**SECURITIES AND EXCHANGE COMMISSION****Washington, D.C.  20549****UNITED STATES****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 EXCHANGE ACT OF 1934**(State or Other Jurisdiction(Telephone number, including area code)**PRIME MORTGAGE TRUST 2006-2****Delaware**(I.R.S. Employer Identification No.)**20-0842986**(Commission file number of Issuing Entity) (Address of Principal Executive Offices)**New York, New York****383 Madison Avenue**(Zip Code)**10179****(212) 272-4095**Securities registered pursuant to Section 12(b) of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.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. For the fiscal year ended December 31, 2006orFor the transition period from _____________ to _____________(Exact name of Issuing Entity)Securities registered pursuant to Section 12(g) of the Act:NoneIndicate by check mark  if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.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.                      Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).**[  Yes]**Documents incorporated by reference:**None**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.****[X No]****[  Yes] [X No]****[X Yes] [     N o ]****[X]****[  Yes] [X No]****Large accelerated filer [ ]****Accelerated filer [ ]****Non-accelerated filer [X]**(Exact Name of Registrant as Specified in its Charter)(Exact Name of Sponsor as Specified in its Charter)**Bear Stearns Asset Backed Securities I LLC (Depositor)****EMC Mortgage Corporation****333-132232-24****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.**Not Applicable.Not Applicable.Not Applicable.Not Applicable.Not Applicable.Not Applicable.**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 II**None.Not Applicable.Not Applicable.Not Applicable.Not Applicable.Not Applicable.Not Applicable.Not Applicable.**Item 10. Directors and Executive Officers of the Registrant.****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.****Item 14. Principal Accounting Fees and Services.****PART III**Not Applicable.Not Applicable.Not Applicable.Not Applicable.Not Applicable.**Item 15. Exhibits, Financial Statement Schedules.**b)    See (a) above.c)    Not applicable.**PART IV**4.  Terms Agreement, dated November 6, 2006, between Bear, Stearns & Co. Inc., as underwriter and Structured Asset Mortgage Investments II Inc., as depositor, relating to the Underwriting Agreement, dated May 12, 2006, between Bear, Stearns & Co. Inc., as underwriter and Structured Asset Mortgage Investments II Inc., as depositor (As previously filed on Form 8-K filed on February 22, 2007 and is hereby incorporated by reference into this report on Form 10-K).Pooling and Servicing Agreement, dated as of November 1, 2006, among Structured Asset Mortgage Investments II Inc., as depositor, EMC Mortgage Corporation, as seller and master servicer, and U.S. Bank National Association, as trustee (As previously filed on Form 8-K filed on February 22, 2007 and is hereby incorporated by reference into this report on Form 10-K).a)    1. Not Applicable.       2. Not Applicable.       3. The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index.**ADDITIONAL ITEMS REQUIRED BY GENERAL INSTRUCTION J****Item 1112(b) of Regulation AB.****Item 1114(b)(2) of Regulation AB.****Item 1117 of Regulation AB.****Item 1119 of Regulation AB.****Item 1122 of Regulation AB.**See Exhibit 33 and Exhibit 34.**Servicer Compliance Statement.**See Exhibit 35.**Significant Obligors of Pool Assets (Financial Information).****Item 1115(b) of Regulation AB.****Credit Enhancement and Other Support, Except for Certain Derivatives Instruments (Information Regarding Significant Enhancement Providers Financial Information).****Certain Derivatives Instruments (Financial Information).****Legal Proceedings.****Affiliations and Certain Relationships and Related Transactions.****Compliance with Applicable Servicing Criteria****Item 1123 of Regulation AB.**None.None.None.None.On February 9, 2007, Bear Stearns Residential Mortgage Corporation, a wholly owned subsidiary of The Bear StearnsCompanies Inc. and an affiliate of the Registrant, acquired certain assets used in the subprime wholesale mortgagebanking division of Performance Credit Corporation (formerly known as Encore Credit Corp.), a California corporationthat, until February 9, 2007, originated and purchased one-to four-family residential mortgage loans offered toborrowers with a particular emphasis on nonconforming borrowers who generally do not satisfy the credit, collateral,documentation or other standards required by conventional mortgage lenders and loan buyers.**SIGNATURES**By (Signature and Title):Date**3/28/2007****/s/ John A Vella****John A VellaPresident & CEO**Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.(Registrant) :**Bear Stearns Asset Backed Securities I LLC****EXHIBIT INDEX**EXHIBIT DESCRIPTION       Exhibit 31       302 Sarbanes-Oxley Certification       Exhibit 33       Item 1122 Compliance with Applicable Servicing Criteria - Assessments       Exhibit 34       Item 1122 Compliance with Applicable Servicing Criteria - Attestations       Exhibit 35       Item 1123 Servicer Compliance Statementa) EMC Mortgage Corporation, as Master Servicerb) U.S. Bank National Association, as Custodianc) U.S. Bank National Association, as Trusteed) Wells Fargo Bank, N.A., as Custodiane) Wells Fargo Bank, N.A., as Servicera) EMC Mortgage Corporation, as Master Servicerb) U.S. Bank National Association, as Custodianc) U.S. Bank National Association, as Trusteed) Wells Fargo Bank, N.A., as Custodiane) Wells Fargo Bank, N.A., as Servicera) EMC Mortgage Corporation, as Master Servicerb) Wells Fargo Bank, N.A., as Servicer