	Exhibit 99.1
	MONTHLY DISTRIBUTION STATEMENT TO CERTIFICATEHOLDERS

	HSBC Home Equity Loan Trust (USA) 2006-3

	Distribution Number			7
	Beginning Date of Collection Period			1-May-07
	Ending Date of Collection Period			31-May-07
	Distribution Date			20-Jun-07
	Previous Distribution Date			21-May-07
	Floating-Rate Certificates Interest Period Beginning On			21-May-07
	Floating-Rate Certificates Interest Period Ending On			19-Jun-07

	Funds Disbursement
	Collected Funds (including Servicing Fee)			30,940,099.05
	Available Distribution Amount			30,428,089.50
	Principal Collections			23,136,894.23

	Net Interest Collections			7,291,195.27

	Interest Collections			7,803,204.82
	Principal recoveries			0.00
	Compensating Interest			0.00
	Servicing Fee (after Compensating Interest)			512,009.55

	Disbursements			30,940,099.05
	Current Interest and Interest Carryforward Amount Distributed to Certificateholders			4,625,688.96
	Principal Distribution Amount to Certificateholders			23,291,364.07
	Unpaid Realized Loss Amount to Certificateholders			0.00
	Net Rate Carryover Amount to Certificateholders			0.00
	Remaining Available Distribution Amount to Class R Certificateholder			2,511,036.47
	Servicing Fee after Compensating Interest (to Servicer)			512,009.55

	Other payments or reimbursements to Servicer pursuant to Section 3.03			0.00

	Pool Balance
	Beginning Pool Balance			1,228,822,928.57
	Principal Collections (including repurchases)			23,136,894.23
	Realized Loss			154,469.84
	Ending Pool Balance			1,205,531,564.50

	Certificate Balance
	Beginning Certificate Balance			991,359,699.78
	Certificate Paydown			23,291,364.07
	Applied Realized Loss Amount			0.00
	Ending Certificate Balance			968,068,335.71

Collateral Performance
Cash yield (% of beginning balance, annualized)	7.62%
Loss rate (% of beginning balance, net of principal recoveries)	0.15%
Net yield	7.47%
Realized Losses	154,469.84
Cumulative Realized Losses	180,973.64
Cumulative Loss Percentage	0.01%
Delinquent Loans:
One payment principal balance of loans	9,253,707.49
One payment number of loans	74
Two payments principal balance of loans	2,216,962.53
Two payments number of loans	17
Three payments plus principal balance of loans	6,701,393.87
Three payments plus number of loans	49
One Payment Delinquency Percentage (for related Collection Period)	0.77%
Two Payment Delinquency Percentage (for related Collection Period)	0.18%
Two Payment Plus Delinquency Percentage (for related Collection Period)	0.74%
Two Payment Plus Rolling Average (for such Distribution Date)	0.57%
Three Payment Plus Delinquency Percentage (for related Collection Period)	0.56%

Aggregate Principal Balance of Loans that were restructured during such Collection Period	3,803,543.51
Aggregate Principal Balance of Loans restructured in Collection Period as % of EOP Pool Balance		0.32%

Home Equity Loan Detail
Number of loans purchased or substituted pursuant to Section 2.02	-
Principal balance of loans purchased or substituted pursuant to Section 2.02	0.00
Number of loans purchased or substituted pursuant to Section 2.04	-
Principal balance of loans purchased or substituted pursuant to Section 2.04	0.00
Number of loans purchased or substituted pursuant to Section 3.01	-
Principal balance of loans purchased or substituted pursuant to Section 3.01	0.00
Substitution Adjustment Amounts	0.00

Number outstanding beginning of period	9,703
Number outstanding end of period	9,527
Principal balance of all REO as of the end of the Collection Period	75,661.89
Number of loans that went into REO during the Collection Period	1
Principal balance of loans that went into REO during the Collection Period	75,661.89
Unpaid Servicing Fee from previous Collection Periods	0.00


Overcollateralization
Beginning OC Amount	237,463,228.79
Realized Loss	154,469.84
OC Release Amount	0.00

Extra Principal Distribution Amount	154,469.84
Ending OC Amount	237,463,228.79

Target OC Amount	237,463,228.79
Interim OC Amount	237,308,758.95
Interim OC Deficiency	154,469.84

Monthly Excess Cashflow	2,665,506.31

Other
Stepdown	No
Trigger Event	No
Servicer Termination Event	No
Original Certificate Balance	1,176,010,000.00
Total EOP Certificate Principal Amount divided by Total Original Certificate Principal Amount		82.318036%
Total EOP Certificate Principal Amount divided by Total Original Certificate Principal Amount <15.00%			No

Interest Calculations
1 month LIBOR	5.32000%
Class A-1F Formula Rate (5.98%)	5.98000%
Class A-1F Pass-Through Rate	5.98000%
Class A-1V Formula Rate (1-mo. Libor plus 8 bps)	5.40000%
Class A-1V Pass-Through Rate	5.40000%
Class A-2F Formula Rate (5.66%)	5.66000%
Class A-2F Pass-Through Rate	5.66000%
Class A-2V Formula Rate (1-mo. Libor plus 13 bps)	5.45000%
Class A-2V Pass-Through Rate	5.45000%
Class A-3F Formula Rate (5.63%)	5.63000%
Class A-3F Pass-Through Rate	5.63000%
Class A-3V Formula Rate (1-mo. Libor plus 16 bps)	5.48000%
Class A-3V Pass-Through Rate	5.48000%
Class A-4 Formula Rate (1-mo. Libor plus 24 bps)	5.56000%
Class A-4 Pass-Through Rate	5.56000%
Class M-1 Formula Rate (1-mo. Libor plus 26 bps)	5.58000%
Class M-1 Pass-Through Rate	5.58000%
Class M-2 Formula Rate (1-mo. Libor plus 30 bps)	5.62000%
Class M-2 Pass-Through Rate	5.62000%

Net Rate Cap for Fixed Rate Certificates	7.58160%
Net Rate Cap for Floating Rate Certificates	7.58160%


Class A-1F Certficateholder's Statement

A. Information on Distributions

	Original Class A-1F Certificate Balance			255,200,000.00
	1. Total Distributions per $1,000			46.705060
	2. Principal Distributions per $1,000			43.437829
	3. Interest Distribution per $1,000			3.267231

	B. Calculation of Class A-1F Interest
	1. Class A-1F Pass-Through Rate			5.98000%
	2. Days in Accrual Period			30

	3. Class A-1F Interest Due			833,797.39
	4. Class A-1F Interest Paid			833,797.39
	5. Class A-1F Interest Carry Forward Amount Due			0.00
	6. Class A-1F Interest Carry Forward Amount Paid			0.00
	7. Class A-1F Net Rate Carryover Amount Due			0.00
	8. Class A-1F Net Rate Carryover Amount Paid			0.00

	9. Class A-1F Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class A-1F Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class A-1F Principal
	1. Class A-1F Certificate Principal Amount, BOP			167,317,201.38
	2. Class A-1F Principal Due			11,085,334.04
	3. Class A-1F Principal Paid			11,085,334.04
	4. Class A-1F Certificate Principal Amount, EOP			156,231,867.34

	5. Class A-1F Certificate Principal Amount as a % of Original Class A-1F Certificate Principal Amount, EOP

				61.219384%
	6. Class A-1F Certificate Principal Amount as a % of the Pool Balance, EOP			12.959583%
	7. Class A-1F Certificate principal distribution percentage			47.594181288%

	Class A-1V Certficateholder's Statement

	A. Information on Distributions
	Original Class A-1V Certificate Balance			281,000,000.00
	1. Total Distributions per $1,000			46.388172
	2. Principal Distributions per $1,000			43.437829
	3. Interest Distribution per $1,000			2.950342

	B. Calculation of Class A-1V Interest
	1. Class A-1V Pass-Through Rate			5.40000%
	2. Days in Accrual Period			30

	3. Class A-1V Interest Due			829,046.24
	4. Class A-1V Interest Paid			829,046.24

	5. Class A-1V Interest Carry Forward Amount Due			0.00

	6. Class A-1V Interest Carry Forward Amount Paid			0.00
	7. Class A-1V Net Rate Carryover Amount Due			0.00
	8. Class A-1V Net Rate Carryover Amount Paid			0.00

	9. Class A-1V Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class A-1V Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class A-1V Principal
	1. Class A-1V Certificate Principal Amount, BOP			184,232,498.40
	2. Class A-1V Principal Due			12,206,030.03
	3. Class A-1V Principal Paid			12,206,030.03
	4. Class A-1V Certificate Principal Amount, EOP			172,026,468.37

	5. Class A-1V Certificate Principal Amount as a % of Original Class A-1V Certificate Principal Amount, EOP

				61.219384%
	6. Class A-1V Certificate Principal Amount as a % of the Pool Balance, EOP			14.269761%
	7. Class A-1V Certificate principal distribution percentage			52.405818712%

	Class A-2F Certficateholder's Statement

	A. Information on Distributions
	Original Class A-2F Certificate Balance			78,500,000.00
	1. Total Distributions per $1,000			4.716667
	2. Principal Distributions per $1,000			0.000000
	3. Interest Distribution per $1,000			4.716667

	B. Calculation of Class A-2F Interest
	1. Class A-2F Pass-Through Rate			5.66000%
	2. Days in Accrual Period			30

	3. Class A-2F Interest Due			370,258.33
	4. Class A-2F Interest Paid			370,258.33
	5. Class A-2F Interest Carry Forward Amount Due			0.00
	6. Class A-2F Interest Carry Forward Amount Paid			0.00
	7. Class A-2F Net Rate Carryover Amount Due			0.00
	8. Class A-2F Net Rate Carryover Amount Paid			0.00

	9. Class A-2F Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class A-2F Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class A-2F Principal
	1. Class A-2F Certificate Principal Amount, BOP			78,500,000.00
	2. Class A-2F Principal Due			0.00
	3. Class A-2F Principal Paid			0.00
	4. Class A-2F Certificate Principal Amount, EOP			78,500,000.00

	5. Class A-2F Certificate Principal Amount as a % of Original Class A-2F Certificate Principal Amount, EOP

				100.000000%
	6. Class A-2F Certificate Principal Amount as a % of the Pool Balance, EOP			6.511650%
	7. Class A-2F Certificate principal distribution percentage			0.000000000%

	Class A-2V Certficateholder's Statement

	A. Information on Distributions
	Original Class A-2V Certificate Balance			100,000,000.00
	1. Total Distributions per $1,000			4.541667
	2. Principal Distributions per $1,000			0.000000
	3. Interest Distribution per $1,000			4.541667

	B. Calculation of Class A-2V Interest
	1. Class A-2V Pass-Through Rate			5.45000%
	2. Days in Accrual Period			30

	3. Class A-2V Current Interest Due			454,166.67
	4. Class A-2V Current Interest Paid			454,166.67
	5. Class A-2V Interest Carry Forward Amount Due			0.00
	6. Class A-2V Interest Carry Forward Amount Paid			0.00
	7. Class A-2V Net Rate Carryover Amount Due			0.00
	8. Class A-2V Net Rate Carryover Amount Paid			0.00

	9. Class A-2V Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class A-2V Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class A-2V Principal
	1. Class A-2V Certificate Principal Amount, BOP			100,000,000.00
	2. Class A-2V Principal Due			0.00
	3. Class A-2V Principal Paid			0.00
	4. Class A-2V Certificate Principal Amount, EOP			100,000,000.00

	5. Class A-2V Certificate Principal Amount as a % of Original Class A-2V Certificate Principal Amount, EOP

				100.000000%
	6. Class A-2V Certificate Principal Amount as a % of the Pool Balance, EOP			8.295096%
	7. Class A-2V Certificate principal distribution percentage			0.000000000%

	Class A-3F Certficateholder's Statement

	A. Information on Distributions
	Original Class A-3F Certificate Balance			66,300,000.00
	1. Total Distributions per $1,000			4.691667
	2. Principal Distributions per $1,000			0.000000

	3. Interest Distribution per $1,000			4.691667

	B. Calculation of Class A-3F Interest
	1. Class A-3F Pass-Through Rate			5.63000%
	2. Days in Accrual Period			30

	3. Class A-3F Interest Due			311,057.50
	4. Class A-3F Interest Paid			311,057.50
	5. Class A-3F Interest Carry Forward Amount Due			0.00
	6. Class A-3F Interest Carry Forward Amount Paid			0.00
	7. Class A-3F Net Rate Carryover Amount Due			0.00
	8. Class A-3F Net Rate Carryover Amount Paid			0.00

	9. Class A-3F Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class A-3F Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class A-3F Principal
	1. Class A-3F Certificate Principal Amount, BOP			66,300,000.00
	2. Class A-3F Principal Due			0.00
	3. Class A-3F Principal Paid			0.00
	4. Class A-3F Certificate Principal Amount, EOP			66,300,000.00

	5. Class A-3F Certificate Principal Amount as a % of Original Class A-3F Certificate Principal Amount, EOP

				100.000000%
	6. Class A-3F Certificate Principal Amount as a % of the Pool Balance, EOP			5.499649%
	7. Class A-3F Certificate principal distribution percentage			0.000000000%

	Class A-3V Certficateholder's Statement

	A. Information on Distributions
	Original Class A-3V Certificate Balance			100,000,000.00
	1. Total Distributions per $1,000			4.566667
	2. Principal Distributions per $1,000			0.000000
	3. Interest Distribution per $1,000			4.566667

	B. Calculation of Class A-3V Interest
	1. Class A-3V Pass-Through Rate			5.48000%
	2. Days in Accrual Period			30

	3. Class A-3V Interest Due			456,666.67
	4. Class A-3V Interest Paid			456,666.67
	5. Class A-3V Interest Carry Forward Amount Due			0.00
	6. Class A-3V Interest Carry Forward Amount Paid			0.00
	7. Class A-3V Net Rate Carryover Amount Due			0.00
	8. Class A-3V Net Rate Carryover Amount Paid			0.00

	9. Class A-3V Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class A-3V Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class A-3V Principal
	1. Class A-3V Certificate Principal Amount, BOP			100,000,000.00
	2. Class A-3V Principal Due			0.00
	3. Class A-3V Principal Paid			0.00
	4. Class A-3V Certificate Principal Amount, EOP			100,000,000.00

	5. Class A-3V Certificate Principal Amount as a % of Original Class A-3V Certificate Principal Amount, EOP

				100.000000%
	6. Class A-3V Certificate Principal Amount as a % of the Pool Balance, EOP			8.295096%
	7. Class A-3V Certificate principal distribution percentage			0.000000000%

	Class A-4 Certficateholder's Statement

	A. Information on Distributions
	Original Class A-4 Certificate Balance			170,620,000.00
	1. Total Distributions per $1,000			4.633333
	2. Principal Distributions per $1,000			0.000000
	3. Interest Distribution per $1,000			4.633333

	B. Calculation of Class A-4 Interest
	1. Class A-4 Pass-Through Rate			5.56000%
	2. Days in Accrual Period			30

	3. Class A-4 Interest Due			790,539.33
	4. Class A-4 Interest Paid			790,539.33
	5. Class A-4 Interest Carry Forward Amount Due			0.00
	6. Class A-4 Interest Carry Forward Amount Paid			0.00
	7. Class A-4 Net Rate Carryover Amount Due			0.00
	8. Class A-4 Net Rate Carryover Amount Paid			0.00

	9. Class A-4 Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class A-4 Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class A-4 Principal
	1. Class A-4 Certificate Principal Amount, BOP			170,620,000.00
	2. Class A-4 Principal Due			0.00
	3. Class A-4 Principal Paid			0.00
	4. Class A-4 Certificate Principal Amount, EOP			170,620,000.00

	5. Class A-4 Certificate Principal Amount as a % of Original Class A-4 Certificate Principal Amount, EOP

				100.000000%

	6. Class A-4 Certificate Principal Amount as a % of the Pool Balance, EOP			14.153093%
	7. Class A-4 Certificate principal distribution percentage			0.000000000%

	Class M-1 Certficateholder's Statement

	A. Information on Distributions
	Original Class M-1 Certificate Balance			72,090,000.00
	1. Total Distributions per $1,000			4.650000
	2. Principal Distributions per $1,000			0.000000
	3. Interest Distribution per $1,000			4.650000

	B. Calculation of Class M-1 Interest
	1. Class M-1 Pass-Through Rate			5.58000%
	2. Days in Accrual Period			30

	3. Class M-1 Interest Due			335,218.50
	4. Class M-1 Interest Paid			335,218.50
	5. Class M-1 Interest Carry Forward Amount Due			0.00
	6. Class M-1 Interest Carry Forward Amount Paid			0.00
	7. Class M-1 Net Rate Carryover Amount Due			0.00
	8. Class M-1 Net Rate Carryover Amount Paid			0.00

	9. Class M-1 Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class M-1 Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class M-1 Principal
	1. Class M-1 Certificate Principal Amount, BOP			72,090,000.00
	2. Class M-1 Principal Due			0.00
	3. Class M-1 Principal Paid			0.00
	4. Class M-1 Certificate Applied Realized Loss Amount			0.00
	5. Class M-1 Certificate Principal Amount, EOP			72,090,000.00


	6. Class M-1 Certificate Principal Amount as a % of Original Class M-1 Certificate Principal Amount, EOP
				100.000000%
	7. Class M-1 Certificate Principal Amount as a % of the Pool Balance, EOP			5.979935%
	8. Class M-1 Certificate principal distribution percentage			0.000000000%
	9. Class M-1 Certificate Reimbursements to Unpaid Realized Loss Amount			0.00
	10. Class M-1 Certificate Unpaid Realized Loss Amount, EOP			0.00

	Class M-2 Certficateholder's Statement

	A. Information on Distributions
	Original Class M-2 Certificate Balance			52,300,000.00
	1. Total Distributions per $1,000			4.683333

	2. Principal Distributions per $1,000			0.000000
	3. Interest Distribution per $1,000			4.683333

	B. Calculation of Class M-2 Interest
	1. Class M-2 Pass-Through Rate			5.62000%
	2. Days in Accrual Period			30

	3. Class M-2 Interest Due			244,938.33
	4. Class M-2 Interest Paid			244,938.33
	5. Class M-2 Interest Carry Forward Amount Due			0.00
	6. Class M-2 Interest Carry Forward Amount Paid			0.00
	7. Class M-2 Net Rate Carryover Amount Due			0.00
	8. Class M-2 Net Rate Carryover Amount Paid			0.00

	9. Class M-2 Unpaid Interest Carry Forward Amount, EOP			0.00
	10. Class M-2 Unpaid Net Rate Carryover Amount, EOP			0.00

	C. Calculation of Class M-2 Principal
	1. Class M-2 Certificate Principal Amount, BOP			52,300,000.00
	2. Class M-2 Principal Due			0.00
	3. Class M-2 Principal Paid			0.00
	4. Class M-2 Certificate Applied Realized Loss Amount			0.00
	5. Class M-2 Certificate Principal Amount, EOP			52,300,000.00


	6. Class M-2 Certificate Principal Amount as a % of Original Class M-2 Certificate Principal Amount, EOP
				100.000000%
	7. Class M-2 Certificate Principal Amount as a % of the Pool Balance, EOP			4.338335%
	8. Class M-2 Certificate principal distribution percentage			0.000000000%
	9. Class M-2 Certificate Reimbursements to Unpaid Realized Loss Amount			0.00
	10. Class M-2 Certificate Unpaid Realized Loss Amount, EOP			0.00

	HSBC FINANCE CORPORATION,
	HSBC Home Equity Loan Trust (USA) 2006-3

	The undersigned, a duly authorized representative of HSBC Finance Corporation,
	as Servicer (the "Servicer"), pursuant to a Pooling and Servicing Agreement
	dated as of October 26, 2006 (the "Pooling and Servicing Agreement"), by and among
	HSBC Home Equity Loan Corporation II, as Depositor, the Servicer,
	U.S. Bank National Association, as Trustee, HSBC Bank USA, National
	Association, as Administrator, and HSBC Home Equity Loan Trust (USA) 2006-3, the
	Trust, does hereby certify with respect to the information set forth below as follows:

	1. Capitalized terms used in this Servicing Certificate shall have the respective
	meanings set forth in the Pooling and Servicing Agreement.

	2. HSBC Finance Corporation is, as of the date hereof, the
	Servicer under the Pooling and Servicing Agreement.

	3. The undersigned is a Servicing Officer.

	4. This Certificate relates to the Distribution Date occurring on June 20, 2007.

	5. As of the date hereof, to the best knowledge of the undersigned, the
	Servicer has performed in all material respects all its obligations under the
	Pooling and Servicing Agreement through the Collection Period preceding such
	Distribution Date and that, except as may be noted on the Servicing Certificate
	related to a Trigger Event, no Servicer Termination Event has occurred
	since the prior Determination Date.

	IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate
	the 14th day of June,2007

	HSBC FINANCE CORPORATION
	as Servicer

	By: /s/ Joyce A. Bevacqua
	Title: Servicing Officer

HSBC Home Equity Loan Trust (USA) 2006-3 10-D