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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

**[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF      1934**

**[        ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND      EXCHANGE ACT OF 1934**

|   | Delaware                                                                                    |   | 13-3416059                                                         |   |
|--------|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|   | (State                or other jurisdiction ofincorporation                or organization) |   | (I.R.S.                Employer Identification                No.) |   |

|   | o                Yes |   |  x                No |
|--------|----------------------|--------|---------------------------|

|   | o                Yes |   | x                No |
|--------|----------------------|--------|---------------------|

|   | x                Yes |   | o                No |
|--------|----------------------|--------|---------------------|

| Large                accelerated filer o | Accelerated                filer o |  Non-accelerated                filer x |
|------------------------------------------|------------------------------------|----------------------------------------------|

**DOCUMENTS      INCORPORATED BY REFERENCE**

**PART        I**

**Item        1.        Business. **

**Item        1A. Risk Factors.**

**Item        1B. Unresolved Staff Comments.**

**Item        2. Properties.**

**Item        3. Legal Proceedings. **

**Item        4. Submission of Matters to a Vote of Security Holders.**

**PART        II**

**Item        5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer        Purchases of Equity Securities.**

**Item        6. Selected Financial Data.**

**Item        7. Management’s Discussion and Analysis of Financial Condition and Results of        Operation.**

**Item        7A. Quantitative and Qualitative Disclosures About Market        Risk.**

**Item        8. Financial Statements and Supplementary Data.**

**Item        9. Changes in and Disagreements With Accountants on Accounting and Financial        Disclosure.**

**Item        9A. Controls and Procedures.**

**Item          9A(T). Controls and Procedures.**

**Item        9B. Other Information.**

**PART        III**

**Item          10. Directors, Executive Officers and Corporate          Governance.**

**Item        11. Executive Compensation.**

**Item        12. Security Ownership of Certain Beneficial Owners and Management and Related        Stockholder Matters.**

**Item          13. Certain Relationships and Related Transactions, and Director          Independences**

**Item        14. Principal Accounting Fees and Services.**

**Item          1112(b) of Regulation AB. Significant Obligors Financial          Information.**

**Item          1114(b)(2) and 1115(b) of Regulation AB. Significant Enhancement Provider          Financial Information.**

**Item          1117 of Regulation AB. Legal Proceedings.**

**Item          1119 of Regulation AB. Affiliations and Certain Relationships and Related          Transactions.**

**Item          1122 of Regulation AB. Compliance with Applicable Servicing          Criteria.**

**Item          1123 of Regulation AB. Servicer Compliance Statement.**

**              **

**PART        IV**

**Item        15. Exhibits, Financial Statement Schedules.**

| **Exhibit                    Number** | **Description**                                                                                                                                                                                                                                                 |
|---------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1                                   | Pooling                      and Servicing Agreement (filed as an exhibit to Form 8-K on                      2006-07-24)                                                                                                                                       |
| 10.1                                  | Mortgage                    Loan Sale and Assignment Agreement (filed as an exhibit to Form                    8-K                    on                    2006-07-14)                                                                                         |
| 31                                    | Sarbanes-Oxley                    Certification                                                                                                                                                                                                                 |
| 33(a)                                 | Report                    on assessment of compliance with servicing criteria for asset-backed                    securities, Saxon Mortgage Services, Inc., as Servicer                                                                                        |
| 33(b)                                 | Report                    on assessment of compliance with servicing criteria for asset-backed                    securities, LaSalle Bank National Association, as                    Trustee                                                                  |
| 33(c)                                 | Report                  on assessment of                  compliance with servicing criteria for asset-backed securities,                  Newport                  Management Corporation, as sub-contractor to Saxon Mortgage Services,                  Inc. |
| 34(a)                                 | Attestation                    report on assessment of compliance with servicing criteria for                    asset-backed securities, Saxon Mortgage Services, Inc., as                    Servicer                                                         |
| 34(b)                                 | Attestation                    report on assessment of compliance with servicing criteria for                    asset-backed securities, LaSalle Bank National Association, as                    Trustee                                                      |
| 34(c)                                 | Attestation                  report on                  assessment of compliance with servicing criteria for asset-backed                  securities, Newport Management Corporation, as                  sub-contractor to Saxon Mortgage Services, Inc. |
| 35(a)                                 | Servicer                    compliance statement, Saxon Mortgage Services, Inc., as                    Servicer                                                                                                                                                 |
| 35(b)                                 | Servicer                    compliance statement, LaSalle Bank National Association, as                    Trustee                                                                                                                          |
| 99.1(a)                               | Newport                  Management Corporation Assessment of Compliance Schedule A -                  Part 1                                                                                                                                         |
| 99.1(b)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  2                                                                                                                                                   |
| 99.1(c)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  3                                                                                                                                                   |
| 99.1(d)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  4                                                                                                                                                   |
| 99.1(e)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  5                                                                                                                                                   |
| 99.1(f)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  6                                                                                                                                                   |
| 99.1(g)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  7                                                                                                                                                   |
| 99.1(h)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  8                                                                                                                                                   |
| 99.1(i)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  9                                                                                                                                                   |
| 99.1(j)                               | Newport                  Management Corporation Assessment of Compliance Schedule A - Part                  10                                                                                                                                                  |
| 99.1(k)                               | Newport                  Management                  Corporation Assessment of Compliance Schedule A - Part                  11                                                                                                                                 |

|         Saxon                  Mortgage Services, Inc., as Servicer          |
|----------------------------------------------------------------------------------------------------------------------|
|         LaSalle                  Bank National Association, as Trustee       |
| Newport                  Management Corporation, as sub-contractor to Saxon Mortgage Services,                  Inc. |

|         Saxon                  Mortgage Services, Inc., as Servicer          |
|----------------------------------------------------------------------------------------------------------------------|
|         LaSalle                  Bank National Association, as Trustee       |
| Newport                  Management Corporation, as sub-contractor to Saxon Mortgage Services,                  Inc. |

|         Saxon                  Mortgage Services, Inc., as Servicer                     |
|---------------------------------------------------------------------------------------------------------------------------------|
|         LaSalle                  Bank National Association, as                  Trustee |

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**SIGNATURES**

|                                | Saxon Mortgage                Services, Inc.as Servicer                                       |
|-------------------------------------|----------------------------------------------------------------------------------------------------|
|                                |                                                                                               |
|  March                29, 2007 | /s/                Stella F. Hess                                                                  |
|                                | By: Stella                F. Hess                                                             |
|                                | Title: Executive Vice                President                                           |
|                                | (Senior                Officer in charge of the servicing function of the                servicer) |

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**EXHIBIT      INDEX**

| **Exhibit                  Number** | **Description**                                                                                                                                                                                                                                         |
|-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1                                 | Pooling                    and Servicing Agreement (filed as an exhibit to Form 8-K on                    2006-07-24)                                                                                                                                   |
| 10.1                                | Mortgage                  Loan Sale and Assignment Agreement (filed as an exhibit to Form                  8-K                  on                  2006-07-14)                                                                                         |
| 31                                  | Sarbanes-Oxley                  Certification                                                                                                                                                                                                           |
| 33(a)                               | Report                  on assessment of compliance with servicing criteria for asset-backed                  securities, Saxon Mortgage Services, Inc., as Servicer                                                                                    |
| 33(b)                               | Report                  on assessment of compliance with servicing criteria for asset-backed                  securities, LaSalle Bank National Association, as                  Trustee                                                                |
| 33(c)                               | Report on                assessment of                compliance with servicing criteria for asset-backed securities, Newport                Management Corporation, as sub-contractor to Saxon Mortgage Services,                Inc.                  |
| 34(a)                               | Attestation                  report on assessment of compliance with servicing criteria for                  asset-backed securities, Saxon Mortgage Services, Inc., as                  Servicer                                                       |
| 34(b)                               | Attestation                  report on assessment of compliance with servicing criteria for                  asset-backed securities, LaSalle Bank National Association, as                  Trustee                                                    |
| 34(c)                               | Attestation                report on                assessment of compliance with servicing criteria for asset-backed                securities, Newport Management Corporation, as                sub-contractor to Saxon Mortgage Services, Inc. |
| 35(a)                               | Servicer                  compliance statement, Saxon Mortgage Services, Inc., as                  Servicer                                                                                                                                             |
| 35(b)                               | Servicer                  compliance statement, LaSalle Bank National Association, as                  Trustee                                                                                                                      |
| 99.1(a)                             | Newport                Management Corporation Assessment of Compliance Schedule A -                Part 1                                                                                                                                     |
| 99.1(b)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                2                                                                                                                                               |
| 99.1(c)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                3                                                                                                                                               |
| 99.1(d)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                4                                                                                                                                               |
| 99.1(e)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                5                                                                                                                                               |
| 99.1(f)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                6                                                                                                                                               |
| 99.1(g)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                7                                                                                                                                               |
| 99.1(h)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                8                                                                                                                                               |
| 99.1(i)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                9                                                                                                                                               |
| 99.1(j)                             | Newport                Management Corporation Assessment of Compliance Schedule A - Part                10                                                                                                                                              |
| 99.1(k)                             | Newport                Management                Corporation Assessment of Compliance Schedule A - Part                11                                                                                                                               |

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