ITEM 1. Business.
Not Applicable.
ITEM 1A.
ITEM 1A. Risk Factors.
Not Applicable.
ITEM 1B.
ITEM 1B. Unresolved Staff Comments.
None.
ITEM 2.
ITEM 2. Properties.
Not Applicable.
ITEM 3.
ITEM 3. Legal Proceedings.
Not Applicable.
ITEM 4.
ITEM 4. Submission of Matters to a Vote of Security Holders.
Not Applicable.
PART II
ITEM 5.
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Not Applicable.
ITEM 6.
ITEM 6. Selected Financial Data.
Not Applicable.
ITEM 7.
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Not Applicable.
ITEM 7A.
ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk.
Not Applicable.
ITEM 8.
ITEM 8. Financial Statements and Supplementary Data.
Not Applicable.
ITEM 9.
ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
Not Applicable.
ITEM 9A
ITEM 9A Controls and Procedures.
Not Applicable.
ITEM 9B.
ITEM 9B. Other Information.
None.
PART III
ITEM 10.
ITEM 10. Directors, Executive Officers and Corporate Governance.
Not Applicable.
ITEM 11.
ITEM 11. Executive Compensation.
Not Applicable.
ITEM 12.
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Not Applicable.
ITEM 13.
ITEM 13. Certain Relationships and Related Transactions, and Director Independence.
Not Applicable.
ITEM 14.
ITEM 14. Principal Accounting Fees and Services.
Not Applicable.
PART IV
Item 1112(b)(2) of Regulation AB, Significant Obligor Financial Information.
No single obligor represents 10% or more of the pool assets held by the issuing entity.
Item 1114(b)(2) and Item 1115(b) of Regulation AB , Significant Enhancement Provider Information.
None.
Item 1117 of Regulation AB, Legal Proceedings.
None.
Item 1119 of Regulation AB, Affiliations and Certain Relationships and Related Transactions.
None.
Item 1122 of Regulation AB, Compliance with Applicable Servicing Criteria.
See Exhibit 33 and 34. The 1122 statements for Wells Fargo Bank, N.A. (servicer) has disclosed the following instances of material noncompliance with certain servicing criteria applicable to the Company during the year ended December 31, 2006:
1. 1122(d)(3)(i) - Delinquency Reporting - The Company provided incomplete data to some third parties who use such data to calculate delinquency ratios and determine the status of loans with respect to bankruptcy, foreclosure or real estate owned. Instead of the actual due date being provided for use in calculating delinquencies, the date of the first payment due to the security was provided.
2. 1122(d)(4)(vii) - Notification of Intent to Foreclose - The Company, as required by certain servicing agreements, did not provide investors with prior notification of intent to foreclose.
The 1122 statements for Wells Fargo Bank, National Association (Corporate Trust Services) has disclosed material noncompliance with criterion 1122(d)(3)(i), as applicable to the Company during the twelve months ended December 31. 2006. Certain monthly investor or remittance reports included errors in the calculation and/or the reporting of delinquencies for the pool assets.
Item 1123 of Regulation AB, Servicer Compliance Statement.
See Exhibit 35.
ITEM 15.
ITEM 15. Exhibits, Financial Statement Schedules.
(a) List the following documents filed as a part of the report:
(1) Not Applicable.
(2) Not Applicable.
(3)
Exhibits 4 and 10 were filed as part of the Registrant's Current Report on Form 8-K filed on June 8, 2006 and are incorporated by reference:
Exhibit 4.1 Pooling and Servicing Agreement, dated as of May 1, 2006, by and among the Depositor, HomEq Servicing Corporation, as a servicer, Wells Fargo Bank, National Association, as a servicer, JPMorgan Chase Bank, National Association, as a servicer, First NLC Financial Services, LLC, as responsible party, and Deutsche Bank National Trust Company, as trustee.
Exhibit 10.1 Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of September 29, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and First NLC Financial Services, LLC, as loan seller (included as Exhibit O to Exhibit 4.1).
Exhibit 10.2 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Meritage Mortgage Corporation, as loan seller (included as part of Exhibit P to Exhibit 4.1).
Exhibit 10.3 Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of June 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Meritage Mortgage Corporation, as loan seller (included as part of Exhibit P to Exhibit 4.1).
Exhibit 10.4 Second Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of November 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Meritage Mortgage Corporation, as loan seller (included as part of Exhibit P to Exhibit 4.1).
Exhibit 10.5 Assignment and Recognition Agreement, dated as of May 30, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and AIG Federal Savings Bank, as loan seller (included as part of Exhibit Q to Exhibit 4.1).
Exhibit 10.6 Third Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of December 1, 2005, by and among Morgan Stanley Mortgage Capital Inc., as purchaser, Wilmington Finance Inc., as loan seller, and AIG Federal Savings Bank, as loan seller (included as part of Exhibit Q to Exhibit 4.1).
Exhibit 10.7 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
Exhibit 10.8 Fourth Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of August 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
Exhibit 10.9 Fifth Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of December 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
Exhibit 10.10 Sixth Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of February 1, 2006, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
Exhibit 10.11 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Aegis Mortgage Corporation, Inc., as loan seller (included as part of Exhibit S to Exhibit 4.1).
Exhibit 10.12 Mortgage Loan Purchase and Warranties Agreement, dated as February 1, 2006, by and between Aegis and the Sponsor, solely insofar as such agreement relates to the Aegis Mortgage Loans (included as part of Exhibit S to Exhibit 4.1).
Exhibit 10.13 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Lime Financial Services, Ltd., as loan seller (included as part of Exhibit T to Exhibit 4.1).
Exhibit 10.14 Mortgage Loan Purchase and Warranties Agreement, dated as February 1, 2006, by and between Lime and the Sponsor, solely insofar as such agreement relates to the Lime Mortgage Loans (included as part of Exhibit T to Exhibit 4.1).
Exhibit 10.15 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and ResMAE Mortgage Corporation, as loan seller (included as part of Exhibit U to Exhibit 4.1).
Exhibit 10.16 Mortgage Loan Purchase and Warranties Agreement, dated as February 1, 2006, by and between ResMae and the Sponsor, solely insofar as such agreement relates to the ResMAE Mortgage Loans (included as part of Exhibit U to Exhibit 4.1).
Exhibit 10.17 ISDA Master Agreement, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
Exhibit 10.18 Schedule to the Master Agreement, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
Exhibit 10.19 Credit Support Annex, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
Exhibit 10.20 Confirmation, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
Exhibit 10.21 Guarantee, dated as of May 25, 2006, by Morgan Stanley (included as part of Exhibit AA to Exhibit 4.1).
Exhibit 10.22 Subservicing Agreement, dated May 25, 2006, by and between JPMorgan Chase Bank, National Association and Chase Home Finance, LLC (included as part of Exhibit BB to Exhibit 4.1).
Exhibit 31 Section 302 Certification.
Exhibit 33.1 Wells Fargo Bank, National Association's Annual Report on Assessment of Compliance for Year End December 31, 2006.
Exhibit 33.2 HomEq Servicing Corporation's Annual Report on Assessment of Compliance for Year End December 31, 2006.
Exhibit 33.3 JPMorgan Chase Bank, National Association's Annual Report on Assessment of Compliance for Year End December 31, 2006.
Exhibit 33.4 Trustee's Annual Report on Assessment of Compliance for Year End December 31, 2006.
Exhibit 34.1 Attestation Report on Assessment of Compliance with Servicing Criteria for Wells Fargo Bank, National Association's (Exhibit 33.1) for Year End December 31, 2006.
Exhibit 34.2 Attestation Report on Assessment of Compliance with Servicing Criteria for HomEq Servicing Corporation's Report (Exhibit 33.2) for Year End December 31, 2006.
Exhibit 34.3 Attestation Report on Assessment of Compliance with Servicing Criteria for JPMorgan Chase Bank, National Association's Report (Exhibit 33.3) for Year End December 31, 2006.
Exhibit 34.4 Attestation Report on Assessment of Compliance with Servicing Criteria for Trustee's Report (Exhibit 33.4) for Year End December 31, 2006.
Exhibit 35.1 Wells Fargo Bank, National Association's Annual Statement of Compliance for Year End December 31, 2006.
Exhibit 35.2 HomEq Servicing Corporation's Annual Statement of Compliance for Year End December 31, 2006.
Exhibit 35.3 JPMorgan Chase Bank, National Association's Annual Statement of Compliance for Year End December 31, 2006.
(b) See (a) above.
(c) Not Applicable.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
By: Morgan Stanley ABS Capital I Inc., as Depositor
By: /s/ Steven Shapiro Steven Shapiro Vice President
Date: March 30, 2007
EXHIBIT INDEX
Exhibit Document
Exhibits 4 and 10 were filed as part of the Registrant's Current Report on Form 8-K filed on June 8, 2006 and are incorporated by reference:
4.1 Pooling and Servicing Agreement, dated as of May 1, 2006, by and among the Depositor, HomEq Servicing Corporation, as a servicer, Wells Fargo Bank, National Association, as a servicer, JPMorgan Chase Bank, National Association, as a servicer, First NLC Financial Services, LLC, as responsible party, and Deutsche Bank National Trust Company, as trustee.
10.1 Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of September 29, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and First NLC Financial Services, LLC, as loan seller (included as Exhibit O to Exhibit 4.1).
10.2 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Meritage Mortgage Corporation, as loan seller (included as part of Exhibit P to Exhibit 4.1).
10.3 Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of June 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Meritage Mortgage Corporation, as loan seller (included as part of Exhibit P to Exhibit 4.1).
10.4 Second Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of November 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Meritage Mortgage Corporation, as loan seller (included as part of Exhibit P to Exhibit 4.1).
10.5 Assignment and Recognition Agreement, dated as of May 30, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and AIG Federal Savings Bank, as loan seller (included as part of Exhibit Q to Exhibit 4.1).
10.6 Third Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of December 1, 2005, by and among Morgan Stanley Mortgage Capital Inc., as purchaser, Wilmington Finance Inc., as loan seller, and AIG Federal Savings Bank, as loan seller (included as part of Exhibit Q to Exhibit 4.1).
10.7 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
10.8 Fourth Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of August 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
10.9 Fifth Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of December 1, 2005, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
10.10 Sixth Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated as of February 1, 2006, by and between Morgan Stanley Mortgage Capital Inc., as purchaser, and Accredited Home Lenders, Inc., as loan seller (included as part of Exhibit R to Exhibit 4.1).
10.11 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Aegis Mortgage Corporation, Inc., as loan seller (included as part of Exhibit S to Exhibit 4.1).
10.12 Mortgage Loan Purchase and Warranties Agreement, datedas February 1, 2006, by and between Aegis and the Sponsor, solely insofar as such agreement relates to the Aegis Mortgage Loans (included as part of Exhibit S to Exhibit 4.1).
10.13 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and Lime Financial Services, Ltd., as loan seller (included as part of Exhibit T to Exhibit 4.1).
10.14 Mortgage Loan Purchase and Warranties Agreement, dated as February 1, 2006, by and between Lime and the Sponsor, solely insofar as such agreement relates to the Lime Mortgage Loans (included as part of Exhibit T to Exhibit 4.1).
10.15 Assignment and Recognition Agreement, dated as of May 25, 2006, by and among the Company, as assignee, Morgan Stanley Mortgage Capital Inc., as assignor, and ResMAE Mortgage Corporation, as loan seller (included as part of Exhibit U to Exhibit 4.1).
10.16 Mortgage Loan Purchase and Warranties Agreement, dated as February 1, 2006, by and between ResMae and the Sponsor, solely insofar as such agreement relates to the ResMAE Mortgage Loans (included as part of Exhibit U to Exhibit 4.1).
10.17 ISDA Master Agreement, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
10.18 Schedule to the Master Agreement, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
10.19 Credit Support Annex, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
10.20 Confirmation, dated as of May 25, 2006, by and between Morgan Stanley Capital Services Inc., the swap provider, and Deutsche Bank National Trust Company, the trustee (included as part of Exhibit AA to Exhibit 4.1).
10.21 Guarantee, dated as of May 25, 2006, by Morgan Stanley (included as part of Exhibit AA to Exhibit 4.1).
10.22 Subservicing Agreement, dated May 25, 2006, by and between JPMorgan Chase Bank, National Association and Chase Home Finance, LLC (included as part of Exhibit BB to Exhibit 4.1).
31 Section 302 Certification.
33.1 Wells Fargo Bank, National Association's Annual Report on Assessment of Compliance for Year End December 31, 2006.
33.2 HomEq Servicing Corporation's Annual Report on Assessment of Compliance for Year End December 31, 2006.
33.3 JPMorgan Chase Bank, National Association's Annual Report on Assessment of Compliance for Year End December 31, 2006.
33.4 Trustee's Annual Report on Assessment of Compliance for Year End December 31, 2006.
34.1 Attestation Report on Assessment of Compliance with Servicing Criteria for Wells Fargo Bank, National Association's Report (Exhibit 33.1) for Year End December 31, 2006.
34.2 Attestation Report on Assessment of Compliance with Servicing Criteria for HomEq Servicing Corporation's Report (Exhibit 33.2) for Year End December 31, 2006.
34.3 Attestation Report on Assessment of Compliance with Servicing Criteria for JPMorgan Chase Bank, National Association's Report (Exhibit 33.3) for Year End December 31, 2006.
34.4 Attestation Report on Assessment of Compliance with Servicing Criteria for Trustee's Report (Exhibit 33.4) for Year End December 31, 2006.
35.1 Wells Fargo Bank, National Association's Annual Statement of Compliance for Year End December 31, 2006.
35.2 HomEq Servicing Corporation's Report Annual Statement of Compliance for Year End December 31, 2006.
35.3 JPMorgan Chase Bank, National Association's Report Annual Statement of Compliance for Year End December 31, 2006.