DBRS Rts Nomura Asset Acpt. Corp. Alt. Loan Trust, S2005-AR3

Dominion Bond Rating Service (“DBRS”) has assigned the above ratings to the Mortgage Pass-Through Certificates, Series 2005-AR3 issued by Nomura Asset Acceptance Corporation Alternative Loan Trust, Series 2005-AR3 (“NAAC”).

The AAA ratings on the aggregate Group 1-3 senior certificates (classes I-A-1 though III-A-2) reflect credit enhancement provided by excess spread, and 8.95% subordination and 0.50% overcollateralization (OC), fully funded at issuance. The AA, A (high), A (low), and BBB (high) ratings on classes M-1, M-2, M-3, and M-4 reflect excess spread, OC, and 4.12%, 2.70%, 1.45%, and 0.90% of subordination, respectively. The BBB (low) rating on class M-5 reflects excess spread and OC.

The ratings of the certificates also reflect the quality of the underlying mortgage assets and the capabilities of GMAC Mortgage Corporation as Servicer, and Well Fargo Bank, N.A. as Master Servicer and Securities Administrator, as well as the integrity of the legal structure of the transaction. HSBC Bank USA, National Association will serve as Trustee.

Interest and principal payments collected from the mortgage loans will be distributed on the 25th day of each month commencing in July 2005. Interest and then principal will be paid to each senior certificate concurrently from their respective loan groups (and if necessary or if retired, from other respective loan groups pursuant to cross-collateralization provisions) and then to the subordinate certificates sequentially. Unless paid down to zero, unscheduled principal will be paid exclusively to the senior certificates for the first three years, or until support levels double relative to initial percentages. After the step-down date, and provided that certain performance tests have been met, principal payments may be distributed to the subordinate notes, such that they maintain twice their initial support percentages.

The mortgage loans in the underlying trust were acquired by Nomura Credit & Capital, Inc. from various originators, including First National Bank of Nevada (29%) and Gateway Funding Diversified Mortgage Services LP (11%). As of the cut-off date (June 1, 2005), the aggregate principal balance of the mortgage loans is US$518,297,615, the weighted average mortgage coupon (WAC) is 6.314%, the weighted average FICO is 707, and the weighted average original loan-to-value ratio (OLTV) is 78%.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

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