DBRS Rates Banc of America Funding 2010-R5 Trust, Mortgage Security-Backed Certificates

DBRS has today assigned the following ratings to the Mortgage Security-Backed Certificates issued by Banc of America Funding 2010-R5 Trust (the Trust).

-- $69.8 million Class 1-A-1* rated at AA
-- $8.6 million Class 1-A-2* rated at “A”
-- $69.8 million Class 1-A-4** rated at AA
-- $23.4 million Class 5-A-1* rated at AAA
-- $7.5 million Class 5-A-2* rated at AA
-- $7.5 million Class 5-A-3* rated at “A”
-- $30.9 million Class 5-A-5** rated at AA
-- $38.4 million Class 5-A-6** rated at “A”

There are a total of five groups in this resecuritization trust. DBRS rates Group 1 and Group 5, each consisting of one seasoned senior residential mortgage-backed security (RMBS). The ratings on the offered certificates reflect the credit enhancement provided by subordination within their respective groups. The ratings also reflect the quality of the underlying assets. The Initial Exchangeable Certificates are exchangeable for the Exchangeable Certificates and vice versa, in the related combinations described in Appendix A of the offering memorandum.

Other than the specified classes above, DBRS does not rate any other certificates in this transaction.

Interest and principal payments on the DBRS Rated Group certificates will be made one business day following the underlying distribution date (the 25th of each month), commencing in June 2010 for Group 1 and May 2010 for Group 5. Within Group 1 and Group 5, interest payments will be distributed on a pro rata basis to the certificates and principal payments will be distributed on a sequential basis to the certificates until the certificate principal balance has been reduced to zero.

For Group 1 any losses realized from the underlying securities will be allocated reverse sequentially to the certificates within the group until their principal balances have been reduced to zero. Realized losses on the Group 5 Mortgage Loans will not be applied to reduce the Certificate Principal Balances of the Group 5 Certificates although under certain loss scenarios, there will not be enough interest and principal on the Group 5 Mortgage Loans to pay the Group 5 Certificates all interest and principal amounts to which they are entitled, starting from the non-rated class.

The DBRS-rated groups within the Trust are resecuritizations backed by two seasoned senior RMBS, represented by various real estate mortgage investment conduits (REMICs). The REMICs are backed by pools of prime and Alt-A, adjustable- and fixed-rate, first-lien, one- to four-family residential mortgages

Note:

• denotes Initial Exchangeable Certificate.
  ** denotes Exchangeable Certificate.

All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating U.S. Residential Mortgage-Backed Securities Transactions, which can be found on the DBRS website under Methodologies.

This is a Structured Finance rating.