagor is not living on the
May be property, the mortgagor may be more likely to default on
Higher than on the mortgage loan than on a comparable mortgage loan
Other secured by a primary residence, or to a lesser extent, a
Mortgage Loans: 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 At the time of origination of certain of the Mortgage
Relating Loans, a lender other than the Sponsor may have
to Mortgaged originated a second lien mortgage loan. Mortgage Loans
Properties Subject that have second lien mortgage loans encumbering the
Second same mortgaged to property may have higher rates of
Lien Mortgage delinquency and foreclosure relative to mortgage loans
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 The Subordinate Certificates may provide credit support
Certificates May for more than one Groups of Senior Certificates and thus
Provide Subordination the outstanding Class Balances of such Subordinate
for All Groups 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 If you are purchasing any inverse floating rate interest
Another Index May only certificates, in addition to the risk that a rapid
Result in a Lower or rate of prepayments on the related Mortgage Loans may
Negative Yield on any result in a lower actual yield than you expected or a
Inverse Floating Rate negative yield, you should also consider the risk that
Interest Only high rates of LIBOR or high rates of another applicable
Certificates index for your certificates may result in the failure to
recover your initial investment.
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 chart in the base
prospectus under the heading "Description of the Certificates--Categories of
Classes of Certificates" 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 those categories
or another category specified in the prospectus supplement.
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]
- --------------------------------------------------------------------------------
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 2006-3
Banc of America Alternative Loan Trust 2006-3
Issuing Entity
Banc of America Mortgage Securities, Inc.
Depositor
Bank of America, National Association
Sponsor and Servicer
[BANK OF AMERICA LOGO]
March 17, 2006
- --------------------------------------------------------------------------------
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, 2006-3
- --------------------------------------------------------------------------------
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. 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.
Selected 15 Year Mortgage Loan Data as of March 1, 2006(1)
Range or Total Weighted Average
- -------------------------------------------------- --------------------------- ----------------
Number of 15Year Mortgage Loans 318
Aggregate Unpaid Principal Balance $38,260,947.59
Unpaid Principal Balance $10,000.00 to $1,192,825.43 $120,317.45
Mortgage Interest Rate 5.125% to 7.125% 6.161%
Servicing Fee Rate 0.2500%
Trustee Fee Rate 0.0065%
Administrative Fee Rate 0.2565%
Remaining Terms to Stated Maturity 118 to 180 months 173 months
Original Term 120 to 180 months 174 months
Number of Months Since Origination 1 to 12 months 2 months
Original Loan-to-Value Ratio 4.94% to 95.00% 58.74%
Credit Scores 621 to 835 745
Latest Maturity Date 2021-03-01
Number of Buy-Down Loans 0
Aggregate Unpaid Principal Balance of Buy-Down
Loans $0.00
Unpaid Principal Balance of Buy-Down Loans $0.00 to $0.00 $0.00
Number of BPP Mortgage Loans 16
Aggregate Unpaid Principal Balance of BPP Mortgage
Loans $1,727,814.08
Unpaid Principal Balance of BPP Mortgage Loans $20,085.05 to $258,137.53 $107,988.38
Number of Mortgage Loans underwritten using
"Alternative A" underwriting standards 138
Aggregate Unpaid Principal Balance of Mortgage
Loans underwritten using "Alternative A"
underwriting standards $18,089,432.26
Unpaid Principal Balance of Mortgage Loans
underwritten using "Alternative A" underwriting
standards $12,960.00 to $1,192,825.43 $131,082.84
Number of Mortgage Loans secured by leases on real
property 0
Aggregate Unpaid Principal Balance of Mortgage
Loans secured by leases on real property $0.00
Unpaid Principal Balance of Mortgage Loans secured
by leases on real property $0.00 to $0.00 $0.00
Geographic Concentration of Mortgaged Properties
in Excess of 5.00% of the Aggregate Unpaid
Principal Balance
California................................. 20.14%
Florida.................................... 12.88%
Texas...................................... 8.48%
New Jersey................................. 6.06%
Georgia.................................... 5.62%
Maximum Single Five-Digit Zip Code Concentration 3.12%
- ----------
(1) Approximate (+/-5%).
Occupancy of Mortgaged Properties(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Occupancy(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Investor Property 176 $18,532,623.91 48.44%
Primary Residence 132 17,208,018.20 44.98
Second Home 10 2,520,305.48 6.59
Total.................................. 318 $38,260,947.59 100.00%
(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 of Date Pool Principal
Property Type (1) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Single Family Residence 242 $28,267,145.32 73.88%
2-Family 26 3,438,272.76 8.99
Condominium - Low 24 2,467,285.64 6.45
4-Family 6 1,116,915.11 2.92
PUD-Detached 6 883,617.78 2.31
3-Family 4 769,009.98 2.01
Townhouse 4 504,285.86 1.32
Condominium - High 1 417,000.00 1.09
PUD-Attached 4 322,043.06 0.84
Condotel 1 75,372.08 0.20
Total................................... 318 $38,260,947.59 100.00%
(1) Approximate (+/-5%).
Mortgage Loan Purposes(3)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Purpose (3) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Refinance-Cashout(1) 121 $18,054,141.53 47.19%
Refinance-Rate/Term(2) 127 11,592,047.81 30.30
Purchase 70 8,614,758.25 22.52
Total.................................. 318 $38,260,947.59 100.00%
(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%).
Documentation Type(1)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Documentation Type (1) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Accelerated - Stated 132 $17,226,666.28 45.02%
Accelerated - Paper Saver/Threshold 86 9,112,392.64 23.82
Standard 40 6,784,281.06 17.73
Accelerated - All Ready Home 33 2,313,971.00 6.05
Desktop Underwriter/Loan Prospector 21 1,960,870.63 5.12
Accelerated - No Ratio 6 862,765.98 2.25
Total.................................. 318 $38,260,947.59 100.00%
(1) Approximate (+/-5%).
Geographical Distribution of the Mortgaged Properties(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Geographical Area (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Alabama 1 $72,638.00 0.19%
Arizona 7 576,139.90 1.51
Arkansas 9 812,049.37 2.12
California 50 7,706,145.66 20.14
Colorado 6 648,797.00 1.70
Connecticut 7 795,322.11 2.08
District of Columbia 2 195,232.73 0.51
Florida 36 4,928,846.80 12.88
Georgia 12 2,151,782.55 5.62
Idaho 2 124,153.37 0.32
Illinois 6 469,357.72 1.23
Indiana 6 492,378.66 1.29
Iowa 2 93,385.77 0.24
Kansas 7 400,899.89 1.05
Kentucky 5 435,451.74 1.14
Maine 2 144,000.00 0.38
Maryland 8 1,348,475.68 3.52
Massachusetts 7 1,165,506.69 3.05
Michigan 2 289,685.10 0.76
Minnesota 3 267,220.72 0.70
Missouri 8 798,782.66 2.09
Montana 1 60,650.00 0.16
Nebraska 1 75,741.00 0.20
Nevada 5 387,066.28 1.01
New Hampshire 3 458,449.36 1.20
New Jersey 13 2,319,938.41 6.06
New Mexico 2 230,851.95 0.60
New York 9 1,902,743.06 4.97
North Carolina 16 1,272,132.50 3.32
Ohio 4 355,639.40 0.93
Oklahoma 5 268,300.00 0.70
Oregon 7 773,412.19 2.02
Pennsylvania 5 365,509.62 0.96
Rhode Island 1 104,453.00 0.27
South Carolina 5 110,963.87 0.29
South Dakota 1 87,000.00 0.23
Tennessee 6 351,422.01 0.92
Texas 23 3,244,625.32 8.48
Utah 4 334,336.89 0.87
Virginia 8 664,143.05 1.74
Washington 6 542,848.43 1.42
West Virginia 1 35,924.59 0.09
Wisconsin 4 398,544.54 1.04
Total.................................. 318 $38,260,947.59 100.00%
(1) As of the Cut-off Date, no more than approximately 3.12% 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%).
Current Mortgage Loan Principal Balances(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Current Mortgage Loan Principal Balances(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
0.01 - 50,000.00 51 $1,841,056.00 4.81%
50,000.01 - 100,000.00 135 9,908,961.02 25.90
100,000.01 - 150,000.00 64 7,913,441.79 20.68
150,000.01 - 200,000.00 27 4,597,947.74 12.02
200,000.01 - 250,000.00 17 3,785,058.32 9.89
250,000.01 - 300,000.00 13 3,748,547.55 9.80
300,000.01 - 350,000.00 3 990,268.15 2.59
400,000.01 - 450,000.00 4 1,671,538.80 4.37
450,000.01 - 500,000.00 1 468,700.00 1.23
950,000.01 - 1,000,000.00 1 971,000.00 2.54
1,000,000.01 - 1,500,000.00 2 2,364,428.22 6.18
Total.................................. 318 $38,260,947.59 100.00%
(1) As of the Cut-off Date, the average outstanding principal balance of the
15 Year Mortgage Loans is expected to be approximately $120,317.
(2) Approximate (+/-5%).
Original Debt-to-Income Ratios(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Original Debt-to-Income Ratios(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Not Calculated 13 $1,402,523.50 3.67%
0.01 - 10.00 39 2,963,924.59 7.75
10.01 - 20.00 77 8,806,265.01 23.02
20.01 - 30.00 74 9,149,121.07 23.91
30.01 - 40.00 39 7,130,322.28 18.64
40.01 - 50.00 50 5,526,954.16 14.45
50.01 - 60.00 22 2,845,438.43 7.44
60.01 - 70.00 4 436,398.55 1.14
Total.................................. 318 $38,260,947.59 100.00%
(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
28.71%.
(2) Approximate (+/-5%).
Original Loan-to-Value Ratios(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Original Loan-to-Value Ratios (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
0.01 - 5.00 1 $35,000.00 0.09%
5.01 - 10.00 1 45,640.10 0.12
10.01 - 15.00 5 294,294.29 0.77
15.01 - 20.00 7 524,916.25 1.37
20.01 - 25.00 5 524,870.19 1.37
25.01 - 30.00 16 2,025,018.63 5.29
30.01 - 35.00 9 837,703.91 2.19
35.01 - 40.00 24 2,395,244.65 6.26
40.01 - 45.00 19 2,094,157.10 5.47
45.01 - 50.00 25 2,969,912.95 7.76
50.01 - 55.00 23 2,613,322.38 6.83
55.01 - 60.00 35 3,611,746.40 9.44
60.01 - 65.00 28 4,138,400.88 10.82
65.01 - 70.00 40 5,227,923.08 13.66
70.01 - 75.00 18 3,303,566.62 8.63
75.01 - 80.00 53 6,943,687.98 18.15
85.01 - 90.00 8 657,389.18 1.72
90.01 - 95.00 1 18,153.00 0.05
Total.................................. 318 $38,260,947.59 100.00%
(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
58.74%.
(2) Approximate (+/-5%).
Mortgage Interest Rates(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Mortgage Interest Rates (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
5.001 - 5.250 2 $326,224.00 0.85%
5.251 - 5.500 10 1,192,804.35 3.12
5.501 - 5.750 16 2,919,854.82 7.63
5.751 - 6.000 92 11,915,991.23 31.14
6.001 - 6.250 77 8,171,869.32 21.36
6.251 - 6.500 90 10,602,522.90 27.71
6.501 - 6.750 23 1,561,604.88 4.08
6.751 - 7.000 7 1,510,263.34 3.95
7.001 - 7.250 1 59,812.75 0.16
Total.................................. 318 $38,260,947.59 100.00%
(1) As of the Cut-off Date, the weighted average mortgage interest rate of the
15 Year Mortgage Loans is expected to be approximately 6.161% per annum.
(2) Approximate (+/-5%).
Number of Months Since Origination(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Months Since Origination (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
1 - 2 283 $33,392,802.48 87.28%
3 - 4 33 3,419,148.29 8.94
7 - 8 1 277,394.03 0.73
11 - 12 1 1,171,602.79 3.06
Total................................... 318 $38,260,947.59 100.00%
(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
1.99 months.
(2) Approximate (+/-5%).
Remaining Terms(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Remaining Terms (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
101 - 120 26 $3,166,954.65 8.28%
121 - 140 3 367,507.52 0.96
141 - 160 9 666,792.28 1.74
161 - 180 280 34,059,693.14 89.02
Total.................................. 318 $38,260,947.59 100.00%
(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 173
months.
(2) Approximate (+/-5%).
Credit Scores of Mortgagors(1)(2)
Aggregate Stated % of 15 Year Cut-off
Number of 15 Year Principal Balance as of Date Pool Principal
Credit Scores(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
801 - 850 38 $3,607,195.95 9.43%
751 - 800 126 15,810,940.85 41.32
701 - 750 82 9,576,218.52 25.03
651 - 700 63 7,880,077.90 20.60
601 - 650 6 743,851.22 1.94
Not Scored 3 642,663.15 1.68
Total.................................. 318 $38,260,947.59 100.00%
(1) The scores shown are Bureau Credit Scores from Experian (FICO), Equifax
(Beacon) and TransUnion (Empirica).
(2) Approximate (+/-5%).
Selected 30 Year Mortgage Loan Data as of March 1, 2006(1)
Range or Total Weighted Average
- ---------------------------------------------------------------------- --------------------------- -----------------
Number of 30 Year Mortgage Loans 1,590
Aggregate Unpaid Principal Balance $287,539,286.77
Unpaid Principal Balance $17,000.00 to $2,797,647.66 $180.842.32
Mortgage Interest Rate 5.375% to 7.750% 6.548%
Servicing Fee Rate 0.2500%
Trustee Fee Rate 0.0065%
Administrative Fee Rate 0.2565%
Remaining Terms to Stated Maturity 191 to 360 months 355 months
Original Term 192 to 360 months 356 months
Number of Months Since Origination 1 to 19 months 2 months
Original Loan-to-Value Ratio 9.46% to 103.00% 70.94%
Credit Scores 603 to 826 730
Latest Maturity Date 2036-03-01
Number of Buy-Down Loans 0
Aggregate Unpaid Principal Balance of Buy-Down Loans $0.00
Unpaid Principal Balance of Buy-Down Loans $0.00 to $0.00 $0.00
Number of BPP Mortgage Loans 99
Aggregate Unpaid Principal Balance of BPP Mortgage Loans $15,480,740.67
Unpaid Principal Balance of BPP Mortgage Loans $30,320.00 to $419,629.44 $156,371.12
Number of Mortgage Loans underwritten using "Alternative A"
underwriting standards 605
Aggregate Unpaid Principal Balance of Mortgage Loans underwritten
using "Alternative A" underwriting standards $136,767,127.25
Unpaid Principal Balance of Mortgage Loans underwritten using
"Alternative A" underwriting standards $17,000.00 to $2,797,647.66 $226,061.37
Number of Mortgage Loans secured by leases on real property 11
Aggregate Unpaid Principal Balance of Mortgage Loans secured by leases
on real property $1,342,510.22
Unpaid Principal Balance of Mortgage Loans secured by leases on real
property $27,975.29 to $416,613.77 $122,046.38
Geographic Concentration of Mortgaged Properties in Excess of 5.00%
of the Aggregate Unpaid Principal Balance
California................................................... 20.66%
Florida...................................................... 16.38%
Texas........................................................ 6.64%
Maximum Single Five-Digit Zip Code Concentration 0.97%
(1) Approximate (+/-5%).
Occupancy of Mortgaged Properties(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Occupancy(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Primary Residence 839 $170,313,378.79 59.23%
Investor Property 684 105,115,283.58 36.56
Second Home 67 12,110,624.40 4.21
Total.................................. 1,590 $287,539,286.77 100.00%
(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 of Date Pool Principal
Property Type (1) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Single Family Residence 1,056 $186,333,566.45 64.80%
PUD-Detached 128 28,021,441.97 9.75
Condominium - Low 140 22,811,098.09 7.93
2-Family 121 21,343,988.14 7.42
PUD-Attached 36 6,931,677.30 2.41
Condominium - High 28 6,718,489.16 2.34
3-Family 24 6,240,028.55 2.17
4-Family 27 5,337,486.07 1.86
Townhouse 17 2,286,794.78 0.80
Condotel 12 1,418,716.26 0.49
Cooperative 1 96,000.00 0.03
Total.................................. 1,590 $287,539,286.77 100.00%
(1) Approximate (+/-5%).
Mortgage Loan Purposes(3)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Purpose (3) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Purchase 846 $143,263,392.78 49.82%
Refinance-Cashout(1) 528 108,918,003.04 37.88
Refinance-Rate/Term(2) 216 35,357,890.95 12.30
Total.................................. 1,590 $287,539,286.77 100.00%
(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%).
Documentation Type(1)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Documentation Type (1) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Accelerated - Stated 562 $128,917,381.06 44.83%
Standard 468 76,055,232.11 26.45
Accelerated - Paper Saver/Threshold 296 40,591,907.52 14.12
Desk Underwriter/Loan Prospector 194 29,471,856.95 10.25
Accelerated - No Ratio 39 7,695,807.01 2.68
Accelerated - All Ready Home 18 2,183,701.03 0.76
Accelerated - Rapid 6 1,673,946.02 0.58
Accelerated - Stated Income/Stated Asset 7 949,455.07 0.33
Total.................................. 1,590 $287,539,286.77 100.00%
(1) Approximate (+/-5%).
Geographical Distribution of the Mortgaged Properties(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Geographical Area (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Alabama 7 $828,257.19 0.29%
Arizona 49 8,119,960.66 2.82
Arkansas 13 1,797,942.09 0.63
California 218 59,399,519.70 20.66
Colorado 30 6,396,635.56 2.22
Connecticut 15 4,459,137.86 1.55
Delaware 1 200,000.00 0.07
District of Columbia 5 1,432,322.51 0.50
Florida 256 47,091,986.58 16.38
Georgia 58 7,053,786.69 2.45
Hawaii 16 4,531,032.46 1.58
Idaho 7 1,314,729.56 0.46
Illinois 46 7,392,133.63 2.57
Indiana 18 2,099,470.16 0.73
Iowa 14 1,893,901.09 0.66
Kansas 19 2,053,388.08 0.71
Kentucky 10 953,014.39 0.33
Louisiana 7 1,056,399.48 0.37
Maine 10 1,377,198.19 0.48
Maryland 59 9,882,842.03 3.44
Massachusetts 25 5,940,367.74 2.07
Michigan 21 5,069,620.90 1.76
Minnesota 13 2,435,497.23 0.85
Mississippi 2 175,677.14 0.06
Missouri 45 6,456,827.62 2.25
Montana 2 249,979.61 0.09
Nebraska 1 47,200.00 0.02
Nevada 33 6,461,528.60 2.25
New Hampshire 8 1,252,731.05 0.44
New Jersey 24 5,049,536.95 1.76
New Mexico 13 2,459,005.73 0.86
New York 48 13,212,329.72 4.59
North Carolina 77 10,074,829.43 3.50
Ohio 11 1,199,228.59 0.42
Oklahoma 19 1,933,334.08 0.67
Oregon 26 3,167,860.05 1.10
Pennsylvania 30 3,994,920.64 1.39
Rhode Island 7 1,380,869.37 0.48
South Carolina 50 7,474,607.09 2.60
Tennessee 22 2,148,188.50 0.75
Texas 154 19,086,692.07 6.64
Utah 8 1,731,809.30 0.60
Vermont 9 1,488,488.42 0.52
Virginia 35 6,109,406.05 2.12
Washington 33 6,839,550.85 2.38
Wisconsin 15 2,646,455.24 0.92
Wyoming 1 119,086.89 0.04
Total.................................. 1,590 $287,539,286.77 100.00%
(1) As of the Cut-off Date, no more than approximately 0.97% 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%).
Current Mortgage Loan Principal Balances(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Current Mortgage Loan Principal Balances(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
0.01 - 50,000.00 67 $2,653,424.23 0.92%
50,000.01 - 100,000.00 389 30,234,926.48 10.52
100,000.01 - 150,000.00 415 51,737,501.15 17.99
150,000.01 - 200,000.00 269 46,853,217.94 16.29
200,000.01 - 250,000.00 144 32,416,280.64 11.27
250,000.01 - 300,000.00 100 27,179,494.07 9.45
300,000.01 - 350,000.00 70 22,914,607.55 7.97
350,000.01 - 400,000.00 38 14,232,214.50 4.95
400,000.01 - 450,000.00 25 10,600,102.01 3.69
450,000.01 - 500,000.00 21 10,116,649.39 3.52
500,000.01 - 550,000.00 10 5,312,619.34 1.85
550,000.01 - 600,000.00 10 5,774,921.87 2.01
600,000.01 - 650,000.00 14 8,791,859.47 3.06
650,000.01 - 700,000.00 2 1,386,300.00 0.48
700,000.01 - 750,000.00 5 3,639,522.57 1.27
750,000.01 - 800,000.00 1 757,581.01 0.26
800,000.01 - 850,000.00 1 839,276.77 0.29
850,000.01 - 900,000.00 1 862,554.83 0.30
950,000.01 - 1,000,000.00 3 2,961,168.28 1.03
1,000,000.01 - 1,500,000.00 3 3,946,467.01 1.37
1,500,000.01 - 2,000,000.00 1 1,530,950.00 0.53
2,500,000.01 - 3,000,000.00 1 2,797,647.66 0.97
Total.................................. 1,590 $287,539,286.77 100.00%
(1) As of the Cut-off Date, the average outstanding principal balance of the
30 Year Mortgage Loans is expected to be approximately $180,842.
(2) Approximate (+/-5%).
Original Debt-to-Income Ratios(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Original Debt-to-Income Ratios(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
Not Calculated 19 $3,769,315.17 1.31%
0.01 - 10.00 46 5,939,519.30 2.07
10.01 - 20.00 180 25,223,557.02 8.77
20.01 - 30.00 288 49,074,991.18 17.07
30.01 - 40.00 506 102,002,937.23 35.47
40.01 - 50.00 430 80,198,402.04 27.89
50.01 - 60.00 92 16,965,881.25 5.90
60.01 - 70.00 26 4,024,197.58 1.40
70.01 - 80.00 3 340,486.00 0.12
Total................................... 1,590 $287,539,286.77 100.00%
(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
35.38%.
(2) Approximate (+/-5%).
Original Loan-to-Value Ratios(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Original Loan-to-Value Ratios (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
5.01 - 10.00 2 $198,390.35 0.07%
10.01 - 15.00 2 150,430.22 0.05
15.01 - 20.00 12 1,562,561.86 0.54
20.01 - 25.00 14 1,428,364.97 0.50
25.01 - 30.00 15 1,744,337.61 0.61
30.01 - 35.00 24 3,683,070.13 1.28
35.01 - 40.00 35 5,188,529.33 1.80
40.01 - 45.00 42 7,865,952.60 2.74
45.01 - 50.00 43 9,642,845.44 3.35
50.01 - 55.00 56 10,523,270.22 3.66
55.01 - 60.00 66 12,344,567.92 4.29
60.01 - 65.00 99 17,845,071.90 6.21
65.01 - 70.00 158 36,005,354.15 12.52
70.01 - 75.00 143 28,192,724.70 9.80
75.01 - 80.00 769 133,502,675.01 46.43
80.01 - 85.00 12 2,369,339.22 0.82
85.01 - 90.00 77 12,567,807.66 4.37
90.01 - 95.00 13 1,995,994.34 0.69
95.01 - 100.00 6 658,059.96 0.23
100.01 to 103.00 2 69,939.18 0.02
Total.................................. 1,590 $287,539,286.77 100.00%
(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
70.94%.
(2) Approximate (+/-5%).
Mortgage Interest Rates(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Mortgage Interest Rates (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
5.251 - 5.500 4 $905,201.20 0.31%
5.501 - 5.750 15 3,134,246.24 1.09
5.751 - 6.000 110 20,418,497.51 7.10
6.001 - 6.250 249 45,206,863.55 15.72
6.251 - 6.500 489 87,696,625.63 30.50
6.501 - 6.750 436 72,804,100.91 25.32
6.751 - 7.000 189 36,864,111.96 12.82
7.001 - 7.250 64 10,955,640.87 3.81
7.251 - 7.500 18 4,504,370.90 1.57
7.501 - 7.750 16 5,049,628.00 1.76
Total.................................. 1,590 $287,539,286.77 100.00%
(1) As of the Cut-off Date, the weighted average mortgage interest rate of the
30 Year Mortgage Loans is expected to be approximately 6.548% 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 of Date Pool Principal
Months Since Origination (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
1 - 2 1,536 $274,189,494.00 95.36%
3 - 4 33 7,177,932.30 2.50
5 - 6 8 2,227,126.65 0.77
9 - 10 1 167,666.62 0.06
11 - 12 4 1,810,797.09 0.63
13 - 14 6 1,658,155.34 0.58
15 - 16 1 221,706.70 0.08
19 - 20 1 86,408.07 0.03
Total.................................. 1,590 $287,539,286.77 100.00%
(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
1.68 months.
(2) Approximate (+/-5%).
Remaining Terms(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Remaining Terms (2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
181 - 200 1 $89,660.42 0.03%
201 - 220 5 610,241.19 0.21
221 - 240 53 6,689,405.57 2.33
241 - 260 1 54,095.00 0.02
261 - 280 8 678,433.01 0.24
281 - 300 18 1,970,066.27 0.69
301 - 320 3 646,147.79 0.22
321 - 340 6 898,600.73 0.31
341 - 360 1,495 275,902,636.79 95.95
Total.................................. 1,590 $287,539,286.77 100.00%
(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 355
months.
(2) Approximate (+/-5%).
Credit Scores of Mortgagors(1)(2)
Aggregate Stated % of 30 Year Cut-off
Number of 30 Year Principal Balance as of Date Pool Principal
Credit Scores(2) Mortgage Loans Cut-off Date Balance
- ---------------------------------------------------- ----------------- ----------------------- --------------------
801 - 850 89 $12,377,715.16 4.30%
751 - 800 541 91,784,367.35 31.92
701 - 750 529 102,626,895.25 35.69
651 - 700 368 68,764,660.61 23.91
601 - 650 53 8,873,908.54 3.09
Not Scored 10 3,111,739.86 1.08
Total.................................. 1,590 $287,539,286.77 100.00%
(1) The scores shown are Bureau Credit Scores from Experian (FICO), Equifax
(Beacon) and TransUnion (Empirica).
(2) Approximate (+/-5%).