**ASSESSMENT
      OF COMPLIANCE WITH APPLICABLE SERVICING CRITERIA**





Balboa
      Insurance Company, including its wholly-owned subsidiaries Meritplan Insurance
      Company and Newport Management Corporation (collectively, the “Asserting Party”)
      provides this assessment of compliance with respect to its performance of
      functions for the Applicable Servicing Criteria, as specified in Item 1122(d)
      of
      Regulation AB promulgated by the Securities and Exchange Commission, in regards
      to the loans selected in the Servicing Platform for the following Period:





Servicing
      Platform : Pools
      of
      loans, underlying publicly-issued residential mortgage-backed securities that
      were issued on or after January 1, 2006 by Saxon Mortgage Services, Inc.
      (“Servicer”), on which escrow payments were disbursed from January 1, 2006 to
      September 1, 2006, specifically Item 1122(d)(4)(xi), only as it relates to
      the
“Applicable Servicing Criteria” described below ,
      and as
      disclosed by the Servicer to the Asserting Party (collectively, “Eligible
      Loans”, as identified in Schedule
      A ).





Period :
      January
      1, 2006 to September 1, 2006.





Applicable
      Servicing Criteria :
      the
      servicing criteria which applies to the functions performed by the Asserting
      Party is set forth in Section 229.1122(d)(4)(xi) (“Applicable Servicing
      Criteria”). With respect to the Applicable Servicing Criteria, the Asserting
      Party performs the following limited functions:


1.  Processes
      the obligor’s hazard insurance information it receives and provides the Servicer
      with the applicable hazard insurance effective date, payment amount, and payee
      (collectively, “Insurance Information”);


2.  Provides
      the Insurance Information to the Servicer no later than 5 days prior to the
      applicable expiration date as indicated in the Insurance
      Information.


3.  Disburses
      escrowed insurance payments to insurance carriers on or before the applicable
      expiration date.





With
      respect to the Servicing Platform, and with respect to the Period, the Asserting
      Party provides the following assessment of its compliance in respect of the
      Applicable Servicing Criteria (as defined above):




1.
      The
      Asserting Party is responsible for assessing its compliance with respect to
      the
      functions it performs for the Applicable Servicing Criteria.




2.
      The
      Asserting Party has assessed its compliance with respect to the functions it
      performs for the Applicable Servicing Criteria.




3.
      Other
      than as identified on Schedule
      B hereto,
      as of and for the Period, the Asserting Party was in material compliance with
      respect to the functions it performs for the Applicable Servicing
      Criteria.




KPMG,
      LLP, an independent registered public accounting firm, has issued an attestation
      report with respect to the Asserting Party’s foregoing assessment of
      compliance.





**BALBOA
      INSURANCE COMPANY**


**MERITPLAN
      INSURANCE COMPANY**


**NEWPORT
      MANAGEMENT CORPORATION**





By:
      /s/ Mark A McElroy


Mark
      A.
      McElroy





Its: Executive
      Vice President








Dated:
      February 28, 2007








**SCHEDULE
      A**





See
      Exhibit 99 to the 10-K








**SCHEDULE
      B**




**MATERIAL
      INSTANCES OF NONCOMPLIANCE**




No
      material instances of noncompliance: Balboa Insurance Company, including its
      wholly-owned subsidiaries Meritplan Insurance Company and Newport Management
      Corporation, have complied, in all material respects, with the aforementioned
      criterion from January 1, 2006 to September 1, 2006.