DBRS Rates Banc of America Funding 2011-R2 Trust, Mortgage Security-Backed Certificates

DBRS has today assigned the following rating to the Mortgage Security-Backed Certificates issued by Banc of America Funding 2011-R2 Trust (the Trust).

-- $13.8 million Class 1-A-1 rated at A (sf)

There are a total of two groups in this resecuritization trust. DBRS rates Group 1, which consists of one seasoned senior residential mortgage-backed security (RMBS). The rating on the offered certificates reflects the credit enhancement provided by subordination within Group 1. The rating also reflects the quality of the underlying asset.

The rating assigned to the offered securities address (i) the likelihood of the receipt by security holders of all principal distributions to which such security holders are entitled and (ii) the likelihood of the receipt by security holders of the amount of interest actually received by the trust to the extent payable to each class in accordance with the priorities described in the operative documents (as such interest received by the trust may have been reduced as a result of interest reductions or any other cause, and as such interest entitlement may be further reduced by the allocation of extraordinary trust expenses). For more details on the ratings, please refer to the offering documents.

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

Interest and principal payments on the certificates will be made one business day following the underlying distribution date (the 25th of the month), commencing in March 2011. Within Group 1, 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.

Within Group 1, losses realized from the underlying security will be allocated reverse sequentially to the certificates until the certificate principal balances have been reduced to zero.

Group 1 is a resecuritization backed by one seasoned senior RMBS, represented by one real estate mortgage investment conduit (REMIC). The REMIC is backed by a pool of prime, adjustable-rate, first lien, one- to four-family residential mortgages.

Note:
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.