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**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

**(Mark      one)**

|   |   |                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
| þ |   | **ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |

**For      the fiscal year ended December 31, 2006**

**or**

|   |   |                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
| o      |   | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |

**For      the transition period from **
**                    **
**      to **
**                    **

**Commission      file number 333-125158-**
**25**

**FIRST      HORIZON ABS TRUST 2006-HE1**

**FIRST      HORIZON ASSET SECURITIES INC.**

**FIRST      TENNESSEE BANK NATIONAL ASSOCIATION**

|                                                    |   |                                                              |
|---------------------------------------------------------|--------|-------------------------------------------------------------------|
| **Delaware**(State                of Organization)      |   | **75-2808384**(I.R.S.                Employer Identification No.) |
|                                                    |   |                                                              |
| **4000                Horizon Way**                     |   |                                                              |
| **Irving,                TX**                           |   | **75063**                                                         |
| (Address                of principal executive offices) |   | (Zip                Code)                                         |

441-4000

|                                   |   |                                     |
|----------------------------------------|--------|------------------------------------------|
|                                   |   | **Name                of each exchange** |
| **Title                of each class** |   | **on                which each class**   |
| **to                be so registered** |   | **is                to be registered**   |
|                                   |   |                                     |
| None                                   |   | Not                Applicable            |

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** 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.**

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

           **Indicate      by check mark 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 and      (2) has been subject to such filing requirements for the past      90 days.**

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

**Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of      the Act).**

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

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

**Documents      incorporated by Reference**

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**TABLE      OF CONTENTS**

| PART                  I   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      | Item 1.                  Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                      | Item 1A.                  Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                      | Item 2.                  Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                      | Item 3.                  Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                      | Item 4.                  Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                      | Item 1B.                  Unresolved Staff Comments                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                      | Item 1112(b)                  of Regulation AB. Significant Obligors of Pool Assets (Financial                  Information)                                                                                                                                                                                                                                                                                                                                                                       |
|                      | Item 1114(b)(2)                  of Regulation AB. Credit Enhancement and Other Support, Except for                  Certain Derivatives Instruments (Financial Information)                                                                                                                                                                                                                                                                                                                       |
|                      | Item                  1115(b) of Regulation AB. Certain Derivatives Instruments (Financial                  Information)                                                                                                                                                                                                                                                                                                                                                                                |
|                      | Item 1117                  of Regulation AB. Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| PART                  II  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                      | Item 9B.                  Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| PART                  III |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                      | 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                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                      | 4.1                  - Indenture, dated as of March 1, 2006, by and between First Horizon                  ABS                  Trust 2006-HE1, as issuer, and The Bank of New York, as indenture                  trustee                  (incorporated by reference to Exhibit 4.1 of the issuing entity’s Current                  Report on Form 8-K filed on April 11, 2006)                                                                                                                     |
|                      | 31.1                  - Rule 13a-14(a)/15d-14(a) Certification (Section 302                  Certification)                                                                                                                                                                                                                                                                                                                                                                                        |
|                      | 33.1                  - Report on Assessment of Compliance with Servicing Criteria                  (FTBNA)                                                                                                                                                                                                                                                                                                                                                                                                  |
|                      | 33.2                  - Report on Assessment of Compliance with Servicing Criteria                  (BoNY)                                                                                                                                                                                                                                                                                                                                                                                                   |
|                      | 33.3                  - Report on Assessment of Compliance with Servicing Criteria (FHHLC                  and                  FTMSI)                                                                                                                                                                                                                                                                                                                                                                       |
|                      | 34.1                  - Report of Independent Registered Public Accounting Firm (KPMG                  for                  FTBNA)                                                                                                                                                                                                                                                                                                                                                                           |
|                      | 34.2                  - Report of Independent Registered Public Accounting Firm (E&Y for                  BoNY)                                                                                                                                                                                                                                                                                                                                                                                          |
|                      | 34.3                  - Report of Independent Registered Public Accounting Firm (KPMG                  for FHHLC                  and FTMSI)                                                                                                                                                                                                                                                                                                                                                                 |
|                      | 35.1                  - Servicer Compliance Statement of FTBNA                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                      | 35.2                  - Servicer Compliance Statement of FHHLC and FTMSI                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                      | 99.1                  - Sale and Servicing Agreement dated March 1, 2006, by and among                  FHASI, as                  depositor, FTBNA, as seller, master servicer and custodian, First                  Horizon                  ABS Trust 2006-HE1, as issuer, and The Bank of New York, as indenture                  trustee (incorporated by reference to Exhibit 99.1 of the issuing                  entity’s                  Current Report on Form 8-K filed on April 11, 2006) |
|                      | 99.2                  - Mortgage Loan Purchase Agreement dated as of March 30, 2006,                  by and                  between FHHLC, as seller, and FHASI, as purchaser (incorporated                  by                  reference to Exhibit 99.2 of the issuing entity’s Current Report on Form                  8-K filed on April 11, 2006)                                                                                                                                              |
|                      | 99.3                  - Amended and Restated Trust Agreement, dated March 30, 2006, by                  and                  between Wilmington Trust Company, as owner trustee, and FHASI,                  as                  depositor (incorporated by reference to Exhibit 99.3 of the issuing                  entity’s Current Report on Form 8-K filed on April 11,                  2006)                                                                                                    |
|                      | 99.4                  - Administration Agreement, dated March 1, 2006, by and among First                  Horizon ABS Trust 2006-HE1, as issuer, FTBNA and The Bank of New                  York, as                  indenture trustee (incorporated by reference to Exhibit 99.4 of                  the                  issuing entity’s Current Report on Form 8-K filed on April 11,                  2006)                                                                                     |
|                      | 99.5                  - Financial Guaranty Insurance Policy, effective March 30, 2006,                  issued by                  Financial Guaranty Insurance Company (incorporated by reference                  to Exhibit                  99.5 of the issuing entity’s Current Report on Form 8-K filed on April 11,                  2006)                                                                                                                                                      |
|                      | 99.6                  - Schedule of Year-to-Date Principal and Interest Distributions                  to                  Noteholders                                                                                                                                                                                                                                                                                                                                                                       |

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**PART      I**

**The      following Items have been omitted in accordance with General Instruction J      to      Form 10-K:**

Item 1.      Business

Item 1A.      Risk Factors

Item 2.      Properties

Item 3.      Legal Proceedings

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

**Item 1B.      Unresolved Staff Comments**

**Substitute      information provided in accordance with General Instruction J to Form      10-K:**

**Item 1112(b)      of Regulation AB. Significant Obligors of Pool Assets (Financial      Information).**

**Item 1114(b)(2)      of Regulation AB. Credit Enhancement and Other Support, Except for Certain      Derivatives Instruments (Financial Information).**

**Item 1115(b)      of Regulation AB. Certain Derivatives Instruments (Financial      Information).**

**Item 1117      of Regulation AB. Legal Proceedings.**

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**PART      II**

**The      following Items have been omitted in accordance with General Instruction J      to      Form 10-K:**

**Item 9B.      Other Information.**

**PART      III**

**The      following Items have been omitted in accordance with General Instruction J      to      Form 10-K**

**Substitute      information provided in accordance with General Instruction J to      Form 10-K:**

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

First      Horizon Asset Securities Inc. (“FHASI”), which acts as the depositor for the      issuing entity, is a wholly-owned subsidiary of First Horizon Home Loan      Corporation (“FHHLC”), which is an indirect wholly-owned subsidiary of First      Tennessee Bank National Association (“FTBNA”), which acts as the sponsor, master      servicer and custodian for the issuing entity.

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

     Each      of FTBNA, FHHLC and The Bank of New York, as trustee (each, a “ Servicing      Participant”),      has      been identified by the registrant as a party participating in the servicing      function during the reporting period with respect to the pool assets held by      the      issuing entity. Each of the Servicing Participants has completed a report on      an      assessment of compliance with the servicing criteria applicable to such      Servicing Participant (each, a “ Report      on Assessment”)      during      the issuing entity’s fiscal year ended December 31, 2006, which Reports on      Assessment are attached as exhibits to this Form 10-K. In addition, each of      the      Servicing Participants has provided an attestation report (each, an“Attestation      Report”)      by a      registered independent public accounting firm regarding its related Report      on      Assessment. Each Attestation Report is attached as an exhibit to this      Form 10-K. None of the Reports on Assessment or the related Attestation      Reports has identified any material instances of noncompliance with the      servicing criteria described in the related Report on Assessment as being      applicable to such Servicing Participant.

**Item 1123      of Regulation AB. Servicer Compliance Statement.**

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**PART      IV**

**Item 15.      Exhibits, Financial Statement Schedules.**

|   | (a) |   | List                of Documents Filed as Part of this                Report |
|--------|-----|--------|------------------------------------------------------------------------------|

|   | (1)    |   | Not                Applicable.                                           |
|--------|--------|--------|--------------------------------------------------------------------------|
|   |   |
|   | (2)    |   | Not                Applicable.                                           |
|   |   |
|   | (3)    |   | See                Item 15 (b), below.                              |
|   |   |   |                                                                     |
|   | (b)    |   | Exhibits                Required by Item 601 of Regulation S-K |
|   |   |   |                                                                     |

| ***EXHIBIT                DESCRIPTION*** |
|------------------------------------------|
| 4.1                                      |   | Indenture,                dated as of March 1, 2006, by and between First Horizon ABS Trust                2006-HE1, as issuer, and The Bank of New York, as indenture trustee                (incorporated by reference to Exhibit 4.1 of the issuing entity’s Current                Report on Form 8-K filed on April 11, 2006) |
|                                     |   |   |
| 31.1                                     |   | Rule 13a-14(a)/15d-14(a)                Certification (Section 302 Certification). |
|                                     |   |   |
| 33.1                                     |   | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of FTBNA for the year ended December 31,                2006. |
|                                     |   |   |
| 33.2                                     |   | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of The Bank of New York for the year ended December 31,                2006. |
|                                     |   |   |
| 33.3                                     |   | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of FHHLC and FTMSI for the year ended December 31,                2006 |
|                                     |   |   |
| 34.1                                     |   | Report                of Independent Registered Public Accounting Firm concerning servicing                activities of FTBNA for the year ended December 31,                2006. |
|                                     |   |   |
| 34.2                                     |   | Report                of Independent Registered Public Accounting Firm concerning servicing                activities of The Bank of New York for the year ended December 31,                2006. |
|                                     |   |   |
| 34.3                                     |   | Report                of Independent Registered Public Accounting Firm concerning servicing                activities of FHHLC and FTMSI for the year ended December 31,                2006. |
|                                     |   |   |
| 35.1                                     |   | Servicer                Compliance Statement of FTBNA for the year ended December 31,                2006. |
|                                     |   |   |
| 35.2                                     |   | Servicer                Compliance Statement of FHHLC and FTMSI for the year ended December                31,                2006. |
|                                     |   |   |
| 99.1                                     |   | Sale                and Servicing Agreement dated March 1, 2006, by and among FHASI,                as                depositor, FTBNA, as seller, master servicer and custodian, First                Horizon                ABS Trust 2006-HE1, as issuer, and The Bank of New York, as indenture                trustee (incorporated by reference to Exhibit 99.1 of the issuing                entity’s                Current Report on Form 8-K filed on April 11, 2006) |
|                                     |   |   |
| 99.2                                     |   | Mortgage                Loan Purchase Agreement dated as of March 30, 2006, by and between                FHHLC,                as seller, and FHASI, as purchaser (incorporated by reference to                Exhibit                99.2 of the issuing entity’s Current Report on Form 8-K filed on April 11,                2006) |
|                                     |   |   |
| 99.3                                     |   | Amended                and Restated Trust Agreement, dated March 30, 2006, by and between                Wilmington Trust Company, as owner trustee, and FHASI, as depositor                (incorporated by reference to Exhibit 99.3 of the issuing entity’s Current                Report on Form 8-K filed on April 11, 2006) |
|                                     |   |   |
| 99.4                                     |   | Administration                Agreement, dated March 1, 2006, by and among First Horizon ABS Trust                2006-HE1, as issuer, FTBNA and The Bank of New York, as indenture                trustee                (incorporated by reference to Exhibit 99.4 of the issuing entity’s Current                Report on Form 8-K filed on April 11, 2006) |
|                                     |   |   |

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| 99.5   |   | Financial                Guaranty Insurance Policy, effective March 30, 2006, issued by Financial                Guaranty Insurance Company (incorporated by reference to Exhibit                99.5 of                the issuing entity’s Current Report on Form 8-K filed on April 11,                2006) |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                  |
| 99.6   |   | Schedule                of Year-to-Date Principal and Interest Distributions to                Noteholders.                                                                                                                                                                                                           |

| (c) |   | Omitted. |
|-----|--------|----------|

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**SIGNATURES**

|                                 |   |   |   |                                                                                            |   |                                                                          |   |   |
|--------------------------------------|--------|--------|--------|-------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|--------|
|                                 |   |   |   | First                Horizon ABS Trust 2006-HE1 (Issuing Entity)                                |
|                                 |   |   |   |                                                                                            |   |                                                                          |
|                                 |   |   |   | By:                First Tennessee Bank National Association, as Master                Servicer |
|                                 |   |   |   |                                                                                            |   |                                                                          |
|                                 |   |   |   |                                                                                            |   |                                                                          |   |   |
| Dated:                March 26, 2007 |   |   |   | By:                                                                                             |   | /s/                Terry B. Renoux                                            |   |   |
|                                 |   |   |   |                                                                                            |   |  Terry                B. Renoux                                          |   |   |
|                                 |   |   |   |                                                                                            |   | President                , Consumer Finance                                   |   |   |
|                                 |   |   |   |                                                                                            |   | (Senior                Officer of the Master Servicer in charge of Servicing) |   |   |
|                                 |   |   |   |                                                                                            |   |                                                                          |   |   |

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**EXHIBIT      INDEX**

| **EXHIBIT** | **DESCRIPTION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1         | Indenture,                dated as of March 1, 2006, by and between First Horizon ABS Trust                2006-                HE1, as issuer, and The Bank of New York, as indenture trustee                (incorporated by reference to Exhibit 4.1 of the issuing entity’s Current                Report on Form 8-K filed on April 11, 2006)                                                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.1        | Rule13a-14(a)/15d-14(a)                Certification (Section302 Certification).                                                                                                                                                                                                                                                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 33.1        | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of FTBNA for the year ended December 31,                2006.                                                                                                                                                                                                                                                                                                |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 33.2        | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of The Bank of New York for the year ended December 31,                2006.                                                                                                                                                                                                                                                                                 |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 33.3        | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of FHHLC and FTMSI for the year ended December 31,                2006.                                                                                                                                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 34.1        | Report                of Independent Registered Public Accounting Firm concerning servicing                activities of FTBNA for the year ended December 31,                2006.                                                                                                                                                                                                                                                                                                   |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 34.2        | Report                of Independent Registered Public Accounting Firm concerning servicing                activities of The Bank of New York for the year ended December 31,                2006.                                                                                                                                                                                                                                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 34.3        | Report                of Independent Registered Public Accounting Firm concerning servicing                activities of FHHLC and FTMSI for the year ended December 31,                2006.                                                                                                                                                                                                                                                                                         |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 35.1        | Servicer                Compliance Statement of FTBNA for the year ended December 31,                2006.                                                                                                                                                                                                                                                                                                                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 35.2        | Servicer                Compliance Statement of FHHLC and FTMSI for the year ended December                31,                2006.                                                                                                                                                                                                                                                                                                                                                   |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.1.       | Sale                and Servicing Agreement dated March 1, 2006, by and among FHASI,                as                depositor, FTBNA, as seller, master servicer and custodian, First                Horizon                ABS Trust 2006-HE1, as issuer, and The Bank of New York, as indenture                trustee (incorporated by reference to Exhibit 99.1 of the issuing                entity’s                Current Report on Form 8-K filed on April 11, 2006) |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.2        | Mortgage                Loan Purchase Agreement dated as of March 30, 2006, by and between                FHHLC,                as seller, and FHASI, as purchaser (incorporated by reference to                Exhibit                99.2 of the issuing entity’s Current Report on Form 8-K filed on April 11,                2006)                                                                                                                                          |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.3        | Amended                and Restated Trust Agreement, dated March 30, 2006, by and between                Wilmington Trust Company, as owner trustee, and FHASI, as depositor                (incorporated by reference to Exhibit 99.3 of the issuing entity’s Current                Report on Form 8-K filed on April 11, 2006)                                                                                                                                               |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.4        | Administration                Agreement, dated March 1, 2006, by and among First Horizon ABS Trust                2006-HE1, as issuer, FTBNA and The Bank of New York, as indenture                trustee                (incorporated by reference to Exhibit 99.4 of the issuing entity’s Current                Report on Form 8-K filed on April 11, 2006)                                                                                                                 |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.5        | Financial                Guaranty Insurance Policy, effective March 30, 2006, issued by Financial                Guaranty Insurance Company (incorporated by reference to Exhibit                99.5 of                the issuing entity’s Current Report on Form 8-K filed on April 11,                2006)                                                                                                                                                                 |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.6        | Schedule                of Year-to-Date Principal and Interest Distributions to                Noteholders                                                                                                                                                                                                                                                                                                                                                                            |