Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

June 26, 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:

June 26, 2006

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

Record Date:

May 31, 2006

Factor Information:

(800) 735-7777

June 23, 2006

Main Phone Number:

(714) 247-6000

Determination Date:

June 16, 2006

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

Page 1 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 2006 Distribution

Certificate Payment Report
Current Period Distribution - REMIC UT
				Prior						Current
	Class		Original	Principal			Total	Realized	Deferred	Principal
	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)
			(1)	(2)	(3)	(4)=(2)+(3)	(5)	(6)	(7)=(1)-(3)-(5)+(6)
A-1	STEP	$	430,640,000.00	407,885,602.40	1,907,545.00	11,455,667.38	13,363,212.38	0.00	0.00	396,429,935.02
A-1	STEP	$	430,640,000.00	407,885,602.40	1,907,545.00	11,455,667.38	13,363,212.38	0.00	0.00	396,429,935.02
A-2A	STEP	$	352,800,000.00	322,768,335.77	1,477,920.35	21,177,447.56	22,655,367.91	0.00	0.00	301,590,888.21
A-2B	STEP	$	102,230,000.00	102,230,000.00	472,643.37	0.00	472,643.37	0.00	0.00	102,230,000.00
A-2C	STEP	$	156,030,000.00	156,030,000.00	729,700.30	0.00	729,700.30	0.00	0.00	156,030,000.00
A-2D	STEP	$	100,004,000.00	100,004,000.00	477,463.54	0.00	477,463.54	0.00	0.00	100,004,000.00
M-1	SUB	$	53,961,000.00	53,961,000.00	260,991.37	0.00	260,991.37	0.00	0.00	53,961,000.00
M-2	SUB	$	41,181,000.00	41,181,000.00	199,910.88	0.00	199,910.88	0.00	0.00	41,181,000.00
M-3	SUB	$	24,851,000.00	24,851,000.00	120,858.70	0.00	120,858.70	0.00	0.00	24,851,000.00
M-4	SUB	$	22,010,000.00	22,010,000.00	109,389.70	0.00	109,389.70	0.00	0.00	22,010,000.00
M-5	SUB	$	22,010,000.00	22,010,000.00	109,780.99	0.00	109,780.99	0.00	0.00	22,010,000.00
M-6	SUB	$	19,880,000.00	19,880,000.00	100,394.00	0.00	100,394.00	0.00	0.00	19,880,000.00
B-1	SUB	$	19,880,000.00	19,880,000.00	110,113.11	0.00	110,113.11	0.00	0.00	19,880,000.00
B-2	SUB	$	15,620,000.00	15,620,000.00	89,988.56	0.00	89,988.56	0.00	0.00	15,620,000.00
B-3	SUB	$	14,200,000.00	14,200,000.00	92,536.67	0.00	92,536.67	0.00	0.00	14,200,000.00
X	SUB	$	44,733,872.00	44,730,972.46	2,518,129.04	0.00	2,518,129.04	0.00	0.00	44,730,972.46
P	SUB	$	0.00	0.00	498,274.30	0.00	498,274.30	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	1,367,241,910.63	9,275,639.88	32,633,114.94	41,908,754.82	0.00	0.00	1,334,608,795.69
Total




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

A-1	05/25/06	06/25/06	A-Act/360	617451EB1	430,640,000.00	947.161440	4.429558	26.601494	31.031052	920.559946
A-1	05/25/06	06/25/06	A-Act/360	617451EB1	430,640,000.00	947.161440	4.429558	26.601494	31.031052	920.559946
A-2A	05/25/06	06/25/06	A-Act/360	617451EC9	352,800,000.00	914.876235	4.189117	60.026779	64.215895	854.849456
A-2B	05/25/06	06/25/06	A-Act/360	617451ED7	102,230,000.00	1,000.000000	4.623333	0.000000	4.623333	1,000.000000
A-2C	05/25/06	06/25/06	A-Act/360	617451EE5	156,030,000.00	1,000.000000	4.676667	0.000000	4.676667	1,000.000000
A-2D	05/25/06	06/25/06	A-Act/360	617451EF2	100,004,000.00	1,000.000000	4.774444	0.000000	4.774444	1,000.000000
M-1	05/25/06	06/25/06	A-Act/360	617451EG0	53,961,000.00	1,000.000000	4.836667	0.000000	4.836667	1,000.000000
M-2	05/25/06	06/25/06	A-Act/360	617451EH8	41,181,000.00	1,000.000000	4.854445	0.000000	4.854445	1,000.000000
M-3	05/25/06	06/25/06	A-Act/360	617451EJ4	24,851,000.00	1,000.000000	4.863333	0.000000	4.863333	1,000.000000
M-4	05/25/06	06/25/06	A-Act/360	617451EK1	22,010,000.00	1,000.000000	4.970000	0.000000	4.970000	1,000.000000
M-5	05/25/06	06/25/06	A-Act/360	617451EL9	22,010,000.00	1,000.000000	4.987778	0.000000	4.987778	1,000.000000
M-6	05/25/06	06/25/06	A-Act/360	617451EM7	19,880,000.00	1,000.000000	5.050000	0.000000	5.050000	1,000.000000
B-1	05/25/06	06/25/06	A-Act/360	617451EN5	19,880,000.00	1,000.000000	5.538889	0.000000	5.538889	1,000.000000
B-2	05/25/06	06/25/06	A-Act/360	617451EP0	15,620,000.00	1,000.000000	5.761111	0.000000	5.761111	1,000.000000
B-3	05/25/06	06/25/06	A-Act/360	617451EQ8	14,200,000.00	1,000.000000	6.516667	0.000000	6.516667	1,000.000000
X	05/25/06	06/25/06	A-Act/360		44,733,872.00	999.935182	56.291328	0.000000	56.291328	999.935182
P	05/25/06	06/24/06	A-30/360		0.00	0.000000	0.000000	0.000000	0.000000	0.000000
R	05/25/06	06/24/06	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
Mortgage Pass-Through Certificates
June 26, 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	5,264,685.51	33,266,322.05	943,742.93	34,210,064.98	39,474,750.49	0.00	0.00	396,429,935.02
A-2A	352,800,000.00	4,151,041.83	49,829,677.93	1,379,433.85	51,209,111.79	55,360,153.62	0.00	0.00	301,590,888.21
A-2B	102,230,000.00	1,270,282.72	0.00	0.00	0.00	1,270,282.72	0.00	0.00	102,230,000.00
A-2C	156,030,000.00	1,961,671.57	0.00	0.00	0.00	1,961,671.57	0.00	0.00	156,030,000.00
A-2D	100,004,000.00	1,284,180.25	0.00	0.00	0.00	1,284,180.25	0.00	0.00	100,004,000.00
M-1	53,961,000.00	702,162.12	0.00	0.00	0.00	702,162.12	0.00	0.00	53,961,000.00
M-2	41,181,000.00	537,876.94	0.00	0.00	0.00	537,876.94	0.00	0.00	41,181,000.00
M-3	24,851,000.00	325,193.56	0.00	0.00	0.00	325,193.56	0.00	0.00	24,851,000.00
M-4	22,010,000.00	294,473.25	0.00	0.00	0.00	294,473.25	0.00	0.00	22,010,000.00
M-5	22,010,000.00	295,549.30	0.00	0.00	0.00	295,549.30	0.00	0.00	22,010,000.00
M-6	19,880,000.00	270,349.45	0.00	0.00	0.00	270,349.45	0.00	0.00	19,880,000.00
B-1	19,880,000.00	297,077.00	0.00	0.00	0.00	297,077.00	0.00	0.00	19,880,000.00
B-2	15,620,000.00	242,963.20	0.00	0.00	0.00	242,963.20	0.00	0.00	15,620,000.00
B-3	14,200,000.00	250,380.09	0.00	0.00	0.00	250,380.09	0.00	0.00	14,200,000.00
X	44,733,872.00	8,811,929.01	2,798.31	101.23	2,899.54	8,814,828.55	0.00	0.00	44,730,972.46
P	0.00	1,197,967.05	0.00	0.00	0.00	1,197,967.05	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	27,157,782.85	83,098,798.29	2,323,278.01	85,422,076.31	112,579,859.16	0.00	0.00	1,334,608,795.69


Interest Detail - REMIC UT
	Pass	Prior Principal		Non-	Prior	Unscheduled		Paid or	Current
	Pass	Prior Principal		Non-	Prior	Unscheduled		Paid or

	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	5.26125%	407,885,602.40	1,907,545.00	0.00	0.00	0.00	1,907,545.00	1,907,545.00	0.00
A-2A	5.15125%	322,768,335.77	1,477,920.35	0.00	0.00	0.00	1,477,920.35	1,477,920.35	0.00
A-2B	5.20125%	102,230,000.00	472,643.37	0.00	0.00	0.00	472,643.37	472,643.37	0.00
A-2C	5.26125%	156,030,000.00	729,700.30	0.00	0.00	0.00	729,700.30	729,700.30	0.00
A-2D	5.37125%	100,004,000.00	477,463.54	0.00	0.00	0.00	477,463.54	477,463.54	0.00
M-1	5.44125%	53,961,000.00	260,991.37	0.00	0.00	0.00	260,991.37	260,991.37	0.00
M-2	5.46125%	41,181,000.00	199,910.88	0.00	0.00	0.00	199,910.88	199,910.88	0.00
M-3	5.47125%	24,851,000.00	120,858.70	0.00	0.00	0.00	120,858.70	120,858.70	0.00
M-4	5.59125%	22,010,000.00	109,389.70	0.00	0.00	0.00	109,389.70	109,389.70	0.00
M-5	5.61125%	22,010,000.00	109,780.99	0.00	0.00	0.00	109,780.99	109,780.99	0.00
M-6	5.68125%	19,880,000.00	100,394.00	0.00	0.00	0.00	100,394.00	100,394.00	0.00
B-1	6.23125%	19,880,000.00	110,113.11	0.00	0.00	0.00	110,113.11	110,113.11	0.00
B-2	6.48125%	15,620,000.00	89,988.56	0.00	0.00	0.00	89,988.56	89,988.56	0.00
B-3	6.86109%	14,200,000.00	86,602.22	0.00	0.00	0.00	86,602.22	92,536.67	0.00
X	63.33185%	44,730,972.46	0.00	0.00	0.00	0.00	0.00	2,518,129.04	0.00
P	0.00000%	0.00	0.00	0.00	0.00	0.00	0.00	498,274.30	0.00
R	0.00000%	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Total		1,367,241,910.63	6,253,302.09	0.00	0.00	0.00	6,253,302.09	9,275,639.88	0.00



Page 3 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 2006 Distribution

Collection Account Report
SUMMARY

	Group 2	Group 1	Total
Principal Collections	21,177,447.56	11,455,667.38	32,633,114.94
Principal Withrawals	0.00	0.00	0.00
Principal Other Accounts	0.00	0.00	0.00
TOTAL NET PRINCIPAL	21,177,447.56	11,455,667.38	32,633,114.94
Interest Collections	5,246,233.59	3,172,825.46	8,419,059.06
Interest Withdrawals	-0.00	-0.00	-0.00
Interest Other Accounts	304,812.62	193,461.68	937,175.88
Interest Fees	-50,673.38	-29,921.70	-80,595.08
TOTAL NET INTEREST	5,500,372.83	3,336,365.44	9,275,639.86
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION	26,677,820.39	14,792,032.82	41,908,754.82




PRINCIPAL - COLLECTIONS

	Group 2	Group 1	Total
Scheduled Principal Received	479,925.12	283,363.55	763,288.67
Prepayments In Full	20,678,375.11	11,160,420.93	31,838,796.04
Curtailments	19,147.33	11,882.90	31,030.23
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	-419,398.05	-248,229.02	-667,627.07
Advanced Principal	419,398.05	248,229.02	667,627.07
TOTAL PRINCIPAL COLLECTED	21,177,447.56	11,455,667.38	32,633,114.94




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
June 26, 2006 Distribution


INTEREST - COLLECTIONS

			Group 2	Group 1	Total
Scheduled Interest			5,553,828.31	3,357,965.77	8,911,794.08
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			-15,352.28	-7,191.04	-22,543.32
Compensating Interest			15,352.28	7,191.05	22,543.33
Delinquent Interest			-4,801,955.81	-2,916,201.75	-7,718,157.56
Interest Advanced			4,494,361.10	2,731,061.43	7,225,422.53
TOTAL INTEREST COLLECTED			5,246,233.59	3,172,825.46	8,419,059.06




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
INTEREST - OTHER ACCOUNTS
		Group 2	Group 1	Total
	Prepayment Charges	304,812.62	193,461.68	498,274.30
	Interest Rate Swap Receipt			5,663,920.45
	Interest Rate Swap Payment			(5,225,018.87)
	Swap Termination Payments			0.00
	Defaulted Swap Termination Payments			0.00
	TOTAL INTEREST OTHER ACCOUNTS	304,812.62	193,461.68	937,175.88
	Net Swap Payment			438,901.58




INTEREST FEES
INTEREST FEES
		Group 2	Group 1	Total
	Current Servicing Fees	48,395.05	28,554.06	76,949.10
	Current Trustee Fees	2,278.33	1,367.64	3,645.98
	Custodian Fees			0.00
	TOTAL INTEREST OTHER FEES	50,673.38	29,921.70	80,595.08



Page 5 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

June 26, 2006 Distribution

Credit Enhancement Report

ACCOUNTS

Reserve Account

Beginning Balance

0.00

Fund Deposits

5,934.44

Fees & Expenses

0.00

Fund Withdrawals

5,934.44

EndingAccount Balance

0.00

SWAP ACCOUNT

Beginning Balance

0.00

Fund Deposits

438,901.58

Fees & Expenses

0.00

Fund Withdrawals

438,901.58

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

2,524,063.48

Page 6 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 2006 Distribution

Collateral Report


COLLATERAL




		Group 2	Group 1	Total



Loan Count:


Original	4,608	2,920	7,528
Prior	4,475	2,820	7,295
Prefunding	0	0	0
Scheduled Paid Offs	-0	-0	-0
Full Voluntary Prepayments	-83	-52	-135
Repurchases	-0	-0	-0
Liquidations	-0	-0	-0
Current	4,392	2,768	7,160
Principal Balance:


Original	884,408,180.67	535,621,047.09	1,420,029,227.76
Prior	854,375,427.68	512,866,482.95	1,367,241,910.63
Prefunding	0.00	0.00	0.00
Scheduled Principal	-479,925.12	-283,363.55	-763,288.67
Partial Prepayments	-19,147.33	-11,882.90	-31,030.23
Full Voluntary Prepayments	-20,678,375.11	-11,160,420.93	-31,838,796.04
Repurchases	-0.00	-0.00	-0.00
Liquidations	-0.00	-0.00	-0.00
Current	833,197,980.12	501,410,815.57	1,334,608,795.69





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK

Page 7 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 2006 Distribution


CHARACTERISTICS
CHARACTERISTICS

	Group 2	Group 1	Total
Weighted Average Coupon Original	7.82300%	7.86409%	7.83850%
Weighted Average Coupon Prior	7.81082%	7.85897%	7.82893%
Weighted Average Coupon Current	7.80054%	7.85695%	7.82170%
Weighted Average Months to Maturity Original	354	354	354
Weighted Average Months to Maturity Prior	353	353	353
Weighted Average Months to Maturity Current	352	352	352
Weighted Avg Remaining Amortization Term Original	379	383	381
Weighted Avg Remaining Amortization Term Prior	378	382	380
Weighted Avg Remaining Amortization Term Current	377	381	379
Weighted Average Seasoning Original	4.24	4.21	4.23
Weighted Average Seasoning Prior	5.24	5.20	5.23
Weighted Average Seasoning Current	6.24	6.21	6.23

Page 8 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 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		6.09415%	6.12475%	6.10585%
Weighted Average Margin Current		6.09290%	6.12414%	6.10482%
Weighted Average Max Rate Original		14.76229%	14.91907%	14.82237%
Weighted Average Max Rate Prior		14.74958%	14.91167%	14.81155%
Weighted Average Max Rate Current		14.73877%	14.90798%	14.80333%
Weighted Average Min Rate Original		7.76574%	7.92838%	7.82807%
Weighted Average Min Rate Prior		7.75266%	7.92117%	7.81709%
Weighted Average Min Rate Current		7.74176%	7.91748%	7.80880%
Weighted Average Cap Up Original		1.49845%	1.49750%	1.49809%
Weighted Average Cap Up Prior		1.49864%	1.49745%	1.49819%
Weighted Average Cap Up Current		1.49861%	1.49738%	1.49814%
Weighted Average Cap Down Original		1.49845%	1.49750%	1.49809%
Weighted Average Cap Down Prior		1.49864%	1.49745%	1.49819%
Weighted Average Cap Down Current		1.49861%	1.49738%	1.49814%




SERVICING FEES & ADVANCES
SERVICING FEES & ADVANCES

		Group 2	Group 1	Total




Current Servicing Fees		48,395.05	28,554.06	76,949.10
Delinquent Servicing Fees		307,594.71	185,140.31	492,735.02
TOTAL SERVICING FEES		355,989.77	213,694.37	569,684.12


Compensating Interest		-15,352.28	-7,191.05	-22,543.33
Delinquent Servicing Fees		-307,594.71	-185,140.31	-492,735.02
COLLECTED SERVICING FEES		33,042.78	21,363.02	54,405.77


Aggregate Advances with respect to this Distribution		4,913,759.15	2,979,290.46	7,893,049.61






ADDITIONAL COLLATERAL INFORMATION
ADDITIONAL COLLATERAL INFORMATION
		Group 2	Group 1	Total
	Net Prepayment Interest Shortfall	0.00	0.00	0.00
	Pool Factor	94.006823%	93.437259%	93.984500%





Page 9 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 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	240+ Days	TOTAL
	<31 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-180 Days	181-210 Days	211-240 Days	240+ Days	TOTAL
DELINQUENT Balance % Balance # Loans % # Loans
		45,410,271.15	19,720,821.93	10,895,809.80	1,267,014.02	0.00	0.00	0.00	0.00	77,293,916.90
		3.40%	1.48%	0.82%	0.09%	0.00%	0.00%	0.00%	0.00%	5.79%
		232	93	51	6	0	0	0	0	382
		3.24%	1.30%	0.71%	0.08%	0.00%	0.00%	0.00%	0.00%	5.34%
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
	88,774.05	106,561.97	0.00	0.00	0.00	0.00	0.00	0.00	0.00	195,336.02
	0.01%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.01%
	1	1	0	0	0	0	0	0	0	2
	0.01%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.03%
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
	88,774.05	45,516,833.12	19,720,821.93	10,895,809.80	1,267,014.02	0.00	0.00	0.00	0.00	77,489,252.92
	0.01%	3.41%	1.48%	0.82%	0.09%	0.00%	0.00%	0.00%	0.00%	5.81%
	1	233	93	51	6	0	0	0	0	384
	0.01%	3.25%	1.30%	0.71%	0.08%	0.00%	0.00%	0.00%	0.00%	5.36%

Page 10 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 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	240+ Days	TOTAL
	<31 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-180 Days	181-210 Days	211-240 Days	240+ Days	TOTAL
DELINQUENT Balance % Balance # Loans % # Loans
		17,055,031.82	4,399,660.43	3,504,777.49	328,000.00	0.00	0.00	0.00	0.00	25,287,469.74
		3.40%	0.88%	0.70%	0.07%	0.00%	0.00%	0.00%	0.00%	5.04%
		97	26	21	1	0	0	0	0	145
		3.50%	0.94%	0.76%	0.04%	0.00%	0.00%	0.00%	0.00%	5.24%
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	17,055,031.82	4,399,660.43	3,504,777.49	328,000.00	0.00	0.00	0.00	0.00	25,287,469.74
	0.00%	3.40%	0.88%	0.70%	0.07%	0.00%	0.00%	0.00%	0.00%	5.04%
	0	97	26	21	1	0	0	0	0	145
	0.00%	3.50%	0.94%	0.76%	0.04%	0.00%	0.00%	0.00%	0.00%	5.24%

Page 11 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 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	240+ Days	TOTAL
	<31 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-180 Days	181-210 Days	211-240 Days	240+ Days	TOTAL
DELINQUENT Balance % Balance # Loans % # Loans
		28,355,239.33	15,321,161.50	7,391,032.31	939,014.02	0.00	0.00	0.00	0.00	52,006,447.16
		3.40%	1.84%	0.89%	0.11%	0.00%	0.00%	0.00%	0.00%	6.24%
		135	67	30	5	0	0	0	0	237
		3.07%	1.53%	0.68%	0.11%	0.00%	0.00%	0.00%	0.00%	5.40%
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
	88,774.05	106,561.97	0.00	0.00	0.00	0.00	0.00	0.00	0.00	195,336.02
	0.01%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.02%
	1	1	0	0	0	0	0	0	0	2
	0.02%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.05%
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
	88,774.05	28,461,801.30	15,321,161.50	7,391,032.31	939,014.02	0.00	0.00	0.00	0.00	52,201,783.18
	0.01%	3.42%	1.84%	0.89%	0.11%	0.00%	0.00%	0.00%	0.00%	6.27%
	1	136	67	30	5	0	0	0	0	239
	0.02%	3.10%	1.53%	0.68%	0.11%	0.00%	0.00%	0.00%	0.00%	5.44%

Page 12 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

June 26, 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

June 26, 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
June 26, 2006 Distribution

Prepayment Report

VOLUNTARY PREPAYMENTS



		Group 2	Group 1	Total


Current


Number of Paid in Full Loans	83	52	135
Number of Repurchased Loans	0	0	0
Total Number of Loans Prepaid in Full	83	52	135
Curtailments Amount	19,147.33	11,882.90	31,030.23
Paid in Full Balance	20,678,375.11	11,160,420.93	31,838,796.04
Repurchased Loans Balance	0.00	0.00	0.00
Total Prepayment Amount	20,697,522.44	11,172,303.83	31,869,826.27
Cumulative


Number of Paid in Full Loans	215	152	367
Number of Repurchased Loans	1	0	1
Total Number of Loans Prepaid in Full	216	152	368
Paid in Full Balance	49,405,099.71	33,282,919.10	82,688,018.81
Repurchased Loans Balance	206,501.11	0.00	206,501.11
Curtailments Amount	136,330.98	66,303.15	202,634.13
Total Prepayment Amount	49,747,931.80	33,349,222.25	83,097,154.05

Page 15 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 2006 Distribution


VOLUNTARY PREPAYMENTS RATES



		Group 2	Group 1	Total





SMM	2.42%	2.18%	2.33%
3 Months Avg SMM	1.91%	2.12%	1.99%
12 Months Avg SMM	1.91%	2.12%	1.99%
Avg SMM Since Cut-off	1.91%	2.12%	1.99%



CPR	25.51%	23.24%	24.66%
3 Months Avg CPR	20.69%	22.70%	21.45%
12 Months Avg CPR	20.69%	22.70%	21.45%
Avg CPR Since Cut-off	20.69%	22.70%	21.45%



PSA	2,044.07%	1,872.38%	1,980.48%
3 Months Avg PSA Approximation	1,974.48%	2,180.27%	2,052.18%
12 Months Avg PSA Approximation	1,974.48%	2,180.27%	2,052.18%
Avg PSA Since Cut-off Approximation	1,974.48%	2,180.27%	2,052.18%

Page 16 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

June 26, 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
Mortgage Pass-Through Certificates
June 26, 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 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

2224530 1		205,000.00	204,389.26	19-May-2006	9.550%	KY - 89.91%	Paid Off - 360	01-Dec-2005
2224530 1		205,000.00	204,389.26	19-May-2006	9.550%	KY - 89.91%	Paid Off - 360	01-Dec-2005
2251739 2		40,000.00	39,941.60	19-May-2006	12.000%	CA - 14.29%	Paid Off - 360	01-Jan-2006
1001453386 2		75,210.00	74,963.55	23-May-2006	9.850%	CA - 20.00%	Paid Off - 360	01-Nov-2005
1003169528 2		115,000.00	114,028.33	30-May-2006	6.025%	AZ - 54.76%	Paid Off - 360	01-Oct-2005
1003544347 1		172,500.00	171,631.08	13-Jun-2006	7.750%	MN - 75.00%	Paid Off - 360	01-Nov-2005
1003627784 2		261,000.00	260,066.96	31-May-2006	7.750%	NY - 90.00%	Paid Off - 360	01-Jan-2006
1003691115 2		385,000.00	382,451.60	19-May-2006	6.350%	WA - 77.78%	Paid Off - 360	01-Nov-2005
1003692953 2		238,000.00	236,394.29	13-Jun-2006	6.250%	MD - 85.00%	Paid Off - 360	01-Nov-2005
1003789984 2		195,000.00	194,508.96	22-May-2006	9.463%	MD - 75.00%	Paid Off - 360	01-Jan-2006
1003816552 2		440,000.00	439,353.74	09-Jun-2006	8.600%	CA - 80.00%	Paid Off - 360	01-Dec-2005
1003874105 2		475,992.00	475,992.00	14-Jun-2006	8.250%	CA - 80.00%	Paid Off - 360	01-Dec-2005
1003914116 2		120,800.00	120,248.18	30-May-2006	7.450%	OR - 80.00%	Paid Off - 360	01-Dec-2005
1003958998 2		84,500.00	84,245.64	19-May-2006	8.600%	FL - 65.00%	Paid Off - 360	01-Jan-2006
1003962885 2		242,600.00	241,475.59	02-Jun-2006	7.450%	FL - 94.77%	Paid Off - 360	01-Dec-2005
1003985076 2		219,000.00	218,305.53	26-May-2006	9.250%	IL - 100.00%	Paid Off - 360	01-Dec-2005
1003986501 2		212,300.00	211,330.16	12-Jun-2006	7.450%	IL - 80.00%	Paid Off - 360	01-Dec-2005
1004011820 2		331,851.00	330,478.81	26-May-2006	7.950%	NY - 63.21%	Paid Off - 360	01-Dec-2005
1004013588 2		84,000.00	83,863.15	01-Jun-2006	11.500%	CA - 20.00%	Paid Off - 360	01-Jan-2006
1004018324 2		144,500.00	143,957.16	05-Jun-2006	8.425%	MD - 69.81%	Paid Off - 360	01-Dec-2005
1004032790 2		157,600.00	157,033.76	22-May-2006	7.725%	NJ - 80.00%	Paid Off - 360	01-Jan-2006
1004043528 2		105,300.00	104,835.37	06-Jun-2006	7.625%	NV - 65.00%	Paid Off - 360	01-Dec-2005
1004053749 2		492,000.00	489,741.82	17-May-2006	7.850%	CA - 80.00%	Paid Off - 360	01-Dec-2005
1004085894 2		311,400.00	310,354.70	30-May-2006	8.975%	MA - 90.00%	Paid Off - 360	01-Dec-2005
1004086937 1		241,600.00	240,759.30	23-May-2006	8.800%	FL - 80.00%	Paid Off - 360	01-Dec-2005
1004146971 2		360,000.00	358,916.33	30-May-2006	8.600%	IL - 90.00%	Paid Off - 360	01-Jan-2006
1004183699 2		476,000.00	474,376.54	30-May-2006	7.990%	FL - 85.00%	Paid Off - 360	01-Jan-2006
1004191038 2		540,000.00	538,924.32	15-Jun-2006	8.200%	FL - 90.00%	Paid Off - 360	01-Dec-2005
1004195276 2		135,000.00	134,608.23	25-May-2006	9.675%	GA - 94.41%	Paid Off - 360	01-Dec-2005
1004213666 1		272,025.00	271,251.97	19-May-2006	9.775%	AZ - 90.00%	Paid Off - 360	01-Dec-2005
1004226126 1		116,250.00	115,675.51	18-May-2006	7.050%	CA - 75.00%	Paid Off - 360	01-Dec-2005
1004237258 2		75,000.00	74,720.62	31-May-2006	8.500%	PA - 51.02%	Paid Off - 360	01-Dec-2005
1004246435 2		62,050.00	61,885.79	26-May-2006	9.225%	AZ - 85.00%	Paid Off - 360	01-Jan-2006
1004261346 2		148,250.00	147,829.57	16-May-2006	9.575%	WA - 82.20%	Paid Off - 360	01-Jan-2006
1004287131 2		50,000.00	49,803.56	12-Jun-2006	7.275%	MA - 41.32%	Paid Off - 360	01-Jan-2006
1004310702 1		340,000.00	338,645.99	15-Jun-2006	8.950%	CA - 80.00%	Paid Off - 360	01-Dec-2005
1004311417 1		216,000.00	215,545.79	23-May-2006	7.350%	MD - 90.00%	Paid Off - 360	01-Dec-2005
1004318633 2		450,000.00	448,230.61	23-May-2006	8.200%	CA - 72.58%	Paid Off - 360	01-Dec-2005
1004361942 2		56,780.00	56,673.24	06-Jun-2006	11.700%	CA - 20.00%	Paid Off - 360	01-Dec-2005
1004362914 2		418,000.00	416,144.53	01-Jun-2006	6.650%	CA - 95.00%	Paid Off - 360	01-Jan-2006
1004366965 2		170,000.00	169,409.03	19-May-2006	8.800%	NJ - 79.07%	Paid Off - 360	01-Jan-2006


Page 18 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 2006 Distribution


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


Loan Number	Original			Current	State &	Type Prepayment	First
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

1004387309 1		132,000.00	131,593.91	12-Jun-2006	8.500%	CA - 74.16%	Paid Off - 360	01-Jan-2006
1004387309 1		132,000.00	131,593.91	12-Jun-2006	8.500%	CA - 74.16%	Paid Off - 360	01-Jan-2006
1004413441 2		144,000.00	143,534.49	18-May-2006	8.250%	FL - 80.00%	Paid Off - 360	01-Jan-2006
1004421762 1		402,000.00	399,892.97	25-May-2006	7.550%	CA - 60.00%	Paid Off - 360	01-Nov-2005
1004428024 2		373,800.00	372,249.97	18-May-2006	7.000%	DC - 70.00%	Paid Off - 360	01-Jan-2006
1004445880 2		429,000.00	428,487.36	30-May-2006	9.300%	CA - 76.61%	Paid Off - 360	01-Dec-2005
1004447147 1		296,250.00	295,222.27	26-May-2006	7.900%	CA - 75.00%	Paid Off - 360	01-Jan-2006
1004458036 2		96,000.00	95,445.20	02-Jun-2006	8.990%	WA - 75.00%	Paid Off - 360	01-Dec-2005
1004462913 1		270,000.00	269,246.77	02-Jun-2006	8.970%	CA - 90.00%	Paid Off - 360	01-Jan-2006
1004466170 2		71,800.00	71,662.41	24-May-2006	10.750%	CA - 20.00%	Paid Off - 360	01-Jan-2006
1004470593 2		532,000.00	530,773.00	13-Jun-2006	6.350%	NY - 80.00%	Paid Off - 360	01-Jan-2006
1004484579 2		464,000.00	463,276.45	18-May-2006	7.750%	CA - 80.00%	Paid Off - 360	01-Jan-2006
1004486443 2		216,900.00	216,314.02	06-Jun-2006	9.125%	NY - 90.00%	Paid Off - 360	01-Jan-2006
1004498127 1		153,000.00	153,000.00	12-Jun-2006	5.990%	AZ - 61.69%	Paid Off - 360	01-Jan-2006
1004510773 1		236,000.00	236,000.00	01-Jun-2006	7.500%	NJ - 80.00%	Paid Off - 360	01-Jan-2006
1004516508 2		365,600.00	364,023.70	13-Jun-2006	6.800%	IL - 80.00%	Paid Off - 360	01-Jan-2006
1004518061 2		114,000.00	113,526.36	18-May-2006	6.990%	OR - 51.35%	Paid Off - 360	01-Jan-2006
1004522573 1		257,000.00	256,913.64	12-Jun-2006	8.250%	UT - 82.37%	Paid Off - 360	01-Jan-2006
1004532483 2		100,000.00	99,668.44	30-May-2006	8.750%	PA - 80.00%	Paid Off - 360	01-Jan-2006
1004533491 1		220,417.00	219,644.68	14-Jun-2006	7.850%	CA - 89.97%	Paid Off - 360	01-Jan-2006
1004539565 1		333,750.00	332,356.10	02-Jun-2006	7.900%	MA - 75.00%	Paid Off - 360	01-Dec-2005
1004541286 2		188,100.00	187,667.90	26-May-2006	9.900%	CA - 90.00%	Paid Off - 360	01-Jan-2006
1004554477 2		176,000.00	175,251.35	06-Jun-2006	6.875%	WI - 80.00%	Paid Off - 360	01-Jan-2006
1004559141 1		400,000.00	400,000.00	26-May-2006	7.350%	CA - 72.73%	Paid Off - 360	01-Jan-2006
1004566348 2		302,100.00	301,181.25	09-Jun-2006	8.550%	CA - 95.00%	Paid Off - 360	01-Jan-2006
1004569782 1		129,600.00	128,996.80	08-Jun-2006	8.500%	AZ - 90.00%	Paid Off - 360	01-Jan-2006
1004575686 2		276,400.00	275,457.75	06-Jun-2006	8.900%	CA - 80.00%	Paid Off - 360	01-Dec-2005
1004577880 2		192,000.00	191,547.12	30-May-2006	9.775%	IL - 78.37%	Paid Off - 360	01-Jan-2006
1004588547 2		460,000.00	458,339.05	17-May-2006	7.700%	CA - 80.00%	Paid Off - 360	01-Jan-2006
1004590026 1		161,000.00	160,447.04	31-May-2006	7.950%	FL - 70.00%	Paid Off - 360	01-Jan-2006
1004590044 2		192,000.00	191,416.08	01-Jun-2006	8.550%	FL - 76.80%	Paid Off - 360	01-Jan-2006
1004604823 2		150,000.00	149,244.39	23-May-2006	5.990%	FL - 75.00%	Paid Off - 360	01-Jan-2006
1004606698 1		88,800.00	88,800.00	25-May-2006	7.725%	IL - 60.00%	Paid Off - 360	01-Jan-2006
1004608366 1		229,500.00	229,500.00	25-May-2006	8.990%	CA - 85.00%	Paid Off - 360	01-Jan-2006
1004610139 1		65,000.00	64,783.39	24-May-2006	8.100%	IL - 80.00%	Paid Off - 360	01-Jan-2006
1004616641 1		323,000.00	322,546.19	06-Jun-2006	8.113%	NJ - 95.00%	Paid Off - 360	01-Jan-2006
1004625098 2		259,953.00	259,323.53	17-May-2006	9.650%	AZ - 95.00%	Paid Off - 360	01-Jan-2006
1004636335 1		269,100.00	268,485.12	26-May-2006	9.925%	CA - 90.00%	Paid Off - 360	01-Jan-2006
1004644941 1		132,000.00	132,000.00	31-May-2006	7.400%	CA - 75.43%	Paid Off - 360	01-Jan-2006
1004649438 1		395,000.00	394,584.18	01-Jun-2006	9.100%	CA - 79.00%	Paid Off - 360	01-Jan-2006
1004669585 2		560,000.00	559,184.81	26-May-2006	7.990%	CA - 80.00%	Paid Off - 360	01-Jan-2006
1004672544 1		494,000.00	493,189.15	13-Jun-2006	8.450%	CA - 65.00%	Paid Off - 360	01-Jan-2006
1004675523 2		320,000.00	318,895.47	02-Jun-2006	7.925%	VA - 86.33%	Paid Off - 360	01-Jan-2006
1004675523 2			318,895.47		7.925%	VA - 86.33%	Paid Off - 360

Page 19 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 2006 Distribution


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


Loan Number	Original			Current	State &	Type Prepayment	First
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

1004691122 1		180,000.00	180,000.00	24-May-2006	7.800%	AZ - 73.47%	Paid Off - 360	01-Jan-2006
1004691122 1		180,000.00	180,000.00	24-May-2006	7.800%	AZ - 73.47%	Paid Off - 360	01-Jan-2006
1004693059 1		166,500.00	165,443.07	25-May-2006	7.950%	FL - 90.00%	Paid Off - 360	01-Jan-2006
1004706615 1		292,000.00	291,102.90	13-Jun-2006	8.500%	MA - 80.00%	Paid Off - 360	01-Jan-2006
1004707268 1		105,000.00	104,826.11	31-May-2006	7.550%	VA - 70.00%	Paid Off - 360	01-Jan-2006
1004707856 2		85,000.00	84,761.87	19-May-2006	8.950%	MO - 85.00%	Paid Off - 360	01-Jan-2006
1004715785 1		50,000.00	49,823.27	26-May-2006	8.375%	CA - 8.55%	Paid Off - 360	01-Jan-2006
1004727709 1		80,000.00	79,727.97	31-May-2006	8.000%	FL - 80.00%	Paid Off - 360	01-Jan-2006
1004732588 2		196,000.00	196,000.00	07-Jun-2006	7.250%	FL - 80.00%	Paid Off - 360	01-Jan-2006
1004737217 2		160,000.00	159,856.85	23-May-2006	9.650%	FL - 80.00%	Paid Off - 360	01-Jan-2006
1004741220 1		140,000.00	139,627.59	06-Jun-2006	9.200%	WI - 80.00%	Paid Off - 360	01-Jan-2006
1004743941 1		130,000.00	129,674.46	01-Jun-2006	9.490%	CA - 61.90%	Paid Off - 360	01-Jan-2006
1004751842 1		193,500.00	193,334.72	02-Jun-2006	9.800%	CA - 75.00%	Paid Off - 360	01-Jan-2006
1004755615 1		117,000.00	116,573.28	05-Jun-2006	7.650%	ME - 66.63%	Paid Off - 360	01-Jan-2006
1004756384 2		151,100.00	149,831.68	02-Jun-2006	8.200%	OH - 87.34%	Paid Off - 240	01-Jan-2006
1004760850 2		450,000.00	448,183.82	05-Jun-2006	7.138%	CA - 79.65%	Paid Off - 360	01-Jan-2006
1004763161 1		408,000.00	406,605.79	01-Jun-2006	7.975%	CA - 80.00%	Paid Off - 360	01-Jan-2006
1004764776 2		315,000.00	313,605.82	31-May-2006	8.150%	NJ - 88.73%	Paid Off - 360	01-Jan-2006
1004765356 1		194,000.00	193,780.13	31-May-2006	8.850%	CA - 39.59%	Paid Off - 360	01-Jan-2006
1004769655 2		377,250.00	375,964.79	12-Jun-2006	7.990%	VA - 84.97%	Paid Off - 360	01-Jan-2006
1004804956 2		46,000.00	45,936.44	17-May-2006	12.250%	CA - 20.00%	Paid Off - 360	01-Jan-2006
1004808015 2		120,000.00	119,777.34	22-May-2006	10.900%	CA - 15.00%	Paid Off - 360	01-Jan-2006
1004813759 2		52,000.00	51,900.29	30-May-2006	10.750%	AL - 80.00%	Paid Off - 360	01-Jan-2006
1004818246 2		85,500.00	85,254.22	02-Jun-2006	8.825%	MI - 50.29%	Paid Off - 360	01-Jan-2006
1004821394 2		575,000.00	574,223.52	05-Jun-2006	8.250%	CA - 81.56%	Paid Off - 360	01-Jan-2006
1004825005 2		297,500.00	296,687.17	13-Jun-2006	9.075%	NJ - 85.00%	Paid Off - 360	01-Jan-2006
1004826512 2		155,028.80	154,434.63	15-Jun-2006	7.400%	FL - 80.00%	Paid Off - 360	01-Jan-2006
1004830320 2		486,000.00	485,263.53	07-Jun-2006	7.850%	NJ - 90.00%	Paid Off - 360	01-Jan-2006
1004861689 2		252,000.00	251,141.44	07-Jun-2006	7.990%	RI - 88.42%	Paid Off - 360	01-Jan-2006
1004873907 2		364,500.00	363,025.14	13-Jun-2006	7.125%	NJ - 90.00%	Paid Off - 360	01-Jan-2006
1004874014 2		331,500.00	330,736.36	01-Jun-2006	8.800%	RI - 85.00%	Paid Off - 360	01-Feb-2006
1004875754 1		163,000.00	162,504.58	05-Jun-2006	7.990%	CT - 87.17%	Paid Off - 360	01-Feb-2006
1004876398 1		207,200.00	206,597.39	31-May-2006	7.650%	IL - 80.00%	Paid Off - 360	01-Feb-2006
1004877690 2		436,500.00	435,989.78	08-Jun-2006	8.750%	MD - 90.00%	Paid Off - 360	01-Jan-2006
1004878378 1		153,000.00	152,725.08	24-May-2006	7.250%	AZ - 79.69%	Paid Off - 360	01-Jan-2006
1004880034 2		152,000.00	151,533.02	18-May-2006	8.500%	AZ - 82.16%	Paid Off - 360	01-Jan-2006
1004882675 1		204,250.00	203,775.79	22-May-2006	9.850%	NJ - 95.00%	Paid Off - 360	01-Jan-2006
1004892076 1		184,000.00	183,755.08	19-May-2006	8.300%	CA - 83.64%	Paid Off - 360	01-Jan-2006
1004892389 2		486,000.00	485,578.66	14-Jun-2006	9.750%	CA - 90.00%	Paid Off - 360	01-Jan-2006
1004894421 1		158,400.00	158,268.76	22-May-2006	9.900%	CA - 90.00%	Paid Off - 360	01-Jan-2006
1004934691 1		198,000.00	197,837.15	12-Jun-2006	9.925%	FL - 83.54%	Paid Off - 360	01-Jan-2006
1004941512 1		234,080.00	233,924.43	25-May-2006	10.625%	AZ - 95.00%	Paid Off - 360	01-Jan-2006
1004946278 2		51,006.00	50,925.57	16-May-2006	11.650%	IL - 20.00%	Paid Off - 360	01-Jan-2006
1004946278 2			50,925.57		11.650%	IL - 20.00%	Paid Off - 360

Page 20 of 28

Morgan Stanley Capital I Inc. 2006-NC2

Mortgage Pass-Through Certificates

June 26, 2006 Distribution

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

Loan Number

Original

Current

State &

Type Prepayment

First

Loan

Principal

Prepayment

Note

LTV at

Payment

Loan Group

Status

Balance

Amount

Date

Rate

Origination

Original Term

Date

1004959959 1

147,250.00

147,106.09

02-Jun-2006

9.350%

FL - 95.00%

Paid Off - 360

01-Jan-2006

1004976440 2

105,000.00

103,273.60

18-May-2006

6.650%

AZ - 70.00%

Paid Off - 180

01-Jan-2006

1004979447 2

260,000.00

259,013.31

13-Jun-2006

7.450%

FL - 85.00%

Paid Off - 360

01-Jan-2006

1005015609 1

147,000.00

146,331.70

25-May-2006

9.550%

FL - 70.00%

Paid Off - 360

01-Jan-2006

1005017947 2

262,800.00

262,593.43

30-May-2006

10.075%

FL - 90.00%

Paid Off - 360

01-Jan-2006

1005079540 1

216,000.00

215,497.41

01-Jun-2006

8.750%

MD - 90.00%

Paid Off - 360

01-Feb-2006

1005085711 2

128,000.00

127,691.26

02-Jun-2006

8.575%

FL - 56.39%

Paid Off - 360

01-Feb-2006

1005096905 2

385,200.00

384,064.00

24-May-2006

8.700%

CA - 90.00%

Paid Off - 360

01-Jan-2006

1005109287 1

260,000.00

259,505.83

07-Jun-2006

7.050%

CA - 65.00%

Paid Off - 360

01-Jan-2006

1005112923 1

308,000.00

306,971.24

01-Jun-2006

6.950%

NJ - 80.00%

Paid Off - 360

01-Feb-2006

1005172966 2

319,920.00

319,564.20

13-Jun-2006

8.138%

MA - 80.00%

Paid Off - 360

01-Feb-2006

TOTAL

31,928,562.80

31,838,796.04

Page 21 of 28

Morgan Stanley Capital I Inc. 2006-NC2



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 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
June 26, 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

June 26, 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

June 26, 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

June 26, 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 )

20.8543%

Applicable Percentage

39.2000%

Trigger Event in Effect

Rolling 60+ days balance includes BK,FC,REO

15,766,139.13

Ending Balance

1,334,608,795.69

Delinquency Percentage

1.1813%

Prior Balance of X and Mezzanine and X

278,323,972.00

Prior Pool Balance

854,375,427.68

512,866,482.95

1,367,241,910.63

Prior Senior Credit Enhancement Percentage

20.3566%

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

5,934.44

Basis Risk CarryForward Amount unpaid

0.00

Libor For Current Period

5.081250%

Libor Rate Determination Date

05/23/2006

Libor For Next Period

0.000000%

Libor Rate Next Determination Date

06/22/2006

Interest Rate Swap Floating

5.081250%

Swap Rate Determination Date

05/23/2006

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
June 26, 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	0.18000%	$0.00	$0.00	$0.00	$0.00
		0.18000%	$0.00	$0.00	$0.00	$0.00
	A-2A	0.07000%	$0.00	$0.00	$0.00	$0.00
		0.07000%	$0.00	$0.00	$0.00	$0.00
	A-2B	0.12000%	$0.00	$0.00	$0.00	$0.00
		0.12000%	$0.00	$0.00	$0.00	$0.00
	A-2C	0.18000%	$0.00	$0.00	$0.00	$0.00
		0.18000%	$0.00	$0.00	$0.00	$0.00
	A-2D	0.29000%	$0.00	$0.00	$0.00	$0.00
		0.29000%	$0.00	$0.00	$0.00	$0.00
	M-1	0.36000%	$0.00	$0.00	$0.00	$0.00
		0.36000%	$0.00	$0.00	$0.00	$0.00
	M-2	0.38000%	$0.00	$0.00	$0.00	$0.00
		0.38000%	$0.00	$0.00	$0.00	$0.00
	M-3	0.39000%	$0.00	$0.00	$0.00	$0.00
		0.39000%	$0.00	$0.00	$0.00	$0.00
	M-4	0.51000%	$0.00	$0.00	$0.00	$0.00
		0.51000%	$0.00	$0.00	$0.00	$0.00
	M-5	0.53000%	$0.00	$0.00	$0.00	$0.00
		0.53000%	$0.00	$0.00	$0.00	$0.00
	M-6	0.60000%	$0.00	$0.00	$0.00	$0.00
		0.60000%	$0.00	$0.00	$0.00	$0.00
	B-1	1.15000%	$0.00	$0.00	$0.00	$0.00
		1.15000%	$0.00	$0.00	$0.00	$0.00
	B-2	1.40000%	$0.00	$0.00	$0.00	$0.00
		1.40000%	$0.00	$0.00	$0.00	$0.00
	B-3	2.25000%	$0.00	$0.00	$-5,934.44	$5,934.44
		2.25000%	$0.00	$0.00	$-5,934.44	$5,934.44
	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
June 26, 2006 Distribution

Other Related Information
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
	Group 2	Group 1	Total
Current Scheduled Payments			9,675,082.75
Current Scheduled Payments 1 Month Prior			9,891,100.32
Current Scheduled Payments 2 Month Prior			10,061,255.29
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	379,918.27	190,539.53	570,457.80
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior	221,455.94	96,934.23	318,390.28
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior	7,256.28	2,378.00	9,634.28
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