Filed Pursuant to Rule 433
Registration No.: 333-132249
[BANC OF AMERICA SECURITIES LOGO]
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The asset-backed securities referred to in these materials, and the asset
pools backing them, are subject to modification or revision (including the
possibility that one or more classes of securities may be split, combined or
eliminated at any time prior to issuance or availability of a final prospectus)
and are offered on a "when, as and if issued" basis. You understand that, when
you are considering the purchase of these securities, a contract of sale will
come into being no sooner than the date on which the relevant class has been
priced and we have confirmed the allocation of securities to be made to you; any
"indications of interest" expressed by you, and any "soft circles" generated by
us, will not create binding contractual obligations for you or us.
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. In addition,
since the asset-backed securities and the asset pools backing them are subject
to modification or revision (including the possibility that one or more classes
of securities may be split, combined or eliminated at any time prior to issuance
or availability of a final prospectus), 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 2007-2
Banc of America Alternative Loan Trust 2007-2
Issuing Entity
Banc of America Mortgage Securities, Inc.
Depositor
Bank of America, National Association
Sponsor and Servicer
[BANC OF AMERICA SECURITIES LOGO]
April 20, 2007
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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 dated March 28, 2007 attached to
the prospectus supplement dated March 28, 2007 relating to the Banc of America
Alternative Loan Trust 2007-1 Mortgage Pass-Through Certificates, Series 2007-1
filed with the SEC under Rule 424(b)(5) of the Securities Act (SEC File No.
333-132249-13). 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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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
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Preliminary Summary of Terms
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Transaction........................ Banc of America Alternative Loan Trust 2007-2
Mortgage Pass-Through Certificates, Series 2007-2
Issuing Entity..................... Banc of America Alternative Loan Trust 2007-2
Depositor.......................... Banc of America Mortgage Securities, Inc.
Underwriter........................ Banc of America Securities LLC
Sponsor and Servicer............... Bank of America, National Association
Trustee............................ Wells Fargo Bank, N.A.
Rating Agencies.................... At least 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 two or more
classes of certificates, one of which will be the
residual certificate. Each group may also contain a
class of 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 Certificates......... The Senior Certificates (other than any Ratio Strip
Certificates, Exchangeable Certificates or components
thereof). The Exchangeable Certificates are not part of
any group, but will receive their proportionate share of
distributions allocated to the related Senior Non-PO
certificate.
Subordinate Certificates........... If the Senior Certificates are divided into multiple
groups, the Subordinate Certificates may or may not
consist of multiple groups. If there is only one group
of Subordinate Certificates, the Subordinate
Certificates will support all of the Senior
Certificates. If there are multiple groups of Subordinate
Certificates, each group will support one or more groups
of Senior Certificates. Each class of Subordinate
Certificates is also subordinated to those classes of
Subordinate Certificates within its group, if any,
higher in order of payment priority.
Offered Certificates............... Senior Certificates and Subordinate Certificates rated
BBB- or Baa3 or better
Banc of America Securities LLC 3
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
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Preliminary Summary of Terms
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Expected Closing Date.............. May 30, 2007
Expected Investor Closing Date..... May 31, 2007
Distribution Date.................. 25th of each month, or the next succeeding business day
(First Distribution Date: June 25, 2007)
Cut-off Date....................... May 1, 2007
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
Exchangeable Certificates
and Exchangeable REMIC
Certificates....................... If indicated in the prospectus supplement, a class or
combination of classes of Exchangeable REMIC
Certificates may be exchangeable for certain class or
classes of Exchangeable Certificates in certain
combinations specified in the prospectus supplement. If
exchanges of all or a portion of a class of Exchangeable
REMIC Certificates have occurred, a class of
exchangeable certificates will be entitled to receive
its proportionate share of distributions allocated to
the related Exchangeable REMIC Certificates and will be
allocated its proportionate share of realized losses
allocated to such Exchangeable REMIC Certificates.
Clearing........................... DTC, Clearstream and Euroclear.
Denominations:
Original Incremental
Certificate Form Minimum Denominations Denominations
---------------- --------------------- -------------
Senior Certificates (other than Book Entry $1,000 $1
any Principal Only Certificates,
Interest Only Certificates and
Special Retail Certificates)
Interest Only Certificates Book Entry $1,000,000 (notional $1 or N/A
amount) or size of class, if
less than $1,000,000
Banc of America Securities LLC 4
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
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Preliminary Summary of Terms
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Special Retail Certificates Book Entry $1,000 $1,000
Principal Only Certificates and Book Entry $25,000 $1
Subordinate Certificates
SMMEA Eligibility.................. The Senior Certificates and the most senior class or
classes of Subordinate Certificates are expected to
constitute "mortgage related securities" for purposes of
SMMEA.
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 Senior Certificates (other than the residual
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
Banc of America Securities LLC 5
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
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Preliminary Summary of Terms
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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 Senior Certificates (other than the residual
certificate and any Exchangeable Certificates) 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.
If you hold an Offered Certificate that is an
Exchangeable Certificate, you should be aware that the
arrangement under which any Exchangeable Certificates
are created will be classified as a grantor trust and
each class of Exchangeable Certificates so created will
represent beneficial ownership of an interest in each
related Exchangeable REMIC Certificate.
Banc of America Securities LLC 6
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
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[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
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Optional Termination Date.......... On any Distribution Date on which the aggregate Stated
Principal Balance of the Mortgage Loans is less than 10%
of the initial aggregate unpaid principal balance of the
Mortgage Loans as of the Cut-off Date, the Depositor
may, at its option, subject to certain conditions,
purchase the Mortgage Loans, which would effect an early
retirement of the Certificates.
If the Mortgage Loans are divided into multiple loan
groups with more than one set of Subordinate
Certificates, the Depositor may, at its option, subject
to certain conditions, purchase the Mortgage Loans in
one or some of the loan groups, which would effect an
early retirement of only the related Certificates.
The Pooling Agreement.............. The Certificates will be issued pursuant to a Pooling
and Servicing Agreement (the "Pooling Agreement") to be
dated the Closing Date, among the Depositor, the
Servicer and the Trustee.
The Mortgage Pool.................. The "Mortgage Pool" will consist of fixed interest
rate, 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 interest rate, 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 10 to
40 years. Borrowers are permitted to prepay their
Mortgage Loans, in whole or in part, at any time.
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.
Yield Maintenance Agreements....... The Trustee on behalf of the Trust may enter into one or
more yield maintenance agreements (each, a "Yield
Maintenance Agreement") with one or more counterparties
(each, a "Counterparty") 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
Banc of America Securities LLC 7
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
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[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
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 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
Banc of America Securities LLC 8
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
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 May 1, 2007 and any initial LIBOR Based
Interest Accrual Period or No Delay Interest Accrual
Period will be deemed to have commenced on May 25, 2007.
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 are allocated
first to the related Subordinate Certificates in reverse
order of payment priority 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.
The interest entitlement for a class of Exchangeable
REMIC Certificates will be calculated assuming no
exchanges have ever occurred. If exchanges of all or a
portion of a class of Exchangeable
Banc of America Securities LLC 9
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
REMIC Certificates have occurred, a class of
Exchangeable Certificates will be entitled to receive
its proportionate share of distributions of interest
allocated to the related Exchangeable REMIC
Certificates.
Distributions to the
Subordinate Certificates........... On each Distribution Date, each class of Subordinate
Certificates that is entitled to receive a principal
distribution will receive its pro rata share (based on
the Class Balances of all the Subordinate Certificates
(or the Subordinate Certificates in the same group, if
there is more than one group of Subordinate
Certificates) that are entitled to receive a principal
distribution) of the Subordinate Principal Distribution
Amount(s), to the extent that the remaining Pool
Distribution Amount(s) are sufficient therefor. With
respect to each class of Subordinate Certificates, if on
any Distribution Date the Fractional Interest is less
than the Fractional Interest for that class on the
Closing Date, no classes of Subordinate Certificates in
the same group, if there is more than one group of
Subordinate Certificates, junior to such class will be
entitled to receive a principal distribution.
Distributions of principal on the Subordinate
Certificates that are entitled to receive a principal
distribution on a Distribution Date will be made
sequentially to each class of Subordinate Certificates
in the order of their payment priority 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 lowest in
order of payment priority.
Shifting Interest Structure........ Additional credit enhancement is provided by the
allocation of the applicable Non-PO Percentages of
principal prepayments on the Mortgage Loans in the
Mortgage Pool or a loan group in the Mortgage Pool to
the related Senior 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.
Banc of America Securities LLC 10
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Allocation of Losses............... On each Distribution Date, the applicable PO Percentage
of any Realized Loss on a Discount Mortgage Loan will be
allocated to the ratio strip certificate or ratio strip
component of the related group until its Class Balance
or principal balance is reduced to zero. Such allocation
will be effected on each Distribution Date by reducing
the Class Balance of the ratio strip certificate or
principal balance of the ratio strip component of the
related group if and to the extent that such balance
(after taking into account the amount of all
distributions to be made on such Distribution Date)
exceeds the Adjusted Pool Amount (PO Portion) for such
Distribution Date. The amount of any such Realized Loss
allocated to a ratio strip certificate or ratio strip
component of the related group will be treated as a
"Class PO Deferred Amount." To the extent funds are
available on such Distribution Date or on any future
Distribution Date from amounts that would otherwise be
allocable to the related Subordinate Principal
Distribution Amount or Amounts, the Class PO Deferred
Amounts for the ratio strip certificate or ratio strip
component of the related group will be paid on such
ratio strip certificate or ratio strip component of the
related group prior to distributions of principal on the
related Subordinate Certificates. Payments of the Class
PO Deferred Amounts will be made from the principal
payable to the related Subordinate Certificates
beginning with the principal payable to the class of
Subordinate Certificates lowest in order of payment
priority. 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 lowest in the
order of payment priority 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 reverse order
of payment priority (beginning with the class of related
Subordinate Certificates then outstanding lowest in
order of payment priority), 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.
Banc of America Securities LLC 11
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Such allocation will be effected on each such
Distribution Date by reducing the Class Balance of the
class of related Subordinate Certificates then
outstanding lowest in order of payment priority 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.
In the event that all or a portion of a combination of
classes of Exchangeable REMIC Certificates in any REMIC
Combination is exchanged for a proportionate portion of
the class of Exchangeable Certificates in the related
Exchangeable Combination, the class of such Exchangeable
Certificates will be allocated a proportionate share of
Realized Losses allocated to the classes of Exchangeable
REMIC Certificates in the related REMIC Combination. Any
such losses will be allocated among the outstanding
certificates of each such class pro rata in accordance
with their respective Percentage Interests.
Cross-Collateralization............ If one group of Subordinate Certificates support
multiple groups of Senior Certificates, on each
Distribution Date prior to the date on which the
aggregate Class Balance of such Subordinate Certificates
has
Banc of America Securities LLC 12
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
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. Amounts distributed
to a class of Exchangeable REMIC Certificates will be
distributed to the related Exchangeable Certificates in
the same manner as principal distributions.
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 payment priority, 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).
Amounts
Banc of America Securities LLC 13
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
distributed to a class of Exchangeable REMIC
Certificates will be distributed to the related
Exchangeable Certificates in the same manner as
principal distributions.
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
payment priority. Amounts distributed to a class of
Exchangeable REMIC Certificates will be distributed to
the related Exchangeable Certificates in the same manner
as interest distributions.
Adjusted Pool Amount............... The "Adjusted Pool Amount" of the Mortgage Pool or a
loan group in the Mortgage Pool will equal the aggregate
unpaid principal balance of the Mortgage Loans in the
Mortgage Pool or a loan group in the Mortgage Pool as of
the Cut-off Date minus the sum of (i) all amounts in
respect of principal received in respect of such
Mortgage Loans (including amounts received as Advances,
principal prepayments and Liquidation Proceeds in
respect of principal) and distributed on the
Certificates on such Distribution Date and all prior
Distribution Dates and (ii) the principal portion of all
Realized Losses (other than debt service reductions)
incurred on such Mortgage Loans from the Cut-off Date
through the end of the month preceding the month in
which such Distribution Date occurs.
Adjusted Pool Amount
(PO Portion)..................... The "Adjusted Pool Amount (PO Portion)" of the Mortgage
Pool or a loan group in the Mortgage Pool will equal the
sum as to each Mortgage Loan in the Mortgage Pool or a
loan group in the Mortgage Pool as of the Cut-off Date
of the product of (A) the PO Percentage for such
Mortgage Loan and (B) the principal balance of such
Mortgage Loan as of the Cut-off Date less the sum of
(i) all amounts in respect of principal received in
respect of such Mortgage Loan (including amounts
received as Advances, principal prepayments and
Liquidation Proceeds in respect of principal) and
distributed on the Certificates on such Distribution
Date and all prior Distribution Dates and (ii) the
principal portion of any Realized Loss (other than a
debt service reduction) incurred on such Mortgage Loan
from the Cut-off Date through the end of the month
preceding the month in which such Distribution Date
occurs.
Banc of America Securities LLC 14
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Adjusted Pool Amount
(Non-PO Portion)................... The "Adjusted Pool Amount (Non-PO Portion)" of the
Mortgage Pool or a loan group in the Mortgage Pool will
equal the difference between the Adjusted Pool Amount of
the Mortgage Pool or a loan group in the Mortgage Pool
and the Adjusted Pool Amount (PO Portion) of the
Mortgage Pool or a loan group in the Mortgage Pool.
Class Balance...................... The "Class Balance" of a class of Certificates (other
than the Exchangeable Certificates) at any time will
equal (a) its initial Class Balance or, in the case of a
class of Exchangeable REMIC Certificates, the maximum
initial Class Balance less (i) all distributions of
principal made to such class (or, in the case of
Exchangeable REMIC Certificates, distributed in
reduction of the Class Balance of such Class and any
related class of Exchangeable Certificates) and
(ii) losses allocated to that class (or, in the case of
Exchangeable REMIC Certificates, losses allocated to the
Class Balance of such Class and any related class of
Exchangeable Certificates), distributed in reduction of
the Class Balance of such Class and any related class of
Exchangeable Certificates 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 Shortfall............. With respect to any Distribution Date, the "Net Interest
Shortfall" is equal to the sum of (i) the shortfall in
interest received with respect to any Mortgage Loan as a
result of a Relief Act Reduction and (ii) any
Non-Supported Interest Shortfalls. Net Interest
Shortfalls on any Distribution Date will be allocated
pro rata among all such classes of interest-bearing
Senior Certificates or if there are Crossed Groups, the
interest-bearing Senior Certificates of the Crossed
Groups and each class of related Subordinate
Certificates, based on the amount of interest accrued on
each such class of Certificates on such Distribution
Date before taking into account any reduction in such
amounts resulting from such Net Interest Shortfalls.
Banc of America Securities LLC 15
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Net Mortgage Interest Rate......... The "Net Mortgage Interest Rate" of a Mortgage Loan is
the excess of its mortgage interest rate over the sum of
the servicing fee rate (which is . 25%) and the trustee
fee rate (which is .0075%).
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 a certain rate (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
such applicable rate. If there are multiple loan groups
in the Mortgage Pool, this rate may be the same for each
loan group or may differ for one or more loan groups.
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 the applicable rate 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. If there are no ratio strip
certificates in a group, the Non-PO Percentage for each
Mortgage Loan in the related loan group will be 100% and
the PO Percentage for each Mortgage Loan in such loan
group will be 0%.
Any Mortgage Loan with a Net Mortgage Interest Rate as
of the Cut-off Date greater than or equal to the
applicable rate for the Mortgage Pool or the loan group
in the Mortgage Pool is a "Premium Mortgage Loan."
Non-PO Principal Amount............ The "Non-PO Principal Amount" for any Distribution Date
and the Mortgage Pool or any loan group in the Mortgage
Pool will equal the sum of the applicable Non-PO
Percentage of:
(a) all monthly payments of principal due on each
Mortgage Loan in the Mortgage Pool or loan group in
the Mortgage Pool on the related due date;
(b) the principal portion of the purchase price (net of
unreimbursed Advances and other amounts as to which
the Servicer is entitled to be reimbursed pursuant
to the Pooling Agreement) of each Mortgage Loan in
the Mortgage Pool or loan group in the Mortgage Pool
that was repurchased by the Depositor pursuant to
the Pooling Agreement during the calendar month
preceding the month of that Distribution Date;
(c) amounts received with respect to such Distribution
Date as a substitution adjustment amount (net of
unreimbursed Advances and other amounts as to which
the Servicer is entitled to be reimbursed pursuant
to the Pooling Agreement) in connection
Banc of America Securities LLC 16
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
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 Interest Shortfall... With respect to any Distribution Date, the
"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
Premium Mortgage Loans in the Mortgage Pool or loan
group 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
Banc of America Securities LLC 17
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
such Distribution Date) minus a specified
percentage and (b) the denominator of which is equal to
a specified percentage or (II) a percentage or all of
the Class Balance(s) of another class or classes.
Pool Distribution Amount........... The "Pool Distribution Amount" with respect to any
Distribution Date will be determined by reference to
amounts received and expenses incurred in connection
with the Mortgage Loans in the Mortgage Pool or any loan
group in the Mortgage Pool and will be equal to the sum
of:
(i) all scheduled installments of interest (net of the
related Servicing Fee) and principal due on such
Mortgage Loans on the due date in the month in
which such Distribution Date occurs and received
prior to the related Determination Date, together
with any Advances in respect thereof and any
Compensating Interest allocable to such Mortgage
Loans;
(ii) all proceeds of any primary mortgage guaranty
insurance policies and any other insurance
policies with respect to such Mortgage Loans, to
the extent such proceeds are not applied to the
restoration of the related mortgaged property or
released to the mortgagor in accordance with the
Servicer`s normal servicing procedures and all
other cash amounts received and retained in
connection with the liquidation of defaulted
Mortgage Loans in the Mortgage Pool or any loan
group in the Mortgage Pool, by foreclosure or
otherwise (collectively, "Liquidation Proceeds"),
during the calendar month preceding the month of
such Distribution Date (in each case, net of
unreimbursed expenses incurred in connection with
a liquidation or foreclosure and unreimbursed
Advances, if any);
(iii) all partial or full prepayments received on such
Mortgage Loans during the calendar month preceding
the month of such Distribution Date; and
(iv) amounts received with respect to such Distribution
Date as a substitution adjustment amount or
purchase price in respect of any deleted Mortgage
Loan in the Mortgage Pool or any loan group in the
Mortgage Pool or amounts received in connection
with the optional termination of the Trust or a
portion of the Trust as of such Distribution Date,
reduced by amounts in reimbursement for Advances
previously made and other amounts as to which the
Servicer is entitled to be reimbursed pursuant to
the Pooling Agreement.
Banc of America Securities LLC 18
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Pool Principal Balance............. The "Pool Principal Balance" for the Mortgage Pool or a
loan group in the Mortgage Pool with respect to any
Distribution Date equals the aggregate Stated Principal
Balances of the Mortgage Loans in the Mortgage Pool or
loan group in the Mortgage Pool outstanding on the due
date in the month preceding the month of such
Distribution Date.
Pool Principal Balance
(Non-PO Portion)................... The "Pool Principal Balance (Non-PO Portion)" for the
Mortgage Pool or a loan group in the Mortgage Pool and
any Distribution Date equals the sum of the product, for
each Mortgage Loan in the Mortgage Pool or loan group in
the Mortgage Pool, of the Non-PO Percentage of such
Mortgage Loan multiplied by its Stated Principal Balance
on the due date in the month preceding the month of such
Distribution Date.
Prepayment Interest Shortfall...... A "Prepayment Interest Shortfall" on a Mortgage Loan is
equal to the difference between (x) 30 days` interest at
the mortgage interest rate (less the servicing fee rate)
on the amount of the prepayment on such Mortgage Loan
minus (y) the amount of interest actually paid by the
related mortgagor on the amount of such prepayment
during the preceding month.
Realized Loss...................... In general, a "Realized Loss" means, (a) with respect to
a Mortgage Loan that has been liquidated, the amount by
which the remaining unpaid principal balance of the
Mortgage Loan exceeds the amount of proceeds from the
liquidation applied to the principal balance of the
related Mortgage Loan and (b) 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.
Banc of America Securities LLC 19
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Senior Prepayment Percentage....... For the following Distribution Dates, will be as follows:
Distribution Date Senior Prepayment Percentage
----------------------- ---------------------------------
June 2007 through 100%;
May 2012
----------------------- ---------------------------------
June 2012 through the applicable Senior Percentage
May 2013 plus, 70% of the applicable
Subordinate Percentage;
----------------------- ---------------------------------
June 2013 through the applicable Senior Percentage
May 2014 plus, 60% of the applicable
Subordinate Percentage;
----------------------- ---------------------------------
June 2014 through the applicable Senior Percentage
May 2015 plus, 40% of the applicable
Subordinate Percentage;
----------------------- ---------------------------------
June 2015 through the applicable Senior Percentage
May 2016 plus, 20% of the applicable
Subordinate Percentage;
----------------------- ---------------------------------
June 2016 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-
Banc of America Securities LLC 20
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
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 Principal
Distribution Date Occurring Balance
---------------------------- -----------------------
June 2012 through May 2013 30%
---------------------------- -----------------------
June 2013 through May 2014 35%
---------------------------- -----------------------
June 2014 through May 2015 40%
---------------------------- -----------------------
June 2015 through May 2016 45%
---------------------------- -----------------------
June 2016 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
Distribution Amount................ The "Senior Principal Distribution Amount"
for the Mortgage Pool or loan group in the Mortgage Pool
and any Distribution Date will equal the sum of (i) the
Senior Percentage for the Mortgage Pool or loan group in
the Mortgage Pool of the applicable Non-PO Percentage of
Scheduled Principal Payments for such Distribution Date
and (ii) the Senior Prepayment Percentage for the
Mortgage Pool or loan group in the Mortgage Pool of the
applicable Non-PO Percentage of Unscheduled Principal
Payments for such Distribution Date subject to certain
reductions due to losses.
Stated Principal Balance........... The "Stated Principal Balance" means, as to any Mortgage
Loan and due date, the unpaid principal balance of such
Mortgage Loan as of such due date, as specified in the
amortization schedule at the time relating thereto
(before any adjustment to such amortization schedule by
reason of any moratorium or similar waiver or grace
period), after giving effect to any previous partial
principal prepayments and Liquidation Proceeds (net of
unreimbursed expenses and unreimbursed Advances)
allocable to principal received and to the payment of
principal due on such due date and irrespective of any
delinquency in payment by the related mortgagor and
after giving effect to any deficient valuation by a
court in connection with a bankruptcy.
Subordinate Percentage............. The Subordinate Percentage for the Mortgage Pool or loan
group in the Mortgage Pool for any Distribution Date
will equal 100% minus the Senior Percentage for such
date.
Banc of America Securities LLC 21
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Subordinate Prepayment Percentage.. 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.
Subordinate Principal
Distribution
Amount............................. The "Subordinate Principal Distribution Amount" for the
Mortgage Pool or loan group in the Mortgage Pool for any
Distribution Date will equal the sum of (i) the
Subordinate Percentage for the Mortgage Pool or loan
group in the Mortgage Pool of the applicable Non-PO
Percentage of Scheduled Principal Payments for such
Distribution Date and (ii) the Subordinate Prepayment
Percentage for the Mortgage Pool or loan group in the
Mortgage Pool of the applicable Non-PO Percentage of
Unscheduled Principal Payments for such Distribution
Date.
Exchangeable REMIC
Certificates and
Exchangeable Certificates.......... Certain Classes of Offered Certificates identified as
"Exchangeable REMIC Certificates" may be exchanged in
certain allowable combinations (a "REMIC Combination")
for a proportionate interest in certain related
Certificates identified as "Exchangeable Certificates."
All or a portion of the Exchangeable Certificates in an
Exchangeable Combination may also be exchanged for a
proportionate interest in each class of Exchangeable
REMIC Certificates in the related REMIC Combination in
the same manner. This process may occur repeatedly.
The classes of Exchangeable REMIC Certificates and of
Exchangeable Certificates that are outstanding at any
given time, and the outstanding Class Balances and
notional amounts, if any, of these classes, will depend
upon any related distributions of principal, as well as
any exchanges that occur. Exchangeable REMIC
Certificates and Exchangeable Certificates in any
combination may be exchanged only in the proportion that
the maximum initial Class Balances and notional amounts,
if any, of such Certificates bear to one another as
shown in the prospectus supplement.
Holders of each class of Exchangeable Certificates in an
allowable combination will be the beneficial owners of a
proportionate interest in the Exchangeable REMIC
Certificates of the related REMIC Combination.
Banc of America Securities LLC 22
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
In the event that Exchangeable REMIC Certificates are
exchanged for an allowable combination of Exchangeable
Certificates, then
o the aggregate principal balance of the Exchangeable
Certificates received in the exchange will equal the
aggregate principal balance, immediately prior to
the exchange, of the Exchangeable REMIC Certificates
so exchanged; and
o the aggregate notional amount of interest only
Exchangeable Certificates received in an exchange
where all the related Exchangeable REMIC
Certificates were interest only certificates will
equal their applicable portion of the aggregate
notional amount, immediately prior to the exchange,
of the Exchangeable REMIC Certificates so exchanged;
o the aggregate amount of interest and principal
payable on each distribution date with respect to
the Exchangeable Certificates received in the
exchange will equal the aggregate amount of interest
and principal that would have been payable on the
Exchangeable REMIC Certificates so exchanged if the
exchange had not occurred; and
o the aggregate amount of principal and interest
losses and interest shortfalls allocated to the
Exchangeable Certificates received in the exchange
will equal the aggregate amount of principal and
interest losses and interest shortfalls that would
have been allocated to the Exchangeable REMIC
Certificates so exchanged if the exchange had not
occurred.
Each class of Exchangeable Certificates in an allowable
combination (other than a class of interest only
certificates, if any) will be entitled to its
proportionate share of the principal distributions that
would have been payable on the Exchangeable REMIC
Certificates so exchanged if the exchange had not
occurred. In addition, each class of Exchangeable
Certificates (other than a class of interest only
certificates, if any) in an allowable combination will
bear a proportionate share of principal losses that
would have been allocated to the Exchangeable REMIC
Certificates so exchanged if the exchange had not
occurred.
Banc of America Securities LLC 23
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
Preliminary Credit Support
- ---------------------------------------------------------------------------------------------
Subordinate Certificates provide credit support for Senior Certificates. If the Senior
Certificates are divided into multiple groups, the Subordinate Certificates may or may not
consist of multiple groups. If there are multiple groups of Subordinate Certificates, each
group will support one or more groups of Senior Certificates. Additional credit enhancement
is provided by the allocation of the applicable Non-PO Percentages of all principal
prepayments on the applicable Mortgage Loans to the related Senior 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.
- ---------------------------------------------------------------------------------------------
Priority of Distributions
- ---------------------------------------------------------------------------------------------
Distributions will be made on each Distribution Date from the Pool Distribution Amount (if
the Mortgage Pool is not divided into loan groups) or Amounts (if there are multiple loan
groups, in which case the Senior Certificates and any components of a group will be paid
from the related Pool Distribution Amount) in the following order of priority:
-------------------------------------------------------
First, to the classes of Senior Certificates and
component (if any) entitled to payments of
interest, to pay interest;
-------------------------------------------------------
|
|
v
-------------------------------------------------------
Second, pro rata, to the Senior Non-PO
Certificates and any ratio strip component or
ratio strip certificates entitled to payments of
principal, to pay principal;
-------------------------------------------------------
|
|
v
-------------------------------------------------------
Third, to any ratio strip component or ratio strip
certificates, to pay any Class PO Deferred
Amounts, from amounts otherwise payable as
principal to the related Subordinate Certificates;
-------------------------------------------------------
|
|
v
-------------------------------------------------------
Fourth, subject to any cross-collateralization
payments, sequentially, to each class of
Subordinate Certificates from the related Pool
Distribution Amount or Amounts to pay interest and
principal in the order of payment priority, until
each Class Balance is zero; and
-------------------------------------------------------
|
|
v
-------------------------------------------------------
Fifth, to the residual certificate, any remaining
amounts.
-------------------------------------------------------
Banc of America Securities LLC 24
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ----------------------------------------------------------------------------------------------
The Sponsor and Servicer........... Bank of America, National Association ("Bank of
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
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, its
servicing procedures and its obligations under the
Pooling Agreement.
Static Pool Information............ Information concerning the Sponsor`s prior residential
mortgage loan securitizations involving both fixed-rate
first lien mortgage loans underwritten in accordance
with the Sponsor`s general underwriting standards
described 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://
corp.bankofamerica.com /public/
regulationab/boams/index.jsp. 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:
Banc of America Securities LLC 25
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ----------------------------------------------------------------------------------------------
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.
Banc of America Securities LLC 26
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
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 Super Senior
Support and Subordinate
Certificates
Increases Risk of Loss............. Subordinate certificateholders are more likely to suffer
losses as a result of losses or delinquencies on the
related Mortgage Loans than are Senior
certificateholders.
o The rights of each class of Subordinate Certificates
to receive distributions of interest and principal
are subordinated to the rights of the related Senior
Certificates and each class of related Subordinate
Certificates higher in order of payment priority.
o Losses that are realized on the Mortgage Loans will
be allocated first to the class of related
Subordinate Certificates lowest in order of payment
priority, then to the class of related Subordinate
Certificates next lowest in order of payment
priority and so on, in reverse order of payment
priority until the outstanding Class Balances of
such classes have been reduced to zero.
Any Super Senior Support certificateholders should
consider the risk that after the related Subordinate
Certificates are no longer outstanding, the principal
portion of losses realized on the applicable Mortgage
Loans that are allocated to a class of Super Senior
Certificates will be borne by the related class of Super
Senior Support Certificates, rather than such class of
Super Senior Certificates.
The Rate of Principal Payments
on the Mortgage Loans Will Affect
the Yield on the Offered
Certificates..................... Because principal payments on the Mortgage
Loans will be distributed currently on the related
Senior Certificates and the related Subordinate
Certificates, the rate of distributions of principal and
the yield to maturity on your Certificates will be
directly related to (i) the rate and timing of payments
of principal on the applicable Mortgage Loans and
(ii) the amount and timing of defaults by borrowers that
result in losses on the applicable Mortgage Loans.
Borrowers are permitted to prepay their Mortgage Loans,
in whole or in part, at any time. The principal payments
on the Mortgage Loans may be in the form of scheduled
principal payments or principal prepayments (for this
purpose, the term "principal prepayment" includes
prepayments and any other recovery of principal in
advance of the scheduled due date, including repurchases
and liquidations due to default, casualty, condemnation
and
Banc of America Securities LLC 27
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Risk Factors
- ----------------------------------------------------------------------------------------------
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
Banc of America Securities LLC 28
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Risk Factors
- ----------------------------------------------------------------------------------------------
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 Agreement
is Subject to Counterparty Risk.... The Trustee on behalf of the Trust may enter into one or
more Yield Maintenance Agreements with one or more
counterparties, for the benefit of certain Classes of
Certificates. Each Yield Maintenance Agreement will
require the applicable counterparty to make certain
payments in certain circumstances. To the extent that
payments on such Certificates depend in part on payments
to be received by the Trustee under the related Yield
Maintenance Agreement, the ability of the Trustee to
make such payments on such Certificates will be subject
to the credit risk of the applicable counterparty.
Banc of America Securities LLC 29
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Risk Factors
- ----------------------------------------------------------------------------------------------
Delinquencies and Losses on
the Mortgage Loans Will
Adversely Affect Your Yield........ Delinquencies on the mortgage loans which are not
advanced by or on behalf of the Servicer (because the
Servicer has determined that these amounts, if advanced,
would be nonrecoverable), will adversely affect the
yield on the related Senior Certificates and the related
Subordinate Certificates. The Servicer will determine
that a proposed advance is nonrecoverable when, in the
good faith exercise of its servicing judgment, it
believes the proposed advance would not be ultimately
recoverable from the related mortgagor, related
liquidation proceeds, or other recoveries in respect of
the Mortgage Loan. Because of the priority of
distributions, shortfalls resulting from delinquencies
that are not covered by advances will be borne first by
the related Subordinate Certificates (in reverse order
of payment priority), 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.
There Are Risks Relating to
Exchangeable REMIC Certificates
and Exchangeable Certificates...... If you are purchasing any Exchangeable REMIC
Certificates or Exchangeable Certificates, you should
consider that the characteristics of any Exchangeable
Certificates will reflect, in the aggregate, generally
the characteristics of the related Exchangeable REMIC
Certificates. Investors are encouraged to also consider
a number of factors that will limit a
certificateholder's ability to exchange Exchangeable
REMIC Certificates for Exchangeable Certificates and
vice versa:
o At the time of the proposed exchange, a
certificateholder must own Certificates of the
related Class or Classes in the proportions
necessary to make the desired exchange.
o A certificateholder that does not own the
Certificates may be unable to obtain the necessary
Exchangeable REMIC Certificates or Exchangeable
Certificates because the holders of the needed
Certificates may be unwilling or unable to sell them
or because the necessary Certificates have been
placed into other financial structures.
o Principal distributions will decrease the amounts
available for exchange over time.
Banc of America Securities LLC 30
- --------------------------------------------------------------------------------
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 Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Risk Factors
- ----------------------------------------------------------------------------------------------
o Certificates may only be held in authorized
denominations.
Credit Scores May Not
Accurately
Predict the Likelihood of Default.. The Sponsor generally uses Credit Scores as part of its
underwriting process. 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 Concentration May
Increase Risk of Loss Due to
Adverse Economic Conditions
or Natural Disasters............... At various times, certain geographic regions will
experience weaker economic conditions and housing
markets and, consequently, will experience higher rates
of delinquency and loss on mortgage loans generally. In
addition, certain states have experienced natural
disasters, including earthquakes, fires, floods and
hurricanes, which may adversely affect property values.
Although mortgaged properties located in certain
identified flood zones will be required to be covered,
to the maximum extent available, by flood insurance, no
mortgaged properties will otherwise be required to be
insured against earthquake damage or any other loss not
covered by standard hazard insurance policies. Any
concentration of mortgaged properties in a state or
region may present unique risk considerations.
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 losses may adversely affect the yield to
maturity of the related Offered Certificates.
Residential Real Estate
Values
May Fluctuate and Adversely.........
Banc of America Securities LLC 31
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
In recent months, delinquencies and losses with respect
to residential mortgage loans generally have increased
and may continue to increase. In addition, in recent
months the value of mortgaged properties in many states
have declined or remained stable, after extended periods
of appreciation. If residential real estate values
generally or in a particular geographic area decline or
fail to increase, a borrow may have less equity in the
mortgaged property than originally anticipated leading
to less inclination on the part of such borrower to cure
delinquencies and avoid foreclosure. A continued decline
or lack of increase in property values where the
outstanding balances of the mortgage loans and any
secondary financing on the related mortgaged properties
are close to or exceed the value of the mortgaged
properties may result in delinquencies, foreclosures and
losses that are higher than you anticipated or those 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
Operations
May Increase Risk of Relief
Act Shortfalls..................... As a result of military operations in Afghanistan and
Iraq, the United States has placed a substantial number
of armed forces reservists and members of the National
Guard on active duty status. It is possible that the
number of reservists and members of the National Guard
placed on active duty status may remain at high levels
for an extended time. To the extent that a member of the
military, or a member of the armed forces reserves or
National Guard who is called to active duty, is a
mortgagor of a mortgage loan in the trust, the interest
rate limitation of the Servicemembers Civil Relief Act,
and any comparable state law, will apply. This may
result in interest shortfalls on the Mortgage Loans in
the trust, which will be borne by all classes of
interest bearing Certificates and components. Neither
the Sponsor nor the Depositor has taken any action to
determine whether any of the Mortgage Loans would be
affected by these interest rate limitations.
The Certificates May Not
Receive Amounts Expected
from any Yield
Maintenance Agreements............. The yield maintenance agreement payment for any
Distribution Date will be based on the lesser of (x) the
Class Balance(s) of the related
Banc of America Securities LLC 32
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
Class or Classes or (y) the related notional amount,
which will decrease for 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 Interest
Payments on the Mortgage Loans
May Be Insufficient to Pay
Interest on Your Certificates...... When a Mortgage Loan is prepaid in full, the mortgagor
is charged interest only up to the date on which payment
is made, rather than for an entire month. When a
mortgagor makes a partial principal prepayment on a
Mortgage Loan, the mortgagor is not charged interest on
the prepayment for the month in which the principal
prepayment was received. This may result in a shortfall
in interest collections available for payment on the
next Distribution Date. The Servicer is required to
cover a portion of the shortfall in interest collections
that are attributable to prepayments in full and partial
prepayments on the Mortgage Loans, but in each case only
up to the amount of Compensating Interest related to
such Mortgage Loans for such Distribution Date. To the
extent these shortfalls are not covered by the amount of
related Compensating Interest, they will be allocated
pro rata to the related classes of interest-bearing
Certificates and any related components.
Certificates May Not Be
Appropriate for Individual
Investors.......................... If you are an individual investor who does not have
sufficient resources or expertise to evaluate the
particular characteristics of a class of Offered
Certificates, the Offered Certificates may not be an
appropriate investment for you. This may be the case
because, among other things:
o if you purchase your Certificates at a price other
than par, your yield to maturity will be sensitive
to the uncertain rate and timing of principal
prepayments on the applicable Mortgage Loans;
o the rate of principal distributions on, and the
weighted average lives of, the Offered Certificates
will be sensitive to the uncertain rate and timing
of principal prepayments on the applicable Mortgage
Loans and the priority of principal distributions
among
Banc of America Securities LLC 33
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
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 Payments --
No Recourse to Depositor, Seller,
Servicer or Trustee................ Proceeds of the Mortgage Loans (and any insurance policy
with respect to a class of insured special retail
certificates) will be the sole source of payments on the
Certificates. The Certificates do not represent an
interest in or obligation of the Depositor, the
Servicer, the Sponsor, the Trustee or any of their
affiliates. There are, however, limited obligations of
the Depositor with respect to certain breaches of
representations and warranties, and limited obligations
of the Servicer with respect to its servicing
obligations.
Neither the Certificates nor the Mortgage Loans will be
guaranteed by or insured by any governmental agency or
instrumentality, the Depositor, the Sponsor, the
Servicer, the Trustee or any of their affiliates.
Consequently, if payments on the Mortgage Loans are
insufficient or otherwise unavailable to make all
payments required on the Certificates, there will be no
recourse to the Depositor, the Sponsor, the Servicer,
the Trustee or any of their affiliates.
Limited Liquidity.................. The Underwriter intends to make a market for purchase
and sale of the Offered Certificates after their initial
issuance, but the Underwriter has no obligation to do
so. There is no assurance that such a secondary market
will develop or, if it does develop, that it will
provide you with liquidity of investment or that it will
continue for the life of the Offered Certificates. As a
result, you may not be able to sell your Certificates or
you may not be able to sell your Certificates at a high
enough price to produce your desired return on
investment.
Banc of America Securities LLC 34
- --------------------------------------------------------------------------------
The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
The information contained in these materials may be based on assumptions
regarding market conditions and other matters as reflected herein. Banc of
America Securities LLC (the "Underwriter") makes no representation regarding the
reasonableness of such assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events, and these materials
should not be relied upon for such purposes. The Underwriter and its affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of these materials, may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned herein or
derivatives thereof (including options). Information in these materials is
current as of the date appearing on the material only. Information in these
materials regarding any securities discussed herein supersedes all prior
information regarding such securities. These materials are not to be construed
as an offer to sell or the solicitation of any offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
The secondary market for mortgage-backed securities has
experienced periods of illiquidity and can be expected
to do so in the future. Illiquidity means that there may
not be any purchasers for your class of Certificates.
Although any class of Certificates may experience
illiquidity, it is more likely that classes of
Certificates that are more sensitive to prepayment,
credit or interest rate risk (such as the Interest Only,
Super Senior Support, Companion, Inverse Floating Rate,
Principal Only, or Subordinated Certificates) will
experience illiquidity.
Alternative Underwriting
Standards
May Increase Risk of Loss.......... Certain of the Mortgage Loans may have been originated
using the Sponsor`s "Alternative A" underwriting
guidelines. See "The Mortgage Loan Programs--Mortgage
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 Mortgage
Loans that Are Secured by Investor
Properties May be Higher than on
Other Mortgage Loans............... Certain of the Mortgage Loans may be secured by investor
properties. An investor property is a property which, at
the time of origination, the mortgagor represented would
not be used as the mortgagor`s primary residence or
second home. Because the mortgagor is not living on the
property, the mortgagor may be more likely to default on
the mortgage loan than on a comparable mortgage loan
secured by a primary residence, or to a lesser extent, a
second home. In addition, income expected to be
generated from an investor property may have been
considered for underwriting purposes in addition to the
income of the mortgagor from other sources. Should this
income not materialize, it is possible the mortgagor
would not have sufficient resources to make payments on
the mortgage loan.
Mortgage Loans Having an Interest
Only Period May Have a Higher Risk
Of Default or Rates of Prepayment.. Certain of the Mortgage Loans may have an initial
interest only period after the date of origination.
During this interest only period, the payment due from
the related mortgagor will be less than that of a
traditional mortgage loan. In addition, the principal
balance of the mortgage loan will not be reduced (except
in the case of prepayments)
Banc of America Securities LLC 35
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The depositor has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the depositor has filed with the SEC for more complete information
about the depositor and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor,
any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling toll-free 1-800-294-1322 or you
e-mail a request to dg.prospectus_distribution@bofasecurities.com. The
securities may not be suitable for all investors. Banc of America Securities LLC
and its affiliates may acquire, hold or sell positions in these securities, or
in related derivatives, and may have an investment or commercial banking
relationship with the depositor.
- --------------------------------------------------------------------------------
The information contained in these materials may be
based on assumptions regarding market conditions and
other matters as reflected herein. Banc of America
Securities LLC (the "Underwriter") makes no
representation regarding the reasonableness of such
assumptions or the likelihood that any such assumptions
will coincide with actual market conditions or events,
and these materials should not be relied upon for such
purposes. The Underwriter and its affiliates, officers,
directors, partners and employees, including persons
involved in the preparation or issuance of these
materials, may, from time to time, have long or short
positions in, and buy and sell, the securities mentioned
herein or derivatives thereof (including options).
Information in these materials is current as of the date
appearing on the material only. Information in these
materials regarding any securities discussed herein
supersedes all prior information regarding such
securities. These materials are not to be construed as
an offer to sell or the solicitation of any offer to buy
any security in any jurisdiction where such an offer or
solicitation would be illegal.
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
- ---------------------------------------------------------------------------------------------
Preliminary Summary of Terms
- ---------------------------------------------------------------------------------------------
because there will be no scheduled monthly
payments of principal during this period.
Accordingly, no principal payments will be
distributed to the related Certificates from
these Mortgage Loans during their interest
only period except in the case of
prepayment.
After the initial interest only period, payments on a
mortgage loan with an interest only period will be
recalculated to amortize fully its unpaid principal
balance over its remaining life and the mortgagor will
be required to make scheduled payments of both principal
and interest. The required payment of principal will
increase the burden on the mortgagor and may increase
the risk of default or prepayment under the related
mortgage loan. In underwriting mortgage loans with
interest only periods, the Sponsor generally does not
consider the ability of mortgagors to make payments of
principal at the end of the interest only period. Higher
scheduled monthly payments may induce the related
mortgagors to refinance their mortgage loans, which
would result in higher prepayments. In addition, in
default situations losses may be greater on these
mortgage loans because they do not amortize during the
initial period. These losses will be allocated to the
Certificates.
The performance of mortgage loans with an interest only
period may be significantly different from mortgage
loans that amortize from origination. In particular
these mortgagors may be more likely to refinance their
mortgage loans, which may result in higher prepayment
speeds than would otherwise be the case.
There Are Risks Relating to
Mortgaged Properties Subject to
Second Lien Mortgage Loans......... At the time of origination of certain of the Mortgage
Loans, a lender other than the Sponsor may have
originated a second lien mortgage loan. Mortgage Loans
that have second lien mortgage loans encumbering the
same mortgaged property may have higher rates of
delinquency and foreclosure relative to mortgage loans
that do not have second lien mortgage loans behind them.
This may be due to changes in the mortgagor`s
debt-to-income profile, the fact that mortgagors may
then have less equity in the mortgaged property or other
factors. You should also note that any mortgagor could
obtain a second lien mortgage loan at any time
subsequent to the date of origination of their first
lien mortgage loan from any lender.
Subordinate Certificates May
Provide Subordination for All
Groups............................. The Subordinate Certificates may provide credit support
for more than one Groups of Senior Certificates and thus
the outstanding Class Balances of such Subordinate
Certificates could be reduced to zero as a result of a
disproportionate amount of principal losses on the
Mortgage
Banc of America Securities LLC 36
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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.
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[BANC OF AMERICA Banc of America Alternative Loan Trust 2007-2
SECURITIES LOGO] Mortgage Pass-Through Certificates, Series 2007-2
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Preliminary Summary of Terms
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Loans in one Loan Group. Therefore, these losses on the
Mortgage Loans in one Loan Group will reduce the
subordination provided by the Subordinate Certificates
to the other Groups of Senior Certificates and increase
the likelihood that losses may be allocated to the other
Groups of Senior Certificates.
Under certain circumstances due to a
cross-collateralization mechanism, principal otherwise
payable to these Subordinate Certificates will be paid
to certain Senior Certificates.
High Rates of LIBOR or Another
Index May Result in a Lower or
Negative Yield on any Inverse
Floating Rate Interest Only
Certificates .................... If you are purchasing any inverse floating rate interest
only certificates, in addition to the risk that a rapid
rate of prepayments on the related Mortgage Loans may
result in a lower actual yield than you expected or a
negative yield, you should also consider the risk that
high rates of LIBOR or high rates of another applicable
index for your certificates may result in the failure to
recover your initial investment.
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 37
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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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