HSBC

         REPORT ON COMPLIANCE WITH APPLICABLE SERVICING CRITERIA
             PURSUANT TO ITEM 1122 OF REGULATION AB UNDER THE
                     SECURITIES EXCHANGE ACT OF 1934


1. HSBC Mortgage Corporation (USA) (the "Company") is responsible for the
   assessment of its compliance with the servicing criteria set forth in Item
   1122 of Regulation AB and applicable to the servicing of asset-backed
   securities transactions involving first lien residential mortgage loans,
   as described on Schedule I attached hereto (the "Applicable Servicing
   Criteria").

2. The Company has engaged certain vendors (the "Vendors") to perform
   specific, limited or scripted activities as of and for the period ending
   December 31, 2006, and the Company elects to take responsibility for
   assessing compliance with the servicing criteria or portion of the
   servicing criteria applicable to such Vendors as set forth in Schedule
   I hereto;

3. The Company used the criteria set forth in paragraph (d) of Item 1122 of
   Regulation AB to assess compliance with the Applicable Servicing Criteria.

4. As of and for the year ending December 31, 2006 (the "Reporting Period"),
   the Company is in compliance with the Applicable Servicing Criteria except
   for each material instance of noncompliance set forth below:

         NONE

5. The Company has not identified and is not aware of any material instance
   of noncompliance by the Vendors with the applicable servicing criteria as
   of and for the year ending December 31, 2006.

6. The Company has not identified any material deficiency in its policies
   and procedures to monitor the compliance by the Vendors with the
   applicable servicing criteria as of and for the year ending December 31,
   2006.

7. KPMG LLP, a registered public accounting firm, has issued an attestation
   report with respect to management's assessment of compliance with the
   Applicable Servicing Criteria for the Reporting Period.

IN WITNESS WHEREOF, I have signed this report on behalf of the Company this
   1st day of March 2007.

                                                 By: /s/ Michael T. Stilb
                                                 -------------------------
                                                 Name: Michael T. Stilb
                                                 Title: Senior Vice President



HSBC Mortgage Corporation (USA)
2929 Walden Avenue,
Depew, NY 14043





                                                      Schedule 1

<TABLE>
<CAPTION>
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                               Servicing Criteria                                   Applicable Servicing          Inapplicable
                                                                                          Criteria                  Servicing
                                                                                                                     Criteria
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  Reference                                  Criteria                               Performed      Performed
                                                                                       by             by
                                                                                    Servicer       Vendor(s)
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                               General Servicing Considerations
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<S>               <C>                                                                  <C>           <C>                <C>
                  Policies and procedures are instituted to monitor any                 X
                  performance or other triggers and events of default in
1122(d)(1)(i)     accordance with the transaction agreements.
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                  If any material servicing activities are outsourced to                X
                  third parties, policies and procedures are instituted to
                  monitor the third party's performance and compliance with
1122(d)(1)(ii)    such servicing activities.
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                  Any requirements in the transaction agreements to maintain a                                           Not
1122(d)(1)(iii)   back-up servicer for the mortgage loans are maintained.                                             applicable
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                  A fidelity bond and errors and omissions policy is in effect          X
                  on the party participating in the servicing function
                  throughout the reporting period in the amount of coverage
                  required by and otherwise in accordance with the terms of the
1122(d)(1)(iv)    transaction agreements.
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                       Cash Collection and Administration
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                  Payments on pool assets are deposited into the                        X
                  appropriate custodial bank accounts and related bank
                  clearing accounts no more than two business days following
                  receipt, or such other number of days specified in the
1122(d)(2)(i)     transaction agreements.
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                  Disbursements made via wire transfer on behalf of an obligor          X
1122(d)(2)(ii)    or to an investor are made only by authorized personnel.
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                  Advances of funds or guarantees regarding collections, cash           X
                  flows or distributions, and any interest or other fees charged
                  for such advances, are made, reviewed and approved as
1122(d)(2)(iii)   specified in the transaction agreements.
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                  The related accounts for the transaction, such as cash                X
                  reserve accounts or accounts established as a form of
                  overcollateralization, are separately maintained (e.g., with
                  respect to commingling of cash) as set forth in the
1122(d)(2)(iv)    transaction agreements.
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                  Each custodial account is maintained at a federally insured           X
                  depository institution as set forth in the transaction
                  agreements. For purposes of this criterion, "federally insured
                  depository institution" with respect to a foreign financial
                  institution means a foreign financial institution that meets
                  the requirements of Rule 13k-l(b)(l) of the Securities
1122(d)(2)(v)     Exchange Act of 1934, as amended.
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                  Unissued checks are safeguarded so as to prevent unauthorized         X
1122(d)(2)(vi)    access.
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</TABLE>
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<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                               Servicing Criteria                                   Applicable Servicing          Inapplicable
                                                                                          Criteria                 Servicing
                                                                                                                    Criteria
--------------------------------------------------------------------------------------------------------------------------------
  Reference                                  Criteria                               Performed      Performed
                                                                                       by             by
                                                                                    Servicer       Vendor(s)
--------------------------------------------------------------------------------------------------------------------------------
<S>               <C>                                                                  <C>           <C>                <C>
                  Reconciliations are prepared on a monthly basis for all               X
                  asset-backed securities related bank accounts, including
                  custodial accounts and related bank clearing accounts. These
                  reconciliations are (A) mathematically accurate; (B) prepared
                  within 30 calendar days after the bank statement cutoff date,
                  or such other number of days specified in the transactidn
                  agreements; (C) reviewed and approved by someone other than the
                  person who prepared the reconciliation; and (D) contain
                  explanations for reconciling items. These reconciling items are
                  resolved within 90 calendar days of their original
                  identification, or such other number of days specified in
1122(d)(2)(vii)   the transaction agreements.
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                       Investor Remittances and Reporting
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                  Reports to investors, including those to be filed with the            X
                  Commission, are maintained in accordance with the transaction
                  agreements and applicable Commission requirements. Specifically,
                  such reports (A) are prepared in accordance with timeframes and
                  other terms set forth in the transaction agreements; (B) provide
                  information calculated in accordance with the terms specified
                  in the transaction agreements; (C) are filed with the Commission
                  as required by its rules and regulations; and (D) agree with
                  investors' or the trustee's records as to the total unpaid
                  principal balance and number of pool assets serviced by the
1122(d)(3)(i)     Servicer.
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                  Amounts due to investors are allocated and remitted in                X
                  accordance with timeframes, distribution priority and other terms
1122(d)(3)(ii)    set forth in the transaction agreements.
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                  Disbursements made to an investor are posted within two               X
                  business days to the Servicer's investor records, or such
1122(d)(3)(iii)   other number of days specified in the transaction agreements.
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                  Amounts remitted to investors per the investor reports                X
                  agree with cancelled checks, or other form of payment, or
1122(d)(3)(iv)    custodial bank statements.
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                            Pool Asset Administration
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                  Collateral or security on pool assets is maintained as                X
                  required by the transaction agreements or related mortgage
1122(d)(4)(i)     loan documents.
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                  Mortgage loan and related documents are safeguarded as                X
1122(d)(4)(ii)    required by the transaction agreements.
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                  Any additions, removals or substitutions to the asset pool            X
                  are made, reviewed and approved in accordance with any
1122(d)(4)(iii)   conditions or requirements in the transaction agreements.
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</TABLE>
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<TABLE>
<CAPTION>
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                               Servicing Criteria                                   Applicable Servicing          Inapplicable
                                                                                          Criteria                 Servicing
                                                                                                                    Criteria
--------------------------------------------------------------------------------------------------------------------------------
  Reference                                  Criteria                               Performed      Performed
                                                                                       by             by
                                                                                    Servicer       Vendor(s)
--------------------------------------------------------------------------------------------------------------------------------
<S>               <C>                                                                  <C>           <C>                <C>
                  Payments on pool assets, including any payoffs, made in               X(1)         X(1)
                  accordance with the related mortgage loan documents are
                  posted to the Servicer's obligor records maintained no more
                  than two business days after receipt, or such other number of
                  days specified in the transaction agreements, and allocated
                  to principal, interest or other items (e.g., escrow) in
1122(d)(4)(iv)    accordance with the related mortgage loan documents.
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                  The Servicer's records regarding the pool assets agree                X
                  with the Servicer's records with respect to an obligor's
1122(d)(4)(v)     unpaid principal balance.
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                  Changes with respect to the terms or status of an obligor's           X
                  pool assets (e.g., loan modifications or re-agings) are
                  made, reviewed and approved by authorised personnel in
                  accordance with the transaction agreements and related pool
1122(d)(4)(vi)    asset documents.
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                  Loss mitigation or recovery actions (e.g., forbearance plans,         X
                  modifications and deeds in lieu of foreclosure, foreclosures
                  and repossessions, as applicable) are initiated, conducted and
                  concluded in accordance with the timeframes or other
1122(d)(4)(vii)   requirements established by the transaction agreements.
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                  Records documenting collection efforts are maintained during          X(2)          X(2)
                  the period a pool asset is delinquent in accordance with
                  the transaction agreements. Such records arc maintained on at
                  least a monthly basis, or such other period specified in the
                  transaction agreements, and describe the entity's activities
                  in monitoring delinquent mortgage loans including, for
                  example, phone calls, letters and payment rescheduling plans
                  in cases where delinquency is deemed temporary (e.g., illness
1122(d)(4)(viii)  or unemployment).
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                  Adjustments to interest rates or rates of return for mortgage         X
                  loans with variable rates are computed based on the related
1122(d)(4)(ix)    pool asset documents.
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                  Regarding any funds held in trust for an obligor (such as             X
                  escrow accounts): (A) such funds are analyzed, in accordance
                  with the obligor's mortgage loan documents, on at least an
                  annual basis, or such other period specified in the
                  transaction agreements; (B) interest on such funds is paid, or
                  credited, to obligors in accordance with applicable mortgage
                  loan documents and state laws; and (C) such funds are returned
                  to the obligor within 30 calendar days of full repayment of
                  the related pool asset, or such other number of days
1122(d)(4)(x)     specified in the transaction agreements.
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                  Payments made on behalf of an obligor (such as tax or                 X(3)       X(3)                X(4)
                  insurance payments) are made on or before the related
                  penalty or expiration dates, as indicated on the
                  appropriate bills or notices for such payments, provided
                  that such support has been received by the servicer at
                  least 30 calendar days prior to these dates, or such other
1122(d)(4)(xi)    number of days specified in the transaction agreements.
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</TABLE>
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<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                               Servicing Criteria                                   Applicable Servicing          Inapplicable
                                                                                          Criteria                 Servicing
                                                                                                                    Criteria
--------------------------------------------------------------------------------------------------------------------------------
  Reference                                  Criteria                               Performed      Performed
                                                                                       by             by
                                                                                    Servicer       Vendor(s)
--------------------------------------------------------------------------------------------------------------------------------
<S>               <C>                                                                  <C>           <C>                <C>
                  Any late payment penalties in connection with any payment             X
                  to be made on behalf of an obligor are paid from the
                  Servicer's funds and not charged to the obligor, unless the
1122(d)(4)(xii)   late payment was due to the obligor's error or omission.
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                  Disbursements made on behalf of an obligor are posted                 X(3)         X(3)               X(4)
                  within two business days to the obligor's records maintained
                  by the servicer, or such other number of days specified in
1122(d)(4)(xiii)  the transaction agreements.
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                  Delinquencies, charge-offs and uncollectible accounts are             X
                  recognized and recorded in accordance with the transaction
1122(d)(4)(xiv)   agreements.
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                  Any external enhancement or other support, identified in Item         X
                  1114(a)(1) through (3) or Item 1115 of Regulation AB, is
1122(d)(4)(xv)    maintained as set forth in the transaction agreements.
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</TABLE>

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* Check only criteria which Company neither performs nor takes responsibility
for the performance by a Vendor.

1 - A portion of the Company's payments are processed by its affiliate.

2 - A portion of the Company's early stage collection calls
(less than 30 days) are initiated b) its affiliate.

3 - A portion of the Company's payments on behalf of obligors are made and
posted by its affiliate.

4 - Property tax payments on behalf of obligors are made by First American
Real Estate Solutions of Texas, L.P.  The Company does not take responsibility
for the performance by First American Real Estate Solutions