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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**

|  New                  York                                                                                   |   |  61-150685361-1506854                                                               |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
| (State                  or other jurisdiction ofincorporation                  or organization of issuing entity) |   | (I.R.S.                  Employer Identification                  No. of issuing entity) |

|   | 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        9B. Other Information.**

**PART        III**

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

**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                                     | Trust                      Agreement and Servicing Agreement (Filed as part of the Registrant's                      Current Report on Form 8-K filed on August 11, 2006)                                                                                                                                                                                                                                                                                                                                        |
| 10.1                                    | Trust                      Agreement dated as of July 1, 2006 between Morgan Stanley Capital                      I Inc.,                      as Depositor, and LaSalle Bank National Association, as                      Trustee.                                                                                                                                                                                                                                                                             |
| 10.2                                    | Servicing                      Agreement dated as of July 1, 2006 between Morgan Stanley Mortgage                      Capital                      I Inc., as Owner, and GMAC Mortgage Corporation, as                      Servicer.                                                                                                                                                                                                                                                                           |
| 10.3                                    | Assignment,                      Assumption and Recognition Agreement dated July 1, 2006 among                      Morgan                      Stanley Mortgage Capital Inc., as Purchaser, GMAC Mortgage                      Corporation, as                      Servicer, and LaSalle Bank National Association, as Trustee                      and Auction                      Administrator, and acknowledged by Morgan Stanley Capital I                      Inc., as                      Depositor. |
| 10.4                                    | Assignment,                      Assumption and Recognition Agreement dated July 1, 2006 among                      Morgan                      Stanley Capital I Inc., as Depositor, Morgan Stanley Mortgage                      Capital                      Inc., as Purchaser, First National Bank of Nevada, as Seller,                      and LaSalle                      Bank National Association, as Trustee.                                                                                       |
| 10.5                                    | Assignment,                      Assumption and Recognition Agreement dated July 1, 2006 among                      Morgan                      Stanley Mortgage Capital Inc., as Assignor, Morgan Stanley                      Capital I Inc.,                      as Assignee, Decision One Mortgage Company, LLC and acknowledged                      by                      LaSalle Bank National Association, as Trustee.                                                                                |
| 10.6                                    | Assignment,                      Assumption and Recognition Agreement dated July 1, 2006 among                      Morgan                      Stanley Mortgage Capital Inc., Morgan Stanley Capital I Inc.,                      as                      Depositor, Aegis Mortgage Corporation, as Seller and acknowledged                      by                      LaSalle Bank National Association, as Trustee.                                                                                         |
| 10.7                                    | Assignment,                      Assumption and Recognition Agreement dated July 1, 2006 among                      Morgan                      Stanley Mortgage Capital Inc., as Assignor, Morgan Stanley                      Capital I Inc.,                      as Assignee, Aames Capital Corporation, as Seller and acknowledged                      by                      LaSalle Bank National Association, as Trustee.                                                                              |
| 31                                      | Sarbanes-Oxley                      Certification                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 33(a)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, GMAC Mortgage, LLC f/k/a GMAC Mortgage Corporation,                      as                      Servicer                                                                                                                                                                                                                                                                      |
| 33(b)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, LaSalle Bank National Association, as Trustee and                      Custodian                                                                                                                                                                                                                                                                                               |
| 34(a)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, GMAC Mortgage, LLC f/k/a GMAC Mortgage                      Corporation, as Servicer                                                                                                                                                                                                                                                          |
| 34(b)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, LaSalle Bank National Association,                      as Trustee and                      Custodian                                                                                                                                                                                                                                         |
| 35(a)                                   | Servicer                      compliance statement, GMAC Mortgage, LLC f/k/a GMAC Mortgage                      Corporation,                      as Servicer                                                                                                                                                                                                                                                                                                                                                    |
| 35(b)                                   | Servicer                      compliance statement, LaSalle Bank National Association, as                      Trustee                                                                                                                                                                                                                                                                                                                                                                                           |

| (b)                      The exhibits required to be filed by Registrant pursuant to                      Item 601 of                      Regulation S-K:                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                      |
|                         (31) Rule 13a-14(d)/15d-14(d) Certifications.                                                                                           |
|                         (33) Reports on assessment of compliance with servicing criteria                      for                      asset-backed securities: |
| 1.                                                                                                                                                                        | GMAC                      Mortgage, LLC f/k/a GMAC Mortgage Corporation, as                      Servicer |
| 2.                                                                                                                                                                        | LaSalle                      Bank National Association, as Trustee and Custodian |
|                                                                                                                                                                      |
|                         (34) Attestation reports on assessment of compliance with servicing                      criteria for asset-backed securities:          |
| 1.                                                                                                                                                                        | GMAC                      Mortgage, LLC f/k/a GMAC Mortgage Corporation, as                      Servicer |
| 2.                                                                                                                                                                        | LaSalle                      Bank National Association, as Trustee and Custodian |
|                                                                                                                                                                      |
|                         (35) Servicer Compliance Statements:                                                                                                    |
| 1.                                                                                                                                                                        | GMAC                      Mortgage, LLC f/k/a GMAC Mortgage Corporation, as                      Servicer |
| 2.                                                                                                                                                                        | LaSalle                      Bank National Association, as                      Trustee |

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**SIGNATURES**

|                              | Morgan              Stanley Capital I Inc. |
|-----------------------------------|--------------------------------------------|
|                              |                                       |
|  March              30, 2007 | /s/              Valerie Kay               |
|                              | By: Valerie              Kay          |
|                              | Title: Vice              President    |

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**EXHIBIT      INDEX**

| **Exhibit                        Number** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1                                       | Trust                        Agreement and Servicing Agreement (Filed as part of the Registrant's                        Current Report on Form 8-K filed on August 11, 2006)                                                                                                                                                                                                                                                                                                                                                      |
| 10.1                                      | Trust                        Agreement dated as of July 1, 2006 between Morgan Stanley                        Capital I Inc.,                        as Depositor, and LaSalle Bank National Association, as                        Trustee.                                                                                                                                                                                                                                                                                       |
| 10.2                                      | Servicing                        Agreement dated as of July 1, 2006 between Morgan Stanley                        Mortgage Capital                        I Inc., as Owner, and GMAC Mortgage Corporation, as                        Servicer.                                                                                                                                                                                                                                                                                     |
| 10.3                                      | Assignment,                        Assumption and Recognition Agreement dated July 1, 2006 among                        Morgan                        Stanley Mortgage Capital Inc., as Purchaser, GMAC Mortgage                        Corporation, as                        Servicer, and LaSalle Bank National Association, as Trustee                        and Auction                        Administrator, and acknowledged by Morgan Stanley Capital                        I Inc., as                        Depositor. |
| 10.4                                      | Assignment,                        Assumption and Recognition Agreement dated July 1, 2006 among                        Morgan                        Stanley Capital I Inc., as Depositor, Morgan Stanley Mortgage                        Capital                        Inc., as Purchaser, First National Bank of Nevada, as Seller,                        and LaSalle                        Bank National Association, as Trustee.                                                                                           |
| 10.5                                      | Assignment,                        Assumption and Recognition Agreement dated July 1, 2006 among                        Morgan                        Stanley Mortgage Capital Inc., as Assignor, Morgan Stanley                        Capital I Inc.,                        as Assignee, Decision One Mortgage Company, LLC and acknowledged                        by                        LaSalle Bank National Association, as Trustee.                                                                                    |
| 10.6                                      | Assignment,                        Assumption and Recognition Agreement dated July 1, 2006 among                        Morgan                        Stanley Mortgage Capital Inc., Morgan Stanley Capital I Inc.,                        as                        Depositor, Aegis Mortgage Corporation, as Seller and acknowledged                        by                        LaSalle Bank National Association, as Trustee.                                                                                             |
| 10.7                                      | Assignment,                        Assumption and Recognition Agreement dated July 1, 2006 among                        Morgan                        Stanley Mortgage Capital Inc., as Assignor, Morgan Stanley                        Capital I Inc.,                        as Assignee, Aames Capital Corporation, as Seller and acknowledged                        by                        LaSalle Bank National Association, as Trustee.                                                                                  |
| 31                                        | Sarbanes-Oxley                        Certification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 33(a)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, GMAC Mortgage, LLC f/k/a GMAC Mortgage Corporation,                        as                        Servicer                                                                                                                                                                                                                                                                                |
| 33(b)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, LaSalle Bank National Association, as Trustee                        and                        Custodian                                                                                                                                                                                                                                                                                    |
| 34(a)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, GMAC Mortgage, LLC f/k/a GMAC Mortgage                        Corporation, as Servicer                                                                                                                                                                                                                                                                    |
| 34(b)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, LaSalle Bank National Association,                        as Trustee and                        Custodian                                                                                                                                                                                                                                                 |
| 35(a)                                     | Servicer                        compliance statement, GMAC Mortgage, LLC f/k/a GMAC Mortgage                        Corporation,                        as Servicer                                                                                                                                                                                                                                                                                                                                                                |
| 35(b)                                     | Servicer                        compliance statement, LaSalle Bank National Association,                        as                        Trustee                                                                                                                                                                                                                                                                                                                                                                                  |

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