ITEM 1. Business.
Not Applicable.
ITEM 1A.
ITEM 1A. Risk Factors.
Not Applicable.
ITEM 1B.
ITEM 1B. Unresolved Staff Comments.
Not Applicable.
ITEM 2.
ITEM 2. Properties.
Not Applicable.
ITEM 3.
ITEM 3. Legal Proceedings.
None.
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. The Trust does not issue stock.
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 9A(T). 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
Additional Items Required by General Instruction J
Item 1112(b) of Regulation AB, Significant Obligor Financial Information. None.
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 Item 15, Exhibit 33 and Exhibit 34.
The following parties have reported one or more instances of material noncompliance with applicable servicing criteria in their reports on assessments of compliance:
Saxon Mortgage, Inc. has reported material noncompliance with applicable servicing criteria 1122(d)(2)(iv). Saxon Mortgage, Inc.'s report on assessment of compliance is attached as Exhibit 33(a).
Saxon Mortgage Services, Inc. has reported material noncompliance with applicable servicing criteria 1122(d)(4)(i) and 1122(d)(1)(ii). Saxon Mortgage Services, Inc.'s report on assessment of compliance is attached as Exhibit 33(b).
Southwest Business Corporation, a servicing function participant contracted to perform certain functions by Saxon Mortgage Services, Inc., has reported material noncompliance with applicable servicing criteria 1122(d)(4)(xi). Southwest Business Corporation's report on assessment of compliance is attached as Exhibit 33(b).
Item 1123 of Regulation AB, Servicer Compliance Statement. See Item 15, Exhibit 35.
ITEM 15.
ITEM 15. Exhibits, Financial Statement Schedules.
(a) List the following documents filed as a part of the report:
(1) All financial statements:
(2) Not Applicable.
(3) Exhibits.
Exhibit (4): Pooling and Servicing Agreement dated as of May 1, 2006 among Saxon Asset Securities Trust 2006-3, as Issuer, Saxon Mortgage, Inc., as Master Servicer, Saxon Mortgage Services, Inc., as Servicer, and Deutsche Bank Trust Company Americas, as Trustee(incorporated herein by reference from Exhibit 99.1 of the Current report on Form 8-K of the registrant, as filed with the Commission on June 21, 2006).
Exhibit (10) Incorporated by reference as Exhibit (4).
Exhibit 31 Section 302 Certification.
Exhibit 33(a) Master Servicer's Annual Report on Assessment of Compliance for Year End December 31, 2006.
Exhibit 33(b) Servicer's Annual Report on Assessment of Compliance for Year End December 31, 2006.
Exhibit 33(c) Trustee's Annual Report on Assessment of Compliance for Year End December 31, 2006.
Exhibit 34(a) Master Servicer's Annual Report on Attestation of Compliance for Year End December 31, 2006.
Exhibit 34(b) Servicer's Annual Report on Attestation of Compliance for Year End December 31, 2006.
Exhibit 34(c) Trustee's Annual Report on Attestation of Compliance for Year End December 31, 2006.
Exhibit 35(a) Master Servicer's Annual Statement of Compliance for Year End December 31, 2006.
Exhibit 35(b) Servicer'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: Saxon Asset Securities Company as Depositor on behalf of the Registrant
By: /s/ Ernest Bretana Ernest Bretana Executive Vice President
Date: March 15, 2007
EXHIBIT INDEX
Exhibit Document
4 Pooling and Servicing Agreement dated as of May 1, 2006 among Saxon Asset Securities Trust 2006-3, as Issuer, Saxon Mortgage, Inc., as Master Servicer, Saxon Mortgage Services, Inc., as Servicer, and Deutsche Bank Trust Company Americas, as Trustee(incorporated herein by reference from Exhibit 99.1 of the Current report on Form 8-K of the registrant, as filed with the Commission on June 21, 2006).
10 Incorporated by reference as Exhibit (4).
31 Section 302 Certification.
33(a) Master Servicer's Annual Report on Assessment of Compliance for Year End December 31, 2006.
33(b) Servicer's Annual Report on Assessment of Compliance for Year End December 31, 2006.
33(c) Trustee's Annual Report on Assessment of Compliance for Year End December 31, 2006.
34(a) Master Servicer's Annual Report on Attestation of Compliance for Year End December 31, 2006.
34(b) Servicer's Annual Report on Attestation of Compliance for Year End December 31, 2006.
34(c) Trustee's Annual Report on Attestation of Compliance for Year End December 31, 2006.
35(a) Master Servicer's Annual Statement of Compliance for Year End December 31, 2006.
35(b) Servicer's Annual Statement of Compliance for Year End December 31, 2006.