MOODY'S RATES BANC OF AMERICA'S 2003-9 JUMBO MORTGAGE DEAL
Approximately $700.7 Million of Mortgage-Backed Securities Rated.
New York, January 30, 2004 -- Moody's Investors Service has assigned the rating of Aaa to the non-residual,
senior certificates, other than the Class 1-A-2,
Class 1-A-13 and 1-A-22 certificates,
publicly offered in the Banc of America 2003-9 securitization of
jumbo mortgage loans. Moody's assigned a rating of Aa1 to the Class
1-A-2, Class 1-A-13 and 1-A-22
certificates. Additionally, Moody's assigned ratings ranging
from Aa2 to B2 to the subordinate Class X certificates (Class X-B-1
through Class X-B-5). Moody's said the transaction's
underlying fixed-rate loans are of excellent credit quality.
According to Carlos Maymi, a Moody's analyst, the rating
assignments are based primarily on the credit enhancement provided through
subordination. Given the initial certificate amounts, this
credit enhancement equals 2.80% for the senior certificates
backed by loans in Group 1, 3.25% for the senior certificates
backed by Group 2 and Group 4 loans, and 1.30% for
those backed by Group 3 loans. The sufficiency of this credit enhancement
is a reflection of the characteristics of the loan pools serving as collateral,
of the historical performance of Bank of America's jumbo mortgage loans
and of the company's proven abilities as a servicer.
The Class 1-A-3 certificates receive additional credit enhancement
in the form of a reserve fund and an irrevocable financial guaranty insurance
policy issued by MBIA Insurance. The reserve fund will serve as
a protection against certain interest shortfalls arising from the timing
of principal payments on the related mortgage loans. The insurance
policy, on the other hand, will guarantee the current payments
of interest (other than shortfalls arising from the timing of principal
payments on related mortgage loans) and any losses of principal allocated
to Class 1-A-3 certificates.
Four groups of loans serve as collateral in this transaction. The
loans are fixed rate mortgages with original term of 10 to 30 years.
Group 1 loans are recently originated 20- to 30-year mortgages
and Group 3 are similar loans but with 10- to 15-year terms.
The loans in Group 2 and 4 are 25- to 30-year and 15-year
mortgages, respectively, with 100% CA concentration.
The loans in all four groups are secured by first liens on one-
to four-family homes and exhibit strong credit characteristics.
At deal closing, Group 1 loans had an aggregate unpaid principal
balance of $431 million, weighted average credit score of
735 and weighted average LTV of 69%. Group 2 loans had an
unpaid principal balance of $69 million with weighted average FICO
and LTV of 740 and 68%, respectively. The loans in
Group 3 add to $156 million and have a weighted average credit
score of 740 with weighted average LTV of 58%. Finally,
Group 4 loans had an aggregate unpaid principal balance of $59
million, weighted average credit score of 745 and weighed average
LTV of 53%.
The complete rating actions are as follows:
Issuer: Banc of America Mortgage 2003-9 Trust
$49,000,000 Fixed Rate Class 1-A-1 Certificates,
rated Aaa
$363,070 Principal Only Class 1-A-2 Certificates,
rated Aa1
$24,961,000 Fixed Rate Class 1-A-3 Certificates,
rated Aaa
$38,834,000 Fixed Rate Class 1-A-4 Certificates,
rated Aaa
$9,800,000 Floating Rate Class 1-A-5
Certificates, rated Aaa
Inverse Floating Rate, Interest Only Class 1-A-6 Certificates,
rated Aaa
$3,466,000 Fixed Rate Class 1-A-7 Certificates,
rated Aaa
$1,200,000 Fixed Rate Class 1-A-8 Certificates,
rated Aaa
$3,483,000 Fixed Rate Class 1-A-9 Certificates,
rated Aaa
$2,966,000 Fixed Rate Class 1-A-10 Certificates,
rated Aaa
$4,315,000 Fixed Rate Class 1-A-11 Certificates,
rated Aaa
$155,553,776 Floating Rate Class 1-A-12
Certificates, rated Aaa
$3,499,165 Floating Rate Class 1-A-13
Certificates, rated Aa1
$86,756,150 Inverse Floating Rate Class 1-A-14
Certificates, rated Aaa
$1,625,000 Fixed Rate Class 1-A-15 Certificates,
rated Aaa
$1,625,000 Fixed Rate Class 1-A-16 Certificates,
rated Aaa
$1,972,500 Fixed Rate Class 1-A-17 Certificates,
rated Aaa
$1,972,500 Fixed Rate Class 1-A-18 Certificates,
rated Aaa
$1,367,500 Fixed Rate Class 1-A-19 Certificates,
rated Aaa
$1,367,500 Fixed Rate Class 1-A-20 Certificates,
rated Aaa
$22,012,666 Fixed Rate Class 1-A-21 Certificates,
rated Aaa
$495,172 Fixed Rate Class 1-A-22 Certificates,
rated Aa1
$31,322,176 Floating Rate Class 2-A-1
Certificates, rated Aaa
$17,084,824 Inverse Floating Rate Class 2-A-2
Certificates, rated Aaa
$9,975,000 Fixed Rate Class 2-A-3 Certificates,
rated Aaa
$6,675,000 Fixed Rate Class 2-A-4 Certificates,
rated Aaa
$1,201,000 Fixed Rate Class 2-A-5 Certificates,
rated Aaa
$153,135,000 Fixed Rate Class 3-A-1 Certificates,
rated Aaa
$55,335,000 Fixed Rate Class 4-A-1 Certificates,
rated Aaa
$1,029,000 Fixed Rate Class 4-A-2 Certificates,
rated Aaa
$4,705,505 Principal Only Class A-PO Certificates,
rated Aaa
Interest Only Class 15-IO Certificates, rated Aaa
Interest Only Class 30-IO Certificates, rated Aaa
$2,486,000 Variable Rate Class X-B-1
Certificates, rated Aa2
$828,000 Variable Rate Class X-B-2 Certificates,
rated A2
$319,000 Variable Rate Class X-B-3 Certificates,
rated Baa2
$128,000 Variable Rate, Class X-B-4 Certificates,
rated Ba2
$127,000 Variable Rate, Class X-B-5 Certificates,
rated B2
The mortgage loans underlying the transaction will be serviced by Bank
of America, N.A. (BANA). Headquartered in Charlotte,
North Carolina, BANA is a highly capable servicer of first mortgage
loans, primarily due to its state-of-the-art
technological capabilities and proven expertise in default management
and loss mitigation.
Additional research is available on http://www.moodys.com.
New York
Jay A. Siegel
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Carlos A. Maymi
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653