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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                                                                                   |   |  56-264271856-2642717                                                               |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
| (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 dated as of October 1, 2006 between Morgan Stanley                        Capital I                        Inc., as Depositor, and LaSalle Bank National Association,                        as                        Trustee.                    |
| 10.1                                      | Mortgage                        Loan Purchase Agreement dated as of October 1, 2006 between                        Morgan Stanley                        Capital I Inc., as Purchaser, and Morgan Stanley Mortgage                        Capital Inc., as                        Seller. |
| 10.2                                      | Servicing                        Agreement dated as of October 1, 2006 between Morgan Stanley                        Mortgage                        Capital I Inc., as Owner, and GMAC Mortgage Corporation,                        as                        Servicer.                  |
| 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 dated as of October 1, 2006 between Morgan                              Stanley Capital I                              Inc., as Depositor, and LaSalle Bank National Association,                              as                              Trustee.                    |
| 10.1                                            | Mortgage                              Loan Purchase Agreement dated as of October 1, 2006                              between Morgan Stanley                              Capital I Inc., as Purchaser, and Morgan Stanley Mortgage                              Capital Inc., as                              Seller. |
| 10.2                                            | Servicing                              Agreement dated as of October 1, 2006 between Morgan                              Stanley Mortgage                              Capital I Inc., as Owner, and GMAC Mortgage Corporation,                              as                              Servicer.                  |
| 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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