

                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C. 20549

                                      FORM 8-K

                                   CURRENT REPORT
        Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

             Date of Report (Date of earliest event reported): December 27, 2004
                             (Date of earliest event reported)


                                MORGAN STANLEY ABS CAPITAL I INC.
              (as Depositor under the Pooling and Servicing Agreement, dated as
              April 1, 2004, providing for the issuance of Mortgage Pass-Through
                              Certificates, Series 2004-HE2)
                      (Exact name of registrant as specified in charter)



                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-113543-02                        13-3939229
          (Commission File Number)        (I.R.S. Employer Identification No.)


           1585 BROADWAY, 2ND FLOOR
           NEW YORK, NEW YORK                             10036
          (Address of principal executive offices)     (Zip Code)


          Registrant's Telephone Number, Including Area Code:  (212) 761-4000


             (Former name or former address, if changed since last report.)


     Check the appropriate box below if the Form 8-K filing is intended to
     simultaneously satisfy the filing obligation of the registrant under any
     of the following provisions (see General Instruction A.2. below):

     [  ] Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

     [  ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act
     (17 CFR 240.14a-12(b))

     [  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

     [  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))


     Item 8.01 Other Events.

     This current report on Form 8-K relates to the monthly distribution reported to the holders of
     Morgan Stanley ABS Capital I Inc. Mortgage Pass-Through Certificates, Series 2004-HE2, which
     was made on April 1, 2004


     Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits

     Exhibit No. Description

     99.1 Monthly Remittance Statement to the Certificateholders dated as of
     December 27, 2004.


                                  SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
    caused this report to be signed on behalf of the Registrant by the undersigned thereunto duly
    authorized.



     DEUTSCHE BANK NATIONAL TRUST COMPANY, IN ITS CAPACITY AS TRUSTEE UNDER THE
     POOLING AND SERVICING AGREEMENT ON BEHALF OF MORGAN STANLEY ABS CAPITAL I INC.,
     REGISTRANT



          Date:  Dec 31, 2004               By:  /s/  Katherine M. Wannenmacher
                                            Katherine M. Wannenmacher
                                            Vice President



                                   EXHIBIT INDEX

         DOCUMENT

         99.1 Monthly Remittance Statement to the Certificateholders dated as of
              December 27, 2004.


	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates


	December 27, 2004 Distribution


	Contents



			TABLE OF CONTENTS

								Page

			1.	Contents				1
			2.	Certificate Payment Report				2
			3.	Collection Account Report				4
			4.	Credit Enhancement Report				7
			5.	Collateral Report				8
			6.	Delinquency Report				11
			7.	REO Report				14
			8.	Foreclosure Report				15
			9.	Prepayment Report				18
			10.	Prepayment Detail Report				21
			11.	Realized Loss Report				30
			12.	Realized Loss Detail Report				33
			13.	Triggers, Adj. Rate Cert. and Miscellaneous Report				34
			14.	Other Related Information				35



				Total Number of Pages				35



			CONTACTS

				Administrator: Kumar Khambhaita
				Direct Phone Number: (714)247-6327
				Address: Deutsche Bank
				1761 E. St. Andrew Place, Santa Ana, CA 92705

				Web Site: https://www.tss.db.com/invr
				Factor Information: (800) 735-7777
				Main Phone Number: (714) 247-6000



ISSUANCE INFORMATION

	Seller:		Morgan Stanley					Cut-Off Date: April 1, 2004
	Certificate Insurer(s):							Closing Date: April 29, 2004
								First Payment Date: May 25, 2004
	Servicer(s):		Countrywide Home Loans Serv Master Servicer
			Chase Manhattan Mortgage Master Servicer

								Distribution Date: December 27, 2004
	Underwriter(s):		Morgan Stanley Underwriter					Record Date: December 24, 2004
			Countrywide Securities Underwriter					November 30, 2004
			Utendahl Capital Partners, L.P. Underwriter





						Page 1 of 35					© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	REMIC II Series 2004-HE2
	Certificate Payment Report for December 27, 2004 Distribution


	Distribution in Dollars - Current Period
					Prior						Current
	Class	Original			Principal			Total	Realized	Deferred	Principal
Class	Type	Face Value			Balance	Interest	Principal	Distribution	Losses	Interest	Balance
					(1)	(2)	(3)	(4)=(2)+(3)	(5)	(6)	(7)=(1)-(3)-(5)+(6)

A-1		603,687,000.00			461,445,052.60	1,029,400.98	35,792,211.90	36,821,612.88	-	-	425,652,840.70
A-2		18,632,000.00			18,632,000.00	42,206.41	-	42,206.41	-	-	18,632,000.00
A-3		405,000,000.00			197,495,047.95	392,957.71	41,931,774.63	42,324,732.34	-	-	155,563,273.32
A-4		437,676,000.00			437,676,000.00	957,532.11	-	957,532.11	-	-	437,676,000.00
M-1		122,814,000.00			122,814,000.00	290,897.00	-	290,897.00	-	-	122,814,000.00
M-2		61,407,000.00			61,407,000.00	178,761.80	-	178,761.80	-	-	61,407,000.00
M-3		20,177,000.00			20,177,000.00	63,080.89	-	63,080.89	-	-	20,177,000.00
B-1		20,177,000.00			20,177,000.00	68,293.28	-	68,293.28	-	-	20,177,000.00
B-2		14,035,000.00			14,035,000.00	49,317.25	-	49,317.25	-	-	14,035,000.00
B-3		15,790,000.00			15,790,000.00	77,239.21	-	77,239.21	-	-	15,790,000.00
X		35,090,678.79			35,089,713.62	4,271,394.25	-	4,271,394.25	-	-	35,089,713.62
P		-			-	1,594,165.30	-	1,594,165.30	-	-	-
R		-			-	-	-	-	-	-	-


Total		1,754,485,678.79			1,404,737,814.17	9,015,246.19	77,723,986.53	86,739,232.72	-	-	1,327,013,827.64


	Interest Accrual Detail				Current Period Factor Information per $1,000 of Original Face
						Orig. Principal	Prior				Current
	Period	Period				(with Notional)	Principal			Total	Principal
Class	Starting	Ending		Method	Cusip	Balance	Balance	Interest	Principal	Distribution	Balance
							(1)	(2)	(3)	(4)=(2)+(3)	(5)

A-1	11/26/04	12/26/04		A-Act/360	61744CCQ7	603,687,000.00	764.377985	1.705190	59.289353	60.994543	705.088632
A-2	11/26/04	12/26/04		A-Act/360	61744CCS3	18,632,000.00	1,000.000000	2.265265	-	2.265265	1,000.000000
A-3	11/26/04	12/26/04		A-Act/360	61744CCT1	405,000,000.00	487.642094	0.970266	103.535246	104.505512	384.106848
A-4	11/26/04	12/26/04		A-Act/360	61744CCU8	437,676,000.00	1,000.000000	2.187765	-	2.187765	1,000.000000
M-1	11/26/04	12/26/04		A-Act/360	61744CCV6	122,814,000.00	1,000.000000	2.368598	-	2.368598	1,000.000000
M-2	11/26/04	12/26/04		A-Act/360	61744CCW4	61,407,000.00	1,000.000000	2.911098	-	2.911098	1,000.000000
M-3	11/26/04	12/26/04		A-Act/360	61744CCX2	20,177,000.00	1,000.000000	3.126376	-	3.126376	1,000.000000
B-1	11/26/04	12/26/04		A-Act/360	61744CCY0	20,177,000.00	1,000.000000	3.384709	-	3.384709	1,000.000000
B-2	11/26/04	12/26/04		A-Act/360	61744CCZ7	14,035,000.00	1,000.000000	3.513876	-	3.513876	1,000.000000
B-3	11/26/04	12/26/04		A-Act/360	61744CDA1	15,790,000.00	1,000.000000	4.891654	-	4.891654	1,000.000000
X				A-Act/360		35,090,678.79	999.972495	121.724469	-	121.724469	999.972495
P				A-30/Act		-	-	-	-	-	-
R				A-30/Act		-	-	-	-	-	-


							Page 2 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	REMIC II Series 2004-HE2
	Certificate Payment Report for December 27, 2004 Distribution


	Distribution in Dollars - to Date
											Current
	Original				Unscheduled	Scheduled	Total	Total	Realized	Deferred	Principal
Class	Face Value		Interest		Principal	Principal	Principal	Distribution	Losses	Interest	Balance
	(1)		(2)		(3)	(4)	(5)=(3)+(4)	(6)=(2)+(5)	(7)	(8)	(9)=(1)-(5)-(7)+(8)

A-1	603,687,000.00		7,109,730.98		173,427,923.54	4,606,235.76	178,034,159.30	185,143,890.28	-	-	425,652,840.70
A-2	18,632,000.00		253,423.42		-	-	-	253,423.42	-	-	18,632,000.00
A-3	405,000,000.00		3,397,992.94		242,862,496.63	6,574,230.05	249,436,726.68	252,834,719.62	-	-	155,563,273.32
A-4	437,676,000.00		5,688,262.59		-	-	-	5,688,262.59	-	-	437,676,000.00
M-1	122,814,000.00		1,769,526.40		-	-	-	1,769,526.40	-	-	122,814,000.00
M-2	61,407,000.00		1,144,821.86		-	-	-	1,144,821.86	-	-	61,407,000.00
M-3	20,177,000.00		410,072.04		-	-	-	410,072.04	-	-	20,177,000.00
B-1	20,177,000.00		450,762.33		-	-	-	450,762.33	-	-	20,177,000.00
B-2	14,035,000.00		327,699.53		-	-	-	327,699.53	-	-	14,035,000.00
B-3	15,790,000.00		538,506.77		-	-	-	538,506.77	-	-	15,790,000.00
X	35,090,678.79		50,772,073.01		907.81	57.36	965.17	50,773,038.18	-	-	35,089,713.62
P	-		8,128,668.11		-	-	-	8,128,668.11	-	-	-
R	-		-		-	-	-	-	-	-	-


Total	1,754,485,678.79		79,991,539.98		416,291,327.98	11,180,523.17	427,471,851.15	507,463,391.13	-	-	1,327,013,827.64


	Interest Detail
	Pass-	Prior Principal				Non-	Prior	Unscheduled		Paid or	Current
	Through	(with Notional)			Accrued	Supported	Unpaid	Interest	Optimal	Deferred	Unpaid
Class	Rate	Balance			Interest	Interest SF	Interest	Adjustments	Interest	Interest	Interest
					(1)	(2)	(3)	(4)	(5)=(1)-(2)+(3)+(4)	(6)	(7)=(5)-(6)

A-1	2.59063%	461,445,052.60			1,029,400.98	-	-	-	1,029,400.98	1,029,400.98	-
A-2	2.63063%	18,632,000.00			42,206.41	-	-	-	42,206.41	42,206.41	-
A-3	2.31063%	197,495,047.95			392,957.71	-	-	-	392,957.71	392,957.71	-
A-4	2.54063%	437,676,000.00			957,532.11	-	-	-	957,532.11	957,532.11	-
M-1	2.75063%	122,814,000.00			290,897.00	-	-	-	290,897.00	290,897.00	-
M-2	3.38063%	61,407,000.00			178,761.80	-	-	-	178,761.80	178,761.80	-
M-3	3.63063%	20,177,000.00			63,080.89	-	-	-	63,080.89	63,080.89	-
B-1	3.93063%	20,177,000.00			68,293.28	-	-	-	68,293.28	68,293.28	-
B-2	4.08063%	14,035,000.00			49,317.25	-	-	-	49,317.25	49,317.25	-
B-3	5.68063%	15,790,000.00			77,239.21	-	-	-	77,239.21	77,239.21	-
X		35,089,713.62			4,271,394.25	-	-	-	4,271,394.25	4,271,394.25	-
P		-			1,594,165.30	-	-	-	1,594,165.30	1,594,165.30	-
R		-			-	-	-	-	-	-	-


Total		1,404,737,814.17			9,015,246.19	-	-	-	9,015,246.19	9,015,246.19	-


							Page 3 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collection Account Report for December 27, 2004 Distribution


	Collection Account Report


SUMMARY						GROUP 2	GROUP 1	TOTAL

	Principal Collections					41,657,671.76	35,558,242.60	77,215,914.36
	Principal Other Accounts					0.00	0.00	0.00
	TOTAL NET PRINCIPAL					41,657,671.76	35,558,242.60	77,215,914.36

	Interest Collections					4,574,901.34	3,444,282.97	8,019,184.31
	Interest Withdrawals					0.00	0.00	0.00
	Interest Other Accounts					0.00	0.00	0.00
	Interest Fees					(47,430.73)	(42,600.52)	(90,031.25)
	TOTAL NET INTEREST					4,527,470.61	3,401,682.45	7,929,153.06

	TOTAL PRINCIPAL & INTEREST DISTRIBUTABLE					46,185,142.37	38,959,925.05	85,145,067.42

	Prepayment Penalties Collected							1,594,165.30

	TOTAL AVAILABLE FUNDS FOR DISTRIBUTION							86,739,232.72


PRINCIPAL - COLLECTIONS						GROUP 2	GROUP 1	TOTAL

	Scheduled Principal Received					717,200.46	527,237.06	1,244,437.52
	Prepayments In Full					40,771,756.24	34,988,182.75	75,759,938.99
	Curtailments					69,059.51	32,419.25	101,478.76
	Liquidations					569,618.97	48,512.29	618,131.26
	Insurance Principal					0.00	0.00	0.00
	Repurchased Principal Amounts					0.00	0.00	0.00
	Other Principal					0.00	0.00	0.00
	Total Realized Loss Of Principal					(469,963.42)	(38,108.75)	(508,072.17)
	Delinquent Principal					(647,712.26)	(463,785.28)	(1,111,497.54)
	Advanced Principal					647,712.26	463,785.28	1,111,497.54
	Closing Date Deposit Amount					0.00	0.00	0.00

	TOTAL PRINCIPAL COLLECTED					41,657,671.76	35,558,242.60	77,215,914.36


				Page 4 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collection Account Report for December 27, 2004 Distribution


	Collection Account Report


PRINCIPAL - WITHDRAWALS						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


PRINCIPAL - OTHER ACCOUNTS						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


INTEREST - COLLECTIONS						GROUP 2	GROUP 1	TOTAL

	Scheduled Interest					4,859,787.47	3,653,888.22	8,513,675.69
	Liquidation Interest					3,452.42	375.97	3,828.39
	Repurchased Interest					0.00	0.00	0.00
	Insurance Interest					0.00	0.00	0.00
	Other Interest					0.00	0.00	0.00
	Relief Act Interest Shortfalls					0.00	0.00	0.00
	Net Prepayment Interest Shortfalls					0.00	0.00	0.00
	Delinquent Interest					(4,207,739.90)	(3,057,614.50)	(7,265,354.40)
	Interest Advanced					3,919,401.35	2,847,633.28	6,767,034.63
	Realized loss of interest					0.00	0.00	0.00

	TOTAL INTEREST COLLECTED					4,574,901.34	3,444,282.97	8,019,184.31


				Page 5 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collection Account Report for December 27, 2004 Distribution


	Collection Account Report


INTEREST - WITHDRAWALS						GROUP 2	GROUP 1	TOTAL

	Trust Fund Expenses							0.00
	Nonrecoverable Advances					0.00	0.00	0.00
	Reimbursements to Master Servicer							0.00

	TOTAL INTEREST WITHDRAWALS					0.00	0.00	0.00


INTEREST - OTHER ACCOUNTS						GROUP 2	GROUP 1	TOTAL


	TOTAL INTEREST OTHER ACCOUNTS					0.00	0.00	0.00


INTEREST - FEES						GROUP 2	GROUP 1	TOTAL

	Current Servicing Fees					45,693.76	41,293.89	86,987.65
	Trustee Fees					1,736.97	1,306.63	3,043.60



	TOTAL INTEREST OTHER FEES					47,430.73	42,600.52	90,031.25


				Page 6 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Credit Enhancement Report for December 27, 2004 Distribution


	Credit Enhancement Report


ACCOUNTS						GROUP 2	GROUP 1	TOTAL

	Excess Reserve Fund Balance (Ending)							0.00


INSURANCE						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


STRUCTURAL FEATURES						GROUP 2	GROUP 1	TOTAL

	Beginning Subordinated Amount							34,581,641.40
	Ending Subordinated Amount							35,089,713.57
	Specified Subordinated Amount							35,089,713.57
	Subordination Reduction Amount							0.00
	Subordination Deficiency Amount							508,072.17

	Senior Enhancement Percentage							21.78%


				Page 7 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collateral Report for December 27, 2004 Distribution


	Collateral Report


COLLATERAL						GROUP 2	GROUP 1	TOTAL
	Loan Count:
	*Original*					6063	4696	10759
	Prior					5,075	3,936	9,011
	Prefunding					-	-	-
	Scheduled Paid Offs					-	-	-
	Full Voluntary Prepayments					(221)	(198)	(419)
	Repurchases					-	-	-
	Liquidations					(3)	(1)	(4)
	Current					4,851	3,737	8,588

	*Principal Balance:*
	Original					1,009,054,438.83	745,061,522.85	1,754,115,961.68
	Prior					801,677,542.68	603,060,271.44	1,404,737,814.12
	Prefunding					-	-	-
	Scheduled Principal					(717,200.46)	(527,237.06)	(1,244,437.52)
	Partial and Full Voluntary Prepayments					(40,840,815.75)	(35,020,602.00)	(75,861,417.75)
	Repurchases					-	-	-
	Liquidations					(569,618.97)	(48,512.29)	(618,131.26)
	Current					759,549,907.50	567,463,920.09	1,327,013,827.59

PREFUNDING						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


	Group 1
	Group 2
Current Prin Balance by Groups (in millions of dollars)					Total Current Principal Balance (in millions of dollars)


				Page 8 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collateral Report for December 27, 2004 Distribution


	Collateral Report


CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL

	Weighted Average Coupon Original					7.285528%	7.280231%	7.283278%
	Weighted Average Coupon Prior					7.271242%	7.276589%	7.273541%
	Weighted Average Coupon Current					7.279595%	7.271441%	7.276094%
	Weighted Average Months to Maturity Original					345	348	346
	Weighted Average Months to Maturity Prior					339	341	340
	Weighted Average Months to Maturity Current					338	340	339
	Weighted Avg Remaining Amortization Term Original					345	348	346
	Weighted Avg Remaining Amortization Term Prior					338	341	340
	Weighted Avg Remaining Amortization Term Current					337	340	338
	Weighted Average Seasoning Original					4.79	5.14	4.94
	Weighted Average Seasoning Prior					10.78	11.11	10.92
	Weighted Average Seasoning Current					11.77	12.11	11.92

Note: Original information refers to deal issue.


	Group 1
	Group 2
WAC by Groups					Total WAC


WARAT by Groups					Total WARAT


Note: Dates correspond to distribution dates.
				Page 9 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collateral Report for December 27, 2004 Distribution


	Collateral Report


ARM CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL

	Weighted Average Margin Original					4.214%	4.394%
	Weighted Average Margin Prior					4.068%	4.300%
	Weighted Average Margin Current					4.043%	4.265%
	Weighted Average Max Rate Original					10.217%	10.472%
	Weighted Average Max Rate Prior					9.864%	10.257%
	Weighted Average Max Rate Current					9.801%	10.173%
	Weighted Average Min Rate Original					5.252%	5.471%
	Weighted Average Min Rate Prior					5.056%	5.350%
	Weighted Average Min Rate Current					5.028%	5.304%
	Weighted Average Cap Up Original					1.051%	1.020%
	Weighted Average Cap Up Prior					1.018%	1.006%
	Weighted Average Cap Up Current					1.009%	0.998%
	Weighted Average Cap Down Original					1.051%	1.020%
	Weighted Average Cap Down Prior					1.018%	1.006%
	Weighted Average Cap Down Current					1.009%	0.998%

Note: Original information refers to deal issue.

SERVICING FEES / ADVANCES						GROUP 2	GROUP 1	TOTAL

	Current Servicing Fees					45,693.76	41,293.89	86,987.65
	Delinquent Servicing Fees					288,338.55	209,981.22	498,319.77
	TOTAL SERVICING FEES					334,032.31	251,275.11	585,307.42

	Prepayment Interest Shortfall					108,767.51	68,471.99	177,239.50
	Compensating Interest					(108,767.51)	(68,471.99)	(177,239.50)
	Delinquent Servicing Fees					(288,338.55)	(209,981.22)	(498,319.77)

	COLLECTED SERVICING FEES					45,693.76	41,293.89	86,987.65


	Aggregate Advances with respect to this Distribution					4,567,113.61	3,311,418.56	7,878,532.17
	Current Nonrecoverable Advances					0.00	0.00	0.00


ADDITIONAL COLLATERAL INFORMATION						GROUP 2	GROUP 1	TOTAL

	Net Prepayment Interest Shortfall							0.00

	Net Monthly Excess Cash Flow							0.00


	Ending Pool Stated Principal Balance					759,549,907.50	567,463,920.09	1,327,013,827.59


				Page 10 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Delinquency Report for December 27, 2004 Distribution


	Delinquency Report - Total


				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			34,444,488.23	9,018,858.99	6,538,285.36	50,001,632.58
		% Balance			2.60%	0.68%	0.49%	3.77%
		# Loans			230	59	53	342
		% # Loans			2.68%	0.69%	0.62%	3.98%
FORECLOSURE		Balance		586,288.13	-	4,965,188.85	15,845,976.89	21,397,453.87
		% Balance		0.04%	0.00%	0.37%	1.19%	1.61%
		# Loans		4	-	36	108	148
		% # Loans		0.05%	0.00%	0.42%	1.26%	1.72%
BANKRUPTCY		Balance		3,835,567.21	269,294.29	1,439,439.31	4,626,384.57	10,170,685.38
		% Balance		0.29%	0.02%	0.11%	0.35%	0.77%
		# Loans		31	3	9	33	76
		% # Loans		0.36%	0.03%	0.10%	0.38%	0.88%
REO		Balance		-	-	-	1,976,472.04	1,976,472.04
		% Balance		0.00%	0.00%	0.00%	0.15%	0.15%
		# Loans		-	-	-	14	14
		% # Loans		0.00%	0.00%	0.00%	0.16%	0.16%

TOTAL		Balance		4,421,855.34	34,713,782.52	15,423,487.15	28,987,118.86	83,546,243.87
		% Balance		0.33%	2.62%	1.16%	2.18%	6.30%
		# Loans		35	233	104	208	580
		% # Loans		0.41%	2.71%	1.21%	2.42%	6.75%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent


Total Foreclosure					Total Bankruptcy and REO


Note: Dates correspond to distribution dates.
				Page 11 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Delinquency Report for December 27, 2004 Distribution


	Delinquency Report - Group 1 Group


				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			14,067,079.25	3,030,024.83	2,003,675.91	19,100,779.99
		% Balance			2.48%	0.53%	0.35%	3.37%
		# Loans			94	21	15	130
		% # Loans			2.52%	0.56%	0.40%	3.48%
FORECLOSURE		Balance		586,288.13	-	2,120,924.44	6,108,015.53	8,815,228.10
		% Balance		0.10%	0.00%	0.37%	1.08%	1.55%
		# Loans		4	-	17	39	60
		% # Loans		0.11%	0.00%	0.45%	1.04%	1.61%
BANKRUPTCY		Balance		1,793,274.93	73,411.82	308,668.34	1,896,590.23	4,071,945.32
		% Balance		0.32%	0.01%	0.05%	0.33%	0.72%
		# Loans		13	1	2	15	31
		% # Loans		0.35%	0.03%	0.05%	0.40%	0.83%
REO		Balance		-	-	-	1,014,738.76	1,014,738.76
		% Balance		0.00%	0.00%	0.00%	0.18%	0.18%
		# Loans		-	-	-	7	7
		% # Loans		0.00%	0.00%	0.00%	0.19%	0.19%

TOTAL		Balance		2,379,563.06	14,140,491.07	5,459,617.61	11,023,020.43	33,002,692.17
		% Balance		0.42%	2.49%	0.96%	1.94%	5.82%
		# Loans		17	95	40	76	228
		% # Loans		0.45%	2.54%	1.07%	2.03%	6.10%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent


Total Foreclosure					Total Bankruptcy and REO


Note: Dates correspond to distribution dates.
				Page 12 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Delinquency Report for December 27, 2004 Distribution


	Delinquency Report - Group 2 Group


				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			20,377,408.98	5,988,834.16	4,534,609.45	30,900,852.59
		% Balance			2.68%	0.79%	0.60%	4.07%
		# Loans			136	38	38	212
		% # Loans			2.80%	0.78%	0.78%	4.37%
FORECLOSURE		Balance		-	-	2,844,264.41	9,737,961.36	12,582,225.77
		% Balance		0.00%	0.00%	0.37%	1.28%	1.66%
		# Loans		-	-	19	69	88
		% # Loans		0.00%	0.00%	0.39%	1.42%	1.81%
BANKRUPTCY		Balance		2,042,292.28	195,882.47	1,130,770.97	2,729,794.34	6,098,740.06
		% Balance		0.27%	0.03%	0.15%	0.36%	0.80%
		# Loans		18	2	7	18	45
		% # Loans		0.37%	0.04%	0.14%	0.37%	0.93%
REO		Balance		-	-	-	961,733.28	961,733.28
		% Balance		0.00%	0.00%	0.00%	0.13%	0.13%
		# Loans		-	-	-	7	7
		% # Loans		0.00%	0.00%	0.00%	0.14%	0.14%

TOTAL		Balance		2,042,292.28	20,573,291.45	9,963,869.54	17,964,098.43	50,543,551.70
		% Balance		0.27%	2.71%	1.31%	2.37%	6.65%
		# Loans		18	138	64	132	352
		% # Loans		0.37%	2.84%	1.32%	2.72%	7.26%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent


Total Foreclosure					Total Bankruptcy and REO


Note: Dates correspond to distribution dates.
				Page 13 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	REO Report for December 27, 2004 Distribution


	REO Report - Mortgage Loans that Become REO During Current Distribution


SUMMARY				LOAN GROUP

Total Loan Count = 9				Loan Group 1 = Group 1; REO Book Value = Not Available
Total Original Principal Balance = 1,247,800.00				Loan Group 2 = Group 2; REO Book Value = Not Available
Total Current Balance = 844,606.10
REO Book Value = Not Available

REO Book Value reported corresponds to total REO loans, including loans that become REO during current distribution.

Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date

1234404 1		168,000.00	166,839.91	Jun-01-04	8.500%	MD - 80.00%	360	Dec-19-03
6841244 1		152,800.00	150,974.84	Apr-01-04	7.780%	FL - 80.00%	360	Nov-14-03
6905641 1		110,000.00	109,134.31	May-01-04	8.300%	CO - 94.83%	360	Dec-02-03
7086369 1		176,000.00	174,253.92	Mar-01-04	7.550%	MI - 80.00%	360	Nov-05-03
1153073 2		64,000.00	63,662.31	Mar-01-04	10.250%	MI - 80.00%	360	Nov-13-03
1202407 2		64,000.00	63,501.70	May-01-04	7.900%	NE - 80.00%	360	Dec-30-03
1220010 2		66,000.00	65,629.15	Mar-01-04	9.950%	MI - 62.86%	360	Dec-04-03
1278409 2		51,000.00	50,609.96	Feb-01-04	8.000%	IN - 85.00%	360	Dec-29-03
7392605 2		396,000.00	-	Mar-01-04	6.450%	NV - 80.00%	360	Nov-21-03


				Page 14 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Foreclosure Report for December 27, 2004 Distribution


	Foreclosure Report - Mortgage Loans that Become Foreclosure During Current Distribution


SUMMARY				LOAN GROUP

Total Loan Count = 118				Loan Group 1 = Group 1
Total Original Principal Balance = 15,831,801.00				Loan Group 2 = Group 2
Total Current Balance = 15,554,539.33


Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date

1119901 1		110,500.00	109,658.93	Jun-01-04	8.750%	MI - 85.00%	360	Nov-05-03
1134786 1		48,000.00	47,688.07	Apr-01-04	9.250%	KY - 80.00%	360	Nov-12-03
1143147 1		79,200.00	78,562.95	Aug-01-04	9.000%	TX - 80.00%	360	Nov-19-03
1158008 1		204,000.00	202,380.10	Aug-01-04	7.800%	NE - 85.00%	360	Dec-02-03
1177837 1		100,552.00	99,572.44	Aug-01-04	6.750%	TX - 80.00%	360	Dec-19-03
1182367 1		287,300.00	285,316.21	May-01-04	8.500%	NM - 85.00%	360	Dec-31-03
1187931 1		250,750.00	248,438.49	Jul-01-04	7.500%	IL - 85.00%	360	Dec-15-03
1208932 1		88,000.00	87,230.86	Aug-01-04	7.800%	TX - 80.00%	360	Nov-25-03
1224334 1		112,000.00	111,083.92	Jun-01-04	7.650%	AZ - 80.00%	360	Dec-30-03
1228399 1		138,750.00	133,943.86	Aug-01-04	8.450%	CA - 75.00%	180	Nov-24-03
1236686 1		79,200.00	78,271.59	Aug-01-04	6.400%	NE - 90.00%	360	Dec-16-03
1239801 1		97,300.00	96,621.68	Mar-01-04	8.800%	OH - 70.00%	360	Dec-30-03
1243064 1		70,550.00	69,913.74	Jul-01-04	7.150%	OH - 85.00%	360	Dec-12-03
1258365 1		256,500.00	253,619.86	Oct-01-04	6.000%	NY - 90.00%	360	Dec-15-03
1270606 1		119,700.00	118,889.94	Aug-01-04	8.600%	NY - 90.00%	360	Dec-30-03
1273879 1		55,800.00	55,474.80	Aug-01-04	8.850%	MI - 90.00%	360	Jan-22-04
1293932 1		147,050.00	145,694.50	Jun-01-04	7.500%	CA - 85.00%	360	Dec-30-03
1294742 1		192,000.00	190,218.36	Aug-01-04	7.200%	CA - 80.00%	360	Dec-31-03
6662706 1		91,800.00	90,810.12	Jul-01-04	7.725%	CO - 90.00%	360	Nov-13-03
6736521 1		90,000.00	89,344.77	Jul-01-04	9.100%	TX - 75.00%	360	Nov-06-03
6861474 1		64,000.00	63,484.42	Jul-01-04	8.600%	MI - 87.07%	360	Nov-05-03
6886612 1		96,000.00	95,298.29	Aug-01-04	9.080%	TX - 80.00%	360	Nov-04-03
6945228 1		110,000.00	108,827.66	Feb-01-04	6.750%	CA - 62.86%	360	Nov-17-03
6953999 1		169,600.00	167,829.31	May-01-04	6.990%	CA - 80.00%	360	Nov-17-03
6980449 1		88,350.00	87,690.85	Aug-01-04	8.980%	OH - 95.00%	360	Nov-05-03
7010826 1		312,000.00	308,543.11	Jul-01-04	6.980%	TX - 80.00%	360	Nov-04-03
7033362 1		252,000.00	250,108.21	Jul-01-04	8.950%	MI - 80.00%	360	Nov-04-03
7041160 1		46,200.00	45,962.55	Oct-01-04	10.775%	IN - 70.00%	360	Nov-10-03
7042515 1		90,000.00	89,333.20	May-01-04	8.600%	FL - 80.00%	360	Nov-21-03
7049528 1		100,000.00	99,016.74	Jun-01-04	7.500%	CA - 44.44%	360	Nov-07-03
7082495 1		115,000.00	114,112.93	Nov-01-04	8.400%	CT - 82.14%	360	Nov-26-03
7107803 1		166,400.00	165,007.13	Jun-01-04	7.990%	FL - 80.00%	360	Nov-25-03
7111304 1		109,800.00	108,983.33	Aug-01-04	8.600%	LA - 90.00%	360	Nov-10-03
7120540 1		266,200.00	264,227.66	Aug-01-04	8.600%	FL - 74.99%	360	Dec-02-03
7124880 1		166,500.00	164,824.82	Jul-01-04	7.050%	MN - 74.00%	360	Nov-20-03
7126395 1		88,000.00	87,285.81	Aug-01-04	8.150%	WY - 84.62%	360	Nov-20-03
7161530 1		191,700.00	189,656.87	Feb-01-04	6.750%	IL - 90.00%	360	Nov-26-03
7182988 1		175,500.00	174,018.99	Aug-01-04	7.950%	FL - 90.00%	360	Nov-20-03
7196105 1		165,600.00	164,445.34	May-01-04	8.900%	NC - 90.00%	360	Dec-04-03
7312423 1		88,000.00	87,276.43	May-01-04	8.080%	TX - 80.00%	360	Nov-26-03
7454147 1		114,000.00	113,075.57	Apr-01-04	8.150%	OH - 95.00%	360	Dec-01-03
7471955 1		212,000.00	210,298.10	Aug-01-04	8.200%	NV - 80.00%	360	Dec-03-03
7480601 1		104,000.00	103,178.24	Jul-01-04	8.280%	IL - 80.00%	360	Nov-26-03
308211969 1		49,000.00	48,576.51	Aug-01-04	8.250%	ME - 70.00%	360	Oct-03-03

				Page 15 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Foreclosure Report for December 27, 2004 Distribution


	Foreclosure Report - Mortage Loans that Become Foreclosure During Current Distribution



Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date

309029836 1		88,000.00	86,968.97	Jul-01-04	7.125%	AZ - 80.00%	360	Oct-03-03
311202405 1		85,600.00	84,883.45	Jul-01-04	7.990%	CO - 80.00%	360	Nov-26-03
1132854 2		100,000.00	98,860.85	Jul-01-04	6.400%	MA - 55.56%	360	Nov-20-03
1135297 2		77,000.00	76,232.70	Jul-01-04	7.100%	TX - 70.00%	360	Nov-26-03
1147717 2		468,000.00	464,034.24	Apr-01-04	7.990%	CA - 90.00%	360	Nov-12-03
1148426 2		85,000.00	84,469.68	Aug-01-04	9.000%	GA - 85.00%	360	Dec-10-03
1155477 2		196,000.00	194,299.77	May-01-04	7.350%	MN - 80.00%	360	Dec-17-03
1167951 2		74,400.00	73,886.29	Aug-01-04	8.500%	MN - 80.00%	360	Dec-12-03
1171569 2		134,300.00	133,274.30	Jul-01-04	8.450%	GA - 85.00%	360	Nov-25-03
1176898 2		101,500.00	100,886.94	May-01-04	9.600%	CA - 70.00%	360	Nov-25-03
1178265 2		245,700.00	243,199.32	Aug-01-04	6.990%	CA - 90.00%	360	Nov-18-03
1178991 2		60,000.00	59,641.21	Jul-01-04	9.650%	MI - 75.00%	360	Nov-26-03
1182773 2		109,600.00	108,924.12	Jul-01-04	9.500%	MI - 80.00%	360	Nov-12-03
1182952 2		188,000.00	186,071.70	Feb-01-04	6.950%	MD - 80.00%	360	Nov-14-03
1183667 2		48,000.00	47,678.39	Aug-01-04	8.650%	NM - 80.00%	360	Dec-08-03
1185098 2		286,400.00	284,002.70	Aug-01-04	7.990%	CA - 80.00%	360	Nov-14-03
1190232 2		101,700.00	100,843.23	May-01-04	7.500%	ID - 90.00%	360	Dec-24-03
1194728 2		64,350.00	63,745.05	Feb-01-04	7.400%	MI - 65.00%	360	Nov-14-03
1195064 2		243,000.00	241,270.71	Feb-01-04	8.350%	NY - 90.00%	360	Dec-22-03
1195225 2		309,000.00	306,519.29	Apr-01-04	8.200%	NY - 71.03%	360	Nov-26-03
1199733 2		108,500.00	107,671.49	Apr-01-04	8.450%	NC - 84.77%	360	Nov-18-03
1202010 2		400,000.00	395,975.67	Aug-01-04	7.050%	CA - 80.00%	360	Nov-26-03
1202673 2		159,000.00	157,604.42	Aug-01-04	7.750%	CA - 75.00%	360	Nov-19-03
1216254 2		193,500.00	192,066.62	Apr-01-04	8.150%	NJ - 90.00%	360	Dec-12-03
1218224 2		216,900.00	215,385.12	Apr-01-04	7.950%	IL - 90.00%	360	Jan-05-04
1218436 2		175,000.00	173,116.98	Jul-01-04	6.700%	NY - 64.81%	360	Nov-19-03
1219701 2		42,000.00	41,746.44	May-01-04	9.650%	OH - 72.41%	360	Dec-03-03
1220769 2		216,000.00	214,077.55	Aug-01-04	7.500%	WA - 90.00%	360	Dec-29-03
1224676 2		71,920.00	71,440.16	May-01-04	9.250%	IL - 80.00%	360	Nov-18-03
1226550 2		98,770.00	98,121.57	May-01-04	8.750%	FL - 85.00%	360	Dec-17-03
1233323 2		138,550.00	-	Aug-01-04	7.100%	WA - 85.00%	360	Nov-26-03
1233585 2		356,250.00	352,746.05	Mar-01-04	6.700%	NY - 95.00%	360	Dec-15-03
1234671 2		227,800.00	225,785.08	Jun-01-04	7.250%	MA - 85.00%	360	Dec-15-03
1236689 2		215,650.00	213,541.79	Aug-01-04	7.200%	CO - 95.00%	360	Nov-26-03
1239502 2		155,700.00	154,698.45	Jul-01-04	8.850%	WA - 90.00%	360	Dec-30-03
1241449 2		125,460.00	123,579.34	Jun-01-04	6.600%	IN - 90.00%	360	Dec-09-03
1243376 2		95,649.00	94,954.54	May-01-04	8.250%	NY - 90.00%	360	Dec-03-03
1243666 2		200,000.00	198,686.99	May-01-04	8.750%	MA - 80.00%	360	Dec-19-03
1249374 2		56,350.00	56,155.15	Jul-01-04	11.800%	TX - 70.00%	360	Dec-17-03
1253245 2		88,000.00	87,529.54	Jul-01-04	9.750%	TX - 80.00%	360	Dec-23-03
1253993 2		95,200.00	94,428.96	May-01-04	7.700%	OR - 85.00%	360	Dec-31-03
1254005 2		212,000.00	209,714.73	Aug-01-04	6.700%	CA - 81.54%	360	Dec-17-03
1255895 2		123,750.00	122,676.58	Aug-01-04	7.350%	GA - 90.00%	360	Dec-19-03
1256332 2		108,000.00	106,993.78	Jun-01-04	6.990%	AZ - 90.00%	360	Dec-18-03
1259032 2		142,200.00	141,167.46	Mar-01-04	8.250%	OH - 90.00%	360	Dec-17-03
1260461 2		109,600.00	108,989.26	May-01-04	9.550%	ID - 80.00%	360	Dec-29-03
1260772 2		67,000.00	66,606.82	Mar-01-04	9.300%	OH - 67.68%	360	Dec-23-03
1265492 2		154,000.00	152,999.16	Aug-01-04	8.800%	WA - 70.00%	360	Dec-17-03
1267923 2		126,000.00	124,760.63	Aug-01-04	6.700%	NV - 90.00%	360	Dec-30-03
1270937 2		77,900.00	77,204.20	Aug-01-04	7.200%	IL - 95.00%	360	Dec-31-03
1271885 2		113,050.00	112,069.28	May-01-04	7.350%	NM - 95.00%	360	Dec-31-03
1274773 2		37,000.00	36,367.23	May-01-04	9.000%	WA - 20.00%	240	Dec-31-03

				Page 16 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Foreclosure Report for December 27, 2004 Distribution


	Foreclosure Report - Mortage Loans that Become Foreclosure During Current Distribution



Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date

1277539 2		74,400.00	74,026.34	Jul-01-04	10.050%	TX - 80.00%	360	Dec-30-03
1278757 2		51,350.00	49,647.84	May-01-04	7.900%	TX - 65.00%	180	Dec-31-03
1279178 2		50,000.00	48,205.83	Jul-01-04	6.950%	IN - 35.71%	180	Dec-29-03
1282862 2		200,000.00	198,125.08	Jul-01-04	6.950%	CA - 64.52%	360	Dec-31-03
6779999 2		54,000.00	53,641.43	Aug-01-04	9.550%	MI - 81.82%	360	Nov-07-03
6812066 2		48,600.00	48,399.16	Jul-01-04	11.400%	TX - 69.43%	360	Nov-26-03
6969003 2		36,000.00	35,782.52	Jul-01-04	9.600%	TX - 80.00%	360	Nov-21-03
6987893 2		126,000.00	125,284.84	Jun-01-04	9.900%	TX - 70.00%	360	Dec-01-03
6993494 2		172,500.00	171,551.05	Jun-01-04	10.050%	GA - 75.00%	360	Nov-19-03
7050402 2		142,200.00	141,009.65	May-01-04	7.990%	TX - 79.00%	360	Dec-04-03
7054505 2		64,000.00	63,665.84	Aug-01-04	10.300%	OH - 79.01%	360	Nov-12-03
7063695 2		35,000.00	34,830.29	May-01-04	11.050%	KS - 71.43%	360	Nov-07-03
7063776 2		120,000.00	119,228.84	Apr-01-04	9.300%	AZ - 75.00%	360	Dec-03-03
7087187 2		139,160.00	137,435.04	Aug-01-04	5.950%	WA - 80.00%	360	Nov-24-03
7148798 2		192,000.00	190,116.25	Jun-01-04	7.180%	WA - 80.00%	360	Dec-01-03
7183321 2		99,920.00	99,169.12	May-01-04	8.530%	IN - 80.00%	360	Nov-17-03
7191189 2		73,120.00	72,397.77	Jul-01-04	8.530%	KY - 80.00%	360	Nov-20-03
7408684 2		123,200.00	122,651.34	Aug-01-04	11.050%	TX - 70.00%	360	Dec-03-03
7423640 2		65,600.00	65,079.65	Aug-01-04	8.270%	TX - 80.00%	360	Nov-18-03
7498896 2		73,200.00	72,676.96	Jul-01-04	8.780%	MI - 80.00%	360	Dec-02-03
8748144 2		76,500.00	75,989.16	May-01-04	8.280%	OH - 90.00%	360	Jan-21-04
310089241 2		84,000.00	83,274.12	Jun-01-04	8.250%	OH - 88.42%	360	Oct-20-03


				Page 17 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Report for December 27, 2004 Distribution


	Prepayment Report - Voluntary Prepayments


VOLUNTARY PREPAYMENTS						GROUP 2	GROUP 1	TOTAL

	*Current*
	Number of Paid in Full Loans					221	198	419
	Number of Repurchased Loans					-	-	-
	Total Number of Loans Prepaid in Full					221	198	419

	Paid in Full Balance					40,771,756.24	34,988,182.75	75,759,938.99
	Repurchased Loans Balance					-	-	-
	Curtailments Amount					69,059.51	32,419.25	101,478.76
	Total Prepayment Amount					40,840,815.75	35,020,602.00	75,861,417.75

	*Cumulative*
	Number of Paid in Full Loans					1,208	957	2,165
	Number of Repurchased Loans					-	-	-
	Total Number of Loans Prepaid in Full					1,208	957	2,165

	Paid in Full Balance					241,872,901.50	172,123,175.12	413,996,076.62
	Repurchased Loans Balance					-	-	-
	Curtailments Amount					413,472.91	444,433.74	857,906.65
	Total Prepayment Amount					242,286,374.41	172,567,608.86	414,853,983.27

SPACE INTENTIONALLY LEFT BLANK


Total Prepayments by Groups (in thousands of dollars)					Total Prepayments (in thousands of dollars)


				Page 18 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Report for December 27, 2004 Distribution


	Prepayment Report - Voluntary Prepayments


VOLUNTARY PREPAYMENT RATES						GROUP 2	GROUP 1	TOTAL

	SMM					5.10%	5.81%	5.41%
	3 Months Avg SMM					4.43%	4.70%	4.54%
	12 Months Avg SMM
	Avg SMM Since Cut-off					3.39%	3.26%	3.33%

	CPR					46.64%	51.25%	48.67%
	3 Months Avg CPR					41.92%	43.88%	42.77%
	12 Months Avg CPR
	Avg CPR Since Cut-off					33.90%	32.79%	33.43%

	PSA					1980.99%	2116.10%	2042.01%
	3 Months Avg PSA Approximation					1944.96%	1974.62%	1958.24%
	12 Months Avg PSA Approximation
	Avg PSA Since Cut-off Approximation					2047.26%	1901.17%	1983.56%



	Group 1
	Group 2


CPR by Groups					Total CPR


PSA by Groups					Total PSA


				Page 19 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Report for December 27, 2004 Distribution


	Prepayment Report - Voluntary Prepayments

	Group 1
	Group 2

CPR Avg since Cut-Off by Groups					Total CPR Avg since Cut-Off


PSA Avg since Cut-Off by Groups					Total PSA Avg since Cut-Off


PREPAYMENT CALCULATION METHODOLOGY
Single Monthly Mortality (SMM): (Voluntary partial and full prepayments + Repurchases)/(Beg Principal Balance - Sched Principal)
Conditional Prepayment Rate (CPR): 1-((1-SMM)^12)
PSA Standard Prepayment Model: CPR/(0.02*min(30,WAS))
Average SMM over period between nth month and mth month (AvgSMMn,m): [(1-SMMn) * (1-SMMn+1) .......(1-SMMm)]^(1/months in period n,m)
Average CPR over period between the nth month and mth month (AvgCPRn,m): 1-((1-AvgSMMn,m)^12)
Average PSA Approximation over period between the nth month and mth month: AvgCPRn,m/(0.002*Avg WASn,m))
Average WASn,m: (min(30,WASn)+min(30,WASn+1)+.......+min(30,WASm)/(number of months in the period n,m)
Weighted Average Seasoning (WAS)

Note: Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments and repurchases.
Dates correspond to distribution dates.

				Page 20 of 35				© COPYRIGHT 2004 Deutsche Bank


	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution


SUMMARY						LOAN GROUP

Total Loan Count = 419						Loan Group 1 = Group 1
Total Original Principal Balance = 76,520,879.00						Loan Group 2 = Group 2
Total Prepayment Amount = 75,759,938.99


Loan Number			Original			Current	State &	Type Prepayment
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	&	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Original Term	Date

1056753 1			252,000.00	249,314.28	Nov-19-04	6.750%	CA - 84.85%	Paid Off - 360	Nov-05-03
1063192 1			236,000.00	233,182.08	Dec-14-04	6.150%	CA - 58.27%	Paid Off - 360	Nov-05-03
1072700 1		FCL	204,000.00	201,967.30	Dec-01-04	7.100%	CA - 85.00%	Paid Off - 360	Nov-04-03
1086218 1			287,000.00	284,721.07	Dec-03-04	7.800%	CA - 89.45%	Paid Off - 360	Nov-24-03
1089776 1			184,500.00	183,018.91	Nov-26-04	7.750%	OR - 90.00%	Paid Off - 360	Nov-24-03
1108408 1			104,000.00	102,729.69	Nov-24-04	7.500%	FL - 80.00%	Paid Off - 360	Nov-26-03
1113905 1			115,000.00	113,930.20	Nov-03-04	6.990%	IL - 67.45%	Paid Off - 360	Nov-13-03
1124206 1			304,100.00	301,357.37	Nov-18-04	7.150%	FL - 89.97%	Paid Off - 360	Nov-26-03
1135945 1			190,000.00	188,546.69	Nov-24-04	8.000%	IL - 86.36%	Paid Off - 360	Nov-14-03
1138687 1			136,500.00	135,502.65	Nov-24-04	8.500%	CA - 66.91%	Paid Off - 360	Nov-17-03
1142272 1			293,250.00	293,250.00	Dec-03-04	5.125%	CA - 85.00%	Paid Off - 300	Nov-17-03
1146894 1			270,000.00	267,478.16	Dec-14-04	7.400%	CA - 90.00%	Paid Off - 360	Nov-21-03
1148736 1			274,500.00	272,362.98	Nov-16-04	7.900%	CA - 90.00%	Paid Off - 360	Nov-21-03
1164285 1			328,500.00	325,594.40	Nov-03-04	7.250%	NY - 83.16%	Paid Off - 360	Nov-18-03
1166898 1			331,500.00	331,499.84	Dec-03-04	5.125%	CA - 85.00%	Paid Off - 300	Nov-26-03
1167443 1			50,000.00	48,202.91	Nov-17-04	7.400%	OH - 55.56%	Paid Off - 180	Nov-20-03
1167481 1			209,000.00	207,096.72	Nov-23-04	7.100%	RI - 83.60%	Paid Off - 360	Nov-07-03
1174372 1			193,600.00	191,548.23	Nov-19-04	6.800%	CA - 80.00%	Paid Off - 360	Nov-03-03
1179423 1			254,000.00	251,304.29	Dec-01-04	6.300%	CA - 80.00%	Paid Off - 360	Nov-07-03
1182362 1		FCL	88,000.00	87,361.00	Dec-01-04	8.250%	FL - 80.00%	Paid Off - 360	Nov-05-03
1182623 1			310,500.00	307,900.97	Nov-23-04	7.990%	CA - 90.00%	Paid Off - 360	Nov-03-03
1189907 1			118,400.00	115,799.70	Nov-23-04	7.075%	FL - 80.00%	Paid Off - 240	Nov-20-03
1190266 1			118,000.00	117,278.04	Dec-14-04	8.400%	CT - 100.00%	Paid Off - 360	Jan-23-04
1190778 1			95,400.00	92,080.15	Nov-26-04	7.350%	AZ - 90.00%	Paid Off - 180	Nov-17-03
1192956 1			170,240.00	168,337.66	Nov-01-04	5.500%	RI - 95.00%	Paid Off - 360	Dec-29-03
1196492 1			247,500.00	244,971.05	Nov-04-04	6.500%	IL - 90.00%	Paid Off - 360	Nov-26-03
1197363 1			206,000.00	204,348.00	Nov-18-04	7.750%	IL - 100.00%	Paid Off - 360	Nov-12-03
1197407 1			110,400.00	109,635.04	Nov-19-04	7.990%	OR - 80.00%	Paid Off - 360	Dec-18-03
1197987 1			255,000.00	252,851.95	Nov-12-04	7.500%	NV - 100.00%	Paid Off - 360	Nov-14-03
1203944 1			101,600.00	100,760.73	Nov-17-04	7.600%	CA - 80.00%	Paid Off - 360	Nov-17-03
1204587 1			120,000.00	118,823.72	Nov-08-04	6.900%	IL - 54.55%	Paid Off - 360	Nov-24-03
1207507 1			313,500.00	310,910.61	Nov-18-04	7.600%	CA - 93.58%	Paid Off - 360	Nov-25-03
1211992 1			122,500.00	121,360.41	Nov-09-04	6.990%	CA - 47.67%	Paid Off - 360	Nov-21-03
1212647 1			300,856.00	297,632.85	Nov-22-04	6.250%	CA - 94.31%	Paid Off - 360	Dec-04-03
1216644 1			52,000.00	51,673.89	Nov-18-04	8.500%	FL - 61.98%	Paid Off - 360	Dec-02-03
1218046 1			123,920.00	122,610.13	Nov-11-04	5.800%	CA - 80.00%	Paid Off - 360	Dec-31-03
1220982 1			310,000.00	306,710.01	Nov-16-04	6.300%	CA - 74.70%	Paid Off - 360	Nov-26-03
1221427 1			42,000.00	41,510.60	Nov-04-04	8.350%	IN - 75.00%	Paid Off - 360	Dec-02-03
1223101 1			175,500.00	174,275.90	Nov-09-04	8.450%	MD - 90.00%	Paid Off - 360	Nov-26-03
1228106 1			259,250.00	257,347.43	Dec-06-04	7.150%	CA - 85.00%	Paid Off - 360	Jan-16-04
1229073 1			288,000.00	285,790.26	Dec-01-04	7.990%	CA - 80.00%	Paid Off - 360	Nov-25-03
1229316 1			328,500.00	326,065.24	Nov-08-04	7.650%	IL - 90.00%	Paid Off - 360	Dec-10-03
1229745 1			271,150.00	269,179.70	Nov-18-04	7.750%	NM - 81.43%	Paid Off - 360	Dec-19-03
1230052 1			250,500.00	248,387.76	Nov-16-04	6.990%	CA - 88.52%	Paid Off - 360	Dec-10-03

					Page 21 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

1233972 1			216,000.00	214,055.60	Nov-10-04	6.650%	CA - 90.00%	Paid Off - 360	Dec-29-03
1234547 1			222,400.00	220,563.67	Nov-26-04	7.900%	MN - 80.00%	Paid Off - 360	Nov-26-03
1236992 1			300,800.00	297,485.09	Nov-26-04	6.100%	CO - 80.00%	Paid Off - 360	Nov-25-03
1237463 1			222,000.00	220,305.73	Nov-10-04	8.000%	CA - 100.00%	Paid Off - 360	Dec-04-03
1237835 1			81,900.00	81,292.92	Nov-30-04	7.650%	OH - 65.00%	Paid Off - 360	Dec-12-03
1242188 1			170,000.00	168,527.22	Nov-04-04	6.850%	CA - 85.00%	Paid Off - 360	Dec-10-03
1242259 1			114,750.00	113,995.21	Nov-30-04	8.250%	IL - 85.00%	Paid Off - 360	Dec-29-03
1242443 1			240,000.00	238,373.18	Nov-29-04	8.100%	NY - 80.00%	Paid Off - 360	Dec-10-03
1250962 1			150,000.00	148,165.07	Nov-30-04	6.850%	UT - 66.67%	Paid Off - 360	Jan-21-04
1251302 1			100,000.00	99,393.20	Nov-02-04	8.650%	OR - 54.05%	Paid Off - 360	Dec-30-03
1251606 1			172,800.00	171,206.14	Nov-01-04	8.300%	NM - 80.00%	Paid Off - 360	Dec-30-03
1252623 1			250,000.00	247,381.99	Nov-26-04	5.850%	FL - 71.43%	Paid Off - 360	Dec-12-03
1253442 1			239,000.00	236,889.37	Nov-18-04	6.750%	MA - 100.00%	Paid Off - 360	Dec-29-03
1254586 1			280,500.00	277,775.22	Nov-19-04	6.250%	CA - 85.00%	Paid Off - 360	Dec-30-03
1259565 1			148,000.00	146,302.43	Nov-26-04	6.850%	RI - 69.81%	Paid Off - 360	Jan-02-04
1270494 1			121,500.00	120,285.84	Nov-03-04	6.100%	CA - 90.00%	Paid Off - 360	Dec-29-03
1275076 1			170,000.00	168,512.33	Nov-17-04	6.800%	MD - 74.56%	Paid Off - 360	Dec-30-03
1278143 1			99,750.00	98,981.07	Nov-18-04	7.450%	FL - 95.00%	Paid Off - 360	Dec-23-03
1288504 1			131,040.00	129,214.87	Nov-16-04	6.100%	NV - 80.00%	Paid Off - 360	Dec-31-03
1291069 1			178,000.00	176,204.51	Nov-01-04	6.050%	CA - 62.90%	Paid Off - 360	Dec-30-03
1301080 1			113,600.00	112,659.94	Dec-01-04	6.525%	WA - 80.00%	Paid Off - 360	Jan-12-04
1309657 1			175,750.00	174,510.33	Nov-18-04	7.350%	IL - 95.00%	Paid Off - 360	Jan-27-04
1318684 1			114,000.00	113,501.25	Dec-13-04	5.125%	FL - 37.13%	Paid Off - 300	Jan-30-04
1319093 1			318,250.00	315,892.49	Dec-13-04	7.150%	IL - 95.00%	Paid Off - 360	Jan-26-04
1337926 1			218,500.00	217,171.57	Dec-07-04	8.100%	CA - 95.00%	Paid Off - 360	Jan-30-04
6114857 1			207,170.00	205,024.57	Nov-17-04	6.900%	VA - 79.99%	Paid Off - 360	Nov-05-03
6528783 1			55,000.00	54,576.01	Nov-24-04	7.950%	VA - 25.58%	Paid Off - 360	Nov-25-03
6578837 1			71,995.00	71,492.84	Nov-16-04	8.450%	MI - 80.00%	Paid Off - 360	Nov-25-03
6647987 1			98,000.00	97,000.12	Nov-22-04	7.700%	FL - 78.40%	Paid Off - 360	Nov-06-03
6671926 1			42,699.00	41,946.03	Nov-19-04	8.750%	FL - 70.00%	Paid Off - 240	Nov-19-03
6697801 1			332,000.00	328,182.18	Nov-10-04	6.350%	OR - 80.00%	Paid Off - 360	Nov-07-03
6728790 1			105,000.00	104,124.08	Nov-04-04	7.550%	CA - 75.00%	Paid Off - 360	Dec-05-03
6733069 1			110,000.00	109,122.17	Nov-10-04	7.775%	CA - 66.67%	Paid Off - 360	Nov-17-03
6772196 1			160,000.00	158,663.35	Nov-19-04	8.000%	FL - 80.00%	Paid Off - 360	Nov-04-03
6793304 1			264,000.00	261,049.09	Nov-02-04	6.500%	CA - 80.00%	Paid Off - 360	Nov-04-03
6833152 1			222,000.00	216,578.49	Nov-30-04	6.775%	CA - 59.36%	Paid Off - 240	Nov-10-03
6874398 1			172,000.00	170,673.39	Nov-24-04	8.400%	FL - 80.00%	Paid Off - 360	Nov-06-03
6874983 1			113,050.00	112,216.54	Nov-09-04	8.625%	CT - 85.00%	Paid Off - 360	Nov-04-03
6884342 1			151,000.00	149,517.07	Nov-04-04	7.175%	CA - 88.82%	Paid Off - 360	Nov-04-03
6898858 1			215,050.00	212,427.37	Nov-29-04	6.050%	RI - 85.00%	Paid Off - 360	Nov-05-03
6901425 1			175,000.00	173,658.67	Nov-09-04	7.990%	CA - 68.90%	Paid Off - 360	Dec-02-03
6906583 1			136,000.00	134,550.50	Nov-19-04	6.750%	WA - 80.00%	Paid Off - 360	Nov-07-03
6910955 1			76,000.00	75,332.88	Nov-11-04	7.750%	OH - 95.00%	Paid Off - 360	Nov-05-03
6930883 1			128,400.00	126,318.83	Nov-02-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-05-03
6941532 1			85,970.00	85,445.51	Nov-08-04	9.125%	NY - 95.00%	Paid Off - 360	Nov-24-03
6955185 1			92,000.00	90,647.42	Nov-24-04	7.600%	TX - 79.31%	Paid Off - 300	Nov-06-03
6958206 1			208,800.00	207,032.49	Nov-12-04	7.475%	CA - 75.93%	Paid Off - 360	Dec-01-03
6969895 1			170,000.00	168,581.98	Nov-09-04	7.550%	CA - 94.44%	Paid Off - 360	Nov-17-03
6988873 1			111,860.00	109,347.71	Nov-23-04	7.490%	CA - 85.00%	Paid Off - 240	Nov-04-03
6996809 1			111,000.00	109,870.27	Nov-01-04	6.990%	IL - 82.84%	Paid Off - 360	Nov-06-03
7003439 1			109,810.00	108,991.64	Nov-22-04	8.850%	TX - 79.00%	Paid Off - 360	Nov-04-03
7015046 1			240,000.00	237,760.97	Nov-18-04	6.975%	NY - 80.00%	Paid Off - 360	Nov-14-03

					Page 22 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

7020546 1			160,000.00	158,371.56	Nov-19-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-06-03
7045417 1			183,000.00	180,717.11	Nov-01-04	6.100%	CA - 78.88%	Paid Off - 360	Nov-10-03
7045468 1			60,750.00	60,134.04	Nov-05-04	7.500%	CA - 75.00%	Paid Off - 360	Nov-04-03
7054963 1			98,960.00	98,101.55	Nov-26-04	7.350%	ID - 80.00%	Paid Off - 360	Nov-07-03
7055145 1			222,608.00	220,822.84	Nov-16-04	7.750%	CA - 80.00%	Paid Off - 360	Nov-07-03
7060491 1			242,000.00	239,875.96	Nov-04-04	7.750%	RI - 84.91%	Paid Off - 360	Nov-10-03
7064195 1			184,000.00	182,188.85	Nov-26-04	6.750%	WA - 80.00%	Paid Off - 360	Nov-20-03
7071205 1			111,350.00	110,081.63	Nov-15-04	6.400%	WA - 85.00%	Paid Off - 360	Nov-04-03
7071906 1			111,252.00	110,328.09	Nov-05-04	8.030%	TX - 80.00%	Paid Off - 360	Nov-04-03
7073275 1			135,920.00	134,717.72	Nov-17-04	7.250%	FL - 80.00%	Paid Off - 360	Nov-17-03
7082053 1			174,400.00	172,777.66	Nov-24-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-12-03
7094639 1			137,750.00	136,749.74	Nov-03-04	8.700%	MN - 95.00%	Paid Off - 360	Nov-04-03
7108737 1			35,000.00	34,718.21	Nov-24-04	7.925%	KS - 71.43%	Paid Off - 360	Dec-01-03
7110871 1			103,200.00	102,505.83	Nov-18-04	8.630%	IL - 80.00%	Paid Off - 360	Nov-19-03
7111797 1			132,000.00	130,381.13	Nov-30-04	9.275%	NJ - 73.33%	Paid Off - 360	Nov-26-03
7114931 1			226,955.00	225,838.97	Nov-11-04	10.150%	VA - 94.60%	Paid Off - 360	Nov-12-03
7115458 1			185,420.00	183,645.88	Nov-22-04	6.850%	MD - 80.00%	Paid Off - 360	Nov-24-03
7115849 1			170,000.00	168,250.44	Nov-23-04	6.500%	MN - 82.93%	Paid Off - 360	Dec-01-03
7122055 1			182,400.00	180,840.73	Nov-02-04	7.425%	MA - 95.00%	Paid Off - 360	Nov-26-03
7123523 1			148,000.00	146,672.94	Nov-26-04	7.180%	WA - 80.00%	Paid Off - 360	Nov-26-03
7130422 1			192,000.00	190,659.32	Nov-04-04	8.450%	VA - 80.00%	Paid Off - 360	Nov-24-03
7133987 1			121,500.00	120,595.48	Nov-01-04	8.125%	FL - 90.00%	Paid Off - 360	Nov-21-03
7150768 1			306,000.00	302,858.44	Nov-05-04	6.475%	CA - 90.00%	Paid Off - 360	Nov-24-03
7163509 1			89,000.00	88,455.95	Nov-11-04	9.100%	IL - 80.91%	Paid Off - 360	Nov-19-03
7165218 1			84,000.00	83,448.56	Nov-30-04	8.750%	TX - 80.00%	Paid Off - 360	Dec-01-03
7167504 1			312,000.00	308,490.08	Nov-12-04	5.990%	CA - 80.00%	Paid Off - 360	Nov-14-03
7167830 1			119,000.00	118,084.02	Nov-10-04	8.200%	FL - 78.81%	Paid Off - 360	Nov-28-03
7167857 1			190,000.00	188,701.15	Nov-19-04	8.550%	CA - 63.33%	Paid Off - 360	Dec-03-03
7168373 1			267,750.00	265,524.24	Nov-01-04	7.575%	CA - 85.00%	Paid Off - 360	Nov-24-03
7171382 1			154,400.00	153,169.06	Nov-18-04	7.780%	FL - 80.00%	Paid Off - 360	Nov-12-03
7178530 1			190,000.00	188,415.13	Nov-12-04	7.550%	CA - 77.55%	Paid Off - 360	Nov-18-03
7184468 1			187,000.00	185,209.13	Nov-10-04	7.225%	NJ - 78.57%	Paid Off - 360	Nov-26-03
7186622 1			207,000.00	205,343.50	Nov-16-04	7.900%	CA - 88.46%	Paid Off - 360	Nov-25-03
7193580 1			247,000.00	244,750.69	Nov-24-04	7.100%	CA - 95.00%	Paid Off - 360	Nov-20-03
7288387 1			140,250.00	139,147.28	Nov-24-04	7.850%	FL - 85.00%	Paid Off - 360	Nov-17-03
7392532 1			276,000.00	272,936.68	Nov-17-04	6.062%	CA - 80.00%	Paid Off - 360	Dec-03-03
7397755 1		FCL	109,200.00	108,695.86	Nov-30-04	10.450%	CA - 70.00%	Paid Off - 360	Dec-03-03
7402457 1			124,000.00	116,968.34	Nov-23-04	6.725%	FL - 80.00%	Paid Off - 360	Dec-02-03
7417306 1			315,000.00	312,591.13	Nov-24-04	7.990%	NY - 70.00%	Paid Off - 360	Dec-02-03
7429673 1			213,750.00	210,623.13	Nov-01-04	6.250%	CA - 73.96%	Paid Off - 360	Dec-01-03
7430248 1			119,000.00	116,961.64	Nov-18-04	6.150%	CA - 85.00%	Paid Off - 360	Nov-25-03
7459343 1			80,000.00	79,309.45	Nov-30-04	7.375%	CA - 48.48%	Paid Off - 360	Dec-03-03
7477473 1			252,000.00	249,770.99	Nov-03-04	7.250%	CA - 80.00%	Paid Off - 360	Dec-02-03
7488580 1			148,500.00	147,389.03	Nov-18-04	8.100%	CA - 90.00%	Paid Off - 360	Dec-01-03
7495846 1			149,800.00	148,999.15	Nov-09-04	9.750%	CA - 70.00%	Paid Off - 360	Dec-02-03
304072375 1			69,700.00	69,014.00	Dec-01-04	8.400%	NM - 85.00%	Paid Off - 360	Aug-07-03
308058190 1			140,800.00	139,117.88	Dec-01-04	6.999%	AZ - 80.00%	Paid Off - 360	Aug-29-03
308224358 1			128,000.00	127,169.01	Dec-01-04	9.250%	CA - 69.19%	Paid Off - 360	Oct-15-03
308255075 1			330,000.00	327,936.84	Dec-01-04	8.990%	CT - 70.21%	Paid Off - 360	Nov-28-03
308255274 1			96,800.00	96,082.82	Dec-01-04	8.600%	CA - 77.44%	Paid Off - 360	Oct-16-03
308266434 1			152,000.00	150,760.71	Dec-01-04	8.625%	CA - 79.17%	Paid Off - 360	Sep-18-03
309084558 1			91,800.00	90,932.85	Dec-01-04	7.375%	FL - 85.00%	Paid Off - 360	Oct-08-03

					Page 23 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

309085552 1			120,438.00	120,400.65	Dec-01-04	5.990%	CA - 89.21%	Paid Off - 360	Nov-28-03
309118477 1			90,000.00	89,128.92	Dec-01-04	7.250%	CA - 75.00%	Paid Off - 360	Nov-05-03
309150657 1			225,023.00	222,897.39	Dec-01-04	7.375%	CA - 80.00%	Paid Off - 360	Oct-28-03
309161728 1			140,800.00	139,366.86	Dec-01-04	6.990%	CA - 80.00%	Paid Off - 360	Oct-15-03
309183917 1			265,500.00	263,277.61	Dec-01-04	7.990%	MD - 75.00%	Paid Off - 360	Nov-05-03
309237563 1			247,500.00	245,213.88	Dec-01-04	7.490%	CA - 90.00%	Paid Off - 360	Oct-20-03
309249109 1			136,000.00	134,550.50	Dec-01-04	6.750%	NY - 80.00%	Paid Off - 360	Oct-16-03
309261500 1			88,500.00	87,847.44	Dec-01-04	8.625%	FL - 75.00%	Paid Off - 360	Oct-28-03
309292386 1			176,800.00	175,000.55	Dec-01-04	6.990%	CA - 80.00%	Paid Off - 360	Oct-14-03
309292497 1			310,449.00	307,197.77	Dec-01-04	7.500%	MD - 85.00%	Paid Off - 360	Oct-01-03
309303022 1			267,760.00	264,619.49	Dec-01-04	6.990%	CA - 85.00%	Paid Off - 360	Oct-17-03
310014146 1			274,500.00	272,424.84	Dec-01-04	8.500%	CA - 90.00%	Paid Off - 360	Oct-21-03
310014333 1			152,500.00	151,161.52	Dec-01-04	7.750%	FL - 90.00%	Paid Off - 360	Oct-31-03
310078049 1			61,200.00	60,476.27	Dec-01-04	6.500%	CT - 90.00%	Paid Off - 360	Nov-18-03
310078083 1			118,750.00	117,692.49	Dec-01-04	7.990%	OH - 100.00%	Paid Off - 360	Oct-14-03
310078357 1			239,200.00	236,850.12	Dec-01-04	7.250%	CA - 80.00%	Paid Off - 360	Oct-20-03
310080140 1			242,250.00	239,699.06	Dec-01-04	7.250%	CA - 85.00%	Paid Off - 360	Oct-29-03
310089377 1			129,200.00	127,976.53	Dec-01-04	7.590%	MD - 85.00%	Paid Off - 360	Oct-28-03
310089903 1			171,600.00	169,726.94	Dec-01-04	6.625%	CA - 80.00%	Paid Off - 360	Oct-21-03
310090576 1			315,000.00	313,202.75	Dec-01-04	9.875%	CA - 70.00%	Paid Off - 360	Oct-16-03
310091321 1			164,200.00	162,825.56	Dec-01-04	7.990%	AZ - 89.97%	Paid Off - 360	Oct-31-03
310101623 1			144,000.00	142,911.12	Dec-01-04	8.499%	MN - 79.56%	Paid Off - 360	Oct-27-03
310101787 1			117,000.00	116,016.71	Dec-01-04	7.999%	IN - 90.00%	Paid Off - 360	Oct-27-03
310102649 1			133,200.00	131,799.55	Dec-01-04	6.990%	CA - 90.00%	Paid Off - 360	Oct-31-03
310132929 1			167,400.00	165,779.73	Dec-01-04	7.250%	CO - 79.99%	Paid Off - 360	Oct-29-03
310134139 1			272,000.00	269,487.59	Dec-01-04	7.490%	CA - 80.00%	Paid Off - 360	Nov-04-03
310167256 1			128,000.00	127,067.67	Dec-01-04	8.235%	PA - 80.00%	Paid Off - 360	Nov-12-03
310179240 1			200,000.00	198,147.22	Dec-01-04	6.500%	NY - 75.19%	Paid Off - 360	Nov-28-03
310211235 1			250,800.00	248,177.68	Dec-01-04	6.850%	MA - 80.00%	Paid Off - 360	Oct-31-03
310212551 1			284,800.00	282,272.44	Dec-01-04	7.250%	CA - 80.00%	Paid Off - 360	Nov-18-03
310212635 1			140,000.00	138,617.31	Dec-01-04	6.750%	CA - 83.33%	Paid Off - 360	Nov-26-03
310223969 1			113,400.00	112,616.95	Dec-01-04	8.500%	WY - 90.00%	Paid Off - 360	Nov-10-03
310234679 1			49,600.00	49,282.56	Dec-01-04	8.875%	FL - 80.00%	Paid Off - 360	Nov-28-03
310235169 1			304,000.00	300,981.24	Dec-01-04	6.650%	NY - 80.00%	Paid Off - 360	Nov-17-03
310246830 1			223,200.00	220,386.80	Dec-01-04	6.250%	CA - 90.00%	Paid Off - 360	Nov-28-03
310277826 1			225,000.00	222,793.01	Dec-01-04	7.125%	CA - 75.00%	Paid Off - 360	Nov-25-03
310290094 1			230,930.00	228,785.30	Dec-01-04	7.000%	CA - 70.00%	Paid Off - 360	Nov-13-03
310301132 1			176,000.00	174,511.50	Dec-01-04	7.499%	MI - 80.00%	Paid Off - 360	Nov-14-03
310312680 1			263,415.00	261,302.56	Dec-01-04	7.750%	CA - 85.00%	Paid Off - 360	Nov-26-03
311033814 1			135,200.00	133,933.56	Dec-01-04	6.990%	WA - 80.00%	Paid Off - 360	Nov-13-03
311034163 1			271,200.00	268,579.38	Dec-01-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-18-03
311045244 1			121,520.00	120,471.02	Dec-01-04	7.375%	CA - 80.00%	Paid Off - 360	Nov-25-03
311067224 1			257,600.00	255,306.94	Dec-01-04	7.250%	CA - 80.00%	Paid Off - 360	Nov-26-03
311067667 1			100,000.00	99,094.28	Dec-01-04	7.125%	GA - 80.00%	Paid Off - 360	Nov-19-03
311079044 1			225,900.00	224,172.56	Dec-01-04	7.990%	NV - 90.00%	Paid Off - 360	Nov-26-03
311079329 1			258,800.00	256,392.53	Dec-01-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-28-03
311100516 1			165,750.00	164,605.45	Dec-01-04	8.500%	NV - 85.00%	Paid Off - 360	Nov-25-03
311109724 1			90,000.00	89,119.11	Dec-01-04	6.750%	VA - 73.47%	Paid Off - 360	Nov-26-03
311122778 1			145,520.00	144,170.67	Dec-01-04	7.250%	AZ - 80.00%	Paid Off - 360	Nov-26-03
311202236 1			69,600.00	69,041.77	Dec-01-04	7.750%	CA - 80.00%	Paid Off - 360	Nov-28-03
1003606 2			115,000.00	113,800.15	Nov-12-04	6.390%	CA - 41.07%	Paid Off - 360	Dec-11-03
1053216 2			56,000.00	55,772.43	Nov-15-04	11.050%	TX - 80.00%	Paid Off - 360	Nov-10-03

					Page 24 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

1080578 2			185,000.00	182,131.29	Nov-04-04	7.250%	CA - 62.71%	Paid Off - 360	Nov-17-03
1084544 2			327,500.00	324,741.27	Nov-18-04	7.500%	CA - 100.00%	Paid Off - 360	Nov-25-03
1095392 2			124,000.00	122,791.94	Nov-10-04	6.750%	CA - 80.00%	Paid Off - 360	Nov-20-03
1097826 2			92,800.00	92,226.75	Nov-01-04	9.500%	NJ - 80.00%	Paid Off - 360	Nov-14-03
1103677 2			31,000.00	30,563.16	Nov-10-04	10.550%	CA - 20.00%	Paid Off - 240	Nov-20-03
1105443 2			250,750.00	248,466.46	Nov-16-04	7.100%	CA - 85.00%	Paid Off - 360	Nov-17-03
1109933 2			346,500.00	343,047.69	Dec-07-04	6.650%	CA - 90.00%	Paid Off - 360	Nov-21-03
1118559 2			57,100.00	56,237.50	Nov-16-04	10.000%	CA - 19.98%	Paid Off - 240	Nov-12-03
1122771 2			304,000.00	301,172.11	Nov-24-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-14-03
1123001 2			76,000.00	74,928.95	Nov-24-04	10.550%	CA - 20.00%	Paid Off - 240	Nov-14-03
1128752 2			64,400.00	63,973.06	Nov-18-04	8.400%	IL - 70.00%	Paid Off - 360	Dec-17-03
1131026 2			250,000.00	247,995.06	Nov-10-04	7.750%	CA - 64.10%	Paid Off - 360	Nov-17-03
1138619 2			265,000.00	263,789.56	Nov-26-04	10.500%	IL - 57.61%	Paid Off - 360	Nov-19-03
1138799 2			122,000.00	120,962.20	Nov-03-04	7.450%	NJ - 64.21%	Paid Off - 360	Nov-12-03
1139088 2			49,555.00	49,242.65	Nov-26-04	8.950%	NY - 85.00%	Paid Off - 360	Nov-24-03
1143331 2			176,000.00	174,654.12	Nov-10-04	7.990%	RI - 80.00%	Paid Off - 360	Nov-12-03
1143641 2			68,000.00	66,743.42	Nov-11-04	8.450%	DC - 68.00%	Paid Off - 240	Nov-13-03
1147788 2			312,000.00	309,889.98	Dec-09-04	9.050%	CA - 80.00%	Paid Off - 360	Nov-14-03
1147832 2			345,000.00	340,972.74	Nov-17-04	5.800%	CA - 79.31%	Paid Off - 360	Nov-26-03
1148409 2			63,000.00	62,415.99	Nov-08-04	7.500%	ID - 76.83%	Paid Off - 360	Nov-04-03
1151812 2			249,990.00	247,664.44	Nov-30-04	6.990%	CA - 100.00%	Paid Off - 360	Nov-19-03
1154943 2			150,300.00	149,116.51	Nov-16-04	8.300%	NV - 90.00%	Paid Off - 360	Nov-04-03
1155476 2			144,000.00	143,079.36	Dec-15-04	8.900%	IL - 80.00%	Paid Off - 360	Nov-03-03
1157014 2			219,920.00	217,426.97	Nov-12-04	5.950%	CA - 80.00%	Paid Off - 360	Nov-19-03
1157770 2			220,875.00	218,877.83	Nov-17-04	7.600%	CA - 95.00%	Paid Off - 360	Nov-10-03
1157805 2			184,500.00	183,077.89	Nov-19-04	7.950%	CA - 75.00%	Paid Off - 360	Dec-30-03
1158345 2			399,000.00	398,984.57	Nov-30-04	5.125%	CA - 79.96%	Paid Off - 300	Nov-17-03
1160516 2			408,000.00	404,575.50	Dec-15-04	7.990%	CA - 80.00%	Paid Off - 360	Nov-10-03
1160711 2			42,000.00	41,365.59	Nov-08-04	10.000%	CA - 19.09%	Paid Off - 240	Nov-18-03
1163804 2			459,000.00	454,797.20	Nov-24-04	7.250%	CA - 100.00%	Paid Off - 360	Nov-07-03
1164291 2			105,600.00	104,617.57	Nov-17-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-10-03
1164381 2			26,400.00	26,003.63	Nov-17-04	10.050%	CA - 20.00%	Paid Off - 240	Nov-10-03
1165360 2			263,000.00	259,678.90	Nov-26-04	5.850%	CT - 71.08%	Paid Off - 360	Nov-04-03
1166153 2			258,300.00	255,965.10	Nov-17-04	7.600%	IL - 79.97%	Paid Off - 360	Nov-07-03
1166563 2			108,000.00	106,977.17	Nov-17-04	6.990%	CA - 90.00%	Paid Off - 360	Nov-20-03
1166688 2			244,000.00	241,728.03	Nov-02-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-21-03
1166908 2			183,500.00	182,028.42	Nov-12-04	7.750%	CA - 78.76%	Paid Off - 360	Nov-10-03
1169061 2			287,000.00	284,150.12	Nov-24-04	6.650%	FL - 86.97%	Paid Off - 360	Nov-12-03
1170148 2			243,000.00	240,912.66	Nov-03-04	7.400%	NJ - 86.79%	Paid Off - 360	Nov-18-03
1170979 2			165,000.00	163,582.60	Nov-09-04	7.400%	RI - 58.93%	Paid Off - 360	Nov-18-03
1171869 2			80,750.00	80,095.95	Nov-09-04	7.700%	FL - 85.00%	Paid Off - 360	Nov-10-03
1172219 2			52,000.00	51,204.55	Nov-30-04	9.900%	VT - 20.00%	Paid Off - 240	Nov-13-03
1172346 2			389,497.00	389,429.91	Dec-03-04	4.625%	CA - 85.00%	Paid Off - 300	Nov-18-03
1172962 2			32,000.00	31,519.13	Nov-01-04	10.050%	CA - 20.00%	Paid Off - 240	Nov-10-03
1173231 2			134,950.00	132,253.67	Nov-30-04	6.850%	CA - 89.97%	Paid Off - 360	Nov-14-03
1173829 2			43,000.00	42,370.95	Nov-08-04	10.550%	CA - 20.00%	Paid Off - 240	Nov-14-03
1177412 2			295,000.00	292,743.98	Nov-09-04	7.990%	WA - 79.73%	Paid Off - 360	Nov-17-03
1178039 2			359,010.00	355,920.50	Nov-16-04	7.850%	CA - 90.00%	Paid Off - 360	Nov-04-03
1179982 2			360,000.00	359,421.63	Dec-09-04	5.125%	CA - 80.00%	Paid Off - 300	Nov-07-03
1180070 2			430,900.00	425,381.40	Nov-10-04	6.290%	CA - 90.00%	Paid Off - 360	Nov-21-03
1180231 2			80,011.00	77,043.80	Nov-22-04	6.550%	CA - 51.62%	Paid Off - 180	Nov-13-03
1180268 2			280,000.00	277,754.53	Nov-01-04	7.750%	CA - 100.00%	Paid Off - 360	Nov-18-03

					Page 25 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

1181718 2			118,300.00	117,474.85	Nov-26-04	8.450%	MN - 65.00%	Paid Off - 360	Nov-18-03
1182082 2			460,000.00	456,693.46	Nov-10-04	8.300%	CA - 80.00%	Paid Off - 360	Nov-18-03
1182775 2			350,000.00	346,023.40	Nov-26-04	5.990%	CA - 70.00%	Paid Off - 360	Nov-26-03
1184383 2			370,500.00	367,301.72	Nov-30-04	7.375%	CA - 95.00%	Paid Off - 360	Nov-19-03
1185597 2			45,000.00	44,365.80	Nov-02-04	10.550%	CA - 20.00%	Paid Off - 240	Nov-19-03
1187258 2			115,500.00	114,814.32	Nov-02-04	9.250%	CA - 70.00%	Paid Off - 360	Nov-13-03
1188723 2			235,125.00	233,239.42	Nov-24-04	7.750%	CA - 95.00%	Paid Off - 360	Nov-14-03
1188935 2			328,250.00	325,507.76	Nov-24-04	7.550%	CA - 65.00%	Paid Off - 360	Nov-18-03
1189480 2			357,300.00	353,885.37	Nov-17-04	6.850%	CA - 90.00%	Paid Off - 360	Nov-12-03
1189523 2			35,000.00	34,829.65	Nov-24-04	10.200%	MI - 54.69%	Paid Off - 360	Nov-14-03
1189595 2			117,750.00	116,998.44	Nov-23-04	8.400%	MA - 75.00%	Paid Off - 360	Dec-04-03
1191369 2			245,000.00	242,936.17	Nov-05-04	7.500%	CA - 100.00%	Paid Off - 360	Nov-21-03
1191912 2			477,000.00	472,353.14	Dec-03-04	6.750%	CA - 90.00%	Paid Off - 360	Nov-18-03
1192607 2			200,000.00	198,442.95	Nov-30-04	7.900%	DC - 59.35%	Paid Off - 360	Nov-13-03
1192876 2			65,000.00	62,767.18	Nov-23-04	7.650%	AZ - 20.31%	Paid Off - 180	Nov-24-03
1192881 2			342,000.00	338,700.16	Nov-05-04	6.800%	NY - 90.00%	Paid Off - 360	Nov-26-03
1193817 2			285,600.00	283,146.64	Nov-22-04	7.400%	CA - 80.00%	Paid Off - 360	Nov-14-03
1194996 2			70,000.00	69,478.37	Nov-26-04	9.300%	TX - 70.00%	Paid Off - 360	Nov-17-03
1195267 2			78,300.00	77,759.34	Nov-30-04	8.500%	OH - 90.00%	Paid Off - 360	Nov-13-03
1197670 2			156,000.00	154,484.62	Nov-08-04	6.250%	CA - 80.00%	Paid Off - 360	Dec-18-03
1197704 2			39,000.00	38,466.59	Nov-08-04	10.000%	CA - 20.00%	Paid Off - 240	Dec-18-03
1197881 2			348,000.00	348,000.00	Nov-02-04	5.250%	CA - 80.00%	Paid Off - 300	Nov-24-03
1198795 2			165,000.00	163,753.19	Nov-19-04	8.050%	WA - 73.99%	Paid Off - 360	Nov-12-03
1199154 2			217,000.00	215,765.55	Nov-01-04	9.450%	FL - 70.00%	Paid Off - 360	Nov-19-03
1199420 2			68,500.00	68,110.34	Nov-11-04	9.450%	MI - 60.62%	Paid Off - 360	Nov-17-03
1200723 2			416,000.00	356,935.42	Nov-17-04	6.600%	FL - 80.00%	Paid Off - 360	Nov-21-03
1200757 2			270,000.00	267,517.28	Nov-08-04	7.050%	CA - 64.29%	Paid Off - 360	Nov-13-03
1202623 2			209,600.00	207,672.73	Nov-24-04	7.050%	WA - 80.00%	Paid Off - 360	Nov-26-03
1202660 2			160,200.00	158,709.79	Nov-30-04	6.990%	NV - 90.00%	Paid Off - 360	Nov-24-03
1203663 2			80,400.00	79,688.86	Nov-22-04	7.250%	WI - 80.00%	Paid Off - 360	Nov-26-03
1203676 2			20,100.00	19,805.70	Nov-22-04	10.250%	WI - 20.00%	Paid Off - 240	Nov-26-03
1203728 2			53,500.00	52,684.57	Nov-18-04	10.200%	CA - 20.00%	Paid Off - 240	Nov-25-03
1204720 2			116,000.00	114,373.44	Nov-10-04	9.800%	WA - 20.00%	Paid Off - 240	Dec-19-03
1204987 2			190,800.00	189,233.25	Nov-11-04	7.630%	CA - 90.00%	Paid Off - 360	Nov-25-03
1205741 2			181,000.00	179,400.24	Nov-04-04	7.500%	CA - 86.60%	Paid Off - 360	Dec-30-03
1206413 2			163,100.00	161,163.38	Nov-01-04	5.700%	CA - 70.00%	Paid Off - 360	Nov-25-03
1206451 2			172,500.00	171,170.33	Nov-23-04	7.950%	NY - 75.00%	Paid Off - 360	Nov-17-03
1206528 2			41,580.00	40,933.92	Nov-19-04	10.050%	CA - 20.00%	Paid Off - 240	Nov-12-03
1207275 2			97,600.00	96,757.38	Nov-23-04	7.400%	OR - 80.00%	Paid Off - 360	Nov-19-03
1207345 2			24,400.00	24,067.75	Nov-23-04	10.900%	OR - 20.00%	Paid Off - 240	Nov-19-03
1207939 2			117,600.00	116,600.64	Nov-16-04	6.950%	CA - 80.00%	Paid Off - 360	Dec-04-03
1208381 2			52,400.00	51,661.49	Nov-24-04	10.550%	WA - 20.00%	Paid Off - 240	Nov-26-03
1209247 2			54,800.00	53,960.10	Nov-16-04	9.900%	CA - 20.00%	Paid Off - 240	Nov-24-03
1209789 2			39,255.00	38,665.67	Nov-02-04	10.050%	AZ - 20.00%	Paid Off - 240	Nov-19-03
1210708 2			190,000.00	188,398.79	Nov-24-04	7.500%	NV - 100.00%	Paid Off - 360	Nov-18-03
1210884 2			37,000.00	36,440.37	Nov-05-04	9.990%	CA - 20.00%	Paid Off - 240	Nov-24-03
1211647 2			85,800.00	84,626.72	Nov-01-04	10.000%	CA - 20.00%	Paid Off - 240	Dec-15-03
1213047 2			148,975.00	147,345.34	Nov-23-04	6.300%	AZ - 80.00%	Paid Off - 360	Nov-24-03
1213067 2			37,240.00	36,643.85	Nov-19-04	9.800%	AZ - 20.00%	Paid Off - 240	Nov-24-03
1213968 2			296,000.00	294,263.28	Dec-01-04	9.300%	CA - 80.00%	Paid Off - 360	Nov-26-03
1214334 2			216,000.00	213,630.48	Nov-22-04	5.600%	CA - 80.00%	Paid Off - 360	Dec-18-03
1214807 2			114,000.00	113,094.90	Nov-18-04	7.300%	CT - 64.04%	Paid Off - 360	Dec-11-03

					Page 26 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

1218110 2			30,980.00	30,545.51	Nov-11-04	9.800%	CA - 20.00%	Paid Off - 240	Dec-31-03
1218912 2			100,000.00	96,160.25	Nov-05-04	6.150%	FL - 79.05%	Paid Off - 180	Dec-16-03
1219939 2			48,000.00	47,747.59	Nov-05-04	9.350%	OK - 69.57%	Paid Off - 360	Dec-12-03
1221941 2			127,500.00	127,500.00	Nov-09-04	4.750%	HI - 85.00%	Paid Off - 300	Nov-20-03
1222036 2			284,750.00	282,231.33	Nov-12-04	7.250%	HI - 85.00%	Paid Off - 360	Dec-05-03
1222357 2			217,000.00	214,911.97	Nov-22-04	7.250%	NV - 100.00%	Paid Off - 360	Dec-02-03
1223182 2			67,980.00	67,073.59	Nov-29-04	10.200%	DE - 20.00%	Paid Off - 240	Dec-03-03
1223825 2			400,000.00	395,818.64	Dec-02-04	6.800%	NY - 88.89%	Paid Off - 360	Nov-26-03
1229985 2			179,000.00	177,289.32	Nov-23-04	6.850%	UT - 76.50%	Paid Off - 360	Nov-26-03
1232513 2			160,000.00	158,493.49	Nov-16-04	7.800%	MA - 76.19%	Paid Off - 360	Dec-30-03
1232689 2			170,000.00	167,318.59	Nov-04-04	6.100%	CA - 85.00%	Paid Off - 360	Dec-09-03
1232929 2			58,000.00	57,283.47	Nov-18-04	10.800%	CA - 20.00%	Paid Off - 240	Dec-16-03
1233124 2			205,000.00	205,000.00	Nov-10-04	5.250%	KY - 88.36%	Paid Off - 300	Dec-29-03
1233323 2		FCL	138,550.00	137,288.10	Dec-01-04	7.100%	WA - 85.00%	Paid Off - 360	Nov-26-03
1233733 2			63,400.00	62,380.58	Nov-29-04	9.500%	CA - 20.00%	Paid Off - 240	Nov-25-03
1234921 2			43,000.00	42,343.66	Nov-18-04	10.200%	CA - 20.00%	Paid Off - 240	Nov-26-03
1236717 2			190,000.00	188,673.02	Nov-24-04	7.950%	RI - 100.00%	Paid Off - 360	Dec-11-03
1236918 2			322,915.00	320,425.86	Nov-19-04	7.950%	VA - 85.00%	Paid Off - 360	Dec-02-03
1238505 2			211,500.00	209,963.03	Nov-01-04	7.750%	CA - 90.00%	Paid Off - 360	Jan-05-04
1239868 2			494,000.00	489,879.36	Nov-02-04	7.550%	CA - 95.00%	Paid Off - 360	Dec-03-03
1240749 2			140,000.00	138,397.95	Nov-04-04	5.950%	NJ - 58.33%	Paid Off - 360	Nov-26-03
1241104 2			29,300.00	28,889.15	Nov-22-04	9.800%	CO - 19.95%	Paid Off - 240	Dec-09-03
1241763 2			85,000.00	83,915.91	Nov-10-04	10.550%	CA - 20.00%	Paid Off - 240	Dec-30-03
1242284 2			45,332.00	44,753.83	Nov-30-04	10.550%	FL - 20.00%	Paid Off - 240	Dec-12-03
1242347 2			399,500.00	395,035.92	Nov-22-04	5.500%	CA - 85.00%	Paid Off - 360	Dec-09-03
1243273 2			72,390.00	71,406.35	Nov-19-04	10.050%	VA - 20.00%	Paid Off - 240	Dec-09-03
1247657 2			150,000.00	149,188.35	Nov-26-04	9.500%	NJ - 51.72%	Paid Off - 360	Dec-18-03
1248398 2			84,600.00	83,966.76	Nov-02-04	7.600%	OH - 90.00%	Paid Off - 360	Dec-30-03
1249870 2			110,000.00	109,289.93	Nov-01-04	8.350%	MA - 32.84%	Paid Off - 360	Dec-31-03
1254735 2			94,400.00	93,831.68	Nov-16-04	8.700%	CA - 80.00%	Paid Off - 360	Dec-31-03
1255065 2			220,500.00	217,308.21	Nov-23-04	5.900%	MA - 73.01%	Paid Off - 360	Dec-19-03
1255129 2			290,000.00	287,312.11	Nov-24-04	6.500%	CA - 100.00%	Paid Off - 360	Dec-31-03
1255480 2			94,500.00	93,846.53	Nov-30-04	8.000%	TN - 90.00%	Paid Off - 360	Dec-16-03
1258993 2			164,000.00	162,708.35	Nov-24-04	7.350%	CA - 84.97%	Paid Off - 360	Dec-31-03
1262856 2			108,550.00	107,489.25	Nov-30-04	6.400%	CA - 74.86%	Paid Off - 360	Dec-24-03
1265171 2			262,000.00	259,940.27	Nov-03-04	7.350%	CA - 58.22%	Paid Off - 360	Dec-22-03
1265730 2			73,900.00	73,330.59	Nov-02-04	6.950%	FL - 77.79%	Paid Off - 360	Jan-05-04
1266397 2			67,000.00	65,993.02	Nov-11-04	9.250%	CA - 20.00%	Paid Off - 240	Dec-18-03
1267473 2			38,000.00	37,493.32	Nov-24-04	10.200%	MD - 20.00%	Paid Off - 240	Dec-12-03
1268071 2			275,500.00	273,669.55	Nov-02-04	8.200%	MD - 86.91%	Paid Off - 360	Dec-31-03
1269935 2			333,000.00	330,556.16	Nov-30-04	7.700%	CA - 84.30%	Paid Off - 360	Dec-29-03
1272694 2			262,601.00	259,832.94	Nov-16-04	5.950%	CA - 69.11%	Paid Off - 360	Dec-31-03
1275708 2			270,000.00	268,071.24	Nov-01-04	7.850%	CT - 90.00%	Paid Off - 360	Dec-31-03
1277867 2			228,000.00	226,077.54	Nov-05-04	6.990%	CA - 95.00%	Paid Off - 360	Dec-31-03
1283167 2			205,000.00	203,465.51	Nov-05-04	7.600%	CA - 89.13%	Paid Off - 360	Jan-02-04
1283348 2			175,750.00	174,197.85	Nov-16-04	6.750%	CA - 95.00%	Paid Off - 360	Dec-31-03
1285694 2			140,000.00	138,992.94	Nov-18-04	7.250%	CA - 80.00%	Paid Off - 360	Jan-30-04
1291045 2			43,125.00	42,488.43	Dec-15-04	9.400%	CA - 15.00%	Paid Off - 240	Jan-12-04
1296045 2			57,600.00	56,818.92	Nov-26-04	9.200%	CA - 20.00%	Paid Off - 240	Jan-05-04
1303160 2			410,000.00	406,750.48	Nov-19-04	6.750%	CA - 89.13%	Paid Off - 360	Jan-30-04
6226493 2			150,000.00	148,532.83	Nov-09-04	6.750%	CA - 73.17%	Paid Off - 360	Nov-26-03
6611621 2		FCL	204,000.00	202,821.83	Nov-01-04	9.388%	CO - 75.00%	Paid Off - 360	Dec-02-03

					Page 27 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

6830706 2			84,000.00	83,513.67	Nov-23-04	9.750%	TX - 80.00%	Paid Off - 360	Nov-14-03
6830862 2			70,763.00	70,201.02	Nov-30-04	7.800%	TX - 73.71%	Paid Off - 360	Nov-17-03
6832415 2			240,000.00	237,305.74	Dec-13-04	5.475%	NY - 78.43%	Paid Off - 360	Dec-10-03
6895484 2			62,000.00	61,668.52	Nov-10-04	9.750%	MN - 63.92%	Paid Off - 360	Dec-04-03
6934005 2			120,000.00	119,403.67	Nov-19-04	10.100%	NJ - 80.00%	Paid Off - 360	Nov-14-03
6939058 2			129,500.00	128,460.82	Nov-15-04	9.000%	NY - 70.00%	Paid Off - 360	Nov-05-03
6962327 2			75,000.00	74,609.27	Nov-08-04	9.880%	FL - 75.00%	Paid Off - 360	Dec-02-03
6963676 2			372,000.00	368,656.67	Nov-04-04	7.250%	NY - 72.23%	Paid Off - 360	Nov-10-03
6968678 2			90,000.00	89,495.31	Nov-26-04	9.525%	TX - 73.17%	Paid Off - 360	Nov-19-03
6972896 2			220,000.00	216,969.27	Nov-17-04	5.650%	CA - 54.32%	Paid Off - 360	Nov-05-03
6979297 2			451,250.00	445,788.41	Nov-17-04	6.250%	CA - 95.00%	Paid Off - 360	Nov-04-03
6981437 2			211,700.00	209,209.52	Nov-24-04	5.750%	NV - 73.00%	Paid Off - 360	Dec-04-03
6981747 2			103,000.00	102,206.09	Nov-26-04	7.950%	OH - 82.40%	Paid Off - 360	Dec-02-03
6987850 2			141,136.00	140,056.66	Nov-18-04	7.990%	CA - 80.00%	Paid Off - 360	Dec-01-03
6990797 2			122,400.00	121,418.13	Nov-03-04	7.750%	FL - 85.00%	Paid Off - 360	Nov-14-03
7018185 2			124,000.00	123,052.56	Nov-03-04	8.250%	FL - 80.00%	Paid Off - 360	Nov-17-03
7025971 2			75,100.00	74,373.52	Nov-18-04	6.787%	CA - 89.40%	Paid Off - 360	Nov-26-03
7031688 2			240,000.00	237,097.21	Nov-10-04	5.600%	CA - 55.81%	Paid Off - 360	Nov-17-03
7044518 2			141,000.00	139,566.71	Nov-30-04	7.100%	CA - 74.60%	Paid Off - 360	Nov-17-03
7047479 2			58,500.00	57,992.55	Nov-16-04	7.350%	MO - 77.38%	Paid Off - 360	Nov-18-03
7055323 2			400,000.00	396,855.09	Nov-08-04	7.850%	CA - 89.89%	Paid Off - 360	Nov-24-03
7058446 2			150,000.00	148,742.65	Nov-12-04	7.525%	NV - 80.00%	Paid Off - 360	Nov-13-03
7058764 2			403,750.00	399,608.91	Nov-01-04	6.950%	CA - 85.00%	Paid Off - 360	Nov-10-03
7063040 2			200,000.00	197,999.90	Nov-02-04	7.100%	FL - 77.82%	Paid Off - 360	Nov-06-03
7063512 2			87,100.00	86,653.39	Nov-18-04	9.950%	IL - 67.00%	Paid Off - 360	Dec-01-03
7069359 2			358,500.00	354,097.57	Nov-30-04	6.000%	CA - 75.00%	Paid Off - 360	Nov-05-03
7081413 2			115,920.00	114,535.87	Nov-16-04	6.150%	FL - 80.00%	Paid Off - 360	Nov-05-03
7105746 2			352,000.00	349,336.39	Nov-26-04	8.500%	CA - 75.70%	Paid Off - 360	Nov-04-03
7113897 2			276,800.00	274,491.01	Nov-30-04	7.550%	CA - 80.00%	Paid Off - 360	Nov-17-03
7121733 2			69,700.00	69,348.13	Nov-17-04	10.025%	GA - 85.00%	Paid Off - 360	Nov-19-03
7125496 2			189,000.00	187,528.58	Nov-01-04	7.900%	CA - 90.00%	Paid Off - 360	Dec-03-03
7125801 2			161,100.00	159,614.87	Nov-30-04	7.500%	CA - 90.00%	Paid Off - 360	Nov-17-03
7138261 2			340,000.00	335,800.38	Nov-12-04	6.000%	CA - 80.00%	Paid Off - 360	Nov-05-03
7164297 2			172,499.00	170,736.31	Nov-30-04	6.500%	FL - 80.00%	Paid Off - 360	Nov-18-03
7178689 2			312,000.00	308,901.81	Nov-03-04	6.650%	CA - 80.00%	Paid Off - 360	Nov-21-03
7198787 2			304,000.00	300,567.27	Nov-18-04	5.970%	NY - 80.00%	Paid Off - 360	Nov-14-03
7391005 2			500,000.00	496,547.50	Nov-01-04	8.500%	NJ - 79.37%	Paid Off - 360	Dec-02-03
7397402 2			396,000.00	392,855.54	Nov-17-04	7.800%	FL - 90.00%	Paid Off - 360	Dec-02-03
7400446 2			100,815.00	99,823.40	Nov-26-04	6.700%	FL - 68.12%	Paid Off - 360	Dec-02-03
7413742 2			126,400.00	125,190.24	Nov-04-04	6.850%	FL - 80.00%	Paid Off - 360	Nov-18-03
7429460 2			180,000.00	178,739.94	Nov-16-04	8.500%	CA - 90.00%	Paid Off - 360	Nov-21-03
7438532 2			111,000.00	109,407.45	Nov-05-04	6.500%	CA - 79.29%	Paid Off - 360	Nov-24-03
7593066 2			67,550.00	67,253.89	Nov-19-04	9.700%	TN - 70.00%	Paid Off - 360	Jan-21-04
8660026 2			162,000.00	160,635.34	Nov-23-04	6.500%	CA - 90.00%	Paid Off - 360	Jan-16-04
8690952 2			243,750.00	241,517.73	Nov-17-04	5.990%	CA - 75.00%	Paid Off - 360	Jan-20-04
8694443 2			106,000.00	105,530.47	Nov-17-04	9.650%	IL - 28.27%	Paid Off - 360	Jan-29-04
307085948 2			55,200.00	54,588.44	Dec-01-04	7.750%	TN - 80.00%	Paid Off - 360	Jul-31-03
308081435 2			144,500.00	143,231.70	Dec-01-04	7.750%	CA - 85.00%	Paid Off - 360	Oct-16-03
308158027 2			285,000.00	281,738.18	Dec-01-04	6.375%	CA - 75.00%	Paid Off - 360	Oct-23-03
308298882 2			118,800.00	117,414.22	Dec-01-04	6.990%	FL - 90.00%	Paid Off - 360	Sep-24-03
309042991 2			127,800.00	126,790.12	Dec-01-04	8.299%	CA - 90.00%	Paid Off - 360	Oct-30-03
309250813 2			190,000.00	188,066.23	Dec-01-04	6.990%	CA - 69.09%	Paid Off - 360	Oct-23-03

					Page 28 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for December 27, 2004 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

310025398 2			374,250.00	369,966.64	Dec-01-04	6.375%	CA - 83.17%	Paid Off - 360	Oct-30-03
310036727 2			140,000.00	138,625.35	Dec-01-04	7.200%	CA - 82.35%	Paid Off - 360	Oct-22-03
310078401 2			91,800.00	91,103.98	Dec-01-04	8.499%	OH - 90.00%	Paid Off - 360	Oct-24-03
310089955 2			443,500.00	439,787.74	Dec-01-04	7.990%	CA - 74.29%	Paid Off - 360	Oct-31-03
310102178 2			343,200.00	340,030.01	Dec-01-04	7.490%	NY - 80.00%	Paid Off - 360	Oct-24-03
310167242 2			352,750.00	349,442.88	Dec-01-04	6.999%	NV - 85.00%	Paid Off - 360	Nov-14-03
310168024 2			140,000.00	138,575.04	Dec-01-04	6.990%	CA - 60.87%	Paid Off - 360	Oct-31-03
310211462 2			399,500.00	395,006.67	Dec-01-04	6.750%	CA - 85.00%	Paid Off - 360	Oct-31-03
310278074 2			365,500.00	362,911.92	Dec-01-04	8.375%	PA - 85.00%	Paid Off - 360	Nov-26-03
310299532 2			68,000.00	65,409.81	Dec-01-04	7.259%	OH - 71.58%	Paid Off - 180	Nov-24-03
311255120 2			296,910.00	293,988.66	Dec-01-04	6.990%	CA - 90.00%	Paid Off - 360	Dec-17-03


					Page 29 of 35				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Realized Loss Report for December 27, 2004 Distribution


	Realized Loss Report - Collateral

Morgan Stanley ABS Capital I Inc. Trust 2004-HE2 8-K