Exhibit 35.2



                              ANNUAL CERTIFICATION

      Re:   Morgan Stanley Home Equity Loan Trust (the "Trust"), Mortgage
            Pass-Through Certificates, Series 2006-3, issued pursuant to the
            Pooling and Servicing Agreement, dated as of May 1, 2006 (the
            "Pooling and Servicing Agreement"), by and among Morgan Stanley ABS
            Capital I Inc, as depositor (the "Depositor"), Deutsche Bank,
            National Trust Company, as trustee (the "Trustee"), First NLC
            Financial Services, LLC, as responsible party (the "Responsible
            Party"), and Wachovia Equity Servicing, LLC (successor by merger to
            HomEq Servicing Corporation), as servicer (the "Servicer")

I, Tom Fowler, Vice President, of the Wachovia Equity Servicing, LLC (successor
by merger to HomEq Servicing Corporation), hereby certify to the Depositor and
the Trustee and their officers, directors, and affiliates, pursuant to Section
3.22 of the Pooling and Servicing Agreement, that:

      A review of the activities of the Servicer during the period of January 1,
      2006 to November 1, 2006, or the applicable portion thereof, and, to the
      best of my knowledge, based on such review, the Servicer has fulfilled all
      of its obligations under the Pooling and Servicing Agreement in all
      material respects for the period of January 1, 2006 to November 1, 2006.


Date: Feb 23, 2007

/s/ William T. Fowler
---------------------
William T. Fowler
Vice President


Morgan Stanley Officer's Certificate
MSHEL 2006-3

<page>

ANNUAL CERTIFICATION

      Re:   Morgan Stanley Home Equity Loan Trust (the "Trust"), Mortgage
            Pass-Through Certificates, Series 2006-3, issued pursuant to the
            Pooling and Servicing Agreement, dated as of May 1, 2006 (the
            "Pooling and Servicing Agreement"), by and among Morgan Stanley ABS
            Capital I Inc, as depositor (the "Depositor"), Deutsche Bank,
            National Trust Company, as trustee (the "Trustee"), First NLC
            Financial Services, LLC, as responsible party (the "Responsible
            Party"), and Barclays Capital Real Estate Inc. d/b/a/ HomEq
            Servicing, as servicer (the "Servicer")

On November 1, 2006, substantially all of the servicing assets of Servicer were
acquired by Barclays Capital Real Estate Inc. d/b/a/ HomEq Servicing. I, Arthur
Q. Lyon, Vice President and Chief Executive Officer of the HomEq Servicing
Division of Barclays Capital Real Estate Inc. d/b/a/ HomEq Servicing, hereby
certify to the Depositor and the Trustee and their officers, directors, and
affiliates, pursuant to Section 3.22 of the Pooling and Servicing Agreement,
that:

      A review of the activities of the Servicer during the period of November
      1, 2006 to December 31, 2006, or the applicable portion thereof, and, to
      the best of my knowledge, based on such review, the Servicer has fulfilled
      all of its obligations under the Pooling and Servicing Agreement in all
      material respects for the period of November 1, 2006 to December 31, 2006.


Date: March 7, 2007


/s/ Arthur Q. Lyon
----------------------------
Arthur Q. Lyon
Vice President and CEO
HomEq Servicing Division


Morgan Stanley Officer's Certificate
MSHEL 2006-3