Morgan Stanley ABS Capital I Inc. 2006-NC3

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

HomeQ Servicing Corp.

5. Delinquency Report

6. REO Report

Underwriter(s)

7. Foreclosure Report

Morgan Stanley & Co. Inc

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:

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:

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 18, 2006

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

Page 1 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

Certificate Payment Report
Current Period Distribution - REMIC III
				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	$	426,670,000.00	417,630,944.77	1,945,696.17	12,299,413.16	14,245,109.33	0.00	0.00	405,331,531.61
A-1	STEP	$	426,670,000.00	417,630,944.77	1,945,696.17	12,299,413.16	14,245,109.33	0.00	0.00	405,331,531.61
A-2A	STEP	$	340,600,000.00	327,290,700.04	1,495,718.50	19,737,995.34	21,233,713.84	0.00	0.00	307,552,704.70
A-2B	STEP	$	104,800,000.00	104,800,000.00	484,525.33	0.00	484,525.33	0.00	0.00	104,800,000.00
A-2C	STEP	$	149,625,000.00	149,625,000.00	698,416.25	0.00	698,416.25	0.00	0.00	149,625,000.00
A-2D	STEP	$	97,605,000.00	97,605,000.00	464,274.45	0.00	464,274.45	0.00	0.00	97,605,000.00
M-1	SUB	$	54,035,000.00	54,035,000.00	259,908.35	0.00	259,908.35	0.00	0.00	54,035,000.00
M-2	SUB	$	44,912,000.00	44,912,000.00	216,425.94	0.00	216,425.94	0.00	0.00	44,912,000.00
M-3	SUB	$	25,263,000.00	25,263,000.00	122,188.71	0.00	122,188.71	0.00	0.00	25,263,000.00
M-4	SUB	$	22,456,000.00	22,456,000.00	110,608.28	0.00	110,608.28	0.00	0.00	22,456,000.00
M-5	SUB	$	21,754,000.00	21,754,000.00	107,343.90	0.00	107,343.90	0.00	0.00	21,754,000.00
M-6	SUB	$	20,351,000.00	20,351,000.00	101,868.06	0.00	101,868.06	0.00	0.00	20,351,000.00
B-1	SUB	$	18,947,000.00	18,947,000.00	103,261.15	0.00	103,261.15	0.00	0.00	18,947,000.00
B-2	SUB	$	16,140,000.00	16,140,000.00	90,115.00	0.00	90,115.00	0.00	0.00	16,140,000.00
B-3	SUB	$	14,035,000.00	14,035,000.00	88,966.30	0.00	88,966.30	0.00	0.00	14,035,000.00
X	EXE	$	46,322,237.04	46,316,006.12	2,716,333.41	0.00	2,716,333.41	0.00	0.00	46,316,006.12
P	EXE	$	100.00	100.00	618,661.58	0.00	618,661.58	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	1,381,160,750.93	9,624,311.38	32,037,408.50	41,661,719.88	0.00	0.00	1,349,123,342.43
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	61744CYZ3	426,670,000.00	978.814880	4.560190	28.826524	33.386714	949.988355
A-1	05/25/06	06/25/06	A-Act/360	61744CYZ3	426,670,000.00	978.814880	4.560190	28.826524	33.386714	949.988355
A-2A	05/25/06	06/25/06	A-Act/360	61744CZA7	340,600,000.00	960.923958	4.391422	57.950662	62.342084	902.973296
A-2B	05/25/06	06/25/06	A-Act/360	61744CZB5	104,800,000.00	1,000.000000	4.623333	0.000000	4.623333	1,000.000000
A-2C	05/25/06	06/25/06	A-Act/360	61744CZC3	149,625,000.00	1,000.000000	4.667778	0.000000	4.667778	1,000.000000
A-2D	05/25/06	06/25/06	A-Act/360	61744CZD1	97,605,000.00	1,000.000000	4.756667	0.000000	4.756667	1,000.000000
M-1	05/25/06	06/25/06	A-Act/360	61744CZE9	54,035,000.00	1,000.000000	4.810000	0.000000	4.810000	1,000.000000
M-2	05/25/06	06/25/06	A-Act/360	61744CZF6	44,912,000.00	1,000.000000	4.818889	0.000000	4.818889	1,000.000000
M-3	05/25/06	06/25/06	A-Act/360	61744CZG4	25,263,000.00	1,000.000000	4.836667	0.000000	4.836667	1,000.000000
M-4	05/25/06	06/25/06	A-Act/360	61744CZH2	22,456,000.00	1,000.000000	4.925556	0.000000	4.925556	1,000.000000
M-5	05/25/06	06/25/06	A-Act/360	61744CZJ8	21,754,000.00	1,000.000000	4.934444	0.000000	4.934444	1,000.000000
M-6	05/25/06	06/25/06	A-Act/360	61744CZK5	20,351,000.00	1,000.000000	5.005556	0.000000	5.005556	1,000.000000
B-1	05/25/06	06/25/06	A-Act/360	61744CZL3	18,947,000.00	1,000.000000	5.450000	0.000000	5.450000	1,000.000000
B-2	05/25/06	06/25/06	A-Act/360	61744CZM1	16,140,000.00	1,000.000000	5.583333	0.000000	5.583333	1,000.000000
B-3	05/25/06	06/25/06	A-Act/360	61744CZN9	14,035,000.00	1,000.000000	6.338888	0.000000	6.338888	1,000.000000
X	05/25/06	06/25/06	A-Act/360		1,449,837,574.08	31.945652	1.873543	0.000000	1.873543	31.945652
P	05/25/06	06/24/06	A-30/360		100.00	1,000.000000	6,186,615.800000	0.000000	6,186,615.800000	1,000.000000
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 ABS Capital I Inc. 2006-NC3



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 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	3,596,909.07	20,824,476.20	513,992.19	21,338,468.39	24,935,377.46	0.00	0.00	405,331,531.61
A-2A	340,600,000.00	2,788,295.50	32,257,523.32	789,771.98	33,047,295.30	35,835,590.80	0.00	0.00	307,552,704.70
A-2B	104,800,000.00	886,957.33	0.00	0.00	0.00	886,957.33	0.00	0.00	104,800,000.00
A-2C	149,625,000.00	1,278,587.19	0.00	0.00	0.00	1,278,587.19	0.00	0.00	149,625,000.00
A-2D	97,605,000.00	850,058.21	0.00	0.00	0.00	850,058.21	0.00	0.00	97,605,000.00
M-1	54,035,000.00	475,913.26	0.00	0.00	0.00	475,913.26	0.00	0.00	54,035,000.00
M-2	44,912,000.00	396,298.50	0.00	0.00	0.00	396,298.50	0.00	0.00	44,912,000.00
M-3	25,263,000.00	223,745.97	0.00	0.00	0.00	223,745.97	0.00	0.00	25,263,000.00
M-4	22,456,000.00	202,565.60	0.00	0.00	0.00	202,565.60	0.00	0.00	22,456,000.00
M-5	21,754,000.00	196,589.69	0.00	0.00	0.00	196,589.69	0.00	0.00	21,754,000.00
M-6	20,351,000.00	186,579.10	0.00	0.00	0.00	186,579.10	0.00	0.00	20,351,000.00
B-1	18,947,000.00	189,233.16	0.00	0.00	0.00	189,233.16	0.00	0.00	18,947,000.00
B-2	16,140,000.00	165,166.00	0.00	0.00	0.00	165,166.00	0.00	0.00	16,140,000.00
B-3	14,035,000.00	163,176.36	0.00	0.00	0.00	163,176.36	0.00	0.00	14,035,000.00
X	46,322,237.04	6,118,650.53	6,048.25	182.67	6,230.92	6,124,881.45	0.00	0.00	46,316,006.12
P	100.00	761,813.67	0.00	0.00	0.00	761,813.67	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	18,480,539.14	53,088,047.77	1,303,946.84	54,391,994.61	72,872,533.75	0.00	0.00	1,349,123,342.43


Interest Detail - REMIC III
	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	5.24125%	417,630,944.77	1,945,696.17	0.00	0.00	0.00	1,945,696.17	1,945,696.17	0.00
A-2A	5.14125%	327,290,700.04	1,495,718.50	0.00	0.00	0.00	1,495,718.50	1,495,718.50	0.00
A-2B	5.20125%	104,800,000.00	484,525.33	0.00	0.00	0.00	484,525.33	484,525.33	0.00
A-2C	5.25125%	149,625,000.00	698,416.25	0.00	0.00	0.00	698,416.25	698,416.25	0.00
A-2D	5.35125%	97,605,000.00	464,274.45	0.00	0.00	0.00	464,274.45	464,274.45	0.00
M-1	5.41125%	54,035,000.00	259,908.35	0.00	0.00	0.00	259,908.35	259,908.35	0.00
M-2	5.42125%	44,912,000.00	216,425.94	0.00	0.00	0.00	216,425.94	216,425.94	0.00
M-3	5.44125%	25,263,000.00	122,188.71	0.00	0.00	0.00	122,188.71	122,188.71	0.00
M-4	5.54125%	22,456,000.00	110,608.28	0.00	0.00	0.00	110,608.28	110,608.28	0.00
M-5	5.55125%	21,754,000.00	107,343.90	0.00	0.00	0.00	107,343.90	107,343.90	0.00
M-6	5.63125%	20,351,000.00	101,868.06	0.00	0.00	0.00	101,868.06	101,868.06	0.00
B-1	6.13125%	18,947,000.00	103,261.15	0.00	0.00	0.00	103,261.15	103,261.15	0.00
B-2	6.28125%	16,140,000.00	90,115.00	0.00	0.00	0.00	90,115.00	90,115.00	0.00
B-3	7.09775%	14,035,000.00	88,548.35	0.00	0.00	0.00	88,548.35	88,966.30	0.00
X	65.97881%	46,316,006.12	0.00	0.00	0.00	0.00	0.00	2,716,333.41	0.00
P	7,423,938.96000%	100.00	0.00	0.00	0.00	0.00	0.00	618,661.58	0.00
R	0.00000%	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Total		1,381,160,750.93	6,288,898.44	0.00	0.00	0.00	6,288,898.44	9,624,311.38	0.00



Page 3 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

Collection Account Report
SUMMARY

	Group 2	Group 1	Total
Principal Collections	19,737,995.34	12,299,413.16	32,037,408.50
Principal Withrawals	0.00	0.00	0.00
Principal Other Accounts	0.00	0.00	0.00
TOTAL NET PRINCIPAL	19,737,995.34	12,299,413.16	32,037,408.50
Interest Collections	5,399,414.13	3,407,050.31	8,806,464.44
Interest Withdrawals	-0.00	-0.00	-0.00
Interest Other Accounts	318,786.12	299,875.46	910,416.73
Interest Fees	-54,354.20	-38,215.58	-92,569.79
TOTAL NET INTEREST	5,663,846.05	3,668,710.19	9,624,311.39
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION	25,401,841.39	15,968,123.35	41,661,719.89




PRINCIPAL - COLLECTIONS

	Group 2	Group 1	Total
Scheduled Principal Received	389,498.13	259,068.35	648,566.48
Prepayments In Full	19,294,486.66	11,998,560.40	31,293,047.06
Curtailments	54,010.55	41,784.41	95,794.96
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	-336,927.40	-218,787.40	-555,714.80
Advanced Principal	336,927.40	218,787.40	555,714.80
TOTAL PRINCIPAL COLLECTED	19,737,995.34	12,299,413.16	32,037,408.50




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 ABS Capital I Inc. 2006-NC3



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


INTEREST - COLLECTIONS

			Group 2	Group 1	Total
Scheduled Interest			5,705,826.54	3,589,391.65	9,295,218.19
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			-23,704.02	-8,936.33	-32,640.35
Compensating Interest			23,704.02	8,936.33	32,640.35
Delinquent Interest			-4,874,157.07	-2,994,733.34	-7,868,890.41
Interest Advanced			4,567,744.66	2,812,392.02	7,380,136.68
Interest Loss			-0.00	-0.00	-0.00
TOTAL INTEREST COLLECTED			5,399,414.13	3,407,050.31	8,806,464.44




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
INTEREST - OTHER ACCOUNTS
		Group 2	Group 1	Total
	Prepayment Charges	318,786.12	299,875.46	618,661.58
	Net Interest Rate Swap Receipt			291,755.15
	Net Interest Rate Swap Payment			0.00
	Swap Termination Payments			0.00
	Defaulted Swap Termination Payments			0.00
	Closing Deposit	0.00	0.00	0.00
	TOTAL INTEREST OTHER ACCOUNTS	318,786.12	299,875.46	910,416.73




INTEREST FEES
INTEREST FEES
		Group 2	Group 1	Total
	Current Servicing Fees	52,073.69	36,813.00	88,886.69
	Current Trustee Fees	2,280.51	1,402.59	3,683.10
	TOTAL INTEREST OTHER FEES	54,354.20	38,215.58	92,569.79



Page 5 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3

Mortgage Pass-Through Certificates

June 26, 2006 Distribution

Credit Enhancement Report

ACCOUNTS

RESERVE ACCOUNT

Beginning Balance

0.00

Fund Deposits

417.95

Fees & Expenses

0.00

Fund Withdrawals

417.95

Ending Account Balance

0.00

SWAP ACCOUNT

Beginning Balance

0.00

Fund Deposits

291,755.15

Fees & Expenses

0.00

Fund Withdrawals

291,755.15

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

0.00

Monthly Excess Spread

2,716,751.36

Page 6 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

Collateral Report


COLLATERAL




		Group 2	Group 1	Total



Loan Count:


Original	4,357	3,305	7,662
Prior	4,307	3,256	7,563
Prefunding	0	0	0
Scheduled Paid Offs	-0	-0	-0
Full Voluntary Prepayments	-81	-60	-141
Repurchases	-0	-0	-0
Liquidations	-0	-0	-0
Current	4,226	3,196	7,422
Principal Balance:


Original	868,377,071.72	535,011,744.53	1,403,388,816.25
Prior	855,190,365.18	525,970,385.75	1,381,160,750.93
Prefunding	0.00	0.00	0.00
Scheduled Principal	-389,498.13	-259,068.35	-648,566.48
Partial Prepayments	-54,010.55	-41,784.41	-95,794.96
Full Voluntary Prepayments	-19,294,486.66	-11,998,560.40	-31,293,047.06
Repurchases	-0.00	-0.00	-0.00
Liquidations	-0.00	-0.00	-0.00
Current	835,452,369.84	513,670,972.59	1,349,123,342.43





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK

Page 7 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
June 26, 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	8.00639%	8.18919%	8.07601%
Weighted Average Months to Maturity Original	354	353	353
Weighted Average Months to Maturity Prior	354	353	353
Weighted Average Months to Maturity Current	353	352	352
Weighted Avg Remaining Amortization Term Original	380	381	381
Weighted Avg Remaining Amortization Term Prior	380	381	381
Weighted Avg Remaining Amortization Term Current	379	380	379
Weighted Average Seasoning Original	4.45	4.41	4.44
Weighted Average Seasoning Prior	4.45	4.41	4.44
Weighted Average Seasoning Current	5.45	5.42	5.44

Page 8 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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		6.10656%	6.12321%	6.11284%
Weighted Average Margin Prior		6.10656%	6.12321%	6.11284%
Weighted Average Margin Current		6.10588%	6.12330%	6.11245%
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		14.94756%	15.32721%	15.09079%
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		7.95159%	8.33702%	8.09699%
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		1.49832%	1.49584%	1.49738%
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		1.49832%	1.49584%	1.49738%




SERVICING FEES & ADVANCES
SERVICING FEES & ADVANCES

		Group 2	Group 1	Total




Current Servicing Fees		52,073.69	36,813.00	88,886.69
Delinquent Servicing Fees		304,166.14	182,341.33	486,507.47
TOTAL SERVICING FEES		356,239.83	219,154.33	575,394.16


Compensating Interest		-23,704.02	-8,936.33	-32,640.35
Delinquent Servicing Fees		-304,166.14	-182,341.33	-486,507.47
COLLECTED SERVICING FEES		28,369.67	27,876.67	56,246.34


Total Advanced Interest		4,567,744.66	2,812,392.02	7,380,136.68
Total Advanced Principal		336,927.40	218,787.40	555,714.80
Aggregate Advances with respect to this Distribution		4,904,672.06	3,031,179.42	7,935,851.48






ADDITIONAL COLLATERAL INFORMATION
ADDITIONAL COLLATERAL INFORMATION
		Group 2	Group 1	Total
	Net Prepayment Interest Shortfall	0.00	0.00	0.00
	Pool Factor	96.042553%	95.834008%	96.124600%





Page 9 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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
		32,265,607.11	11,592,423.65	6,002,147.17	0.00	0.00	0.00	0.00	0.00	49,860,177.93
		2.39%	0.86%	0.44%	0.00%	0.00%	0.00%	0.00%	0.00%	3.70%
		187	65	25	0	0	0	0	0	277
		2.52%	0.88%	0.34%	0.00%	0.00%	0.00%	0.00%	0.00%	3.73%
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
	634,915.95	161,488.66	798,594.20	0.00	0.00	0.00	0.00	0.00	0.00	1,594,998.81
	0.05%	0.01%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.12%
	4	2	3	0	0	0	0	0	0	9
	0.05%	0.03%	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.12%
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
	634,915.95	32,427,095.77	12,391,017.85	6,002,147.17	0.00	0.00	0.00	0.00	0.00	51,455,176.74
	0.05%	2.40%	0.92%	0.44%	0.00%	0.00%	0.00%	0.00%	0.00%	3.81%
	4	189	68	25	0	0	0	0	0	286
	0.05%	2.55%	0.92%	0.34%	0.00%	0.00%	0.00%	0.00%	0.00%	3.85%

Page 10 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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
		10,407,488.88	4,553,988.69	1,253,516.37	0.00	0.00	0.00	0.00	0.00	16,214,993.94
		2.03%	0.89%	0.24%	0.00%	0.00%	0.00%	0.00%	0.00%	3.16%
		76	37	7	0	0	0	0	0	120
		2.38%	1.16%	0.22%	0.00%	0.00%	0.00%	0.00%	0.00%	3.75%
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
	205,135.85	161,488.66	434,947.27	0.00	0.00	0.00	0.00	0.00	0.00	801,571.78
	0.04%	0.03%	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.16%
	2	2	2	0	0	0	0	0	0	6
	0.06%	0.06%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.19%
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
	205,135.85	10,568,977.54	4,988,935.96	1,253,516.37	0.00	0.00	0.00	0.00	0.00	17,016,565.72
	0.04%	2.06%	0.97%	0.24%	0.00%	0.00%	0.00%	0.00%	0.00%	3.31%
	2	78	39	7	0	0	0	0	0	126
	0.06%	2.44%	1.22%	0.22%	0.00%	0.00%	0.00%	0.00%	0.00%	3.94%

Page 11 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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
		21,858,118.23	7,038,434.96	4,748,630.80	0.00	0.00	0.00	0.00	0.00	33,645,183.99
		2.62%	0.84%	0.57%	0.00%	0.00%	0.00%	0.00%	0.00%	4.03%
		111	28	18	0	0	0	0	0	157
		2.63%	0.66%	0.43%	0.00%	0.00%	0.00%	0.00%	0.00%	3.72%
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
	429,780.10	0.00	363,646.93	0.00	0.00	0.00	0.00	0.00	0.00	793,427.03
	0.05%	0.00%	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.09%
	2	0	1	0	0	0	0	0	0	3
	0.05%	0.00%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.07%
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
	429,780.10	21,858,118.23	7,402,081.89	4,748,630.80	0.00	0.00	0.00	0.00	0.00	34,438,611.02
	0.05%	2.62%	0.89%	0.57%	0.00%	0.00%	0.00%	0.00%	0.00%	4.12%
	2	111	29	18	0	0	0	0	0	160
	0.05%	2.63%	0.69%	0.43%	0.00%	0.00%	0.00%	0.00%	0.00%	3.79%

Page 12 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 ABS Capital I Inc. 2006-NC3

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 ABS Capital I Inc. 2006-NC3



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	81	60	141
Number of Repurchased Loans	0	0	0
Total Number of Loans Prepaid in Full	81	60	141
Curtailments Amount	54,010.55	41,784.41	95,794.96
Paid in Full Balance	19,294,486.66	11,998,560.40	31,293,047.06
Repurchased Loans Balance	0.00	0.00	0.00
Total Prepayment Amount	19,348,497.21	12,040,344.81	31,388,842.02
Cumulative


Number of Paid in Full Loans	131	109	240
Number of Repurchased Loans	0	0	0
Total Number of Loans Prepaid in Full	131	109	240
Paid in Full Balance	32,026,659.36	20,742,787.27	52,769,446.63
Repurchased Loans Balance	0.00	0.00	0.00
Curtailments Amount	113,960.63	78,119.72	192,080.35
Total Prepayment Amount	32,140,619.99	20,820,906.99	52,961,526.98

Page 15 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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


VOLUNTARY PREPAYMENTS RATES



		Group 2	Group 1	Total





SMM	2.26%	2.29%	2.27%
3 Months Avg SMM	1.87%	1.97%	1.91%
12 Months Avg SMM	1.87%	1.97%	1.91%
Avg SMM Since Cut-off	1.87%	1.97%	1.91%



CPR	24.02%	24.27%	24.12%
3 Months Avg CPR	20.26%	21.21%	20.63%
12 Months Avg CPR	20.26%	21.21%	20.63%
Avg CPR Since Cut-off	20.26%	21.21%	20.63%



PSA	2,202.11%	2,240.96%	2,216.85%
3 Months Avg PSA Approximation	2,045.12%	2,157.82%	2,087.97%
12 Months Avg PSA Approximation	2,045.12%	2,157.82%	2,087.97%
Avg PSA Since Cut-off Approximation	2,045.12%	2,157.82%	2,087.97%

Page 16 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3

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 ABS Capital I Inc. 2006-NC3



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

1003086476 2		71,000.00	70,484.86	30-May-2006	6.675%	OR - 78.02%	Paid Off - 360	01-Oct-2005
1003086476 2		71,000.00	70,484.86	30-May-2006	6.675%	OR - 78.02%	Paid Off - 360	01-Oct-2005
1003734052 2		136,000.00	136,000.00	01-Jun-2006	7.700%	NM - 80.00%	Paid Off - 360	01-Nov-2005
1003852913 2		488,000.00	487,206.48	22-May-2006	8.250%	CA - 80.00%	Paid Off - 360	01-Dec-2005
1003871545 1		229,500.00	229,500.00	13-Jun-2006	6.900%	IL - 79.83%	Paid Off - 360	01-Dec-2005
1004026208 2		153,000.00	152,742.51	10-May-2006	10.300%	MD - 85.00%	Paid Off - 360	01-Feb-2006
1004043485 2		110,000.00	109,387.17	26-May-2006	6.750%	MD - 84.62%	Paid Off - 360	01-Dec-2005
1004055603 1		149,150.00	149,150.00	14-Jun-2006	9.150%	AL - 95.00%	Paid Off - 360	01-Dec-2005
1004244366 1		54,150.00	54,026.70	15-Jun-2006	10.050%	IA - 95.00%	Paid Off - 360	01-Jan-2006
1004246104 2		238,000.00	237,379.96	22-May-2006	9.300%	FL - 85.00%	Paid Off - 360	01-Jan-2006
1004306860 2		221,000.00	220,605.66	31-May-2006	7.275%	CA - 85.00%	Paid Off - 360	01-Jan-2006
1004322628 2		188,000.00	186,995.82	30-May-2006	6.650%	AZ - 80.00%	Paid Off - 360	01-Dec-2005
1004358313 2		483,000.00	481,618.87	01-Jun-2006	8.850%	NJ - 70.00%	Paid Off - 360	01-Jan-2006
1004358750 1		168,000.00	167,756.12	22-May-2006	8.000%	CA - 70.00%	Paid Off - 360	01-Jan-2006
1004362987 1		191,200.00	191,199.95	09-Jun-2006	8.050%	CA - 80.00%	Paid Off - 360	01-Dec-2005
1004507554 2		123,600.00	123,374.50	19-May-2006	7.850%	AZ - 80.00%	Paid Off - 360	01-Dec-2005
1004511665 2		155,160.00	154,900.57	30-May-2006	10.325%	FL - 90.00%	Paid Off - 360	01-Feb-2006
1004550916 2		437,000.00	435,341.64	17-May-2006	7.450%	FL - 93.98%	Paid Off - 360	01-Jan-2006
1004624712 2		675,000.00	673,962.35	31-May-2006	7.800%	CA - 90.00%	Paid Off - 360	01-Jan-2006
1004701898 2		160,000.00	159,735.84	25-May-2006	7.550%	IL - 74.42%	Paid Off - 360	01-Jan-2006
1004702183 2		158,950.00	158,628.55	13-Jun-2006	10.500%	FL - 78.11%	Paid Off - 360	01-Jan-2006
1004716383 2		76,000.00	75,817.64	14-Jun-2006	8.600%	HI - 69.09%	Paid Off - 360	01-Feb-2006
1004717006 2		124,000.00	123,774.23	31-May-2006	9.925%	ID - 80.00%	Paid Off - 360	01-Feb-2006
1004721019 2		375,000.00	373,787.83	14-Jun-2006	8.250%	CA - 75.00%	Paid Off - 360	01-Jan-2006
1004725435 2		215,000.00	214,695.78	06-Jun-2006	11.100%	MA - 49.43%	Paid Off - 360	01-Feb-2006
1004749222 2		396,500.00	395,333.99	30-May-2006	6.990%	CA - 65.00%	Paid Off - 360	01-Jan-2006
1004770518 1		368,900.00	368,200.58	01-Jun-2006	10.800%	MA - 85.00%	Paid Off - 360	01-Jan-2006
1004778306 2		119,000.00	118,809.05	07-Jun-2006	7.650%	OH - 85.00%	Paid Off - 360	01-Jan-2006
1004781383 2		374,000.00	372,804.77	30-May-2006	7.175%	IL - 85.00%	Paid Off - 360	01-Feb-2006
1004782300 2		284,000.00	283,639.62	17-May-2006	8.500%	MD - 84.78%	Paid Off - 360	01-Jan-2006
1004785496 1		105,525.00	105,371.06	15-Jun-2006	9.125%	IA - 90.00%	Paid Off - 360	01-Jan-2006
1004803699 2		115,500.00	115,286.17	23-May-2006	9.850%	WI - 70.00%	Paid Off - 360	01-Feb-2006
1004844431 1		204,000.00	203,476.79	02-Jun-2006	9.375%	NJ - 85.00%	Paid Off - 360	01-Jan-2006
1004850655 2		162,750.00	162,395.36	31-May-2006	10.150%	AZ - 75.00%	Paid Off - 360	01-Jan-2006
1004878902 2		220,000.00	219,727.74	16-May-2006	8.550%	NJ - 72.13%	Paid Off - 360	01-Jan-2006
1004886458 2		247,500.00	246,632.78	01-Jun-2006	7.850%	NV - 75.00%	Paid Off - 360	01-Jan-2006
1004894742 2		124,500.00	124,294.96	22-May-2006	11.450%	CA - 20.00%	Paid Off - 360	01-Jan-2006
1004895812 1		300,000.00	299,525.72	15-Jun-2006	6.900%	CA - 62.50%	Paid Off - 360	01-Feb-2006
1004895965 2		200,000.00	199,444.35	14-Jun-2006	8.990%	IL - 80.00%	Paid Off - 360	01-Jan-2006
1004907257 2		147,500.00	146,997.59	25-May-2006	6.850%	MD - 61.46%	Paid Off - 360	01-Feb-2006
1004909816 2		130,000.00	129,705.23	01-Jun-2006	8.875%	DC - 41.94%	Paid Off - 360	01-Feb-2006


Page 18 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

1004911322 2		220,000.00	219,313.69	08-Jun-2006	8.425%	WA - 80.00%	Paid Off - 360	01-Jan-2006
1004911322 2		220,000.00	219,313.69	08-Jun-2006	8.425%	WA - 80.00%	Paid Off - 360	01-Jan-2006
1004918879 2		150,500.00	150,312.88	22-May-2006	7.750%	FL - 70.00%	Paid Off - 360	01-Feb-2006
1004943976 2		35,000.00	34,954.78	02-Jun-2006	12.550%	ID - 20.00%	Paid Off - 360	01-Jan-2006
1004962614 2		257,500.00	256,931.00	17-May-2006	9.000%	MD - 84.98%	Paid Off - 360	01-Feb-2006
1004978974 2		20,000.00	19,972.96	06-Jun-2006	12.350%	FL - 20.00%	Paid Off - 360	01-Jan-2006
1004991183 1		362,000.00	362,000.00	30-May-2006	6.900%	CA - 77.02%	Paid Off - 360	01-Jan-2006
1004999871 2		230,000.00	229,214.08	01-Jun-2006	7.975%	FL - 78.50%	Paid Off - 360	01-Jan-2006
1005003649 1		217,500.00	217,382.16	30-May-2006	10.550%	CA - 75.00%	Paid Off - 360	01-Feb-2006
1005004185 1		250,750.00	249,985.90	22-May-2006	8.550%	VA - 85.00%	Paid Off - 360	01-Jan-2006
1005005406 2		128,000.00	127,629.58	30-May-2006	7.675%	PA - 47.41%	Paid Off - 360	01-Feb-2006
1005006370 2		188,700.00	188,247.25	05-Jun-2006	8.600%	AZ - 85.00%	Paid Off - 360	01-Feb-2006
1005021255 1		112,500.00	112,401.71	17-May-2006	9.990%	GA - 75.00%	Paid Off - 360	01-Jan-2006
1005025634 2		67,000.00	66,758.14	16-May-2006	7.050%	FL - 62.62%	Paid Off - 360	01-Feb-2006
1005027133 2		250,500.00	250,289.84	02-Jun-2006	9.100%	MD - 80.81%	Paid Off - 360	01-Feb-2006
1005030762 2		842,320.00	842,320.00	24-May-2006	8.125%	CA - 80.00%	Paid Off - 360	01-Jan-2006
1005030879 1		200,000.00	199,637.81	09-Jun-2006	9.950%	FL - 80.00%	Paid Off - 360	01-Feb-2006
1005050641 1		269,250.00	268,847.79	01-Jun-2006	7.900%	CA - 75.00%	Paid Off - 360	01-Jan-2006
1005051392 2		327,250.00	326,523.13	31-May-2006	8.975%	MA - 85.00%	Paid Off - 360	01-Feb-2006
1005061657 1		110,000.00	109,684.67	17-May-2006	9.725%	CA - 37.29%	Paid Off - 360	01-Feb-2006
1005065797 1		120,000.00	119,786.36	23-May-2006	7.375%	CA - 43.64%	Paid Off - 360	01-Feb-2006
1005090867 1		210,000.00	209,753.41	19-May-2006	7.950%	CA - 61.76%	Paid Off - 360	01-Feb-2006
1005092106 1		146,000.00	145,830.55	23-May-2006	7.990%	CA - 54.28%	Paid Off - 360	01-Feb-2006
1005101150 1		411,000.00	410,890.40	15-Jun-2006	6.400%	CA - 58.71%	Paid Off - 360	01-Feb-2006
1005108108 1		110,000.00	109,784.38	26-May-2006	9.575%	WI - 66.27%	Paid Off - 360	01-Feb-2006
1005114921 1		101,500.00	101,216.39	22-May-2006	7.850%	ME - 70.00%	Paid Off - 360	01-Feb-2006
1005115127 1		120,000.00	119,544.61	12-Jun-2006	7.450%	AZ - 80.00%	Paid Off - 360	01-Jan-2006
1005120781 1		201,500.00	201,189.37	26-May-2006	6.990%	CA - 76.33%	Paid Off - 360	01-Feb-2006
1005125615 1		255,500.00	255,499.19	08-Jun-2006	6.250%	CA - 69.05%	Paid Off - 360	01-Feb-2006
1005127089 2		532,000.00	532,000.00	22-May-2006	7.500%	CA - 80.00%	Paid Off - 360	01-Feb-2006
1005148752 2		233,500.00	232,985.82	18-May-2006	10.100%	IL - 72.97%	Paid Off - 360	01-Jan-2006
1005164216 2		87,750.00	87,545.83	19-May-2006	8.750%	IA - 75.00%	Paid Off - 360	01-Feb-2006
1005165705 1		160,600.00	160,322.71	30-May-2006	10.175%	FL - 84.98%	Paid Off - 360	01-Feb-2006
1005168622 2		366,000.00	366,000.00	14-Jun-2006	6.300%	CA - 83.18%	Paid Off - 360	01-Feb-2006
1005177159 1		118,000.00	117,891.83	25-May-2006	8.800%	CA - 53.64%	Paid Off - 360	01-Feb-2006
1005177667 1		251,550.00	251,140.49	13-Jun-2006	10.450%	CT - 65.00%	Paid Off - 360	01-Feb-2006
1005179914 2		112,000.00	111,840.60	01-Jun-2006	7.275%	CT - 40.88%	Paid Off - 360	01-Feb-2006
1005180902 1		55,000.00	54,476.71	09-May-2006	8.725%	FL - 22.92%	Paid Off - 360	01-Feb-2006
1005182795 2		37,080.00	37,025.25	25-May-2006	11.950%	FL - 20.00%	Paid Off - 360	01-Jan-2006
1005187852 2		58,500.00	58,372.72	22-May-2006	9.075%	OH - 90.00%	Paid Off - 360	01-Feb-2006
1005196272 1		184,000.00	183,617.86	19-May-2006	10.375%	RI - 80.00%	Paid Off - 360	01-Jan-2006
1005199625 2		159,000.00	158,459.90	13-Jun-2006	8.000%	FL - 75.00%	Paid Off - 360	01-Feb-2006
1005201275 2		260,000.00	259,329.93	22-May-2006	8.250%	NJ - 80.00%	Paid Off - 360	01-Feb-2006
1005201275 2			259,329.93		8.250%	NJ - 80.00%	Paid Off - 360

Page 19 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

1005217767 1		243,000.00	242,339.91	15-May-2006	7.990%	IL - 90.00%	Paid Off - 360	01-Feb-2006
1005217767 1		243,000.00	242,339.91	15-May-2006	7.990%	IL - 90.00%	Paid Off - 360	01-Feb-2006
1005218203 1		228,000.00	227,356.51	31-May-2006	7.800%	FL - 70.15%	Paid Off - 360	01-Feb-2006
1005220012 1		73,800.00	73,681.12	01-Jun-2006	10.500%	PA - 90.00%	Paid Off - 360	01-Feb-2006
1005226409 1		144,000.00	143,880.97	15-Jun-2006	9.150%	FL - 90.00%	Paid Off - 360	01-Feb-2006
1005248109 2		410,000.00	409,680.70	26-May-2006	9.350%	CA - 83.67%	Paid Off - 360	01-Feb-2006
1005249894 2		417,600.00	417,600.00	26-May-2006	8.475%	CA - 80.00%	Paid Off - 360	01-Feb-2006
1005254681 1		210,000.00	209,807.50	09-Jun-2006	8.800%	CA - 84.00%	Paid Off - 360	01-Feb-2006
1005257465 2		391,500.00	390,621.39	11-May-2006	8.925%	CA - 90.00%	Paid Off - 360	01-Feb-2006
1005259686 2		32,400.00	32,363.17	18-May-2006	12.100%	FL - 20.00%	Paid Off - 360	01-Feb-2006
1005260736 1		116,000.00	115,847.55	30-May-2006	11.440%	TX - 80.00%	Paid Off - 360	01-Feb-2006
1005266589 1		204,000.00	204,000.00	12-Jun-2006	10.100%	CA - 88.70%	Paid Off - 360	01-Feb-2006
1005271261 1		310,250.00	310,249.96	09-Jun-2006	6.500%	CA - 85.00%	Paid Off - 360	01-Feb-2006
1005281072 2		200,000.00	199,999.97	30-May-2006	8.825%	MD - 80.00%	Paid Off - 360	01-Feb-2006
1005285158 1		257,250.00	257,090.15	22-May-2006	10.100%	CA - 75.00%	Paid Off - 360	01-Feb-2006
1005286273 1		113,323.00	112,976.60	30-May-2006	7.400%	CA - 41.21%	Paid Off - 360	01-Feb-2006
1005290623 1		54,900.00	54,798.88	15-Jun-2006	10.100%	WI - 78.43%	Paid Off - 360	01-Feb-2006
1005291980 2		193,500.00	193,500.00	02-Jun-2006	9.925%	FL - 90.00%	Paid Off - 360	01-Feb-2006
1005300934 1		318,250.00	317,970.87	17-May-2006	8.950%	CA - 95.00%	Paid Off - 360	01-Feb-2006
1005332703 1		69,700.00	69,578.92	01-Jun-2006	10.550%	MI - 85.00%	Paid Off - 360	01-Feb-2006
1005335078 2		510,000.00	508,813.38	13-Jun-2006	8.750%	CA - 71.83%	Paid Off - 360	01-Feb-2006
1005336460 2		276,000.00	276,000.00	02-Jun-2006	7.700%	CA - 80.00%	Paid Off - 360	01-Feb-2006
1005337003 2		69,000.00	68,875.18	02-Jun-2006	11.950%	CA - 20.00%	Paid Off - 360	01-Feb-2006
1005361100 2		145,500.00	145,500.00	14-Jun-2006	8.300%	FL - 74.23%	Paid Off - 360	01-Feb-2006
1005363411 1		369,000.00	368,671.57	08-Jun-2006	8.900%	CA - 90.00%	Paid Off - 360	01-Feb-2006
1005363545 1		173,700.00	173,270.20	30-May-2006	8.450%	OR - 90.00%	Paid Off - 360	01-Feb-2006
1005384915 1		189,000.00	188,427.97	30-May-2006	7.450%	NH - 74.12%	Paid Off - 360	01-Feb-2006
1005393040 2		310,250.00	310,250.00	07-Jun-2006	8.300%	CA - 85.00%	Paid Off - 360	01-Feb-2006
1005398893 1		400,000.00	399,649.19	23-May-2006	8.950%	CA - 60.61%	Paid Off - 360	01-Feb-2006
1005400416 1		337,500.00	336,566.45	16-May-2006	7.900%	CA - 90.00%	Paid Off - 360	01-Feb-2006
1005403164 1		315,000.00	314,703.39	14-Jun-2006	8.725%	CA - 67.02%	Paid Off - 360	01-Feb-2006
1005413607 1		100,000.00	99,681.99	09-Jun-2006	7.200%	FL - 80.00%	Paid Off - 360	01-Feb-2006
1005422394 1		161,500.00	161,318.40	02-Jun-2006	8.100%	CA - 62.84%	Paid Off - 360	01-Feb-2006
1005425621 1		360,000.00	359,589.33	12-Jun-2006	8.050%	CA - 90.00%	Paid Off - 360	01-Feb-2006
1005428904 2		121,500.00	121,278.78	19-May-2006	9.925%	FL - 90.00%	Paid Off - 360	01-Feb-2006
1005456767 2		290,000.00	290,000.00	17-May-2006	7.900%	CA - 61.57%	Paid Off - 360	01-Feb-2006
1005486244 2		176,400.00	176,249.79	09-Jun-2006	9.050%	MO - 90.00%	Paid Off - 360	01-Feb-2006
1005492745 1		295,000.00	294,903.21	30-May-2006	7.875%	FL - 69.74%	Paid Off - 360	01-Feb-2006
1005495671 2		67,850.00	67,596.60	24-May-2006	6.375%	FL - 34.44%	Paid Off - 360	01-Feb-2006
1005500656 1		176,800.00	176,482.51	08-Jun-2006	9.990%	CA - 80.00%	Paid Off - 360	01-Feb-2006
1005508514 2		76,500.00	76,383.20	01-Jun-2006	10.750%	OH - 85.00%	Paid Off - 360	01-Feb-2006
1005530124 2		140,000.00	139,520.81	12-Jun-2006	6.825%	OR - 54.90%	Paid Off - 360	01-Feb-2006
1005533513 1		400,000.00	399,779.97	14-Jun-2006	10.500%	CA - 74.77%	Paid Off - 360	01-Feb-2006
1005533513 1			399,779.97		10.500%	CA - 74.77%	Paid Off - 360

Page 20 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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

1005535717 2		85,000.00	84,821.67	31-May-2006	9.250%	IN - 85.00%	Paid Off - 360	01-Feb-2006
1005535717 2		85,000.00	84,821.67	31-May-2006	9.250%	IN - 85.00%	Paid Off - 360	01-Feb-2006
1005541586 1		157,500.00	157,208.69	02-Jun-2006	9.850%	MA - 90.00%	Paid Off - 360	01-Feb-2006
1005544878 2		258,000.00	257,368.13	02-Jun-2006	8.500%	NJ - 83.50%	Paid Off - 360	01-Feb-2006
1005585761 2		506,250.00	505,712.83	19-May-2006	8.300%	CA - 75.00%	Paid Off - 360	01-Feb-2006
1005586555 2		245,610.00	244,928.43	05-Jun-2006	9.625%	NM - 90.00%	Paid Off - 360	01-Feb-2006
1005678091 1		131,250.00	131,249.97	08-Jun-2006	6.990%	FL - 75.00%	Paid Off - 360	01-Feb-2006
1005700841 2		75,898.00	75,816.38	24-May-2006	12.350%	FL - 20.00%	Paid Off - 360	01-Feb-2006
1005725824 2		803,250.00	801,724.59	19-May-2006	9.725%	WA - 85.00%	Paid Off - 360	01-Feb-2006
1005764452 2		275,484.00	274,833.06	14-Jun-2006	8.675%	NJ - 90.00%	Paid Off - 360	01-Feb-2006
1005769885 2		820,000.00	818,184.35	23-May-2006	8.990%	CA - 63.08%	Paid Off - 360	01-Feb-2006
1005774165 1		162,000.00	161,675.77	01-Jun-2006	9.475%	IL - 90.00%	Paid Off - 360	01-Feb-2006
1005783306 2		86,450.00	86,042.91	31-May-2006	7.750%	MD - 65.00%	Paid Off - 360	01-Mar-2006
1005837080 1		63,200.00	62,866.66	17-May-2006	8.675%	OH - 80.00%	Paid Off - 360	01-Feb-2006
1005879301 2		89,000.00	88,895.80	02-Jun-2006	10.625%	MA - 51.45%	Paid Off - 360	01-Feb-2006
1005882565 1		144,000.00	143,844.97	02-Jun-2006	8.250%	OK - 90.00%	Paid Off - 360	01-Feb-2006
1005900162 2		165,750.00	165,378.66	12-Jun-2006	7.500%	IL - 70.23%	Paid Off - 360	01-Mar-2006
1005905924 2		420,000.00	419,007.63	10-May-2006	8.675%	CA - 80.00%	Paid Off - 360	01-Feb-2006


TOTAL	31,345,250.00	31,293,047.06

Page 21 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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 ABS Capital I Inc. 2006-NC3



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 ABS Capital I Inc. 2006-NC3

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 ABS Capital I Inc. 2006-NC3

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 ABS Capital I Inc. 2006-NC3

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 May 2009

Credit Enhancement Percentage (For Stepdown Date )

21.0662%

Applicable Percentage

40.5000%

Trigger Event in Effect

Rolling 60+ days balance includes BK,FC,REO

11,750,588.56

Ending Balance

1,349,123,342.43

Delinquency Percentage

0.8710%

Prior Balance of X and Mezzanine

284,209,006.12

Prior Pool Balance

855,190,365.18

525,970,385.75

1,381,160,750.93

Prior Senior Credit Enhancement Percentage

20.5775%

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

5.081250%

Libor Rate Determination Date

05/23/2006

Libor For Next Period

5.322500%

Libor Rate Next Determination Date

06/22/2006

Interest Rate Swap Floating

5.081250%

Swap Rate Determination Date

05/23/2006

Interest Rate Swap Fixed Rate

5.150000%

Page 26 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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	5.48250%	$0.00	$0.00	$0.00	$0.00
		5.48250%	$0.00	$0.00	$0.00	$0.00
	A-2A	5.38250%	$0.00	$0.00	$0.00	$0.00
		5.38250%	$0.00	$0.00	$0.00	$0.00
	A-2B	5.44250%	$0.00	$0.00	$0.00	$0.00
		5.44250%	$0.00	$0.00	$0.00	$0.00
	A-2C	5.49250%	$0.00	$0.00	$0.00	$0.00
		5.49250%	$0.00	$0.00	$0.00	$0.00
	A-2D	5.59250%	$0.00	$0.00	$0.00	$0.00
		5.59250%	$0.00	$0.00	$0.00	$0.00
	M-1	5.65250%	$0.00	$0.00	$0.00	$0.00
		5.65250%	$0.00	$0.00	$0.00	$0.00
	M-2	5.66250%	$0.00	$0.00	$0.00	$0.00
		5.66250%	$0.00	$0.00	$0.00	$0.00
	M-3	5.68250%	$0.00	$0.00	$0.00	$0.00
		5.68250%	$0.00	$0.00	$0.00	$0.00
	M-4	5.78250%	$0.00	$0.00	$0.00	$0.00
		5.78250%	$0.00	$0.00	$0.00	$0.00
	M-5	5.79250%	$0.00	$0.00	$0.00	$0.00
		5.79250%	$0.00	$0.00	$0.00	$0.00
	M-6	5.87250%	$0.00	$0.00	$0.00	$0.00
		5.87250%	$0.00	$0.00	$0.00	$0.00
	B-1	6.37250%	$0.00	$0.00	$0.00	$0.00
		6.37250%	$0.00	$0.00	$0.00	$0.00
	B-2	6.52250%	$0.00	$0.00	$0.00	$0.00
		6.52250%	$0.00	$0.00	$0.00	$0.00
	B-3	7.37250%	$0.00	$0.00	$0.00	$417.95
		7.37250%	$0.00	$0.00	$0.00	$417.95
	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 27 of 28

Morgan Stanley ABS Capital I Inc. 2006-NC3



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			9,943,784.66
Current Scheduled Payments 1 Month Prior			10,107,811.24
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			146,929.02
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior			37,209.09
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 28 of 28

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