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, 2007

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

     For the transition period to __________ from _______________

     Commission file number of issuing entity: 333-130694-17

              Morgan Stanley ABS Capital I Inc. Trust 2007-HE1
          (Exact name of Issuing Entity as specified in its Charter)

                      Morgan Stanley ABS Capital I Inc.
           (Exact name of depositor as specified in its Charter)

                 Morgan Stanley Mortgage Capital Holdings LLC,
             successor-in-interest by merger to Morgan Stanley
                             Mortgage Capital Inc.
             (Exact name of sponsor as specified in its Charter)

                                          Pooling Tier REMIC-1 20-8308302
                                          Pooling Tier REMIC-2 20-8308348
                                              Lower-Tier REMIC 20-8308396
                                              Upper-Tier REMIC 20-8308431
                                                 Class X REMIC 20-8308474
                   New York                      Grantor Trust 20-7242242
           (State or other jurisdiction                  (I.R.S. Employer
         incorporation or organization                Identification Number
               of issuing entity)                        of issuing entity)

          c/o Deutsche Bank National Trust Company
          1761 East St. Andrew Place
          Santa Ana, California                                  92705
     (Address of principal executive offices               (Zip Code of
         of issuing entity)                                issuing entity)

            Issuing Entity's telephone number, including area code:
                               (714) 247-6000

          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.  Yes [ ]  No[X]

     Indicate by check mark if the registrant is not required to file
     reports pursuant to Section 13 or Section 15(d) of the Act.  Yes[ ] No[X]

     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.  Yes [X]  No [ ]

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

     Indicate by check mark whether the registrant is a large accelerated
     filer, an accelerated filer, a non-accelerated filer, or a smaller
     reporting company.  See the definitions of "large accelerated
     filer," "accelerated filer" and "smaller reporting company in Rule 12b-2
     of the Exchange Act.  (Check One):

     Large accelerated filer [  ]  Accelerated Filer [  ]
     Non-accelerated Filer [X] (Do not Check if a smaller reporting company)
     Smaller reporting company [  ]

     Indicate by check mark whether the registrant is a shell company (as
     defined in Rule 12b-2 of the Act).  [  ] Yes  [X] No

     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 of the last business day of
     the registrant's most recently completed second fiscal quarter


     Not Applicable.

     DOCUMENTS INCORPORATED BY REFERENCE

     See Item 15(a).

                                     PART I

     ITEM 1.  Business.

     Not Applicable.

     ITEM 1A.  Risk Factors.

     Not Applicable.

     ITEM 1B.  Unresolved Staff Comments.

     None.

     ITEM 2.  Properties.

     Not Applicable.

     ITEM 3.  Legal Proceedings.

     Not Applicable.

     ITEM 4.  Submission of Matters to a Vote of Security Holders.

     Not Applicable.


                                     PART II

     ITEM 5.  Market for Registrant's Common Equity, Related Stockholder
     Matters and Issuer Purchases of Equity Securities.

     Not Applicable.

     ITEM 6.  Selected Financial Data.

     Not Applicable.

     ITEM 7.  Management's Discussion and Analysis of Financial Condition and
     Results of Operations.

     Not Applicable.

     ITEM 7A.  Quantitative and Qualitative Disclosures About Market Risk.

     Not Applicable.

     ITEM 8.  Financial Statements and Supplementary Data.

     Not Applicable.

     ITEM 9.  Changes in and Disagreements with Accountants on Accounting and
     Financial Disclosure.

     Not Applicable.

     ITEM 9A.  Controls and Procedures.

     Not Applicable.

     ITEM 9A(T).  Controls and Procedures.

     Not Applicable.

     ITEM 9B. Other Information.

     None.

                                     PART III

     ITEM 10.  Directors, Executive Officers and Corporate Governance.

     Not Applicable.

     ITEM 11.  Executive Compensation.

     Not Applicable.

     ITEM 12.  Security Ownership of Certain Beneficial Owners and Management
               and Related Stockholder Matters.

     Not Applicable.

     ITEM 13.  Certain Relationships and Related Transactions, and
               Director Independence.

     Not Applicable.

     ITEM 14.  Principal Accounting Fees and Services.

     Not Applicable.

              ADDITIONAL ITEMS REQUIRED BY GENERAL INSTRUCTION J(2)

     Item 1112(b) of Regulation AB, Significant Obligor Financial
     Information.

     No single obligor represents 10% or more of the pool assets held by the
     issuing entity.

     Item 1114(b)(2) of Regulation AB, Significant Enhancement Provider
     Information.

     No entity or group of affiliated entities provides any external credit
     enhancement or other support for the certificates within this
     transaction as described under Item 1114(a) of Regulation AB.

     Item 1115(b) of Regulation AB, Certain Derivative Instruments.

     Morgan Stanley Capital Services Inc. provides an interest rate swap
     derivative instrument and an interest rate cap derivative instrument
     for the issuing entity.  No additional disclosure is necessary because
     the aggregate significance percentage for the interest rate swap
     and interest rate cap is less than 10%.

     Item 1117 of Regulation AB, Legal Proceedings.

     Legal Proceedings Regarding Morgan Stanley Mortgage Capital Holdings LLC

     In addition to the matters described below, in the normal course of
     business, Morgan Stanley Mortgage Capital Holdings LLC ("the Company")
     has been named, from time to time, as a defendant in various legal actions.
     Certain of the actual or threatened legal actions include claims for
     substantial compensatory and/or punitive damages or claims for
     indeterminate amounts of damages.

     Regulatory and Governmental Investigations:  The Company and its affiliates
     are currently responding to subpoenas and requests for information from
     certain regulatory and governmental entities concerning the origination,
     purchase, securitization and/or servicing of subprime and non-subprime
     residential mortgages and related issues.

     Civil Litigation re American Business Financial Services, Inc. The
     Company has been named as one of a number of defendants in a matter
     styled Miller v. Santilli, et al., which is pending in the Court of
     Common Pleas for Philadelphia County, Pennsylvania.  The complaint in
     this action was filed on July 13, 2006 and is being brought by the
     bankruptcy trustee for American Business Financial Services, Inc.
     ("ABFS").  The complaint alleges, inter alia, that the Company, certain
     of the Company's affiliates, and various other financial institutions
     deepened the insolvency of ABFS, and aided and abetted fraud and breaches
     of fiduciary duties committed by certain former officers and directors of
     ABFS, by providing warehouse loans to ABFS and participating in
     securitization transactions with ABFS.  The complaint seeks damages in
     excess of $750 million.  The deepening insolvency claim has been dismissed,
     and the case is currently in discovery.

     Bauer, et al., v. Saxon Mortgage Services, Inc., et al. is a matter filed
     on December 1, 2004 in the Civil District Court for the Parish of Orleans,
     State of Louisiana, Case No. 2004-17015. On February 17, 2005, the
     plaintiffs re-filed the case as two separate class action lawsuits, Bauer,
     et al., v. Dean Morris, et al., filed as Case No. 05-2173 in the Civil
     District Court for the Parish of Orleans, State of Louisiana, and
     Patterson, et al., v. Dean Morris, et al., filed as Case No. 05-2174 in
     the Civil District Court for the Parish of Orleans, State of Louisiana.
     On January 24, 2006, the United States District Court for the Eastern
     District of Louisiana granted the Company's motion to compel arbitration
     in Bauer, et al., v. Dean Morris, et al.  On January 25, 2006, the United
     States District Court for the Eastern District of Louisiana granted the
     Saxon Mortgage Services's motion to compel arbitration in Patterson, et
     al., v. Dean Morris, et al.  At the present time, neither plaintiff has
     initiated arbitration.

     Jumar Hooks and Diane Felder, et al., v. Saxon Mortgage, Inc. is a matter
     filed on October 12, 2005 in the Common Pleas Court for Cuyahoga County,
     Ohio as Case No. CV 05 574577.  The plaintiffs filed this case as a class
     action, on behalf of themselves and similarly situated Ohio borrowers,
     alleging that the Company's subsidiary, Saxon Mortgage, Inc. ("Saxon
     Mortgage") engaged in unlawful practices in originating and servicing
     the plaintiffs' loans.  During the second quarter of 2006, the court
     granted the Saxon Mortgage's motion to compel individual arbitration as
     to each of the two named plaintiffs and stayed the court proceedings
     with no class having been certified.

     Jones, et al., v. ABN AMRO Mortgage Group, et al. is a matter filed on
     September 24, 2007 in the Court of Common Pleas for Berks County,
     Pennsylvania as Civil Action-Law No. 07-10540.  The plaintiffs allege
     that the putative class members were not credited properly for payments
     made on their mortgage loans which were allegedly collected by non-
     affiliated intermediary entities and forwarded to the servicer defendants.
     Saxon Mortgage Services services two loans for putative class members.
     Saxon Mortgage Services and other defendants filed a consolidated motion
     to dismiss the case.

     Legal Proceedings Regarding Saxon Mortgage Services, Inc.

     Because Saxon Mortgage Services, Inc. ("Saxon") and its affiliates
     are subject to many laws and regulations, including but not limited to
     federal and state consumer protection laws, it is regularly involved in
     numerous lawsuits filed against it, some of which seek certification as
     class action lawsuits on behalf of similarly situated individuals.

     Saxon and/or its affiliates are also involved, from time to time, in
     other reviews, investigations and proceedings (both formal and informal)
     by governmental agencies regarding Saxon's and/or its affiliates
     businesses, certain of which may result in adverse judgments, settlements,
     fines, penalties, injunctions or other relief.

     Saxon contests liability and/or the amount of damages as appropriate in
     each pending matter. In view of the inherent difficulty of predicting the
     outcome of such matters, particularly in cases where claimants seek
     substantial or indeterminate damages or where investigations and
     proceedings are in the early stages, Saxon cannot predict with certainty
     the loss or range of loss, if any, related to such matters, how or if such
     matters will be resolved, when they will ultimately be resolved, or what
     the eventual settlement, fine, penalty or other relief, if any, might be.
     Subject to the foregoing, the following matters are potentially material
     to the financial condition of Saxon.

     Regulatory and Governmental Investigations:  Saxon and its affiliates are
     currently responding to subpoenas and requests for information from
     certain regulatory and governmental entities concerning the origination,
     purchase, and/or servicing of subprime and non-subprime residential
     mortgages and related issues.

     Bauer, et al., v. Saxon Mortgage Services, Inc., et al. is a matter filed
     on December 1, 2004 in the Civil District Court for the Parish of Orleans,
     State of Louisiana, Case No. 2004-17015. On January 26, 2005, the
     plaintiffs filed a motion to dismiss the case without prejudice, and the
     court entered an order dismissing the case on January 31, 2005.  On
     February 17, 2005, the plaintiffs re-filed the case as two separate class
     action lawsuits, Bauer, et al., v. Dean Morris, et al., filed as Case No.
     05-2173 in the Civil District Court for the Parish of Orleans, State of
     Louisiana, and Patterson, et al., v. Dean Morris, et al., filed as Case
     No. 05-2174 in the Civil District Court for the Parish of Orleans, State
     of Louisiana.  On January 24, 2006, the United States District Court for
     the Eastern District of Louisiana granted Saxon's motion to compel
     arbitration and stayed the court proceedings as to named plaintiffs
     Keenan and Karen Duckworth in Bauer, et al., v. Dean Morris, et al.,
     filed as Case No. 05-2173 in the Civil District Court for the Parish of
     Orleans, State of Louisiana.  On January 25, 2006, the United States
     District Court for the Eastern District of Louisiana granted the Saxon
     Mortgage Services's motion to compel arbitration and stayed the court
     proceedings as to named plaintiff Debra Herron in Patterson, et al., v.
     Dean Morris, et al., filed as Case No. 05-2174 in the Civil District
     Court for the Parish of Orleans, State of Louisiana.  The court
     subsequently remanded the underlying court proceedings in both the Bauer
     and Patterson cases to the Civil District Court for the Parish of Orleans,
     State of Louisiana.  At the present time, neither plaintiff has initiated
     arbitration.

     Jones, et al., v. ABN AMRO Mortgage Group, et al. is a matter filed on
     September 24, 2007 in the Court of Common Pleas for Berks County,
     Pennsylvania as Civil Action-Law No. 07-10540.  The matter was
     subsequently removed to the United States District Court for the Eastern
     District of Pennsylvania as Civil Action No. 2:07-cv-04328-JG.  The
     plaintiffs filed an Amended Complaint on October 9, 2007 naming Saxon as
     a defendant.   The plaintiffs allege that the putative class members
     were not credited properly for payments made on their mortgage loans
     which were allegedly collected by non-affiliated intermediary entities
     and forwarded to the servicer defendants.  Saxon services two loans for
     putative class members.  The plaintiffs subsequently voluntarily
     dismissed all named plaintiffs except for the Jones's.  Saxon Mortgage
     Services and other defendants filed a consolidated motion to dismiss the
     case.

     Jumar Hooks and Diane Felder, et al., v. Saxon Mortgage, Inc. is a matter
     filed on October 12, 2005 in the Common Pleas Court for Cuyahoga County,
     Ohio as Case No. CV 05 574577.  The plaintiffs filed this case as a class
     action, on behalf of themselves and similarly situated Ohio borrowers,
     alleging that Saxon's affiliate, Saxon Mortgage, Inc. ("Saxon Mortgage")
     engaged in unlawful practices in originating and servicing the plaintiffs'
     loans.  During the second quarter of 2006, the court granted the Saxon
     Mortgage's motion to compel individual arbitration as to each of the two
     named plaintiffs and stayed the court proceedings with no class having
     been certified.

     Legal Proceedings Regarding Countrywide Financial Corporation

     Pursuant to a Form 10-K filed by Countrywide Financial Corporation
     ("the Company") on February 29, 2008 (Commission File No. 001-8422;
     CIK No. 0000025191), the parent of Countrywide Home Loan Servicing
     LP, one of the servicers and original loan sellers, the Company
     stated that various lawsuits alleging claims for derivative relief
     on behalf of the Company and securities, retirement plan, and other
     class action suits have recently been brought against us and
     certain current and former officers, directors and retirement plan
     administrators in either federal district court in Los Angeles,
     California, or state superior court in Los Angeles, or state court
     in Delaware.  The Company stated that among other things, these
     lawsuits allege breach of state law fiduciary duties and violation
     of the federal securities laws and the Employee Retirement Income
     Security Act of 1974 ("ERISA").  The Company stated that these
     cases allege, among other things, that the Company did not
     disclose complete and accurate information about mortgage lending
     practices and financial condition. The Company stated that
     shareholder derivative cases brought in federal court are brought
     on the Company's behalf and do not seek recovery of damages from
     the Company.

     The Company stated that two consolidated cases alleging claims for
     derivative relief on behalf of the Company are also pending in federal
     district court in Delaware, and allege, among other things, that
     certain of the Company's proxy filings contain incorrect statements
     relating to the compensation of the Chief Executive Officer.

     The Company stated that various class action lawsuits relating to the
     proposed merger with Bank of America have been filed in the state courts
     of California and Delaware on behalf of a proposed class of shareholders
     against the Company, the Company's directors and Bank of America.
     The Company stated that the class action lawsuits filed in state court in
     California have been removed to federal court in Los Angeles and that
     these lawsuits allege that the Company's directors breached their
     fiduciary duties to the Company's shareholders by entering into the
     merger agreement with Bank of America and that Bank of America allegedly
     aided and abetted those alleged breaches.  The Company stated that,
     similarly, the plaintiffs in the shareholder derivative lawsuits brought
     in California state and federal court recently have amended their
     complaints to add similar class action allegations relating to the
     proposed merger with Bank of America.

     The Company stated that it is difficult to predict the resulting
     outcome of these proceedings, particularly where investigations
     and proceedings are in early stages.  The Company stated that given
     the inherent difficulty in predicting the outcome of legal proceedings,
     the Company cannot estimate losses or ranges of losses for legal
     proceedings where there is only a reasonable possibility that a loss may
     be incurred, such as those discussed in the two immediately preceding
     paragraphs.  The Company stated that it provides for potential losses
     that may arise out of legal proceedings to the extent such losses are
     deemed probable and can be estimated.  The Company stated that although
     the ultimate outcome of the legal proceedings discussed above cannot be
     ascertained at this time, the Company believes that any resulting
     liability will not materially affect the consolidated financial
     position; such resolution, however, could be material to operating
     results for a particular future period depending upon the outcome of
     the proceedings and the operating results for a particular period.
     The Company stated that its assessment is based, in part, on the existence
     of insurance coverage.

     Legal Proceeding Regarding Decision One Mortgage Company, LLC

     Pursuant to a Form 10-K filed by HSBC Finance Corporation ("HSBC")
    (Commission File No. 001-8198; CIK No. 0000354964), an affiliate through
     common parent ownership of Decision One Mortgage Company, LLC, one of
     the original loan sellers, HSBC stated that since July of 2007, HSBC
     Finance Corporation and/or one or more of its subsidiaries has been named
     as a defendant in four class actions filed in the federal courts in
     the Northern District of Illinois, the Central District of California
     and the District of Massachusetts: Zamudio v. HSBC North America Holdings
     and HSBC Finance Corporation d/b/a Beneficial, (N.D. Ill. 07CV5413),
     National Association for the Advancement of Colored People ("NAACP") v.
     Ameriquest Mortgage Company, et al. including HSBC Finance Corporation
     (C.D. Ca., No. SACV07-0794AG(ANx)), Toruno v. HSBC Finance Corporation
     and Decision One Mortgage Company, LLC (C.D. Ca., No. CV07-05998JSL(RCx)
     and Suyapa Allen v.Decision One Mortgage Company, LLC, HSBC Finance
     Corporation, et al. (D. Mass., C.A. 07-11669). HSBC stated that each
     suit alleges that the named entities racially discriminated against their
     customers by using loan pricing policies and procedures that have resulted
     in a disparate impact against minority customers.  HSBC stated that
     violations of various federal statutes, including the Fair Housing Act
     and the Equal Credit Opportunity Act, are claimed.  HSBC stated that
     they are unable to quantify the potential impact from these actions,
     if any.

     Legal Proceedings Regarding NC Capital Corporation

     Pursuant to a Form 8-K filed on February 21, 2007 (the "February 21st
     8-K") by New Century Financial Corporation ("NCFC") (Commission File
     No. 001-32314; CIK  No. 00001287286), the parent of NC Capital
     Corporation, one of the original loan sellers, NCFC stated that on
     February 14, 2007, NCFC was served with the complaint for a
     purported securities class action (the "Original Complaint") filed
     in the United States District Court for the Central District of
     California against NCFC and certain of its officers and directors.
     NCFC stated that the complaint alleges that NCFC and the other named
     defendants violated federal securities laws by issuing false and
     misleading statements and failing to disclose material facts about
     NCFC, which resulted in artificially inflated market prices of
     NCFC's common stock, and that the plaintiff and the purported class
     members purchased the registrant's stock at these artificially
     inflated market prices between April 7, 2006 and February 7, 2007.
     NCFC stated that the complaint seeks money damages in favor of its
     purported class of purchasers of NCFC's securities, the costs and
     expenses of the action and other relief that may be granted by the
     court.

     In addition, pursuant to the February 21st 8-K, NCFC stated that nine
     additional purported class actions were filed in the United States
     District Court for the Central District of California between
     February 8, 2007 and February 20, 2007.  NCFC stated that these
     complaints present in large degree the same legal and factual issues
     as the Original Complaint and allege various class periods, the
     longest of which is from April 7, 2006 to February 7, 2007.

     Pursuant to a Form 8-K filed by NCFC on March 13, 2007 (the "March
     13th 8-K"), NCFC stated that on February 28, 2007, NCFC received
     a letter from the United States Attorney's Office for the Central
     District of California (the "U.S. Attorney's Office") indicating
     that it was conducting a criminal inquiry under the federal
     securities laws in connection with trading in NCFC's securities, as
     well as accounting errors regarding NCFC's allowance for repurchase
     losses.  NCFC stated that it has subsequently received a grand jury
     subpoena requesting production of certain documents.  NCFC stated
     that it intends to cooperate with the requests of the U.S.
     Attorney's Office.

     In addition, pursuant to the March 13th 8-K, NCFC stated that on March
     12, 2007, it received a letter from the staff of the Pacific
     Regional Office of the Securities Exchange Commission stating that
     the staff was conducting a preliminary investigation involving NCFC and
     requesting production of certain documents.  NCFC stated that the staff
     of the SEC had also previously requested a meeting with NCFC to discuss
     the events leading up to NCFC's previous announcement of the need to
     restate certain of its historical financial statements.

     Pursuant to a Form 8-K filed by NCFC on March 14, 2007 (the "March
     14th 8-K"), NCFC stated that on March 13, 2007, NCFC and certain of
     its subsidiaries received cease and desist orders from regulators
     in the States of Massachusetts, New Hampshire, New Jersey and New York
     (the "March 13 Orders").  NCFC stated that the cease and desist orders
     contain allegations that certain of NCFC's subsidiaries have engaged
     in violations of applicable state law, including, among others, failure
     to fund mortgage loans after a mortgage closing, failure to meet
     certain financial requirements, including net worth and available
     liquidity, and failure to timely notify the state regulators of
     defaults and terminations under certain of its financing arrangements.
     NCFC stated that the cease and desist orders seek to restrain the
     subsidiaries from taking certain actions, including, among others,
     engaging in further violations of state law, taking new applications
     for mortgage loans in the relevant jurisdiction, and paying dividends
     or bonuses to officers, directors or shareholders of the applicable
     subsidiaries.  NCFC stated that the cease and desist orders also seek
     to cause the subsidiaries to affirmatively take certain actions,
     including the creation of escrow accounts to hold fees relating to
     pending mortgage applications, the transfer to other lenders of
     the outstanding mortgage applications and unfunded mortgage loans
     held by the subsidiaries, and the provision of regular information to
     the state regulators regarding the subsidiaries' activities in the
     applicable state, including the status of all outstanding mortgage
     applications and unfunded mortgage loans in that state.  NCFC stated
     that certain of the cease and desist orders also require one or more of
     the subsidiaries to show cause why their license should not be revoked
     or why administrative penalties should not be assessed.  NCFC stated
     that the cease and desist orders generally become permanent if not
     promptly appealed by the applicable subsidiaries.

     Pursuant to a Form 8-K filed on March 19, 2007 (the "March 19th 8-K"),
     NCFC stated that on March 14 and 15, 2007, NCFC received additional
     cease and desist orders from the States of Connecticut, Maryland,
     Rhode Island and Tennessee (collectively, the "March 14-15 Orders").
     NCFC stated that consistent with the March 13 Orders, the March 14-15
     Orders contain allegations that certain of NCFC's subsidiaries have
     engaged in violations of applicable state law, including, among others,
     failure to fund mortgage loans after closing. Additionally, pursuant
     to the March 19th 8-K, NCFC stated that on March 14, 2007, New century
     Mortgage Corporation ("NCMC") and Home123 Corporation, an indirect
     wholly owned subsidiary of NCFC ("Home123"), entered into a Consent
     Agreement and Order, dated March 14, 2007, with the Commonwealth of
     Pennsylvania Department of Banking, Bureau of Supervision and
     Enforcement (the "Consent Agreement").   NCFC stated that consistent
     with the March 13 Orders, the March 14-15 Orders and the Consent
     Agreement seek to restrain NCFC's subsidiaries from taking certain
     actions, including, among others, engaging in alleged violations of
     state law and taking new applications for mortgage loans in the
     relevant jurisdiction.  NCFC stated that the March 14-15 Orders and
     the Consent Agreement also seek to cause the subsidiaries to
     affirmatively take certain actions, including the creation of
     escrow accounts to hold fees relating to pending mortgage applications,
     the transfer to other lenders of the outstanding mortgage applications
     and unfunded mortgage loans held by the subsidiaries, and the provision
     of regular information to the state regulators regarding the
     subsidiaries' activities in the applicable state, including the status
     of all outstanding mortgage applications and unfunded mortgage loans
     in that state.  NCFC stated that certain of the March 14-15 Orders
     also seek to revoke the licenses of one or more of NCFC's
     subsidiaries or assess administrative penalties. NCFC stated that
     the March 14-15 Orders generally become permanent if not promptly
     appealed by the applicable subsidiaries.

     Additionally, pursuant to the March 19th 8-K, NCFC stated that in
     connection with a civil action filed against NCFC, NCMC and Home123
     (collectively, the "Defendants") in an Ohio state court (the "Complaint")
     by the Attorney General of Ohio and the Ohio Division of Commerce,
     Division of Financial Institutions on March 14, 2007, that Ohio state
     court issued a temporary restraining order, which was subsequently
     modified by the court on March 16, 2007, against the Defendants (as
     modified, the "TRO").  NCFC stated that the Complaint and the TRO contain
     allegations that the Defendants have engaged in violations of applicable
     state law, including, among others, failure to fund mortgage loans after
     closing.  NCFC stated that the TRO restrains the Defendants from taking
     certain actions, including, among others, (i) engaging in violations of
     state law, (ii) soliciting applicants and taking new applications for
     mortgage loans in Ohio and (iii) initiating, prosecuting or enforcing
     foreclosure actions in Ohio.  NCFC stated that the TRO also requires
     the Defendants to confer with the Ohio Attorney General and Division
     of Commerce by March 22, 2007 regarding the treatment of Ohio loans
     that are more than 60 days delinquent and are held for sale.  NCFC
     stated that the restraints imposed by the TRO could further harm
    NCFC's business.

     Pursuant to a Form 8-K filed on March 20, 2007 (the "March 20th 8-K"),
     NCFC stated that as disclosed above, NCFC has received cease and desist
     orders from several states and entered into a consent agreement with one
     state (the "Previous Orders and Consent Agreement").  NCFC stated that on
     March 16, 2007, NCFC received additional cease and desist orders from the
     State of California (the "California Orders") and certain of NCFC's
     subsidiaries entered into consent agreements with the State of Florida's
     Office of Financial Regulation and the State of Washington's Department of
     Financial Institutions, respectively, each dated March 16, 2007 (the "March
     16 Agreements" and together with the California Orders, the "March 16
     Orders and Consent Agreements").

     Pursuant to the March 20th 8-K, NCFC stated that consistent with the
     Previous Orders and Consent Agreement, the March 16 Orders and Consent
     Agreements contain allegations that certain of NCFC's subsidiaries have
     engaged in violations of state law, including, among others, failure to
     fund mortgage loans after closing.  NCFC stated that consistent with the
     Previous Orders and Consent Agreement, the March 16 Orders and Consent
     Agreements seek to restrain NCFC's subsidiaries from taking certain
     actions, including, among others, engaging in alleged violations of state
     law and taking new applications for mortgage loans in the relevant
     jurisdiction.  NCFC stated that the March 16 Orders and Consent Agreements
     also seek to cause the subsidiaries to affirmatively take certain actions,
     including the creation of escrow accounts to hold fees relating to pending
     mortgage applications, the transfer to other lenders of the outstanding
     mortgage applications and unfunded mortgage loans held by the subsidiaries,
     and the provision of regular information to the state regulators regarding
     the subsidiaries' activities in the applicable state, including the status
     of all outstanding mortgage applications and unfunded mortgage loans in
     that state.  NCFC stated that the California Orders become permanent if
     not promptly appealed by the applicable subsidiaries.

     In addition, NCFC stated that on March 16, 2007, Home123 received a
     suspension order (the "Suspension Order") from the State of New York
     Banking Department.  NCFC stated that the Suspension Order contains
     allegations similar to those included in the March 13 Order and further
     provides that Home123's mortgage banking license in the State of New York
     has been suspended for a period not exceeding 30 days, pending
     investigation.

     Pursuant to a Form 8-K filed on March 22, 2007 (the "March 22nd 8-K"),
     NCFC stated that on March 20, 2007, certain of NCFC's subsidiaries
     entered into a consent agreement with the State of Maine's Office of
     Consumer Credit Regulation (the "March 20 Consent Agreement").  NCFC stated
     that consistent with the Previous Orders and Consent Agreements, the March
     20 Consent Agreement contains allegations that certain of NCFC's
     subsidiaries have engaged in violations of state law, including, among
     others, failure to fund mortgage loans after closing.  NCFC stated that
     consistent with the Previous Orders and Consent Agreements, the March 20
     Consent Agreement seeks to restrain NCFC's subsidiaries from taking
     certain actions, including, among others, engaging in alleged violations
     of state law and taking new applications for mortgage loans in the relevant
     jurisdiction.  NCFC stated that the March 20 Consent Agreement also seeks
     to cause the subsidiaries to affirmatively take certain actions, including
     the creation of escrow accounts to hold fees relating to pending mortgage
     applications, the transfer to other lenders of the outstanding mortgage
     applications and unfunded mortgage loans held by the subsidiaries, and the
     provision of regular information to the state regulators regarding the
     subsidiaries' activities in the applicable state, including the status of
     all outstanding mortgage applications and unfunded mortgage loans in that
     state.

     Pursuant to a Form 8-K filed on March 28, 2007 (the "March 28th 8-K"),
     NCFC stated that on March 27, 2007, NCFC signed consent agreements with
     the State of Idaho's Department of Finance, the State of Iowa's
     Superintendent of Banking, the State of Michigan's Office of Financial
     and Insurance Services and the State of Wyoming's Banking Commissioner
     (the "Additional Consent Agreements").  NCFC stated that although NCFC has
     signed the Additional Consent Agreements and expects to comply with their
     terms, NCFC has not yet received counterpart signatures from the respective
     states and accordingly such Additional Consent Agreements may not be
     binding on the respective states.  NCFC stated that consistent with the
     Previous Orders and Consent Agreements, the Additional Consent Agreements
     contain allegations that certain of NCFC's subsidiaries have engaged in
     violations of state law, including, among others, failure to fund mortgage
     loans after closing.  NCFC stated that consistent with the Previous Orders
     and Consent Agreements, the Additional Consent Agreements restrain NCFC's
     subsidiaries from taking certain actions, including, among others, engaging
     in alleged violations of state law and taking new applications for mortgage
     loans in the relevant jurisdiction.  NCFC stated that The Additional
     Consent Agreements also compel the subsidiaries to affirmatively take
     certain actions, including the creation of escrow accounts to hold any up
     front fees collected in connection with pending mortgage applications, the
     transfer to other lenders of the outstanding mortgage applications and
     unfunded mortgage loans held by the subsidiaries, and the provision of
     regular information to the state regulators regarding the subsidiaries'
     activities in the applicable state, including the status of all outstanding
     mortgage applications and unfunded mortgage loans in that state.

     Pursuant to a Form 8-K filed on March 30, 2007 (the "March 30th 8-K"),
     NCFC stated that as disclosed above, on March 14, 2007, the Attorney
     General of Ohio and the Ohio Department of Commerce, Division of Financial
     Institutions (together, the "State") filed a lawsuit against NCFC and
     certain of its subsidiaries (collectively with NCFC, the "Defendants")
     in Ohio state court (the "Ohio Complaint").  NCFC stated that the Ohio
     Complaint alleges that NCFC has engaged in violations of applicable
     state law, including, among others, failure to fund mortgage loans after
     closing.  NCFC stated that on March 14, 2007, the court granted the
     State's motion to enter a temporary restraining order, which was
     subsequently modified by the court on March 16, 2007, against the
     Defendants (as modified, the "TRO").  NCFC stated that the TRO
     restrained the Defendants from taking certain actions, including,
     among others, (i) engaging in violations of state law, (ii) soliciting
     applicants and taking new applications for mortgage loans in Ohio
     and (iii) initiating, prosecuting or enforcing foreclosure actions in
     Ohio.  NCFC stated that the TRO required the parties to confer with.
     respect to restrictions regarding foreclosure action and the sale,
     transfer or assignment of loans more than 60 days delinquent.

     In addition, pursuant to the March 30th 8-K, NCFC stated that on March
     26, 2007, the Defendants filed a Motion for Dissolution of Modified
     Temporary Restraining Order and Motion for an Emergency Hearing,
     and Opposition to a Preliminary Injunction.  NCFC stated that on
     March 28, 2007, the Defendants and the State reached agreement on
     a Stipulated Preliminary Injunction effective for 90 days, which
     was entered by the court. NCFC stated that the Stipulated Preliminary
      Injunction replaces the TRO and provides for a stay of the litigation
     for 90 days. NCFC stated that the Stipulated Preliminary Injunction
     restrains the Defendants from taking certain actions, including,
     among others, engaging in alleged violations of state law and taking
     new applications for mortgage loans.  NCFC stated that the
     Stipulated Preliminary Injunction also compels the Defendants to
     take certain actions, including the transfer to other lenders of any
     outstanding mortgage applications and unfunded mortgage loans,
     the placement in escrow of any upfront fees collected in connection
     with pending mortgage applications, and the provision of regular
     information to the State regarding NCFC's activities in Ohio, including
     the status of all outstanding mortgage applications and unfunded
     mortgage loans.  NCFC stated that the Stipulated Preliminary
     Injunction also requires the Defendants to submit certain categories
     of loans (and related information) as to which it intends to foreclose
     to the State for the State to review.  NCFC stated that the State may
     object for cause to NCFC proceeding with a particular foreclosure and
     if NCFC is unable to convince the State to permit it to proceed,
     the foreclosure will not proceed for the duration of the Stipulated
     Preliminary Injunction.  NCFC stated that the Stipulated Preliminary
     Injunction also provides for the State to review and object for cause
     to the Defendants selling, transferring or assigning certain categories
     of loans that are more than 60 days delinquent.

     In addition, pursuant to the March 30th 8-K, NCFC stated that in the
     event that the State or the Defendants believe the other is not acting
     in good faith, the Stipulated Preliminary Injunction provides that the
     complaining party should notify the other of such concern and if the
     concern is not resolved, then either party may notify the other of their
     intent to file a motion with the court to terminate the Stipulated
     Preliminary Injunction and request to reschedule the previously canceled
     preliminary injunction hearing.  NCFC stated that the Stipulated
     Preliminary Injunction provides that in such event neither party wil
     object to the scheduling of a prompt preliminary injunction hearing or
     the termination of the Stipulated Preliminary Injunction at such a
     preliminary injunction hearing.

     Pursuant to a Form 8-K filed on April 6, 2007 (the "April 6th 8-K"),
     NCFC stated that on April 2, 2007, NCFC announced that it and several
     of its subsidiaries, including New Century TRS Holdings, Inc., NCMC,
     NC Capital Corporation, Home123 Corporation, New Century Credit
     Corporation, NC Asset Holding, L.P., NC Residual III Corporation,
     NC Residual IV Corporation, New Century R.E.O. Corp., New Century R.E.O.
     II Corp., New Century R.E.O. III Corp., New Century Mortgage Ventures,
     LLC, NC Deltex, LLC and NCoral, L.P. (collectively, the "Debtors")
     filed voluntary petitions (the "Bankruptcy Filings") under chapter 11
     of the United States Bankruptcy Code (the "Bankruptcy Code") in the
     United States Bankruptcy Court for the District of Delaware (the
     "Bankruptcy Court").  NCFC stated that these bankruptcy cases (the
     "Bankruptcy Cases") are being jointly administered in the Bankruptcy
     Court under the caption "In re New Century TRS Holdings, Inc., et al.,
     Case No. 07-10416" before the Honorable Kevin J. Carey, United States
     Bankruptcy Judge. NCFC stated that the Debtors will continue to operate
     their business as "debtors-in-possession" under the jurisdiction of the
      Bankruptcy Court and in accordance with the applicable provisions of the
     Bankruptcy Code and orders of the Bankruptcy Court.

     Pursuant to a Form 8-K filed on April 16, 2007 (the "April 16th 8-K"),
     NCFC stated that the Commonwealth of Massachusetts Office of the
     Attorney General issued a Civil Investigation Demand to NCFC,
     which requests certain documents relating to NCFC's loan origination
     business practices in connection with an investigation conducted
     pursuant to the Attorney General's authority to enforce consumer
     protection statutes.

     Pursuant to a Form 8-K filed on July 5, 2007 (the "July 5th 8-K"),
     NCFC stated that on June 21, 2007 the staff of the Pacific Regional
     Office of the Securities Exchange Commission (the "Commission")
     orally advised NCFC's outside counsel that the Commission had
     issued a formal order of investigation with respect to its investigation
     of NCFC.

     In addition, pursuant to the July 5th 8-K, NCFC stated that on June
     29, 2007, NCFC was served with a complaint for declaratory judgment
     and other equitable relief (the "Complaint") that was filed on June
     20, 2007, in the United States Bankruptcy Court for the District of
     Delaware (the "Bankruptcy Court") against NCFC, certain of its
     subsidiaries and certain of its directors. NCFC stated that the
     Complaint seeks a declaratory judgment on behalf of a purported class
     consisting of beneficiaries (the "Beneficiaries") of the New Century
     Financial Corporation Deferred Compensation Plan and the New Century
     Financial Corporation Supplemental Executive Retirement/Savings Plan
     (collectively, the "Plans") that, among other things, the Beneficiaries
     are a class, that the Plans' assets are held in trust for the exclusive
     benefit of the Beneficiaries, that the Plans' assets are not the
     property of NCFC's or any of its subsidiaries' bankruptcy estates, and
     that the Plans' assets be distributed to the Beneficiaries.

     In addition, pursuant to a Form 8-K filed on December 14, 2007
     (the "December 14th 8-K"), NCFC stated that the Bankruptcy Court
     entered an order establishing August 31, 2007, as the last date (the
     "Claim Bar Date") for all persons and entities holding or wishing to
     assert bankruptcy claims against NCFC and certain of its debtor-in-
     possession subsidiaries (collectively with NCFC, the "Debtors") to file
     a proof of claim form. According to the December 14th 8-K, NCFC stated
     that through the Claim Bar Date, the dollar amount of claims filed
     against the Debtors exceeded $32 billion.  NCFC stated that the Debtors
     are in the preliminary stages of their review of these claims and based
     on their preliminary review believe that certain of these claims will be
     subject to objection as being duplicative, overstated, based upon
     contingencies that have not occurred, or because they otherwise do
     not state a valid claim.  NCFC stated that the foregoing amount does
     not include claims that were filed without a specified dollar amount,
     referred to as unliquidated claims, and claims that were filed after
     the claim bar date.

     Item 1119 of Regulation AB, Affiliations and Certain Relationships and
     Related Transactions.

     The information regarding this Item has been previously filed in a
     424(b)(5) filed on January 26, 2007 (Commission File No. 333-130694-17)

     Item 1122 of Regulation AB, Compliance with Applicable Servicing Criteria.

     See Exhibit 33 and 34.

     LaSalle Bank National Association's ("LaSalle") Report on Assessment
     of Compliance with Servicing Criteria for 2007 (the "2007
     Assessment") attached to this Report on Form 10-K describes in
     Appendix B the following material instance of noncompliance related
     to investor reporting:

     "1122(d)(3)(i)(A) and (B) - During the Reporting Period, certain
     monthly investor or remittance reports were not prepared in accordance
     with the terms set forth in the transaction agreements and certain
     investor reports did not provide the information calculated in
     accordance with the terms specified in the transaction agreements for
     which certain individual errors may or may not have been material."

     The investor reporting errors identified on LaSalle's 2007 Assessment
     as material instances of noncompliance (the "Investor Reporting Errors")
     included, for example, revised delinquency, REO, foreclosure,
     repurchase, payoff or modified loan counts, category indicators
     and/or balances. The conclusion that the Investor Reporting Errors
     amounted to a material instance of noncompliance was based primarily on
     the aggregate number of errors as opposed to the materiality of any one
     error.

     The Investor Reporting Errors were generally caused by human error
     resulting primarily from high volume monthly data processing demands
     that had to be addressed within constricted time frames with less than
     a full complement of operational staff. Between the fourth quarter of
     the Reporting Period and the date of the 2007 Assessment, LaSalle has
     employed additional operational staff to accommodate the high volume of
     monthly investor reporting requirements and minimize the risk of the
     Investor Reporting Errors recurring. Other necessary controls are in
     place to minimize the risk of such errors.

     With respect to the specific pool assets and asset-backed securities
     related to the Investor Reporting Errors, the errors did not have, and
      are not reasonable likely in the future to have, any material impact or
     effect on pool asset performance, servicing of the pool assets and
     payments or expected payments on the mortgage-backed securities.

     Item 1123 of Regulation AB, Servicer Compliance Statement.

     See Exhibit 35.

                                     PART IV

     ITEM 15. Exhibits, Financial Statement Schedules.

     (a) List the following documents filed as a part of the report:

        (1) Not Applicable.

        (2) Not Applicable.

        (3)

        Exhibit 4 was filed as part of the Registrant's Current Report on Form
        8-K filed on February 12, 2007 (Commission File No. 333-130694-17)
        and is incorporated by reference herein.

        Exhibit 4 Pooling and Servicing Agreement, dated as of January 1, 2007,
        by and among Morgan Stanley ABS Capital I Inc., as depositor,
        Countrywide Home Loans Servicing LP, as a servicer, Saxon Mortgage
        Services, Inc., as a servicer, NC Capital Corporation, as a responsible
        party, Decision One Mortgage Company, LLC, as a responsible party,
        LaSalle Bank National Association, as custodian and Deutsche Bank
        National Trust Company, as trustee.

        Exhibit 31 Rule 13a-14(d)/15d-14(d) Certification.

        Exhibit 33.1 Saxon Mortgage Services, Inc.'s Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.2 First American Corporation's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.3 Southwest Business Corporation's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.4 FIS Tax Services' Annual Report on Assessment of
        Compliance for Year End December 31, 2007.

        Exhibit 33.5 Countrywide Home Loans Servicing LP's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.6 Deutsche Bank National Trust Company's Annual Report
        on Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.7 LaSalle Bank National Association's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 34.1 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Saxon Mortgage Services, Inc.'s (Exhibit
        33.1) for Year End December 31, 2007.

        Exhibit 34.2 Attestation Report on Assessment of Compliance with
        Servicing Criteria for First American Corporation's Report
       (Exhibit 33.2) for Year End December 31, 2007.

        Exhibit 34.3 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Southwest Business Corporation's Report
       (Exhibit 33.3) for Year End December 31, 2007.

        Exhibit 34.4 Attestation Report on Assessment of Compliance with
        Servicing Criteria for FIS Tax Services' Report (Exhibit 33.4) for
        Year End December 31, 2007.

        Exhibit 34.5 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Countrywide Home Loans Servicing LP's (Exhibit
        33.5) for Year End December 31, 2007.

        Exhibit 34.6 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Deutsche Bank National Trust Company's Report
       (Exhibit 33.6) for Year End December 31, 2007.

        Exhibit 34.7 Attestation Report on Assessment of Compliance with
        Servicing Criteria for LaSalle Bank National Association's Report
       (Exhibit 33.7) for Year End December 31, 2007.

        Exhibit 35.1 Saxon Mortgage Services, Inc.'s Annual Statement of
        Compliance for Year End December 31, 2007.

        Exhibit 35.2 Countrywide Home Loans Servicing LP's Annual Statement
        of Compliance for Year End December 31, 2007.

     (b) See (a) above.

     (c) Not Applicable.






                                      SIGNATURE

          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.



                             By: Morgan Stanley ABS Capital I Inc.,
                                 as Depositor on behalf of the Registrant



                                      By:  /s/ Steven Shapiro
                                           Steven Shapiro
                                           Vice President
                                          (Senior Officer in Charge of
                                           Securitization of the Depositor)



     Date: March 28, 2008



     EXHIBIT INDEX

     Exhibit Document

        Exhibit 4 was filed as part of the Registrant's Current Report on Form
        8-K filed on February 12, 2007 (Commission File No. 333-130694-17)
        and is incorporated by reference herein.

        Exhibit 4 Pooling and Servicing Agreement, dated as of January 1, 2007,
        by and among Morgan Stanley ABS Capital I Inc., as depositor,
        Countrywide Home Loans Servicing LP, as a servicer, Saxon Mortgage
        Services, Inc., as a servicer, NC Capital Corporation, as a responsible
        party, Decision One Mortgage Company, LLC, as a responsible party,
        LaSalle Bank National Association, as custodian and Deutsche Bank
        National Trust Company, as trustee.

        Exhibit 31 Rule 13a-14(d)/15d-14(d) Certification.

        Exhibit 33.1 Saxon Mortgage Services, Inc.'s Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.2 First American Corporation's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.3 Southwest Business Corporation's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.4 FIS Tax Services' Annual Report on Assessment of
        Compliance for Year End December 31, 2007.

        Exhibit 33.5 Countrywide Home Loans Servicing LP's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.6 Deutsche Bank National Trust Company's Annual Report
        on Assessment of Compliance for Year End December 31, 2007.

        Exhibit 33.7 LaSalle Bank National Association's Annual Report on
        Assessment of Compliance for Year End December 31, 2007.

        Exhibit 34.1 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Saxon Mortgage Services, Inc.'s (Exhibit
        33.1) for Year End December 31, 2007.

        Exhibit 34.2 Attestation Report on Assessment of Compliance with
        Servicing Criteria for First American Corporation's Report
       (Exhibit 33.2) for Year End December 31, 2007.

        Exhibit 34.3 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Southwest Business Corporation's Report
       (Exhibit 33.3) for Year End December 31, 2007.

        Exhibit 34.4 Attestation Report on Assessment of Compliance with
        Servicing Criteria for FIS Tax Services' Report (Exhibit 33.4) for
        Year End December 31, 2007.

        Exhibit 34.5 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Countrywide Home Loans Servicing LP's (Exhibit
        33.5) for Year End December 31, 2007.

        Exhibit 34.6 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Deutsche Bank National Trust Company's Report
       (Exhibit 33.6) for Year End December 31, 2007.

        Exhibit 34.7 Attestation Report on Assessment of Compliance with
        Servicing Criteria for LaSalle Bank National Association's Report
       (Exhibit 33.7) for Year End December 31, 2007.

        Exhibit 35.1 Saxon Mortgage Services, Inc.'s Annual Statement of
        Compliance for Year End December 31, 2007.

        Exhibit 35.2 Countrywide Home Loans Servicing LP's Annual Statement
        of Compliance for Year End December 31, 2007.