Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

External Parties

Table of Contents

Page

Seller

Morgan Stanley

1. Certificate Payment Report

2. Collection Account Report

Servicer(s)

3. Credit Enhancement Report

Wells Fargo

4. Collateral Report

5. Delinquency Report

Underwriter(s)

6. REO Report

Morgan Stanley & Co. Inc

7. Foreclosure Report

8. Prepayment Report

9. Prepayment Detail Report

10. Realized Loss Report

11. Realized Loss Detail Report

12. Triggers and Adj. Cert. Report

13. Additional Certificate Report

14. Other Related Information

Total Number of Pages

Dates

Contacts

Cut-Off Date:

March 01, 2006

Eiko Akiyama

Close Date:

March 30, 2006

Administrator

First Distribution Date:

April 25, 2006

(714) 247-6328

Eiko.Akiyama@db.com

Address:

Distribution Date:

May 25, 2006

1761 East St. Andrew Place, Santa Ana, CA 92705

Record Date:

April 28, 2006

Factor Information:

(800) 735-7777

May 24, 2006

Main Phone Number:

(714) 247-6000

Determination Date:

May 18, 2006

https://www.tss.db.com/invr

Page 1 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Certificate Payment Report
Current Period Distribution - REMIC UT
				Prior						Current
	Class		Original	Principal			Total	Realized	Deferred	Principal

Class	Type	Cur	Face Value	Balance	Interest	Principal	Distribution	Loss	Interest	Balance

				(1)	(2)	(3)	(4)=(2)+(3)	(5)	(6)	(7)=(1)-(3)-(5)+(6)

A-1	STEP	$	430,640,000.00	420,581,644.32	1,801,274.08	12,696,041.92	14,497,316.00	0.00	0.00	407,885,602.40

A-2A	STEP	$	352,800,000.00	340,363,023.01	1,426,512.48	17,594,687.24	19,021,199.72	0.00	0.00	322,768,335.77
A-2B	STEP	$	102,230,000.00	102,230,000.00	432,720.85	0.00	432,720.85	0.00	0.00	102,230,000.00
A-2C	STEP	$	156,030,000.00	156,030,000.00	668,247.88	0.00	668,247.88	0.00	0.00	156,030,000.00
A-2D	STEP	$	100,004,000.00	100,004,000.00	437,465.83	0.00	437,465.83	0.00	0.00	100,004,000.00
M-1	SUB	$	53,961,000.00	53,961,000.00	239,199.22	0.00	239,199.22	0.00	0.00	53,961,000.00
M-2	SUB	$	41,181,000.00	41,181,000.00	183,234.17	0.00	183,234.17	0.00	0.00	41,181,000.00
M-3	SUB	$	24,851,000.00	24,851,000.00	110,781.20	0.00	110,781.20	0.00	0.00	24,851,000.00
M-4	SUB	$	22,010,000.00	22,010,000.00	100,317.54	0.00	100,317.54	0.00	0.00	22,010,000.00
M-5	SUB	$	22,010,000.00	22,010,000.00	100,684.38	0.00	100,684.38	0.00	0.00	22,010,000.00
M-6	SUB	$	19,880,000.00	19,880,000.00	92,100.40	0.00	92,100.40	0.00	0.00	19,880,000.00
B-1	SUB	$	19,880,000.00	19,880,000.00	101,212.06	0.00	101,212.06	0.00	0.00	19,880,000.00
B-2	SUB	$	15,620,000.00	15,620,000.00	82,777.93	0.00	82,777.93	0.00	0.00	15,620,000.00
B-3	SUB	$	14,200,000.00	14,200,000.00	85,311.00	0.00	85,311.00	0.00	0.00	14,200,000.00
X	SUB	$	44,733,872.00	44,730,972.46	2,625,772.46	0.00	2,625,772.46	0.00	0.00	44,730,972.46
P	SUB	$	0.00	0.00	424,604.07	0.00	424,604.07	0.00	0.00	0.00
R	SUB	$	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Total			1,420,030,872.00	1,397,532,639.79	8,912,215.55	30,290,729.16	39,202,944.71	0.00	0.00	1,367,241,910.63





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)	(1)	(2)	(3)	(4)=(2)+(3)	(5)

A-1	04/25/06		05/24/06	A-Act/360	617451EB1	430,640,000.00	976.643239	4.182784	29.481799	33.664583	947.161440

A-2A	04/25/06		05/24/06	A-Act/360	617451EC9	352,800,000.00	964.747798	4.043403	49.871562	53.914965	914.876235
A-2B	04/25/06		05/24/06	A-Act/360	617451ED7	102,230,000.00	1,000.000000	4.232817	0.000000	4.232817	1,000.000000
A-2C	04/25/06		05/24/06	A-Act/360	617451EE5	156,030,000.00	1,000.000000	4.282817	0.000000	4.282817	1,000.000000
A-2D	04/25/06		05/24/06	A-Act/360	617451EF2	100,004,000.00	1,000.000000	4.374483	0.000000	4.374483	1,000.000000
M-1	04/25/06		05/24/06	A-Act/360	617451EG0	53,961,000.00	1,000.000000	4.432817	0.000000	4.432817	1,000.000000
M-2	04/25/06		05/24/06	A-Act/360	617451EH8	41,181,000.00	1,000.000000	4.449483	0.000000	4.449483	1,000.000000
M-3	04/25/06		05/24/06	A-Act/360	617451EJ4	24,851,000.00	1,000.000000	4.457817	0.000000	4.457817	1,000.000000
M-4	04/25/06		05/24/06	A-Act/360	617451EK1	22,010,000.00	1,000.000000	4.557816	0.000000	4.557816	1,000.000000
M-5	04/25/06		05/24/06	A-Act/360	617451EL9	22,010,000.00	1,000.000000	4.574483	0.000000	4.574483	1,000.000000
M-6	04/25/06		05/24/06	A-Act/360	617451EM7	19,880,000.00	1,000.000000	4.632817	0.000000	4.632817	1,000.000000
B-1	04/25/06		05/24/06	A-Act/360	617451EN5	19,880,000.00	1,000.000000	5.091150	0.000000	5.091150	1,000.000000
B-2	04/25/06		05/24/06	A-Act/360	617451EP0	15,620,000.00	1,000.000000	5.299483	0.000000	5.299483	1,000.000000
B-3	04/25/06		05/24/06	A-Act/360	617451EQ8	14,200,000.00	1,000.000000	6.007817	0.000000	6.007817	1,000.000000
X	04/25/06		05/24/06	A-Act/360		44,733,872.00	999.935182	58.697634	0.000000	58.697634	999.935182
P	04/25/06		05/24/06	A-30/360		0.00	0.000000	0.000000	0.000000	0.000000	0.000000
R	04/25/06		05/24/06	A-30/360		0.00	0.000000	0.000000	0.000000	0.000000	0.000000



Page 2 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution


Distribution to Date - REMIC UT
									Current


	Original		Unscheduled	Scheduled	Total	Total	Realized	Deferred	Principal

Class	Face Value	Interest	Principal	Principal	Principal	Distribution	Loss	Interest	Balance
	(1)	(2)	(3)	(4)	(5)=(3)+(4)	(6)=(2)+(5)	(7)	(8)	(9)=(1)-(5)-(7)+(8)
A-1	430,640,000.00	3,357,140.51	22,078,602.77	675,794.83	22,754,397.60	26,111,538.11	0.00	0.00	407,885,602.40
A-2A	352,800,000.00	2,673,121.48	29,147,570.94	884,093.28	30,031,664.23	32,704,785.71	0.00	0.00	322,768,335.77
A-2B	102,230,000.00	797,639.35	0.00	0.00	0.00	797,639.35	0.00	0.00	102,230,000.00
A-2C	156,030,000.00	1,231,971.27	0.00	0.00	0.00	1,231,971.27	0.00	0.00	156,030,000.00
A-2D	100,004,000.00	806,716.71	0.00	0.00	0.00	806,716.71	0.00	0.00	100,004,000.00
M-1	53,961,000.00	441,170.75	0.00	0.00	0.00	441,170.75	0.00	0.00	53,961,000.00
M-2	41,181,000.00	337,966.06	0.00	0.00	0.00	337,966.06	0.00	0.00	41,181,000.00
M-3	24,851,000.00	204,334.86	0.00	0.00	0.00	204,334.86	0.00	0.00	24,851,000.00
M-4	22,010,000.00	185,083.55	0.00	0.00	0.00	185,083.55	0.00	0.00	22,010,000.00
M-5	22,010,000.00	185,768.31	0.00	0.00	0.00	185,768.31	0.00	0.00	22,010,000.00
M-6	19,880,000.00	169,955.45	0.00	0.00	0.00	169,955.45	0.00	0.00	19,880,000.00
B-1	19,880,000.00	186,963.89	0.00	0.00	0.00	186,963.89	0.00	0.00	19,880,000.00
B-2	15,620,000.00	152,974.64	0.00	0.00	0.00	152,974.64	0.00	0.00	15,620,000.00
B-3	14,200,000.00	157,843.42	0.00	0.00	0.00	157,843.42	0.00	0.00	14,200,000.00
X	44,733,872.00	6,293,799.97	2,798.31	101.23	2,899.54	6,296,699.51	0.00	0.00	44,730,972.46
P	0.00	699,692.75	0.00	0.00	0.00	699,692.75	0.00	0.00	0.00
R	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00


Total	1,420,030,872.00	17,882,142.97	51,228,972.02	1,559,989.34	52,788,961.37	70,671,104.34	0.00	0.00	1,367,241,910.63


Interest Detail - REMIC UT
	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	Adjustment	Interest	Interest	Interest
			(1)	(2)	(3)	(4)	(5)=(1)-(2)+(3)+(4)	(6)	(7)=(5)-(6)
A-1	5.13938%	420,581,644.32	1,801,274.08	0.00	0.00	0.00	1,801,274.08	1,801,274.08	0.00
A-2A	5.02938%	340,363,023.01	1,426,512.48	0.00	0.00	0.00	1,426,512.48	1,426,512.48	0.00
A-2B	5.07938%	102,230,000.00	432,720.85	0.00	0.00	0.00	432,720.85	432,720.85	0.00
A-2C	5.13938%	156,030,000.00	668,247.88	0.00	0.00	0.00	668,247.88	668,247.88	0.00
A-2D	5.24938%	100,004,000.00	437,465.83	0.00	0.00	0.00	437,465.83	437,465.83	0.00
M-1	5.31938%	53,961,000.00	239,199.22	0.00	0.00	0.00	239,199.22	239,199.22	0.00
M-2	5.33938%	41,181,000.00	183,234.17	0.00	0.00	0.00	183,234.17	183,234.17	0.00
M-3	5.34938%	24,851,000.00	110,781.20	0.00	0.00	0.00	110,781.20	110,781.20	0.00
M-4	5.46938%	22,010,000.00	100,317.54	0.00	0.00	0.00	100,317.54	100,317.54	0.00
M-5	5.48938%	22,010,000.00	100,684.38	0.00	0.00	0.00	100,684.38	100,684.38	0.00
M-6	5.55938%	19,880,000.00	92,100.40	0.00	0.00	0.00	92,100.40	92,100.40	0.00
B-1	6.10938%	19,880,000.00	101,212.06	0.00	0.00	0.00	101,212.06	101,212.06	0.00
B-2	6.35938%	15,620,000.00	82,777.93	0.00	0.00	0.00	82,777.93	82,777.93	0.00
B-3	7.20938%	14,200,000.00	85,311.00	0.00	0.00	0.00	85,311.00	85,311.00	0.00
X	70.44173%	44,730,972.46	0.00	0.00	0.00	0.00	0.00	2,625,772.46	0.00
P	0.00000%	0.00	0.00	0.00	0.00	0.00	0.00	424,604.07	0.00
R	0.00000%	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Total		1,397,532,639.79	5,861,839.02	0.00	0.00	0.00	5,861,839.02	8,912,215.55	0.00



Page 3 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution

Collection Account Report
SUMMARY

	Group 2	Group 1	Total
Principal Collections	17,594,687.24	12,696,041.92	30,290,729.16
Principal Withrawals	0.00	0.00	0.00
Principal Other Accounts	0.00	0.00	0.00
TOTAL NET PRINCIPAL	17,594,687.24	12,696,041.92	30,290,729.16
Interest Collections	5,325,199.01	3,232,470.57	8,557,669.57
Interest Withdrawals	-0.00	-0.00	-0.00
Interest Other Accounts	176,470.92	248,133.15	380,457.51
Interest Fees	-15,176.65	-10,734.88	-25,911.53
TOTAL NET INTEREST	5,486,493.27	3,469,868.84	8,912,215.55
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION	23,081,180.51	16,165,910.76	39,202,944.71




PRINCIPAL - COLLECTIONS

	Group 2	Group 1	Total
Scheduled Principal Received	488,257.01	286,240.63	774,497.64
Prepayments In Full	16,808,259.32	12,375,298.76	29,183,558.08
Curtailments	91,669.80	34,502.53	126,172.33
Liquidations	0.00	0.00	0.00
Insurance Principal	0.00	0.00	0.00
Repurchased Principal Amounts	206,501.11	0.00	206,501.11
Other Principal	0.00	0.00	0.00
Total Realized Loss Of Principal	-0.00	-0.00	-0.00
Delinquent Principal	-480,527.03	-279,486.67	-760,013.70
Advanced Principal	480,527.03	279,486.67	760,013.70
TOTAL PRINCIPAL COLLECTED	17,594,687.24	12,696,041.92	30,290,729.16




PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK




PRINCIPAL - OTHER ACCOUNTS

	Group 2	Group 1	Total
Closing Deposit	0.00	0.00	0.00
TOTAL OTHER ACCOUNTS PRINCIPAL	0.00	0.00	0.00






Page 4 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution


INTEREST - COLLECTIONS

	Group 2	Group 1	Total
Scheduled Interest	5,674,481.11	3,442,121.58	9,116,602.69
Liquidation Interest	0.00	0.00	0.00
Repurchased Interest	1,187.38	0.00	1,187.38
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
Prepayment Interest Shortfalls	-16,988.07	-10,968.16	-27,956.23
Compensating Interest	16,988.07	10,968.15	27,956.23
Delinquent Interest	-5,466,409.86	-3,296,249.28	-8,762,659.14
Interest Advanced	5,115,940.38	3,086,598.27	8,202,538.65
TOTAL INTEREST COLLECTED	5,325,199.01	3,232,470.57	8,557,669.57




INTEREST - WITHDRAWALS

	Group 2	Group 1	Total
Nonrecoverable Advances	0.00	0.00	0.00
Interest Losses	0.00	0.00	0.00
TOTAL INTEREST WITHDRAWALS	0.00	0.00	0.00




INTEREST - OTHER ACCOUNTS

	Group 2	Group 1	Total
Prepayment Charges	176,470.92	248,133.15	424,604.07
Interest Rate Swap Receipt			5,389,944.73
Interest Rate Swap Payment			-5,434,091.29
Swap Termination Payments			0.00
Defaulted Swap Termination Payments			0.00
TOTAL INTEREST OTHER ACCOUNTS	176,470.92	248,133.15	380,457.51
Net Swap Payment			-44,146.56




INTEREST - FEES

	Group 2	Group 1	Total
Current Servicing Fees	12,851.40	9,333.39	22,184.79
Current Trustee Fees	2,325.25	1,401.50	3,726.75
Custodian Fees			0.00
TOTAL INTEREST OTHER FEES	15,176.65	10,734.88	25,911.53



Page 5 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Credit Enhancement Report

ACCOUNTS

Reserve Account

Beginning Balance

0.00

Fund Deposits

0.00

Fees & Expenses

0.00

Fund Withdrawals

0.00

EndingAccount Balance

0.00

SWAP ACCOUNT

Beginning Balance

0.00

Fund Deposits

-44,146.56

Fees & Expenses

0.00

Fund Withdrawals

-44,146.56

EndingAccount Balance

0.00

INSURANCE

SPACE INTENTIONALLY LEFT BLANK

STRUCTURAL FEATURES

Group 2

Group 1

Total

Specified Subordinated Target Amount

44,730,972.46

Subordinated Amount

44,730,972.46

Subordinated Deficiency Amount

0.00

Subordinated Release Amount

0.00

Monthly Exess Spread

2,625,772.46

Page 6 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution

Collateral Report


COLLATERAL




		Group 2		Group 1		Total



Loan Count:


Original	4,608		2,920		7,528
Prior	4,558		2,877		7,435
Prefunding	0		0		0
Scheduled Paid Offs	-0		-0		-0
Full Voluntary Prepayments	-82		-57		-139
Repurchases	-1		-0		-1
Liquidations	-0		-0		-0
Current	4,475		2,820		7,295
Principal Balance:


Original	884,408,180.67		535,621,047.09		1,420,029,227.76
Prior	871,970,114.92		525,562,524.87		1,397,532,639.79
Prefunding	0.00		0.00		0.00
Scheduled Principal	-488,257.01		-286,240.63		-774,497.64
Partial Prepayments	-91,669.80		-34,502.53		-126,172.33
Full Voluntary Prepayments	-16,808,259.32		-12,375,298.76		-29,183,558.08
Repurchases	-206,501.11		-0.00		-206,501.11
Liquidations	-0.00		-0.00		-0.00
Current	854,375,427.68		512,866,482.95		1,367,241,910.63





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK

Page 7 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution


CHARACTERISTICS
CHARACTERISTICS

	Group 2	Group 1	Total
Weighted Average Coupon Original	7.82300%	7.86409%	7.83850%
Weighted Average Coupon Prior	7.82300%	7.86409%	7.83850%
Weighted Average Coupon Current	7.81082%	7.85897%	7.82893%
Weighted Average Months to Maturity Original	354	354	354
Weighted Average Months to Maturity Prior	354	354	354
Weighted Average Months to Maturity Current	353	353	353
Weighted Avg Remaining Amortization Term Original	379	383	381
Weighted Avg Remaining Amortization Term Prior	379	383	381
Weighted Avg Remaining Amortization Term Current	378	382	380
Weighted Average Seasoning Original	4.24	4.21	4.23
Weighted Average Seasoning Prior	4.24	4.21	4.23
Weighted Average Seasoning Current	5.24	5.20	5.23

Page 8 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution


ARM CHARACTERISTICS
ARM CHARACTERISTICS

				Group 2		Group 1		Total
	Weighted Average Margin Original			6.09579%		6.12428%		6.10671%
	Weighted Average Margin Prior			6.09579%		6.12428%		6.10671%
	Weighted Average Margin Current			6.09415%		6.12475%		6.10585%
	Weighted Average Max Rate Original			14.76229%		14.91907%		14.82237%
	Weighted Average Max Rate Prior			14.76229%		14.91907%		14.82237%
	Weighted Average Max Rate Current			14.74958%		14.91167%		14.81155%
	Weighted Average Min Rate Original			7.76574%		7.92838%		7.82807%
	Weighted Average Min Rate Prior			7.76574%		7.92838%		7.82807%
	Weighted Average Min Rate Current			7.75266%		7.92117%		7.81709%
	Weighted Average Cap Up Original			1.49845%		1.49750%		1.49809%
	Weighted Average Cap Up Prior			1.49845%		1.49750%		1.49809%
	Weighted Average Cap Up Current			1.49864%		1.49745%		1.49819%
	Weighted Average Cap Down Original			1.49845%		1.49750%		1.49809%
	Weighted Average Cap Down Prior			1.49845%		1.49750%		1.49809%
	Weighted Average Cap Down Current			1.49864%		1.49745%		1.49819%




SERVICING FEES & ADVANCES
SERVICING FEES & ADVANCES

				Group 2		Group 1		Total




Current Servicing Fees			12,851.40		9,333.39		22,184.79
Delinquent Servicing Fees			350,469.48		209,651.01		560,120.49
TOTAL SERVICING FEES			363,320.89		218,984.39		582,305.28


Compensating Interest			-16,988.07		-10,968.15		-27,956.23
Delinquent Servicing Fees			-350,469.48		-209,651.01		-560,120.49
COLLECTED SERVICING FEES			(4,136.67)		(1,634.77)		(5,771.44)


Aggregate Advances with respect to this Distribution			5,596,467.41		3,366,084.95		8,962,552.36






ADDITIONAL COLLATERAL INFORMATION
ADDITIONAL COLLATERAL INFORMATION
					Group 2		Group 1		Total
		Net Prepayment Interest Shortfall			0.00		0.00		0.00
		Pool Factor			96.396201%		95.572007%		96.282500%





Page 9 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Delinquency Report


TOTAL	<31 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-180 Days	181-210 Days	211-240 Days

DELINQUENT Balance % Balance # Loans % # Loans
		28,600,633.27	12,879,487.66	1,267,433.63	0.00	0.00	0.00	0.00	0.00	42,747,554.56
		2.09%	0.94%	0.09%	0.00%	0.00%	0.00%	0.00%	0.00%	3.13%
		154	57	6	0	0	0	0	0	217
		2.11%	0.78%	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	2.97%
FORECLOSURE Balance % Balance # Loans % # Loans
	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
	0	0	0	0	0	0	0	0	0	0
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BANKRUPTCY Balance % Balance # Loans % # Loans
	195,443.41	71,787.64	0.00	0.00	0.00	0.00	0.00	0.00	0.00	267,231.05
	0.01%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.02%
	2	1	0	0	0	0	0	0	0	3
	0.03%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.04%
REO Balance % Balance # Loans % # Loans
	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
	0	0	0	0	0	0	0	0	0	0
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL Balance % Balance # Loans % # Loans
	195,443.41	28,672,420.91	12,879,487.66	1,267,433.63	0.00	0.00	0.00	0.00	0.00	43,014,785.61
	0.01%	2.10%	0.94%	0.09%	0.00%	0.00%	0.00%	0.00%	0.00%	3.15%
	2	155	57	6	0	0	0	0	0	220
	0.03%	2.12%	0.78%	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	3.02%

Page 10 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution



GROUP 1	<31 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-180 Days	181-210 Days	211-240 Days

DELINQUENT Balance % Balance # Loans % # Loans
		7,839,325.57	4,505,641.13	328,000.00	0.00	0.00	0.00	0.00	0.00	12,672,966.70
		1.53%	0.88%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	2.47%
		48	26	1	0	0	0	0	0	75
		1.70%	0.92%	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%	2.66%
FORECLOSURE Balance % Balance # Loans % # Loans
	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
	0	0	0	0	0	0	0	0	0	0
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BANKRUPTCY Balance % Balance # Loans % # Loans
	0.00	71,787.64	0.00	0.00	0.00	0.00	0.00	0.00	0.00	71,787.64
	0.00%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.01%
	0	1	0	0	0	0	0	0	0	1
	0.00%	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.04%
REO Balance % Balance # Loans % # Loans
	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
	0	0	0	0	0	0	0	0	0	0
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL Balance % Balance # Loans % # Loans
	0.00	7,911,113.21	4,505,641.13	328,000.00	0.00	0.00	0.00	0.00	0.00	12,744,754.34
	0.00%	1.54%	0.88%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	2.49%
	0	49	26	1	0	0	0	0	0	76
	0.00%	1.74%	0.92%	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%	2.70%

Page 11 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution



GROUP 2	<31 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-180 Days	181-210 Days	211-240 Days

DELINQUENT Balance % Balance # Loans % # Loans
		20,761,307.70	8,373,846.53	939,433.63	0.00	0.00	0.00	0.00	0.00	30,074,587.86
		2.43%	0.98%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	3.52%
		106	31	5	0	0	0	0	0	142
		2.37%	0.69%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	3.17%
FORECLOSURE Balance % Balance # Loans % # Loans
	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
	0	0	0	0	0	0	0	0	0	0
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BANKRUPTCY Balance % Balance # Loans % # Loans
	195,443.41	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	195,443.41
	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.02%
	2	0	0	0	0	0	0	0	0	2
	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.04%
REO Balance % Balance # Loans % # Loans
	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
	0	0	0	0	0	0	0	0	0	0
	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL Balance % Balance # Loans % # Loans
	195,443.41	20,761,307.70	8,373,846.53	939,433.63	0.00	0.00	0.00	0.00	0.00	30,270,031.27
	0.02%	2.43%	0.98%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	3.54%
	2	106	31	5	0	0	0	0	0	144
	0.04%	2.37%	0.69%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	3.22%

Page 12 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

REO Report

Loan Number

Original

Stated

Current

State &

First

Principal

Paid to

Note

LTV at

Original

Payment

Loan Group

Balance

Date

Rate

Origination

Term

Date

Page 13 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Foreclosure Report

Loan Number

Original

Stated

Current

State &

First

Principal

Paid to

Note

LTV at

Original

Payment

Loan Group

Balance

Date

Rate

Origination

Term

Date

Page 14 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution

Prepayment Report

VOLUNTARY PREPAYMENTS



		Group 2		Group 1		Total


Current


Number of Paid in Full Loans	82		57		139
Number of Repurchased Loans	1		0		1
Total Number of Loans Prepaid in Full	83		57		140
Curtailments Amount	91,669.80		34,502.53		126,172.33
Paid in Full Balance	16,808,259.32		12,375,298.76		29,183,558.08
Repurchased Loans Balance	206,501.11		0.00		206,501.11
Total Prepayment Amount	17,106,430.23		12,409,801.29		29,516,231.52
Cumulative


Number of Paid in Full Loans	132		100		232
Number of Repurchased Loans	1		0		1
Total Number of Loans Prepaid in Full	133		100		233
Paid in Full Balance	28,726,724.60		22,122,498.17		50,849,222.77
Repurchased Loans Balance	206,501.11		0.00		206,501.11
Curtailments Amount	117,183.65		54,420.25		171,603.90
Total Prepayment Amount	29,050,409.36		22,176,918.42		51,227,327.78

Page 15 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution


VOLUNTARY PREPAYMENTS RATES



		Group 2		Group 1		Total





SMM	1.96%		2.36%		2.11%
3 Months Avg SMM	1.66%		2.09%		1.82%
12 Months Avg SMM	1.66%		2.09%		1.82%
Avg SMM Since Cut-off	1.66%		2.09%		1.82%



CPR	21.17%		24.94%		22.61%
3 Months Avg CPR	18.17%		22.43%		19.80%
12 Months Avg CPR	18.17%		22.43%		19.80%
Avg CPR Since Cut-off	18.17%		22.43%		19.80%



PSA	2,020.01%		2,396.15%		2,162.75%
3 Months Avg PSA Approximation	1,916.53%		2,383.14%		2,094.02%
12 Months Avg PSA Approximation	1,916.53%		2,383.14%		2,094.02%
Avg PSA Since Cut-off Approximation	1,916.53%		2,383.14%		2,094.02%

Page 16 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

PREPAYMENT CALCULATION METHODOLOGY

Single Monthly Mortality (SMM): (Voluntary partial and full prepayments + Repurchases + Liquidation Balance)/(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/(0.02*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 17 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Prepayment Detail Report

Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution


Loan Number		Original			Current	State &		Type Prepayment		First

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

2229916 2		82,875.00	82,682.60	21-Apr-2006		9.850%		GA - 85.00%		Paid Off - 360		01-Dec-2005

1002741894 1		280,250.00	279,668.19	08-May-2006		9.300%		CA - 95.00%		Paid Off - 360		01-Jan-2006
1002780752 1		91,600.00	90,234.84	28-Apr-2006		5.990%		FL - 63.17%		Paid Off - 360		01-Sep-2005
1003190629 1		97,500.00	96,872.87	19-Apr-2006		6.500%		MO - 75.00%		Paid Off - 360		01-Oct-2005
1003239882 1		221,600.00	220,912.20	11-May-2006		8.450%		CA - 80.00%		Paid Off - 360		01-Dec-2005
1003404391 2		239,999.00	238,703.22	28-Apr-2006		7.400%		CA - 80.00%		Paid Off - 360		01-Oct-2005
1003524485 2		294,400.00	294,397.29	19-Apr-2006		8.300%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1003528542 2		108,000.00	107,477.13	19-Apr-2006		8.550%		MO - 80.00%		Paid Off - 360		01-Oct-2005
1003604460 2		108,800.00	108,134.58	19-Apr-2006		8.200%		OH - 80.00%		Paid Off - 360		01-Nov-2005
1003757027 1		250,000.00	248,715.39	01-May-2006		6.850%		CA - 86.21%		Paid Off - 360		01-Nov-2005
1003761496 2		294,000.00	292,693.64	02-May-2006		7.500%		MD - 70.00%		Paid Off - 360		01-Dec-2005
1003826462 2		110,000.00	109,439.46	27-Apr-2006		6.400%		MO - 56.99%		Paid Off - 360		01-Dec-2005
1003841187 2		136,000.00	135,425.64	17-Apr-2006		7.850%		NV - 85.00%		Paid Off - 360		01-Nov-2005
1003882169 2		220,000.00	219,485.48	18-Apr-2006		8.725%		NJ - 80.00%		Paid Off - 360		01-Jan-2006
1003889769 2		190,000.00	188,989.14	24-Apr-2006		5.700%		IL - 66.67%		Paid Off - 360		01-Dec-2005
1003893139 2		190,000.00	189,619.73	27-Apr-2006		9.475%		NJ - 57.58%		Paid Off - 360		01-Jan-2006
1003898848 2		60,200.00	60,073.06	15-May-2006		9.225%		NJ - 62.06%		Paid Off - 360		01-Jan-2006
1003942693 1		152,500.00	151,291.90	27-Apr-2006		7.725%		FL - 57.55%		Paid Off - 360		01-Nov-2005
1003967844 2		148,500.00	148,158.03	05-May-2006		8.800%		NY - 90.00%		Paid Off - 360		01-Jan-2006
1003991185 2		44,080.00	44,022.40	24-Apr-2006		12.500%		WI - 20.00%		Paid Off - 360		01-Dec-2005
1004009398 1		79,520.00	79,187.03	18-Apr-2006		6.950%		KS - 80.00%		Paid Off - 360		01-Dec-2005
1004018253 2		33,800.00	33,754.31	08-May-2006		12.350%		CA - 20.00%		Paid Off - 360		01-Dec-2005
1004045456 2		62,000.00	61,899.02	19-Apr-2006		11.500%		NV - 20.00%		Paid Off - 360		01-Dec-2005
1004046703 2		114,750.00	114,385.09	01-May-2006		7.200%		FL - 85.00%		Paid Off - 360		01-Jan-2006
1004056354 2		179,200.00	179,200.00	19-Apr-2006		8.400%		CA - 80.00%		Paid Off - 360		01-Dec-2005
1004074646 1		193,000.00	192,364.74	17-Apr-2006		7.025%		CA - 55.46%		Paid Off - 360		01-Jan-2006
1004114791 2		104,800.00	104,629.36	19-Apr-2006		10.450%		MD - 80.00%		Paid Off - 360		01-Jan-2006
1004128946 1		206,000.00	205,103.12	17-Apr-2006		6.750%		CA - 74.91%		Paid Off - 360		01-Dec-2005
1004148201 1		315,000.00	313,532.73	09-May-2006		6.400%		CA - 66.32%		Paid Off - 360		01-Dec-2005
1004153025 1		153,900.00	153,524.38	09-May-2006		9.450%		OH - 90.00%		Paid Off - 360		01-Jan-2006
1004162168 1		196,000.00	196,000.00	26-Apr-2006		6.050%		CA - 72.59%		Paid Off - 360		01-Dec-2005
1004164433 1		313,000.00	311,663.52	28-Apr-2006		6.850%		CA - 76.34%		Paid Off - 360		01-Dec-2005
1004187864 2		132,300.00	131,847.89	27-Apr-2006		7.975%		CA - 90.00%		Paid Off - 360		01-Dec-2005
1004196177 1		462,500.00	460,736.14	08-May-2006		7.425%		NY - 64.69%		Paid Off - 360		01-Dec-2005
1004213773 1		400,500.00	398,997.13	21-Apr-2006		6.350%		CA - 90.00%		Paid Off - 360		01-Jan-2006
1004219205 2		89,600.00	89,412.98	05-May-2006		9.275%		FL - 70.00%		Paid Off - 360		01-Jan-2006
1004234876 2		267,000.00	266,272.50	03-May-2006		7.975%		NJ - 59.07%		Paid Off - 360		01-Jan-2006
1004239274 2		600,000.00	598,469.37	26-Apr-2006		8.300%		IL - 64.86%		Paid Off - 360		01-Jan-2006
1004242206 2		146,000.00	145,339.26	11-May-2006		6.550%		FL - 68.87%		Paid Off - 360		01-Dec-2005
1004255497 2		122,400.00	122,063.54	26-Apr-2006		9.100%		FL - 85.00%		Paid Off - 360		01-Dec-2005


Page 18 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution


Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution


Loan Number		Original			Current	State &		Type Prepayment		First

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

1004257422 1		262,000.00	259,987.08	12-May-2006		7.750%		CA - 74.86%		Paid Off - 360		01-Dec-2005

1004258403 2		140,800.00	140,459.04	28-Apr-2006		9.650%		UT - 88.00%		Paid Off - 360		01-Dec-2005
1004265681 1		220,500.00	220,060.97	21-Apr-2006		9.500%		FL - 80.18%		Paid Off - 360		01-Jan-2006
1004273360 2		215,000.00	214,309.55	09-May-2006		7.150%		FL - 63.24%		Paid Off - 360		01-Jan-2006
1004305870 1		182,000.00	181,744.93	28-Apr-2006		7.700%		CA - 72.80%		Paid Off - 360		01-Jan-2006
1004311872 1		154,850.00	154,362.41	04-May-2006		7.250%		AZ - 95.00%		Paid Off - 360		01-Jan-2006
1004358572 2		310,000.00	309,004.15	19-Apr-2006		8.400%		VA - 83.33%		Paid Off - 360		01-Dec-2005
1004375063 2		265,000.00	263,857.45	05-May-2006		6.800%		WA - 78.17%		Paid Off - 360		01-Dec-2005
1004380770 2		34,000.00	33,965.42	20-Apr-2006		12.600%		HI - 20.00%		Paid Off - 360		01-Jan-2006
1004404004 2		382,500.00	381,031.16	25-Apr-2006		8.990%		MD - 83.15%		Paid Off - 360		01-Jan-2006
1004406930 2		102,000.00	101,774.12	27-Apr-2006		8.990%		WA - 85.00%		Paid Off - 360		01-Jan-2006
1004407181 1		297,500.00	296,771.39	01-May-2006		8.500%		CA - 83.10%		Paid Off - 360		01-Jan-2006
1004413272 2		722,500.00	720,038.58	08-May-2006		7.990%		MA - 85.00%		Paid Off - 360		01-Dec-2005
1004413646 2		120,000.00	119,726.47	11-May-2006		8.850%		FL - 61.54%		Paid Off - 360		01-Jan-2006
1004415172 1		413,600.00	412,360.60	10-May-2006		7.500%		CA - 79.54%		Paid Off - 360		01-Jan-2006
1004431537 1		274,000.00	273,681.47	04-May-2006		7.990%		CA - 86.98%		Paid Off - 360		01-Jan-2006
1004435007 2		569,050.00	568,414.52	19-Apr-2006		8.900%		CA - 95.00%		Paid Off - 360		01-Dec-2005
1004435873 2		114,400.00	113,850.31	19-Apr-2006		6.600%		VA - 80.00%		Paid Off - 360		01-Dec-2005
1004439165 2		459,000.00	458,498.64	24-Apr-2006		8.975%		MA - 85.00%		Paid Off - 360		01-Dec-2005
1004442428 2		300,000.00	299,178.48	04-May-2006		7.950%		MA - 69.61%		Paid Off - 360		01-Jan-2006
1004456305 2		481,500.00	479,983.41	19-Apr-2006		7.875%		FL - 90.00%		Paid Off - 360		01-Jan-2006
1004462076 2		100,000.00	99,777.45	11-May-2006		10.050%		AZ - 68.97%		Paid Off - 360		01-Dec-2005
1004474928 1		87,300.00	87,094.77	24-Apr-2006		8.700%		WA - 90.00%		Paid Off - 360		01-Jan-2006
1004483874 2		133,560.00	133,177.33	03-May-2006		7.725%		FL - 90.00%		Paid Off - 360		01-Jan-2006
1004490508 2		140,000.00	139,531.14	27-Apr-2006		8.075%		NV - 28.00%		Paid Off - 360		01-Dec-2005
1004492702 2		166,250.00	165,754.64	09-May-2006		8.650%		MI - 95.00%		Paid Off - 360		01-Dec-2005
1004499974 2		495,000.00	493,903.95	02-May-2006		8.990%		CA - 75.00%		Paid Off - 360		01-Jan-2006
1004500622 2		460,000.00	459,700.89	04-May-2006		9.950%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004506573 1		385,000.00	384,094.98	25-Apr-2006		8.700%		NJ - 87.50%		Paid Off - 360		01-Jan-2006
1004512799 2		100,000.00	99,851.94	25-Apr-2006		7.150%		FL - 74.07%		Paid Off - 360		01-Jan-2006
1004522181 1		105,000.00	104,713.89	03-May-2006		7.975%		AZ - 52.50%		Paid Off - 360		01-Jan-2006
1004524107 2		160,000.00	159,565.19	15-May-2006		7.988%		MI - 80.00%		Paid Off - 360		01-Jan-2006
1004534506 2		31,000.00	30,948.98	27-Apr-2006		10.400%		WI - 20.00%		Paid Off - 360		01-Jan-2006
1004538414 2		231,728.00	231,266.60	19-Apr-2006		9.500%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004542285 2		128,700.00	128,571.14	03-May-2006		8.500%		MO - 90.00%		Paid Off - 360		01-Jan-2006
1004549242 2		90,000.00	89,811.19	27-Apr-2006		9.250%		OH - 87.38%		Paid Off - 360		01-Jan-2006
1004556858 1		390,000.00	388,826.23	26-Apr-2006		8.150%		CA - 65.00%		Paid Off - 360		01-Jan-2006
1004575739 1		156,000.00	156,000.00	20-Apr-2006		7.750%		CO - 80.00%		Paid Off - 360		01-Feb-2006
1004582909 1		104,000.00	103,662.67	05-May-2006		7.100%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004611548 2		156,000.00	155,999.55	01-May-2006		8.150%		OR - 80.00%		Paid Off - 360		01-Jan-2006
1004612182 1		232,750.00	232,106.20	01-May-2006		7.900%		IL - 95.00%		Paid Off - 360		01-Jan-2006
1004622466 2		425,000.00	423,783.50	02-May-2006		8.450%		CA - 72.65%		Paid Off - 360		01-Jan-2006


Page 19 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution


Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution


Loan Number		Original			Current	State &		Type Prepayment		First

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

1004622910 1		214,000.00	213,345.89	05-May-2006		7.400%		CA - 41.55%		Paid Off - 360		01-Jan-2006

1004623535 2		334,400.00	334,400.00	19-Apr-2006		7.990%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004624473 2		464,748.00	463,341.45	02-May-2006		7.450%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004631900 1		176,000.00	175,733.18	01-May-2006		7.050%		CA - 76.86%		Paid Off - 360		01-Jan-2006
1004635791 2		149,400.00	149,035.95	20-Apr-2006		8.525%		AZ - 90.00%		Paid Off - 360		01-Jan-2006
1004665286 1		342,000.00	341,669.97	21-Apr-2006		8.625%		CA - 95.00%		Paid Off - 360		01-Jan-2006
1004668158 2		100,800.00	100,565.45	04-May-2006		8.750%		FL - 84.00%		Paid Off - 360		01-Jan-2006
1004670350 1		116,391.00	115,990.69	28-Apr-2006		6.800%		CA - 26.82%		Paid Off - 360		01-Jan-2006
1004678879 2		112,000.00	111,767.29	19-Apr-2006		9.300%		MD - 56.00%		Paid Off - 360		01-Jan-2006
1004705607 2		174,750.00	174,246.83	15-May-2006		7.700%		NJ - 75.00%		Paid Off - 360		01-Jan-2006
1004708089 1		280,000.00	279,999.96	19-Apr-2006		7.825%		CA - 52.83%		Paid Off - 360		01-Jan-2006
1004715062 2		167,000.00	167,000.00	11-May-2006		6.830%		CA - 29.20%		Paid Off - 360		01-Jan-2006
1004718728 1		161,000.00	160,621.51	19-Apr-2006		8.700%		ID - 84.74%		Paid Off - 360		01-Jan-2006
1004722679 2		189,700.00	189,256.39	28-Apr-2006		8.725%		AZ - 70.00%		Paid Off - 360		01-Jan-2006
1004745770 1		170,000.00	169,682.87	04-May-2006		6.300%		CA - 43.59%		Paid Off - 360		01-Jan-2006
1004752583 2		96,000.00	95,793.30	26-Apr-2006		9.125%		NJ - 36.92%		Paid Off - 360		01-Jan-2006
1004766257 2		490,000.00	489,134.71	11-May-2006		6.500%		CA - 91.59%		Paid Off - 360		01-Jan-2006
1004769405 1		306,000.00	305,798.00	18-Apr-2006		9.900%		FL - 90.00%		Paid Off - 360		01-Jan-2006
1004770750 2		56,700.00	56,596.23	11-May-2006		9.900%		IN - 88.59%		Paid Off - 360		01-Jan-2006
1004774248 2		423,750.00	423,355.77	09-May-2006		8.750%		CA - 75.00%		Paid Off - 360		01-Jan-2006
1004797786 2		90,000.00	89,745.28	17-Apr-2006		8.900%		NJ - 89.46%		Paid Off - 360		01-Dec-2005
1004800914 1		67,900.00	67,697.55	18-Apr-2006		7.525%		CO - 70.00%		Paid Off - 360		01-Jan-2006
1004810743 2		120,000.00	119,730.69	03-May-2006		8.925%		NY - 37.50%		Paid Off - 360		01-Jan-2006
1004815891 1		148,500.00	148,340.12	20-Apr-2006		8.250%		FL - 90.00%		Paid Off - 360		01-Jan-2006
1004828244 2		55,000.00	54,920.47	02-May-2006		11.000%		FL - 20.00%		Paid Off - 360		01-Jan-2006
1004832916 1		110,000.00	109,529.44	19-Apr-2006		7.990%		CA - 57.89%		Paid Off - 360		01-Jan-2006
1004833158 1		315,350.00	315,077.50	01-May-2006		9.000%		CA - 85.00%		Paid Off - 360		01-Jan-2006
1004841611 1		197,200.00	196,799.06	15-May-2006		9.400%		NM - 85.00%		Paid Off - 360		01-Jan-2006
1004843600 1		227,500.00	227,184.04	02-May-2006		9.825%		NJ - 79.82%		Paid Off - 360		01-Feb-2006
1004844716 1		305,100.00	304,360.37	17-Apr-2006		8.550%		NJ - 90.00%		Paid Off - 360		01-Jan-2006
1004845298 2		328,500.00	327,810.87	01-May-2006		9.250%		NJ - 90.00%		Paid Off - 360		01-Jan-2006
1004850405 2		432,000.00	431,462.83	19-Apr-2006		7.750%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004852859 1		266,500.00	265,325.15	02-May-2006		5.500%		CA - 65.80%		Paid Off - 360		01-Jan-2006
1004853867 2		104,800.00	104,612.38	26-Apr-2006		6.450%		UT - 80.00%		Paid Off - 360		01-Jan-2006
1004853876 1		110,500.00	110,253.28	12-May-2006		8.950%		CA - 65.00%		Paid Off - 360		01-Jan-2006
1004868245 1		184,500.00	184,100.67	24-Apr-2006		9.100%		CA - 90.00%		Paid Off - 360		01-Jan-2006
1004869020 2		192,500.00	191,951.23	27-Apr-2006		7.750%		AZ - 66.38%		Paid Off - 360		01-Jan-2006
1004873195 2		351,405.00	350,329.09	28-Apr-2006		8.750%		MD - 95.00%		Paid Off - 360		01-Jan-2006
1004881346 2		68,000.00	67,919.23	09-May-2006		11.900%		CA - 20.00%		Paid Off - 360		01-Jan-2006
1004883004 2		57,800.00	57,728.04	26-Apr-2006		7.750%		VA - 85.00%		Paid Off - 360		01-Jan-2006
1004915747 1		262,300.00	261,389.03	24-Apr-2006		6.750%		CA - 81.97%		Paid Off - 360		01-Jan-2006
1004916185 2		185,000.00	184,807.63	04-May-2006		12.500%		FL - 20.00%		Paid Off - 360		01-Jan-2006


Page 20 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates

May 25, 2006 Distribution


Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution


Loan Number		Original			Current	State &		Type Prepayment		First

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

1004961312 2		50,000.00	49,887.21	11-May-2006		8.900%		TN - 53.19%		Paid Off - 360		01-Jan-2006

1004976994 1		320,000.00	319,069.34	28-Apr-2006		7.650%		AZ - 80.00%		Paid Off - 360		01-Jan-2006
1004981924 1		226,000.00	225,714.90	20-Apr-2006		7.700%		CA - 61.92%		Paid Off - 360		01-Jan-2006
1004999746 1		154,400.00	154,097.12	04-May-2006		9.575%		PA - 80.00%		Paid Off - 360		01-Jan-2006
1005017698 1		123,419.00	123,239.61	09-May-2006		7.200%		CA - 64.96%		Paid Off - 360		01-Jan-2006
1005030049 1		345,879.00	345,670.52	03-May-2006		10.200%		CA - 90.00%		Paid Off - 360		01-Jan-2006
1005056887 2		208,000.00	207,358.26	26-Apr-2006		8.000%		WA - 80.00%		Paid Off - 360		01-Jan-2006
1005064672 1		351,500.00	350,836.00	12-May-2006		9.750%		MD - 95.00%		Paid Off - 360		01-Jan-2006
1005083287 2		450,000.00	448,540.51	27-Apr-2006		7.100%		IL - 70.87%		Paid Off - 360		01-Jan-2006
1005087880 1		67,000.00	66,907.94	02-May-2006		7.400%		TN - 83.75%		Paid Off - 360		01-Jan-2006
1005107225 1		126,000.00	125,665.23	24-Apr-2006		8.100%		PA - 90.00%		Paid Off - 360		01-Jan-2006
1005117072 2		111,000.00	110,912.58	13-Apr-2006		8.325%		AZ - 75.00%		Paid Off - 360		01-Feb-2006
1005187380 1		57,000.00	56,928.05	21-Apr-2006		10.275%		IN - 84.44%		Paid Off - 360		01-Feb-2006
1005207901 2		99,400.00	99,262.34	25-Apr-2006		11.200%		IL - 20.00%		Paid Off - 360		01-Jan-2006
1005251586 2		74,535.00	74,477.80	12-Apr-2006		12.550%		CA - 15.00%		Paid Off - 360		01-Feb-2006
1004998756 2		207,200.00	206,501.11	01-Jan-1900		6.900%		CO - 80.00%		Repur/Subs - 360		01-Jan-2006


TOTAL		29,465,389.00	29,390,059.19

Page 21 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution

Realized Loss Report

COLLATERAL REALIZED LOSSES



		Group 2		Group 1		Total


Current





Subsequent Recoverries	0.00		0.00		0.00
Number of Loans Liquidated	0		0		0
Collateral Principal Realized Loss/(Gain) Amount	0.00		0.00		0.00
Collateral Interest Realized Loss/(Gain) Amount	0.00		0.00		0.00
Net Liquidation Proceeds	0.00		0.00		0.00
Subsequent Recoveries	0.00		0.00		0.00
Cumulative
Cumulative



Number of Loans Liquidated	0		0		0
Collateral Realized Loss/(Gain) Amount	0.00		0.00		0.00
Net Liquidation Proceeds	0.00		0.00		0.00
Cummalative Subsequent Recoveries	0.00		0.00		0.00

Page 22 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution


DEFAULT SPEEDS

	Group 2	Group 1	Total



MDR	0.00%	0.00%	0.00%
3 Months Avg MDR	0.00%	0.00%	0.00%
12 Months Avg MDR	0.00%	0.00%	0.00%
Avg MDR Since Cut-off	0.00%	0.00%	0.00%


CDR	0.00%	0.00%	0.00%
3 Months Avg CDR	0.00%	0.00%	0.00%
12 Months Avg CDR	0.00%	0.00%	0.00%
Avg CDR Since Cut-off	0.00%	0.00%	0.00%


SDA	0.00%	0.00%	0.00%
3 Months Avg SDA Approximation	0.00%	0.00%	0.00%
12 Months Avg SDA Approximation	0.00%	0.00%	0.00%
Avg SDA Since Cut-off Approximation	0.00%	0.00%	0.00%


Loss Severity Approximation for Current Period	0.00%	0.00%	0.00%
3 Months Avg Loss Severity Approximation	0.00%	0.00%	0.00%
12 Months Avg Loss Severity Approximation	0.00%	0.00%	0.00%
Avg Loss Severity Approximation Since Cut-off	0.00%	0.00%	0.00%

Page 23 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

COLLATERAL REALIZED LOSS CALCULATION METHODOLOGY

Monthly Default Rate (MDR): (Beg Principal Balance of Liquidated Loans)/(Total Beg Principal Balance)

Conditional Default Rate (CDR): 1-((1-MDR)^12)

SDA Standard Default Assumption: CDR/IF(WAS<61,MIN(30,WAS)*0.02,MAX(0.03,MIN(30,WAS)*0.02-0.0095*(WAS-60)))

Average MDR over period between nth month and mth month (AvgMDRn,m): [(1-MDRn)*(1-MDRn+1)*...*(1-MDRm)]^(1/months in period n,m)

Average CDR over period between the nth month and mth month (AvgCDRn,m): 1-((1-AvgMDRn,m)^12)

Average SDA Approximation over period between the nth month and mth month:

AvgCDRn,m/IF(Avg WASn,m<61,MIN(30,Avg WASn,m)*0.02,MAX(0.03,MIN(30,Avg WASn,m)*0.02-0.0095*(Avg WASn,m-60)))

Average WASn,m: (WASn + WASn+1 +...+ WASm )/(number of months in the period n,m)

Loss Severity Approximation for current period: sum(Realized Loss Amount)/sum(Beg Principal Balance of Liquidated Loans)

Average Loss Severity Approximation over period between nth month and mth month: Avg(Loss Severityn,m)

Note: Default rates are calculated since deal issue date and include realized gains and additional realized losses and gains from prior periods.

Dates correspond to distribution dates.

Page 24 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Realized Loss Detail Report

Loan Number

Current

State &

Prior

Realized

Cumulative

Loan

Note

LTV at

Original

Principal

Loss/(Gain)

Realized

Loan Group

Status

Rate

Origination

Term

Balance

Revision

Loss/(Gain)

TOTAL

Page 25 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Triggers and Adj. Cert. Report

TRIGGER EVENTS

Group 2

Group 1

Total

Stepdown Date has occurred

Distribution Date April 2009

Credit Enhancement Percentage (For Stepdown Date )

20.3566%

Applicable Percentage

39.2000%

Trigger Event in Effect

Rolling 60+ days balance includes BK,FC,REO

7,707,385.82

Ending Balance

1,367,241,910.63

Delinquency Percentage

0.5637%

Prior Balance of X and Mezzanine and X

278,323,972.00

Prior Pool Balance

871,970,114.92

525,562,524.87

1,397,532,639.79

Prior Senior Credit Enhancement Percentage

19.9154%

Applicable % of Prior Senior Credit Enhancment %

40.8000%

Cumulative Realized Loss

0.00

Realized Loss Percentage

0.0000%

Applicable Percentage

100.0000%

ADJUSTABLE RATE CERTIFICATE INFORMATION

SPACE INTENTIONALLY LEFT BLANK

ADDITIONAL INFORMATION

Group 2

Group 1

Total

Basis Risk CarryForward Amount paid

0.00

Basis Risk CarryForward Amount unpaid

0.00

Libor For Current Period

4.959380%

Libor Rate Determination Date

04/21/2006

Libor For Next Period

5.081250%

Libor Rate Next Determination Date

05/23/2006

Interest Rate Swap Floating

4.959380%

Swap Rate Determination Date

04/21/2006

Lender-Paid PMI Fees

0.00

Interest Rate Swap Fixed Rate

5.000000%

Page 26 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution

Additional Certificate Report

ADDITIONAL CERTIFICATE REPORT

		Next Pass Through Rate	Basis Risk Due	Basis Risk Paid	Basis Risk CarryOver	Basis Risk Paid
CLASS

	A-1	5.26125%	$0.00	$0.00	$0.00	$0.00
		5.26125%	$0.00	$0.00	$0.00	$0.00
	A-2A	5.15125%	$0.00	$0.00	$0.00	$0.00
		5.15125%	$0.00	$0.00	$0.00	$0.00
	A-2B	5.20125%	$0.00	$0.00	$0.00	$0.00
		5.20125%	$0.00	$0.00	$0.00	$0.00
	A-2C	5.26125%	$0.00	$0.00	$0.00	$0.00
		5.26125%	$0.00	$0.00	$0.00	$0.00
	A-2D	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00
	M-1	5.44125%	$0.00	$0.00	$0.00	$0.00
		5.44125%	$0.00	$0.00	$0.00	$0.00
	M-2	5.46125%	$0.00	$0.00	$0.00	$0.00
		5.46125%	$0.00	$0.00	$0.00	$0.00
	M-3	5.47125%	$0.00	$0.00	$0.00	$0.00
		5.47125%	$0.00	$0.00	$0.00	$0.00
	M-4	5.59125%	$0.00	$0.00	$0.00	$0.00
		5.59125%	$0.00	$0.00	$0.00	$0.00
	M-5	5.61125%	$0.00	$0.00	$0.00	$0.00
		5.61125%	$0.00	$0.00	$0.00	$0.00
	M-6	5.68125%	$0.00	$0.00	$0.00	$0.00
		5.68125%	$0.00	$0.00	$0.00	$0.00
	B-1	6.23125%	$0.00	$0.00	$0.00	$0.00
		6.23125%	$0.00	$0.00	$0.00	$0.00
	B-2	6.48125%	$0.00	$0.00	$0.00	$0.00
		6.48125%	$0.00	$0.00	$0.00	$0.00
	B-3	7.33125%	$0.00	$0.00	$0.00	$0.00
		7.33125%	$0.00	$0.00	$0.00	$0.00
	X	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00
	P	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00
	R	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00




Page 27 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
May 25, 2006 Distribution

Other Related Information
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
	Group 2	Group 1	Total
Current Scheduled Payments			9,891,100.32
Current Scheduled Payments 1 Month Prior			10,061,255.29
Current Scheduled Payments 2 Month Prior			0.00
Current Scheduled Payments 3 Month Prior			0.00
Current Scheduled Payments 4 Month Prior			0.00
Current Scheduled Payments 5 Month Prior			0.00
Current Scheduled Payments 6 Month Prior			0.00
Current Scheduled Payments 7 Month Prior			0.00
Current Scheduled Payments 8 Month Prior			0.00
Current Scheduled Payments 9 Month Prior			0.00
Current Scheduled Payments 10 Month Prior			0.00
Current Scheduled Payments 11 Month Prior			0.00





Sched. Payments for 60+Day Delinquent Loans	221,455.94	96,934.33	318,390.28
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior	7,256.28	2,378.00	9,634.28
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 3 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 4 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 5 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 6 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 7 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 8 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 9 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 10 Month Prior	0.00	0.00	0.00
Sched. Pmts - 60+Day Delinquent Loans, 11 Month Prior	0.00	0.00	0.00





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Morgan Stanley Capital I Inc. Trust 2006-NC2 10-D