Morgan Stanley ABS Capital I Inc. 2006-NC3

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

HomeQ Servicing Corp.

5. Delinquency Report

6. REO Report

7. Foreclosure Report

Underwriter(s)

8. Prepayment Report

Morgan Stanley & Co. Inc

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:

April 01, 2006

Eiko Akiyama

Close Date:

April 28, 2006

Administrator

First Distribution Date:

May 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 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



Mortgage Pass-Through Certificates

May 25, 2006 Distribution

Certificate Payment Report
Current Period Distribution - REMIC III
				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	$	426,670,000.00	426,670,000.00	1,651,212.90	9,039,055.23	10,690,268.13	0.00	0.00	417,630,944.77

A-2A	STEP	$	340,600,000.00	340,600,000.00	1,292,577.00	13,309,299.96	14,601,876.96	0.00	0.00	327,290,700.04
A-2B	STEP	$	104,800,000.00	104,800,000.00	402,432.00	0.00	402,432.00	0.00	0.00	104,800,000.00
A-2C	STEP	$	149,625,000.00	149,625,000.00	580,170.94	0.00	580,170.94	0.00	0.00	149,625,000.00
A-2D	STEP	$	97,605,000.00	97,605,000.00	385,783.76	0.00	385,783.76	0.00	0.00	97,605,000.00
M-1	SUB	$	54,035,000.00	54,035,000.00	216,004.91	0.00	216,004.91	0.00	0.00	54,035,000.00
M-2	SUB	$	44,912,000.00	44,912,000.00	179,872.56	0.00	179,872.56	0.00	0.00	44,912,000.00
M-3	SUB	$	25,263,000.00	25,263,000.00	101,557.26	0.00	101,557.26	0.00	0.00	25,263,000.00
M-4	SUB	$	22,456,000.00	22,456,000.00	91,957.32	0.00	91,957.32	0.00	0.00	22,456,000.00
M-5	SUB	$	21,754,000.00	21,754,000.00	89,245.79	0.00	89,245.79	0.00	0.00	21,754,000.00
M-6	SUB	$	20,351,000.00	20,351,000.00	84,711.04	0.00	84,711.04	0.00	0.00	20,351,000.00
B-1	SUB	$	18,947,000.00	18,947,000.00	85,972.01	0.00	85,972.01	0.00	0.00	18,947,000.00
B-2	SUB	$	16,140,000.00	16,140,000.00	75,051.00	0.00	75,051.00	0.00	0.00	16,140,000.00
B-3	SUB	$	14,035,000.00	14,035,000.00	74,210.06	0.00	74,210.06	0.00	0.00	14,035,000.00
X	EXE	$	46,322,237.04	46,322,237.04	3,402,317.13	6,230.92	3,408,548.05	0.00	0.00	46,316,006.12
P	EXE	$	100.00	100.00	143,152.09	0.00	143,152.09	0.00	0.00	100.00
R	RES/EXE	$	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Total			1,403,515,337.04	1,403,515,337.04	8,856,227.77	22,354,586.11	31,210,813.88	0.00	0.00	1,381,160,750.93





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	04/28/06		05/24/06	A-Act/360	61744CYZ3	426,670,000.00	1,000.000000	3.870000	21.185120	25.055120	978.814880

A-2A	04/28/06		05/24/06	A-Act/360	61744CZA7	340,600,000.00	1,000.000000	3.795000	39.076042	42.871042	960.923958
A-2B	04/28/06		05/24/06	A-Act/360	61744CZB5	104,800,000.00	1,000.000000	3.840000	0.000000	3.840000	1,000.000000
A-2C	04/28/06		05/24/06	A-Act/360	61744CZC3	149,625,000.00	1,000.000000	3.877500	0.000000	3.877500	1,000.000000
A-2D	04/28/06		05/24/06	A-Act/360	61744CZD1	97,605,000.00	1,000.000000	3.952500	0.000000	3.952500	1,000.000000
M-1	04/28/06		05/24/06	A-Act/360	61744CZE9	54,035,000.00	1,000.000000	3.997500	0.000000	3.997500	1,000.000000
M-2	04/28/06		05/24/06	A-Act/360	61744CZF6	44,912,000.00	1,000.000000	4.005000	0.000000	4.005000	1,000.000000
M-3	04/28/06		05/24/06	A-Act/360	61744CZG4	25,263,000.00	1,000.000000	4.020000	0.000000	4.020000	1,000.000000
M-4	04/28/06		05/24/06	A-Act/360	61744CZH2	22,456,000.00	1,000.000000	4.095000	0.000000	4.095000	1,000.000000
M-5	04/28/06		05/24/06	A-Act/360	61744CZJ8	21,754,000.00	1,000.000000	4.102500	0.000000	4.102500	1,000.000000
M-6	04/28/06		05/24/06	A-Act/360	61744CZK5	20,351,000.00	1,000.000000	4.162500	0.000000	4.162500	1,000.000000
B-1	04/28/06		05/24/06	A-Act/360	61744CZL3	18,947,000.00	1,000.000000	4.537500	0.000000	4.537500	1,000.000000
B-2	04/28/06		05/24/06	A-Act/360	61744CZM1	16,140,000.00	1,000.000000	4.650000	0.000000	4.650000	1,000.000000
B-3	04/28/06		05/24/06	A-Act/360	61744CZN9	14,035,000.00	1,000.000000	5.287500	0.000000	5.287500	1,000.000000
X	04/28/06		05/24/06	A-Act/360		1,449,837,574.08	31.949949	2.346688	0.004298	2.350986	31.945652
P	04/01/06		05/24/06	A-30/360		100.00	1,000.000000	1,431,520.900000	0.000000	1,431,520.900000	1,000.000000
R	04/01/06		05/24/06	A-30/360		0.00	0.000000	0.000000	0.000000	0.000000	0.000000



Page 2 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



Mortgage Pass-Through Certificates

May 25, 2006 Distribution


Distribution to Date - REMIC III
									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	426,670,000.00	1,651,212.90	8,774,052.82	265,002.41	9,039,055.23	10,690,268.13	0.00	0.00	417,630,944.77
A-2A	340,600,000.00	1,292,577.00	12,919,104.69	390,195.27	13,309,299.96	14,601,876.96	0.00	0.00	327,290,700.04
A-2B	104,800,000.00	402,432.00	0.00	0.00	0.00	402,432.00	0.00	0.00	104,800,000.00
A-2C	149,625,000.00	580,170.94	0.00	0.00	0.00	580,170.94	0.00	0.00	149,625,000.00
A-2D	97,605,000.00	385,783.76	0.00	0.00	0.00	385,783.76	0.00	0.00	97,605,000.00
M-1	54,035,000.00	216,004.91	0.00	0.00	0.00	216,004.91	0.00	0.00	54,035,000.00
M-2	44,912,000.00	179,872.56	0.00	0.00	0.00	179,872.56	0.00	0.00	44,912,000.00
M-3	25,263,000.00	101,557.26	0.00	0.00	0.00	101,557.26	0.00	0.00	25,263,000.00
M-4	22,456,000.00	91,957.32	0.00	0.00	0.00	91,957.32	0.00	0.00	22,456,000.00
M-5	21,754,000.00	89,245.79	0.00	0.00	0.00	89,245.79	0.00	0.00	21,754,000.00
M-6	20,351,000.00	84,711.04	0.00	0.00	0.00	84,711.04	0.00	0.00	20,351,000.00
B-1	18,947,000.00	85,972.01	0.00	0.00	0.00	85,972.01	0.00	0.00	18,947,000.00
B-2	16,140,000.00	75,051.00	0.00	0.00	0.00	75,051.00	0.00	0.00	16,140,000.00
B-3	14,035,000.00	74,210.06	0.00	0.00	0.00	74,210.06	0.00	0.00	14,035,000.00
X	46,322,237.04	3,402,317.12	6,048.25	182.67	6,230.92	3,408,548.04	0.00	0.00	46,316,006.12
P	100.00	143,152.09	0.00	0.00	0.00	143,152.09	0.00	0.00	100.00
R	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00


Total	1,403,515,337.04	8,856,227.76	21,699,205.76	655,380.35	22,354,586.11	31,210,813.87	0.00	0.00	1,381,160,750.93


Interest Detail - REMIC III
	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	5.16000%	426,670,000.00	1,651,212.90	0.00	0.00	0.00	1,651,212.90	1,651,212.90	0.00
A-2A	5.06000%	340,600,000.00	1,292,577.00	0.00	0.00	0.00	1,292,577.00	1,292,577.00	0.00
A-2B	5.12000%	104,800,000.00	402,432.00	0.00	0.00	0.00	402,432.00	402,432.00	0.00
A-2C	5.17000%	149,625,000.00	580,170.94	0.00	0.00	0.00	580,170.94	580,170.94	0.00
A-2D	5.27000%	97,605,000.00	385,783.76	0.00	0.00	0.00	385,783.76	385,783.76	0.00
M-1	5.33000%	54,035,000.00	216,004.91	0.00	0.00	0.00	216,004.91	216,004.91	0.00
M-2	5.34000%	44,912,000.00	179,872.56	0.00	0.00	0.00	179,872.56	179,872.56	0.00
M-3	5.36000%	25,263,000.00	101,557.26	0.00	0.00	0.00	101,557.26	101,557.26	0.00
M-4	5.46000%	22,456,000.00	91,957.32	0.00	0.00	0.00	91,957.32	91,957.32	0.00
M-5	5.47000%	21,754,000.00	89,245.79	0.00	0.00	0.00	89,245.79	89,245.79	0.00
M-6	5.55000%	20,351,000.00	84,711.04	0.00	0.00	0.00	84,711.04	84,711.04	0.00
B-1	6.05000%	18,947,000.00	85,972.01	0.00	0.00	0.00	85,972.01	85,972.01	0.00
B-2	6.20000%	16,140,000.00	75,051.00	0.00	0.00	0.00	75,051.00	75,051.00	0.00
B-3	7.05000%	14,035,000.00	74,210.06	0.00	0.00	0.00	74,210.06	74,210.06	0.00
X	97.93186%	46,322,237.04	0.00	0.00	0.00	0.00	0.00	3,402,317.13	0.00
P	954,347.26667%	100.00	0.00	0.00	0.00	0.00	0.00	143,152.09	0.00
R	0.00000%	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Total		1,403,515,337.04	5,310,758.55	0.00	0.00	0.00	5,310,758.55	8,856,227.77	0.00



Page 3 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

Collection Account Report
SUMMARY

	Group 2	Group 1	Total
Principal Collections	13,186,706.54	9,041,358.78	22,228,065.32
Principal Withrawals	0.00	0.00	0.00
Principal Other Accounts	126,304.17	216.62	126,520.79
TOTAL NET PRINCIPAL	13,313,010.71	9,041,575.40	22,354,586.11
Interest Collections	5,615,339.66	3,542,912.18	9,158,251.84
Interest Withdrawals	-0.00	-0.00	-0.00
Interest Other Accounts	60,768.93	83,095.34	-7,715.39
Interest Fees	-179,535.07	-114,773.61	-294,308.69
TOTAL NET INTEREST	5,496,573.52	3,511,233.91	8,856,227.77
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION	18,809,584.23	12,552,809.31	31,210,813.88




PRINCIPAL - COLLECTIONS

	Group 2	Group 1	Total
Scheduled Principal Received	394,583.76	260,796.60	655,380.36
Prepayments In Full	12,732,172.70	8,744,226.87	21,476,399.57
Curtailments	59,950.08	36,335.31	96,285.39
Liquidations	0.00	0.00	0.00
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	-0.00	-0.00	-0.00
Delinquent Principal	-194,662.34	-125,820.28	-320,482.62
Advanced Principal	194,662.34	125,820.28	320,482.62
TOTAL PRINCIPAL COLLECTED	13,186,706.54	9,041,358.78	22,228,065.32




PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK




PRINCIPAL - OTHER ACCOUNTS

	Group 2	Group 1	Total
Closing Deposit	126,304.17	216.62	126,520.79
TOTAL OTHER ACCOUNTS PRINCIPAL	126,304.17	216.62	126,520.79






Page 4 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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


INTEREST - COLLECTIONS

	Group 2	Group 1	Total
Scheduled Interest	5,799,944.05	3,652,486.84	9,452,430.89
Liquidation Interest	0.00	0.00	0.00
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
Prepayment Interest Shortfalls	-1,569.67	-1,345.20	-2,914.87
Compensating Interest	1,569.67	1,345.20	2,914.87
Delinquent Interest	-3,012,354.07	-1,824,695.60	-4,837,049.67
Interest Advanced	2,827,749.69	1,715,120.95	4,542,870.64
Interest Loss	-0.00	-0.00	-0.00
TOTAL INTEREST COLLECTED	5,615,339.66	3,542,912.18	9,158,251.84




INTEREST - WITHDRAWALS

	Group 2	Group 1	Total
Nonrecoverable Advances	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	60,058.00	83,094.09	143,152.09
Net Interest Rate Swap Receipt			0.00
Net Interest Rate Swap Payment			-151,579.66
Swap Termination Payments			0.00
Defaulted Swap Termination Payments			0.00
Closing Deposit	710.93	1.25	712.18
TOTAL INTEREST OTHER ACCOUNTS	60,768.93	83,095.34	-7,715.39




INTEREST - FEES

	Group 2	Group 1	Total
Current Servicing Fees	177,219.40	113,346.91	290,566.31
Current Trustee Fees	2,315.68	1,426.70	3,742.37
TOTAL INTEREST OTHER FEES	179,535.07	114,773.61	294,308.69



Page 5 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3

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

Ending Account Balance

0.00

SWAP ACCOUNT

Beginning Balance

0.00

Fund Deposits

151,579.66

Fees & Expenses

0.00

Fund Withdrawals

151,579.66

Ending Account Balance

0.00

INSURANCE

SPACE INTENTIONALLY LEFT BLANK

STRUCTURAL FEATURES

Group 2

Group 1

Total

Specified Subordinated Target Amount

46,316,006.12

Subordinated Amount

46,316,006.12

Subordinated Deficiency Amount

0.00

Subordinated Release Amount

6,230.92

Monthly Excess Spread

3,402,317.12

Page 6 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

Collateral Report


COLLATERAL




		Group 2		Group 1		Total



Loan Count:


Original	4,357		3,305		7,662
Prior	4,357		3,305		7,662
Prefunding	0		0		0
Scheduled Paid Offs	-0		-0		-0
Full Voluntary Prepayments	-50		-49		-99
Repurchases	-0		-0		-0
Liquidations	-0		-0		-0
Current	4,307		3,256		7,563
Principal Balance:


Original	868,377,071.72		535,011,744.53		1,403,388,816.25
Prior	868,377,071.72		535,011,744.53		1,403,388,816.25
Prefunding	0.00		0.00		0.00
Scheduled Principal	-394,583.76		-260,796.60		-655,380.36
Partial Prepayments	-59,950.08		-36,335.31		-96,285.39
Full Voluntary Prepayments	-12,732,172.70		-8,744,226.87		-21,476,399.57
Repurchases	-0.00		-0.00		-0.00
Liquidations	-0.00		-0.00		-0.00
Current	855,190,365.18		525,970,385.75		1,381,160,750.93





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK

Page 7 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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


CHARACTERISTICS
CHARACTERISTICS

	Group 2	Group 1	Total
Weighted Average Coupon Original	8.01487%	8.19231%	8.08252%
Weighted Average Coupon Prior	8.01487%	8.19231%	8.08252%
Weighted Average Coupon Current	8.01487%	8.19231%	8.08252%
Weighted Average Months to Maturity Original	354	353	353
Weighted Average Months to Maturity Prior	354	353	353
Weighted Average Months to Maturity Current	354	353	353
Weighted Avg Remaining Amortization Term Original	380	381	381
Weighted Avg Remaining Amortization Term Prior	380	381	381
Weighted Avg Remaining Amortization Term Current	380	381	381
Weighted Average Seasoning Original	4.45	4.41	4.44
Weighted Average Seasoning Prior	4.45	4.41	4.44
Weighted Average Seasoning Current	4.45	4.41	4.44

Page 8 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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			6.10656%		6.12321%		6.11284%
	Weighted Average Margin Prior			6.10656%		6.12321%		6.11284%
	Weighted Average Margin Current			6.10656%		6.12321%		6.11284%
	Weighted Average Max Rate Original			14.95730%		15.33199%		15.09874%
	Weighted Average Max Rate Prior			14.95730%		15.33199%		15.09874%
	Weighted Average Max Rate Current			14.95730%		15.33199%		15.09874%
	Weighted Average Min Rate Original			7.96247%		8.34190%		8.10570%
	Weighted Average Min Rate Prior			7.96247%		8.34190%		8.10570%
	Weighted Average Min Rate Current			7.96247%		8.34190%		8.10570%
	Weighted Average Cap Up Original			1.49774%		1.49578%		1.49700%
	Weighted Average Cap Up Prior			1.49774%		1.49578%		1.49700%
	Weighted Average Cap Up Current			1.49774%		1.49578%		1.49700%
	Weighted Average Cap Down Original			1.49774%		1.49578%		1.49700%
	Weighted Average Cap Down Prior			1.49774%		1.49578%		1.49700%
	Weighted Average Cap Down Current			1.49774%		1.49578%		1.49700%




SERVICING FEES & ADVANCES
SERVICING FEES & ADVANCES

				Group 2		Group 1		Total




Current Servicing Fees			177,219.40		113,346.91		290,566.31
Delinquent Servicing Fees			184,604.38		109,574.65		294,179.03
TOTAL SERVICING FEES			361,823.79		222,921.57		584,745.36


Compensating Interest			-1,569.67		-1,345.20		-2,914.87
Delinquent Servicing Fees			-184,604.38		-109,574.65		-294,179.03
COLLECTED SERVICING FEES			175,649.74		112,001.72		287,651.46


Total Advanced Interest			2,827,749.69		1,715,120.95		4,542,870.64
Total Advanced Principal			194,662.34		125,820.28		320,482.62
Aggregate Advances with respect to this Distribution			3,022,412.03		1,840,941.23		4,863,353.26






ADDITIONAL COLLATERAL INFORMATION
ADDITIONAL COLLATERAL INFORMATION
					Group 2		Group 1		Total
		Net Prepayment Interest Shortfall			0.00		0.00		0.00
		Pool Factor			98.311608%		98.128671%		98.407200%





Page 9 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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
		15,107,776.35	5,108,012.10	0.00	0.00	0.00	0.00	0.00	0.00	20,215,788.46
		1.09%	0.37%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.46%
		80	26	0	0	0	0	0	0	106
		1.06%	0.34%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.40%
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	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%
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	15,107,776.35	5,108,012.10	0.00	0.00	0.00	0.00	0.00	0.00	20,215,788.46
	0.00%	1.09%	0.37%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.46%
	0	80	26	0	0	0	0	0	0	106
	0.00%	1.06%	0.34%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.40%

Page 10 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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
		5,796,617.77	1,629,912.22	0.00	0.00	0.00	0.00	0.00	0.00	7,426,529.99
		1.10%	0.31%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.41%
		44	9	0	0	0	0	0	0	53
		1.35%	0.28%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.63%
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	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%
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	5,796,617.77	1,629,912.22	0.00	0.00	0.00	0.00	0.00	0.00	7,426,529.99
	0.00%	1.10%	0.31%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.41%
	0	44	9	0	0	0	0	0	0	53
	0.00%	1.35%	0.28%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.63%

Page 11 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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
		9,311,158.59	3,478,099.88	0.00	0.00	0.00	0.00	0.00	0.00	12,789,258.47
		1.09%	0.41%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.50%
		36	17	0	0	0	0	0	0	53
		0.84%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.23%
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	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%
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	9,311,158.59	3,478,099.88	0.00	0.00	0.00	0.00	0.00	0.00	12,789,258.47
	0.00%	1.09%	0.41%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.50%
	0	36	17	0	0	0	0	0	0	53
	0.00%	0.84%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.23%

Page 12 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 27

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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	50		49		99
Number of Repurchased Loans	0		0		0
Total Number of Loans Prepaid in Full	50		49		99
Curtailments Amount	59,950.08		36,335.31		96,285.39
Paid in Full Balance	12,732,172.70		8,744,226.87		21,476,399.57
Repurchased Loans Balance	0.00		0.00		0.00
Total Prepayment Amount	12,792,122.78		8,780,562.18		21,572,684.96
Cumulative


Number of Paid in Full Loans	50		49		99
Number of Repurchased Loans	0		0		0
Total Number of Loans Prepaid in Full	50		49		99
Paid in Full Balance	12,732,172.70		8,744,226.87		21,476,399.57
Repurchased Loans Balance	0.00		0.00		0.00
Curtailments Amount	59,950.08		36,335.31		96,285.39
Total Prepayment Amount	12,792,122.78		8,780,562.18		21,572,684.96

Page 15 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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


VOLUNTARY PREPAYMENTS RATES



		Group 2		Group 1		Total





SMM	1.47%		1.64%		1.54%
3 Months Avg SMM	1.47%		1.64%		1.54%
12 Months Avg SMM	1.47%		1.64%		1.54%
Avg SMM Since Cut-off	1.47%		1.64%		1.54%



CPR	16.32%		18.02%		16.97%
3 Months Avg CPR	16.32%		18.02%		16.97%
12 Months Avg CPR	16.32%		18.02%		16.97%
Avg CPR Since Cut-off	16.32%		18.02%		16.97%



PSA	1,832.00%		2,041.71%		1,911.89%
3 Months Avg PSA Approximation	1,832.00%		2,041.71%		1,911.89%
12 Months Avg PSA Approximation	1,832.00%		2,041.71%		1,911.89%
Avg PSA Since Cut-off Approximation	1,832.00%		2,041.71%		1,911.89%

Page 16 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

2200881 1		148,000.00	147,254.42	30-Apr-2006		7.750%		GA - 80.00%		Paid Off - 360		01-Oct-2005

2242302 1		185,000.00	184,561.57	30-Apr-2006		6.250%		CA - 67.27%		Paid Off - 360		01-Dec-2005
2247968 2		476,000.00	473,418.90	02-May-2006		5.600%		ME - 84.55%		Paid Off - 360		01-Dec-2005
1002676660 1		210,000.00	208,511.65	02-May-2006		5.990%		CA - 28.38%		Paid Off - 360		01-Oct-2005
1002860773 1		247,500.00	246,290.07	09-May-2006		7.900%		NJ - 90.00%		Paid Off - 360		01-Oct-2005
1003543099 1		197,000.00	196,515.86	04-May-2006		10.500%		MS - 71.64%		Paid Off - 360		01-Nov-2005
1003593061 1		206,000.00	206,000.00	30-Apr-2006		5.800%		CA - 74.91%		Paid Off - 360		01-Dec-2005
1003883747 2		323,200.00	322,021.27	30-Apr-2006		7.650%		MN - 80.00%		Paid Off - 360		01-Dec-2005
1003896822 2		136,800.00	136,473.17	08-May-2006		8.925%		FL - 80.00%		Paid Off - 360		01-Feb-2006
1003902030 2		169,652.00	168,925.49	30-Apr-2006		7.775%		FL - 85.00%		Paid Off - 360		01-Nov-2005
1004018020 1		135,200.00	135,200.00	08-May-2006		9.000%		CA - 80.00%		Paid Off - 360		01-Dec-2005
1004049817 2		585,000.00	585,000.00	30-Apr-2006		7.900%		CA - 90.00%		Paid Off - 360		01-Dec-2005
1004234652 1		315,000.00	313,798.67	30-Apr-2006		7.425%		NJ - 57.27%		Paid Off - 360		01-Dec-2005
1004249209 1		117,000.00	116,538.08	03-May-2006		7.250%		ME - 90.00%		Paid Off - 360		01-Dec-2005
1004271148 2		210,000.00	209,401.82	03-May-2006		9.950%		NJ - 75.00%		Paid Off - 360		01-Dec-2005
1004286436 1		85,500.00	85,211.58	30-Apr-2006		6.900%		ID - 90.00%		Paid Off - 360		01-Jan-2006
1004389049 2		195,000.00	194,512.92	30-Apr-2006		6.950%		ME - 78.31%		Paid Off - 360		01-Feb-2006
1004407396 1		143,250.00	142,981.55	30-Apr-2006		7.100%		CA - 71.98%		Paid Off - 360		01-Dec-2005
1004460586 2		478,000.00	477,485.36	06-May-2006		8.250%		CA - 76.48%		Paid Off - 360		01-Jan-2006
1004596306 1		136,800.00	136,668.95	01-May-2006		8.650%		MD - 90.00%		Paid Off - 360		01-Jan-2006
1004598046 1		144,000.00	143,729.40	30-Apr-2006		9.775%		AZ - 80.00%		Paid Off - 360		01-Jan-2006
1004649893 1		155,200.00	155,199.98	03-May-2006		7.663%		NH - 80.00%		Paid Off - 360		01-Jan-2006
1004671769 2		72,000.00	71,857.74	30-Apr-2006		8.125%		WI - 80.00%		Paid Off - 360		01-Feb-2006
1004714811 2		488,300.00	488,300.00	01-May-2006		9.750%		CA - 95.00%		Paid Off - 360		01-Jan-2006
1004735166 2		300,000.00	299,707.75	04-May-2006		9.450%		CO - 80.00%		Paid Off - 360		01-Feb-2006
1004741122 2		212,000.00	212,000.00	30-Apr-2006		6.700%		CA - 80.00%		Paid Off - 360		01-Feb-2006
1004763447 2		185,000.00	184,630.76	30-Apr-2006		8.075%		CA - 51.39%		Paid Off - 360		01-Feb-2006
1004794887 2		399,000.00	398,183.25	04-May-2006		7.950%		CA - 95.00%		Paid Off - 360		01-Feb-2006
1004805456 2		280,000.00	279,072.05	30-Apr-2006		6.990%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004813330 2		162,750.00	162,456.85	30-Apr-2006		9.975%		AZ - 75.00%		Paid Off - 360		01-Jan-2006
1004830142 2		433,500.00	432,769.29	04-May-2006		8.900%		CA - 85.00%		Paid Off - 360		01-Feb-2006
1004834317 2		479,200.00	478,585.07	30-Apr-2006		8.850%		CA - 80.00%		Paid Off - 360		01-Jan-2006
1004870125 1		112,500.00	112,428.42	30-Apr-2006		9.050%		CA - 45.00%		Paid Off - 360		01-Feb-2006
1004945279 2		22,000.00	21,977.99	30-Apr-2006		11.350%		CA - 20.00%		Paid Off - 360		01-Feb-2006
1004968592 2		19,900.00	19,877.61	02-May-2006		12.150%		IA - 20.00%		Paid Off - 360		01-Jan-2006
1004983780 1		260,000.00	260,000.00	30-Apr-2006		5.500%		CA - 55.56%		Paid Off - 360		01-Jan-2006
1004989524 2		158,750.00	158,562.30	01-May-2006		6.900%		FL - 73.84%		Paid Off - 360		01-Feb-2006
1004994956 1		192,500.00	192,333.46	30-Apr-2006		8.000%		CA - 70.00%		Paid Off - 360		01-Feb-2006
1005022316 2		28,000.00	27,952.43	30-Apr-2006		10.250%		GA - 20.00%		Paid Off - 360		01-Jan-2006
1005041901 2		133,600.00	133,600.00	12-May-2006		7.500%		CA - 80.00%		Paid Off - 360		01-Jan-2006


Page 18 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

1005064119 2		652,500.00	651,249.54	30-Apr-2006		8.275%		MA - 90.00%		Paid Off - 360		01-Feb-2006

1005064397 1		120,000.00	120,000.00	30-Apr-2006		9.400%		AR - 80.00%		Paid Off - 360		01-Feb-2006
1005064841 2		30,000.00	29,945.07	30-Apr-2006		8.500%		AR - 20.00%		Paid Off - 360		01-Feb-2006
1005079345 1		99,900.00	99,766.29	30-Apr-2006		10.000%		AL - 90.00%		Paid Off - 360		01-Feb-2006
1005090634 1		115,000.00	114,925.50	10-May-2006		8.990%		CA - 41.07%		Paid Off - 360		01-Feb-2006
1005098501 1		315,000.00	314,576.19	30-Apr-2006		9.975%		CA - 90.00%		Paid Off - 360		01-Feb-2006
1005111498 1		138,000.00	137,735.52	04-May-2006		8.275%		MD - 47.59%		Paid Off - 360		01-Feb-2006
1005116037 1		344,000.00	344,000.00	30-Apr-2006		8.500%		CA - 80.00%		Paid Off - 360		01-Feb-2006
1005136998 1		285,000.00	284,503.28	01-May-2006		8.738%		MD - 71.25%		Paid Off - 360		01-Feb-2006
1005142035 2		437,750.00	436,948.78	09-May-2006		8.500%		CA - 84.18%		Paid Off - 360		01-Feb-2006
1005152639 2		199,750.00	199,620.64	30-Apr-2006		8.990%		CA - 85.00%		Paid Off - 360		01-Feb-2006
1005165411 2		150,000.00	149,627.26	30-Apr-2006		6.990%		ME - 47.62%		Paid Off - 360		01-Feb-2006
1005166438 1		120,000.00	119,720.24	30-Apr-2006		7.300%		AZ - 53.33%		Paid Off - 360		01-Feb-2006
1005166964 2		172,500.00	172,328.46	30-Apr-2006		7.600%		FL - 75.00%		Paid Off - 360		01-Feb-2006
1005169836 1		276,000.00	275,671.43	28-Apr-2006		6.875%		CA - 80.00%		Paid Off - 360		01-Feb-2006
1005175534 1		102,000.00	101,721.87	08-May-2006		6.500%		CA - 39.23%		Paid Off - 360		01-Jan-2006
1005179184 1		171,000.00	170,802.06	03-May-2006		8.000%		OH - 90.00%		Paid Off - 360		01-Jan-2006
1005186586 1		165,300.00	164,985.24	03-May-2006		9.525%		FL - 74.97%		Paid Off - 360		01-Feb-2006
1005188147 1		178,200.00	177,964.02	30-Apr-2006		10.050%		FL - 90.00%		Paid Off - 360		01-Feb-2006
1005192622 2		84,000.00	83,840.65	30-Apr-2006		8.325%		MD - 70.00%		Paid Off - 360		01-Feb-2006
1005193523 1		161,405.00	161,162.39	30-Apr-2006		9.450%		FL - 90.22%		Paid Off - 360		01-Feb-2006
1005230608 2		417,905.00	417,904.98	30-Apr-2006		9.800%		NJ - 95.00%		Paid Off - 360		01-Feb-2006
1005239985 1		155,000.00	153,546.45	30-Apr-2006		7.175%		MD - 47.06%		Paid Off - 180		01-Feb-2006
1005247618 2		288,000.00	287,807.03	01-May-2006		8.875%		FL - 80.00%		Paid Off - 360		01-Feb-2006
1005256448 1		259,250.00	259,140.19	30-Apr-2006		10.400%		CA - 85.00%		Paid Off - 360		01-Feb-2006
1005256554 1		138,550.00	138,366.55	04-May-2006		10.050%		VA - 85.00%		Paid Off - 360		01-Feb-2006
1005257358 2		404,000.00	403,360.15	11-May-2006		9.200%		CA - 80.00%		Paid Off - 360		01-Feb-2006
1005257571 1		85,500.00	85,326.74	30-Apr-2006		8.000%		OH - 90.00%		Paid Off - 360		01-Feb-2006
1005278521 2		171,500.00	171,347.96	30-Apr-2006		11.900%		NJ - 70.00%		Paid Off - 360		01-Feb-2006
1005280778 1		136,000.00	135,770.75	04-May-2006		8.900%		FL - 80.00%		Paid Off - 360		01-Feb-2006
1005298689 2		160,000.00	159,911.00	10-May-2006		9.500%		CA - 50.79%		Paid Off - 360		01-Feb-2006
1005303780 1		185,250.00	184,936.11	30-Apr-2006		8.875%		HI - 95.00%		Paid Off - 360		01-Feb-2006
1005304725 2		512,558.00	512,558.00	01-May-2006		8.600%		NV - 80.00%		Paid Off - 360		01-Feb-2006
1005333980 2		210,000.00	209,703.66	30-Apr-2006		9.750%		MD - 71.62%		Paid Off - 360		01-Feb-2006
1005350023 1		142,400.00	142,168.52	02-May-2006		9.075%		WY - 81.37%		Paid Off - 360		01-Feb-2006
1005389830 1		125,840.00	125,840.00	11-May-2006		7.300%		CA - 70.70%		Paid Off - 360		01-Feb-2006
1005394628 2		114,000.00	113,726.22	15-May-2006		7.150%		FL - 61.29%		Paid Off - 360		01-Feb-2006
1005429949 2		255,633.00	255,139.56	04-May-2006		8.250%		CA - 86.66%		Paid Off - 360		01-Feb-2006
1005431482 1		376,000.00	376,000.00	30-Apr-2006		8.075%		CA - 80.00%		Paid Off - 360		01-Feb-2006
1005435610 1		58,500.00	58,429.27	30-Apr-2006		10.475%		TX - 90.00%		Paid Off - 360		01-Feb-2006
1005448036 2		237,405.00	237,170.53	28-Apr-2006		9.500%		FL - 95.00%		Paid Off - 360		01-Mar-2006
1005461430 1		88,000.00	87,897.52	30-Apr-2006		10.650%		FL - 80.00%		Paid Off - 360		01-Feb-2006


Page 19 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

1005469334 1		312,000.00	311,483.81	08-May-2006		8.990%		CA - 80.00%		Paid Off - 360		01-Feb-2006

1005487154 2		262,000.00	261,616.17	05-May-2006		6.990%		CA - 74.86%		Paid Off - 360		01-Feb-2006
1005490131 2		105,300.00	105,141.71	06-May-2006		9.450%		WI - 90.00%		Paid Off - 360		01-Feb-2006
1005491194 1		89,100.00	88,971.57	30-Apr-2006		9.650%		MI - 90.00%		Paid Off - 360		01-Feb-2006
1005491559 2		175,500.00	175,061.63	10-May-2006		6.950%		MN - 90.00%		Paid Off - 360		01-Feb-2006
1005495984 2		318,665.00	318,162.94	30-Apr-2006		9.225%		CO - 85.00%		Paid Off - 360		01-Feb-2006
1005513241 2		99,200.00	99,053.22	10-May-2006		9.525%		OH - 89.21%		Paid Off - 360		01-Feb-2006
1005579812 2		270,211.00	269,855.10	30-Apr-2006		10.075%		AZ - 90.00%		Paid Off - 360		01-Feb-2006
1005618012 2		263,386.00	262,930.41	30-Apr-2006		8.775%		FL - 80.00%		Paid Off - 360		01-Feb-2006
1005619903 1		111,200.00	111,038.03	30-Apr-2006		9.600%		NE - 80.00%		Paid Off - 360		01-Feb-2006
1005622864 1		162,000.00	161,755.23	30-Apr-2006		9.425%		IL - 90.00%		Paid Off - 360		01-Feb-2006
1005681363 1		180,000.00	179,723.72	30-Apr-2006		9.350%		IL - 80.00%		Paid Off - 360		01-Feb-2006
1005689622 2		483,421.00	482,807.60	30-Apr-2006		10.250%		CA - 95.00%		Paid Off - 360		01-Feb-2006
1005717263 2		50,400.00	50,306.79	15-May-2006		8.450%		OH - 78.75%		Paid Off - 360		01-Feb-2006
1005729722 1		311,400.00	310,722.95	30-Apr-2006		7.650%		MN - 94.94%		Paid Off - 360		01-Feb-2006
1005762463 1		262,500.00	262,351.77	30-Apr-2006		9.450%		CA - 70.00%		Paid Off - 360		01-Feb-2006
1005764265 2		278,400.00	278,275.62	15-May-2006		10.225%		MA - 80.00%		Paid Off - 360		01-Feb-2006


TOTAL		21,511,381.00	21,476,399.57

Page 20 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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 21 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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 22 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 23 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 24 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 May 2009

Credit Enhancement Percentage (For Stepdown Date )

20.5780%

Applicable Percentage

40.5000%

Trigger Event in Effect

Rolling 60+ days balance includes BK,FC,REO

5,108,012.10

Ending Balance

1,381,160,750.93

Delinquency Percentage

0.3698%

Prior Balance of X and Mezzanine

284,215,237.04

Prior Pool Balance

868,377,071.72

535,011,744.53

1,403,388,816.25

Prior Senior Credit Enhancement Percentage

20.2521%

Applicable % of Prior Senior Credit Enhancment %

39.5000%

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

Libor For Current Period

5.000000%

Libor Rate Determination Date

04/26/2006

Libor For Next Period

5.081250%

Libor Rate Next Determination Date

05/23/2006

Interest Rate Swap Floating

5.000000%

Swap Rate Determination Date

04/26/2006

Interest Rate Swap Fixed Rate

5.150000%

Page 25 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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	5.24125%	$0.00	$0.00	$0.00	$0.00
		5.24125%	$0.00	$0.00	$0.00	$0.00
	A-2A	5.14125%	$0.00	$0.00	$0.00	$0.00
		5.14125%	$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	5.25125%	$0.00	$0.00	$0.00	$0.00
		5.25125%	$0.00	$0.00	$0.00	$0.00
	A-2D	5.35125%	$0.00	$0.00	$0.00	$0.00
		5.35125%	$0.00	$0.00	$0.00	$0.00
	M-1	5.41125%	$0.00	$0.00	$0.00	$0.00
		5.41125%	$0.00	$0.00	$0.00	$0.00
	M-2	5.42125%	$0.00	$0.00	$0.00	$0.00
		5.42125%	$0.00	$0.00	$0.00	$0.00
	M-3	5.44125%	$0.00	$0.00	$0.00	$0.00
		5.44125%	$0.00	$0.00	$0.00	$0.00
	M-4	5.54125%	$0.00	$0.00	$0.00	$0.00
		5.54125%	$0.00	$0.00	$0.00	$0.00
	M-5	5.55125%	$0.00	$0.00	$0.00	$0.00
		5.55125%	$0.00	$0.00	$0.00	$0.00
	M-6	5.63125%	$0.00	$0.00	$0.00	$0.00
		5.63125%	$0.00	$0.00	$0.00	$0.00
	B-1	6.13125%	$0.00	$0.00	$0.00	$0.00
		6.13125%	$0.00	$0.00	$0.00	$0.00
	B-2	6.28125%	$0.00	$0.00	$0.00	$0.00
		6.28125%	$0.00	$0.00	$0.00	$0.00
	B-3	7.13125%	$0.00	$0.00	$0.00	$0.00
		7.13125%	$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
	REMIC1	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00
	R-I	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00
	REMIC2	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00
	R-II	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00
	IO	0.00000%	$0.00	$0.00	$0.00	$0.00
		0.00000%	$0.00	$0.00	$0.00	$0.00




Page 26 of 27

Morgan Stanley ABS Capital I Inc. 2006-NC3



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			10,107,811.24
Current Scheduled Payments 1 Month Prior			0.00
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			37,209.09
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 3 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 4 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 5 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 6 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 7 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 8 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 9 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 10 Month Prior			0.00
Sched. Pmts - 60+Day Delinquent Loans, 11 Month Prior			0.00





Page 27 of 27

Morgan Stanley ABS Capital I Inc. Trust 2006-NC3 10-D