**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**





For
      the
      fiscal year ended December 31, 2006


or





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





For
      the
      transition period from ________to _______





Commission
      file number of issuing entity: 333-130545-15





MERRILL
      LYNCH MORTGAGE INVESTORS TRUST, SERIES 2006-FM1


(Exact
      name of issuing entity as specified in its charter)




Commission
      file number of depositor:
333-130545




Merrill
      Lynch Mortgage Investors, Inc.


(Exact
        name of registrant/depositor as specified in its charter)
  Merrill
        Lynch Mortgage Lending, Inc. (Exact
          name of sponsor as specified in its charter)


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





250
        Vesey Street, 4 World Financial Center, 10th Floor, New York, NY
        10080
 (Address of principal
        executive offices)
  212-449-0357(Registrant's
        telephone number, including area code)


Securities
      registered pursuant to Section 12(b) of the Act:




None




Securities
      registered pursuant to Section 12(g) of the Act:




None




Indicate
      by check mark if the registrant is a well-known seasoned issuer, as defined
      in
      Rule 405 of the Securities Act.





oYes
            
            xNo





Indicate
      by check mark if the registrant is not required to file pursuant to Section
      13
      or Section 15(d) of the Act.





oYes
            
            xNo





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.





xYes
            
            oNo





Indicate
      by check mark if disclosure of delinquent filers pursuant to Item 405 of
      Regulation S K (§229.405
      of this
      chapter) is not contained herein, and will not be contained, to the best of
      registrant’s knowledge, in definitive proxy or information statements
      incorporated by reference in Part III of this Form 10-K or any amendment to
      this
      Form 10-K.





x





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of “accelerated
      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check
      one):




Large
                accelerated filero
            Accelerated
                filero
            Non-accelerated
                filer x




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Act).   oYes  xNo




State
      the
      aggregate market value of the voting and non voting common equity held by
      non-affiliates computed by reference to the price at which the common equity
      was
      last sold, or the average bid and asked price of such common equity, as of
      the
      last business day of the registrant’s most recently completed second fiscal
      quarter.





Not
      Applicable




**DOCUMENTS
      INCORPORATED BY REFERENCE**




None


**PART
        I**
  Item
        1.
        Business.
 Omitted.
 
 **Item
        1A. Risk Factors.**
 Omitted.
 
 **Item
        1B. Unresolved Staff Comments.**
 None.
 
 **Item
        2. Properties.**
 Omitted.
 
 **Item
        3. Legal Proceedings.**
 Omitted.
 
 **Item
        4. Submission of Matters to a Vote of Security Holders.**
 Omitted.
 
 
 **PART
        II**
 
 **Item
        5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
        Purchases of Equity Securities.**
 Omitted.
 
 **Item
        6. Selected Financial Data.**
 Omitted.
 
 **Item
        7. Management’s Discussion and Analysis of Financial Condition and Results of
        Operation.**
 Omitted.
 
 **Item
        7A. Quantitative and Qualitative Disclosures About Market
        Risk.**
 Omitted.
 
 **Item
        8. Financial Statements and Supplementary Data.**
 Omitted.
 
 **Item
        9. Changes in and Disagreements With Accountants on Accounting and Financial
        Disclosure.**
 Omitted.
 
 **Item
        9A. Controls and Procedures.**
 Omitted.
  **Item
          9A(T). Controls and Procedures.**
 Omitted.
  **Item
        9B. Other Information.**
 None.
 
 **PART
        III**
  **Item
          10. Directors, Executive Officers and Corporate
          Governance.**
 Omitted.
 
 **Item
        11. Executive Compensation.**
 Omitted.
 
 **Item
        12. Security Ownership of Certain Beneficial Owners and Management and Related
        Stockholder Matters.**
 Omitted.
 
 **Item
          13. Certain Relationships and Related Transactions, and Director Independences.**
 Omitted.
 
 **Item
        14. Principal Accounting Fees and Services.**
 Omitted.
 
 **Item
          1112(b) of Regulation AB. Significant Obligors Financial
          Information.**
 Not
          Applicable.
 
 **Item
          1114(b)(2) and 1115(b) of Regulation AB. Significant Enhancement Provider
          Financial Information.**
 Not
          Applicable.
 
 **Item
          1117 of Regulation AB. Legal Proceedings.**
 On
            March
            7, 2007 Fremont General Corporation ("FGC"), its wholly-owned industrial
            bank,
            Fremont Investment & Loan and Fremont General Credit Corporation, a
            wholly-owned subsidiary of FGC, have consented to the terms of a Cease
            and
            Desist Order issued by the Federal Deposit Insurance Corporation without
            admitting to the allegations contained in such order. The order calls,
            among
            other things, for the FGC to make a variety of changes in its sub-prime
            residential loan origination business and also calls for certain changes
            in its
            commercial real estate lending business.
 
 The
            registrant knows of no other material pending legal proceedings involving
            the
            Trust and all parties related to such Trust, other than routine litigation
            incidental to the duties of those respective parties.
 **Item
          1119 of Regulation AB. Affiliations and Certain Relationships and Related
          Transactions.**
 Information
          required by Item 1119 was provided previously in a prospectus timely filed
          pursuant to Rule 424 promulgated under the Securities Act of 1933, under
          the
          same Central Index Key (CIK) code as this annual report on Form 10-K. No
          material changes to such information have occurred since the initial Rule
          424
          filing.
 
 **Item
          1122 of Regulation AB. Compliance with Applicable Servicing
          Criteria.**
 The
            assessment of compliance for Wilshire Credit Corporation (“Wilshire”) has
            disclosed the following material noncompliance with servicing criterion
            1122(d)(4)(iv), applicable to Wilshire during the year ended December
            31, 2006.
            On one of the forty-five loan payoffs selected for testing, Wilshire
            calculated
            the prepayment charge in accordance with the related mortgage note, but
            transposed the numbers when entering the charge into its system, resulting
            in an
            overcharge to the borrower. Such assessment further states that this
            error has
            been corrected and the overcharge has been refunded to the
            borrower.
  See
          Item
          15, exhibits (33) and (34).
 
 **Item
          1123 of Regulation AB. Servicer Compliance Statement.**
 See
          Item
          15, exhibit (35).
  
 **PART
        IV**
 
  **Item
        15. Exhibits, Financial Statement Schedules.**
 
 (a)
        The
        following is a list of documents filed as part of this Annual Report on Form
        10-K:
 (1)
        Not
        Applicable
 (2)
        Not
        Applicable
 (3)


**Exhibit
                  Number**
              **Description**4.1
              Pooling
                  and Servicing Agreement (filed as an exhibit to Form 8-K on
                  2006-07-14)10.1
              Mortgage
                  Loan Sale and Assignment Agreement (filed as an exhibit to Form
                  8-Kon
                  2006-07-14)31
              Sarbanes-Oxley
                  Certification33(a)
              Report
                  on assessment of compliance with servicing criteria for asset-backed
                  securities, Wilshire Credit Corporation, as Servicer33(b)
              Report
                  on assessment of compliance with servicing criteria for asset-backed
                  securities, LaSalle Bank National Association, as
                  Trustee33(c)
              Report
                on assessment of compliance with servicing criteria for asset-backed
                securities, Wells Fargo Bank National Association, as
                Custodian33(d)
              Report
                on assessment of compliance with servicing criteria for asset-backed
                securities, LandAmerica Tax and Flood Services, Inc., as Servicing
                Function Participant34(a)
              Attestation
                  report on assessment of compliance with servicing criteria for
                  asset-backed securities, Wilshire Credit Corporation, as
                  Servicer34(b)
              Attestation
                  report on assessment of compliance with servicing criteria for
                  asset-backed securities, LaSalle Bank National Association, as
                  Trustee34(c)
              Attestation
                report on assessment of compliance with servicing criteria for
                asset-backed securities, Wells Fargo Bank National Association, as
                Custodian34(d)
              Attestation
                report on assessment of compliance with servicing criteria for
                asset-backed securities, LandAmerica Tax and Flood Services, Inc.,
                as
                Servicing Function Participant35(a)
              Servicer
                  compliance statement, Wilshire Credit Corporation, as
                  Servicer35(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:
 Wilshire
                  Credit Corporation, as ServicerLaSalle
                  Bank National Association, as TrusteeWells
                  Fargo Bank National Association, as CustodianLandAmerica
                Tax and Flood Services, Inc., as Servicing Function
                Participant
 
 (34)
        Attestation reports on assessment of compliance with servicing criteria for
        asset-backed securities:
 Wilshire
                  Credit Corporation, as ServicerLaSalle
                  Bank National Association, as TrusteeWells
                  Fargo Bank National Association, as CustodianLandAmerica
                Tax and Flood Services, Inc., as Servicing Function
                Participant
  (35)
        Servicer Compliance Statements:
 Wilshire
                  Credit Corporation, as ServicerLaSalle
                  Bank National Association, as
                  Trustee




(c)
      Not
      Applicable.





**SIGNATURES**




Wilshire
                Credit Corporation, as ServicerMarch
                28, 2007
              /s/
                Ken FryeBy: Ken
                FryeTitle: Senior
                Vice President Loan Servicing(Senior
                Officer in charge of the servicing function of the
                servicer)





**EXHIBIT
      INDEX**




**Exhibit
                    Number**
                **Description**4.1
                Pooling
                    and Servicing Agreement (filed as an exhibit to Form 8-K on
                    2006-7-14)10.1
                Mortgage
                    Loan Sale and Assignment Agreement (filed as an exhibit to Form
                    8-Kon
                    2006-07-14)31
                Sarbanes-Oxley
                    Certification33(a)
                Report
                    on assessment of compliance with servicing criteria for asset-backed
                    securities, Wilshire Credit Corporation, as Servicer33(b)
                Report
                    on assessment of compliance with servicing criteria for asset-backed
                    securities, LaSalle Bank National Association, as
                    Trustee33(c)
                Report
                  on assessment of compliance with servicing criteria for asset-backed
                  securities, Wells Fargo Bank National Association, as
                  Custodian33(d)
                Report
                  on assessment of compliance with servicing criteria for asset-backed
                  securities, LandAmerica Tax and Flood Services, Inc., as Servicing
                  Function Participant34(a)
                Attestation
                    report on assessment of compliance with servicing criteria for
                    asset-backed securities, Wilshire Credit Corporation, as
                    Servicer34(b)
                Attestation
                    report on assessment of compliance with servicing criteria for
                    asset-backed securities, LaSalle Bank National Association, as
                    Trustee34(c)
                Attestation
                  report on assessment of compliance with servicing criteria for
                  asset-backed securities, Wells Fargo Bank National Association,
                  as
                  Custodian34(d)
                Attestation
                  report on assessment of compliance with servicing criteria for
                  asset-backed securities, LandAmerica Tax and Flood Services, Inc.,
                  as
                  Servicing Function Participant35(a)
                Servicer
                    compliance statement, Wilshire Credit Corporation, as
                    Servicer35(b)
                Servicer
                    compliance statement, LaSalle Bank National Association, as
                    Trustee