|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|--------------------------------------------------- | ------ | --------- | ------------- | ----- | -------------- |  | ----------------------- |  | --------------- |  | --------- |  |  |  | -------------- | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |               
|Morgan Stanley Home Equity Loan Trust Series 2005-2
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|2005 Annual Statement                              
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | DISTRIBUTION IN DOLLARS |  |                 |  |           |  | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  | ENDING BALANCE | 
|PERIOD                                              |        | CLASS     |               | CUSIP |                |  | INTEREST                |  |                 |  | PRINCIPAL |  | 
|200506                                              | A-1mz  | 61744CQU3 | $155,910.49   |       | $1,051,158.80  |  | $51,306,841.20          | 
|200507                                              | A-1mz  | 61744CQU3 | $142,636.78   |       | $1,109,042.41  |  | $50,197,798.79          | 
|200508                                              | A-1mz  | 61744CQU3 | $160,800.28   |       | $1,370,913.56  |  | $48,826,885.23          | 
|200509                                              | A-1mz  | 61744CQU3 | $169,320.79   |       | $2,150,882.53  |  | $46,676,002.70          | 
|200510                                              | A-1mz  | 61744CQU3 | $153,784.46   |       | $1,147,625.61  |  | $45,528,377.09          | 
|200511                                              | A-1mz  | 61744CQU3 | $168,483.45   |       | $1,612,085.55  |  | $43,916,291.54          | 
|200512                                              | A-1mz  | 61744CQU3 | $173,859.72   |       | $1,644,507.74  |  | $42,271,783.80          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $1,124,795.97           |  | $10,086,216.20  |  |           |  | 
|200506                                              | A-1ss  | 61744CQV1 | $617,123.35   |       | $4,204,615.13  |  | $205,226,384.87         | 
|200507                                              | A-1ss  | 61744CQV1 | $564,957.68   |       | $4,436,148.45  |  | $200,790,236.42         | 
|200508                                              | A-1ss  | 61744CQV1 | $637,146.46   |       | $5,483,628.06  |  | $195,306,608.36         | 
|200509                                              | A-1ss  | 61744CQV1 | $671,203.71   |       | $8,603,489.05  |  | $186,703,119.31         | 
|200510                                              | A-1ss  | 61744CQV1 | $609,870.93   |       | $4,590,480.53  |  | $182,112,638.78         | 
|200511                                              | A-1ss  | 61744CQV1 | $668,441.91   |       | $6,448,311.38  |  | $175,664,327.40         | 
|200512                                              | A-1ss  | 61744CQV1 | $689,970.44   |       | $6,577,999.56  |  | $169,086,327.84         | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $4,458,714.48           |  | $40,344,672.16  |  |           |  | 
|200506                                              | A-2a   | 61744CQG4 | $816,802.08   |       | $6,157,941.93  |  | $282,805,058.07         | 
|200507                                              | A-2a   | 61744CQG4 | $748,825.69   |       | $13,649,819.01 |  | $269,155,239.06         | 
|200508                                              | A-2a   | 61744CQG4 | $822,792.61   |       | $13,098,173.34 |  | $256,057,065.72         | 
|200509                                              | A-2a   | 61744CQG4 | $849,255.93   |       | $16,842,447.58 |  | $239,214,618.14         | 
|200510                                              | A-2a   | 61744CQG4 | $755,386.61   |       | $19,370,325.32 |  | $219,844,292.82         | 
|200511                                              | A-2a   | 61744CQG4 | $781,378.52   |       | $16,440,169.20 |  | $203,404,123.62         | 
|200512                                              | A-2a   | 61744CQG4 | $774,517.70   |       | $14,268,231.56 |  | $189,135,892.06         | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $5,548,959.14           |  | $99,827,107.94  |  |           |  | 
|200506                                              | A-2b   | 61744CQH2 | $294,222.22   |       | $0.00          |  | $100,000,000.00         | 
|200507                                              | A-2b   | 61744CQH2 | $274,896.22   |       | $0.00          |  | $100,000,000.00         | 
|200508                                              | A-2b   | 61744CQH2 | $316,888.89   |       | $0.00          |  | $100,000,000.00         | 
|200509                                              | A-2b   | 61744CQH2 | $343,222.22   |       | $0.00          |  | $100,000,000.00         | 
|200510                                              | A-2b   | 61744CQH2 | $326,250.00   |       | $0.00          |  | $100,000,000.00         | 
|200511                                              | A-2b   | 61744CQH2 | $366,618.06   |       | $0.00          |  | $100,000,000.00         | 
|200512                                              | A-2b   | 61744CQH2 | $392,333.33   |       | $0.00          |  | $100,000,000.00         | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $2,314,430.94           |  | $0.00           |  |           |  | 
|200506                                              | A-2c   | 61744CQJ8 | $242,488.89   |       | $0.00          |  | $80,000,000.00          | 
|200507                                              | A-2c   | 61744CQJ8 | $226,139.20   |       | $0.00          |  | $80,000,000.00          | 
|200508                                              | A-2c   | 61744CQJ8 | $260,400.00   |       | $0.00          |  | $80,000,000.00          | 
|200509                                              | A-2c   | 61744CQJ8 | $281,688.89   |       | $0.00          |  | $80,000,000.00          | 
|200510                                              | A-2c   | 61744CQJ8 | $267,444.44   |       | $0.00          |  | $80,000,000.00          | 
|200511                                              | A-2c   | 61744CQJ8 | $300,183.33   |       | $0.00          |  | $80,000,000.00          | 
|200512                                              | A-2c   | 61744CQJ8 | $320,977.78   |       | $0.00          |  | $80,000,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $1,899,322.53           |  | $0.00           |  |           |  | 
|200506                                              | B-1    | 61744CQR0 | $47,285.33    |       | $0.00          |  | $12,400,000.00          | 
|200507                                              | B-1    | 61744CQR0 | $43,538.69    |       | $0.00          |  | $12,400,000.00          | 
|200508                                              | B-1    | 61744CQR0 | $49,758.44    |       | $0.00          |  | $12,400,000.00          | 
|200509                                              | B-1    | 61744CQR0 | $53,361.33    |       | $0.00          |  | $12,400,000.00          | 
|200510                                              | B-1    | 61744CQR0 | $50,244.11    |       | $0.00          |  | $12,400,000.00          | 
|200511                                              | B-1    | 61744CQR0 | $55,924.86    |       | $0.00          |  | $12,400,000.00          | 
|200512                                              | B-1    | 61744CQR0 | $59,451.11    |       | $0.00          |  | $12,400,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $359,563.87             |  | $0.00           |  |           |  | 
|200506                                              | B-2    | 61744CQS8 | $46,388.04    |       | $0.00          |  | $11,942,000.00          | 
|200507                                              | B-2    | 61744CQS8 | $42,673.62    |       | $0.00          |  | $11,942,000.00          | 
|200508                                              | B-2    | 61744CQS8 | $48,743.26    |       | $0.00          |  | $11,942,000.00          | 
|200509                                              | B-2    | 61744CQS8 | $52,239.62    |       | $0.00          |  | $11,942,000.00          | 
|200510                                              | B-2    | 61744CQS8 | $49,157.92    |       | $0.00          |  | $11,942,000.00          | 
|200511                                              | B-2    | 61744CQS8 | $54,681.92    |       | $0.00          |  | $11,942,000.00          | 
|200512                                              | B-2    | 61744CQS8 | $58,104.46    |       | $0.00          |  | $11,942,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $351,988.84             |  | $0.00           |  |           |  | 
|200506                                              | B-3    | 61744CQT6 | $42,755.38    |       | $0.00          |  | $10,105,000.00          | 
|200507                                              | B-3    | 61744CQT6 | $39,174.46    |       | $0.00          |  | $10,105,000.00          | 
|200508                                              | B-3    | 61744CQT6 | $44,638.84    |       | $0.00          |  | $10,105,000.00          | 
|200509                                              | B-3    | 61744CQT6 | $47,706.83    |       | $0.00          |  | $10,105,000.00          | 
|200510                                              | B-3    | 61744CQT6 | $44,770.76    |       | $0.00          |  | $10,105,000.00          | 
|200511                                              | B-3    | 61744CQT6 | $49,663.97    |       | $0.00          |  | $10,105,000.00          | 
|200512                                              | B-3    | 61744CQT6 | $52,669.51    |       | $0.00          |  | $10,105,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $321,379.75             |  | $0.00           |  |           |  | 
|200506                                              | M-1    | 61744CQK5 | $110,027.56   |       | $0.00          |  | $35,366,000.00          | 
|200507                                              | M-1    | 61744CQK5 | $102,446.11   |       | $0.00          |  | $35,366,000.00          | 
|200508                                              | M-1    | 61744CQK5 | $117,857.20   |       | $0.01          |  | $35,365,999.99          | 
|200509                                              | M-1    | 61744CQK5 | $127,356.90   |       | $0.00          |  | $35,365,999.99          | 
|200510                                              | M-1    | 61744CQK5 | $120,794.54   |       | $0.00          |  | $35,365,999.99          | 
|200511                                              | M-1    | 61744CQK5 | $135,444.41   |       | $0.00          |  | $35,365,999.99          | 
|200512                                              | M-1    | 61744CQK5 | $144,725.53   |       | $0.00          |  | $35,365,999.99          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $858,652.25             |  | $0.01           |  |           |  | 
|200506                                              | M-2    | 61744CQL3 | $80,478.15    |       | $0.00          |  | $25,721,000.00          | 
|200507                                              | M-2    | 61744CQL3 | $74,907.15    |       | $0.00          |  | $25,721,000.00          | 
|200508                                              | M-2    | 61744CQL3 | $86,158.21    |       | $0.00          |  | $25,721,000.00          | 
|200509                                              | M-2    | 61744CQL3 | $93,081.44    |       | $0.00          |  | $25,721,000.00          | 
|200510                                              | M-2    | 61744CQL3 | $88,265.90    |       | $0.00          |  | $25,721,000.00          | 
|200511                                              | M-2    | 61744CQL3 | $98,949.04    |       | $0.00          |  | $25,721,000.00          | 
|200512                                              | M-2    | 61744CQL3 | $105,713.31   |       | $0.00          |  | $25,721,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $627,553.20             |  | $0.00           |  |           |  | 
|200506                                              | M-3    | 61744CQM1 | $56,366.24    |       | $0.00          |  | $17,913,000.00          | 
|200507                                              | M-3    | 61744CQM1 | $52,446.60    |       | $0.00          |  | $17,913,000.00          | 
|200508                                              | M-3    | 61744CQM1 | $60,312.08    |       | $0.00          |  | $17,913,000.00          | 
|200509                                              | M-3    | 61744CQM1 | $65,143.61    |       | $0.00          |  | $17,913,000.00          | 
|200510                                              | M-3    | 61744CQM1 | $61,760.04    |       | $0.00          |  | $17,913,000.00          | 
|200511                                              | M-3    | 61744CQM1 | $69,220.06    |       | $0.00          |  | $17,913,000.00          | 
|200512                                              | M-3    | 61744CQM1 | $73,940.88    |       | $0.00          |  | $17,913,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $439,189.51             |  | $0.00           |  |           |  | 
|200506                                              | M-4    | 61744CQN9 | $54,675.73    |       | $0.00          |  | $16,535,000.00          | 
|200507                                              | M-4    | 61744CQN9 | $50,726.92    |       | $0.00          |  | $16,535,000.00          | 
|200508                                              | M-4    | 61744CQN9 | $58,235.35    |       | $0.00          |  | $16,535,000.00          | 
|200509                                              | M-4    | 61744CQN9 | $62,777.88    |       | $0.00          |  | $16,535,000.00          | 
|200510                                              | M-4    | 61744CQN9 | $59,406.58    |       | $0.00          |  | $16,535,000.00          | 
|200511                                              | M-4    | 61744CQN9 | $66,458.07    |       | $0.00          |  | $16,535,000.00          | 
|200512                                              | M-4    | 61744CQN9 | $70,898.41    |       | $0.00          |  | $16,535,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $423,178.94             |  | $0.00           |  |           |  | 
|200506                                              | M-5    | 61744CQP4 | $48,993.33    |       | $0.00          |  | $14,698,000.00          | 
|200507                                              | M-5    | 61744CQP4 | $45,434.23    |       | $0.00          |  | $14,698,000.00          | 
|200508                                              | M-5    | 61744CQP4 | $52,145.24    |       | $0.00          |  | $14,698,000.00          | 
|200509                                              | M-5    | 61744CQP4 | $56,195.35    |       | $0.00          |  | $14,698,000.00          | 
|200510                                              | M-5    | 61744CQP4 | $53,161.85    |       | $0.00          |  | $14,698,000.00          | 
|200511                                              | M-5    | 61744CQP4 | $59,454.43    |       | $0.00          |  | $14,698,000.00          | 
|200512                                              | M-5    | 61744CQP4 | $63,413.70    |       | $0.00          |  | $14,698,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $378,798.13             |  | $0.00           |  |           |  | 
|200506                                              | M-6    | 61744CQQ2 | $49,646.58    |       | $0.00          |  | $14,698,000.00          | 
|200507                                              | M-6    | 61744CQQ2 | $46,005.82    |       | $0.00          |  | $14,698,000.00          | 
|200508                                              | M-6    | 61744CQQ2 | $52,778.07    |       | $0.00          |  | $14,698,000.00          | 
|200509                                              | M-6    | 61744CQQ2 | $56,848.60    |       | $0.00          |  | $14,698,000.00          | 
|200510                                              | M-6    | 61744CQQ2 | $53,753.85    |       | $0.00          |  | $14,698,000.00          | 
|200511                                              | M-6    | 61744CQQ2 | $60,087.26    |       | $0.00          |  | $14,698,000.00          | 
|200512                                              | M-6    | 61744CQQ2 | $64,066.95    |       | $0.00          |  | $14,698,000.00          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $383,187.13             |  | $0.00           |  |           |  | 
|200506                                              | P      | MS05X2102 | $231,035.63   |       | $0.00          |  | $0.00                   | 
|200507                                              | P      | MS05X2102 | $447,292.17   |       | $0.00          |  | $0.00                   | 
|200508                                              | P      | MS05X2102 | $515,027.63   |       | $0.00          |  | $0.00                   | 
|200509                                              | P      | MS05X2102 | $627,567.95   |       | $0.00          |  | $0.00                   | 
|200510                                              | P      | MS05X2102 | $670,293.78   |       | $0.00          |  | $0.00                   | 
|200511                                              | P      | MS05X2102 | $598,476.07   |       | $0.00          |  | $0.00                   | 
|200512                                              | P      | MS05X2102 | $627,694.83   |       | $0.00          |  | $0.00                   | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $3,717,388.06           |  | $0.00           |  |           |  | 
|200506                                              | R      | MS05X2103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200507                                              | R      | MS05X2103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200508                                              | R      | MS05X2103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200509                                              | R      | MS05X2103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200510                                              | R      | MS05X2103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200511                                              | R      | MS05X2103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200512                                              | R      | MS05X2103 | $0.00         |       | $0.00          |  | $0.00                   | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $0.00                   |  | $0.00           |  |           |  | 
|200506                                              | R-1    | MS05X2R02 | $0.00         |       | $0.00          |  | $0.00                   | 
|200507                                              | R-1    | MS05X2R02 | $0.00         |       | $0.00          |  | $0.00                   | 
|200508                                              | R-1    | MS05X2R02 | $0.00         |       | $0.00          |  | $0.00                   | 
|200509                                              | R-1    | MS05X2R02 | $0.00         |       | $0.00          |  | $0.00                   | 
|200510                                              | R-1    | MS05X2R02 | $0.00         |       | $0.00          |  | $0.00                   | 
|200511                                              | R-1    | MS05X2R02 | $0.00         |       | $0.00          |  | $0.00                   | 
|200512                                              | R-1    | MS05X2R02 | $0.00         |       | $0.00          |  | $0.00                   | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $0.00                   |  | $0.00           |  |           |  | 
|200506                                              | REMIC1 | MS05X2R01 | $5,167,492.55 |       | $11,394,332.86 |  | $907,193,111.83         | 
|200507                                              | REMIC1 | MS05X2R01 | $5,102,071.62 |       | $19,195,009.87 |  | $887,998,101.96         | 
|200508                                              | REMIC1 | MS05X2R01 | $4,988,352.92 |       | $19,952,714.96 |  | $868,045,387.00         | 
|200509                                              | REMIC1 | MS05X2R01 | $4,871,610.41 |       | $27,596,819.16 |  | $840,448,567.84         | 
|200510                                              | REMIC1 | MS05X2R01 | $4,722,398.72 |       | $25,108,431.46 |  | $815,340,136.38         | 
|200511                                              | REMIC1 | MS05X2R01 | $4,573,889.01 |       | $24,441,351.39 |  | $790,839,570.25         | 
|200512                                              | REMIC1 | MS05X2R01 | $4,433,080.73 |       | $22,323,518.61 |  | $768,348,831.38         | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $33,858,895.96          |  | $150,012,178.31 |  |           |  | 
|200506                                              | X      | MS05X2101 | $2,504,329.18 |       | $517.30        |  | $28,476,827.70          | 
|200507                                              | X      | MS05X2101 | $2,647,262.46 |       | $0.00          |  | $28,476,827.70          | 
|200508                                              | X      | MS05X2101 | $2,219,697.98 |       | $0.00          |  | $28,476,827.70          | 
|200509                                              | X      | MS05X2101 | $1,942,207.31 |       | $0.00          |  | $28,476,827.70          | 
|200510                                              | X      | MS05X2101 | $2,028,346.72 |       | $0.00          |  | $28,476,827.70          | 
|200511                                              | X      | MS05X2101 | $1,579,684.97 |       | $0.00          |  | $28,476,827.70          | 
|200512                                              | X      | MS05X2101 | $1,221,217.64 |       | $0.00          |  | $28,476,827.70          | 
|                                                    |        |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                    |        |           |               |       |                |  | $14,142,746.26          |  | $517.30         |  |           |  | 
|                                                    |        |           |               |       |                |  | $71,208,744.96          |  | $300,270,691.92 |  |           |  |