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SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
 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 of Issuing Entity: 333-130223-03
 ChaseFlex Trust Series 2006-1
  Chase Mortgage Finance Corporation
  Chase Home Finance LLC
  Delaware(State of incorporation or organization)
    
    (IRS Employer Identification No.)
 194 Wood Avenue South, Iselin, New Jersey
    
    08830
    
    (732) 205-0600(Address of Principal Executive Offices)
    
    (Zip Code)
    
    (Telephone Number)
 
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TABLE OF CONTENTS  PART IItem 1. BusinessItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsItem 2. PropertiesItem 3. Legal ProceedingsItem 4. Submission of Matters to a Vote of Security HoldersPART IIItem 5. Market for Registrants Common Equity and Related Stockholders Matters and Issuer Purchases of Equity SecuritiesItem 6. Selected Financial DataItem 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 9A. Controls and ProceduresItem 9B. Other InformationPART IIIItem 10. Directors and Executive Officers of the RegistrantItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 13. Certain Relationships and Related TransactionsItem 14. Principal Accounting Fees and ServicesItem 1112(b) or Regulation AB. Significant Obligor Financial InformationItem 1114(b)(2) and Item 1115(b) of Regulation AB. Significant Enhancement Provider Financial InformationItem 1117 of Regulation AB. Legal ProceedingsItem 1119 of Regulation AB. Affiliations and Certain Relationships and Related TransactionsItem 1122 of Regulation AB. Compliance with applicable Servicing CriteriaItem 1123 of Regulation AB. Servicer Compliance StatementPART IVItem 15. Exhibits and Financial Statement SchedulesSIGNATURESINDEX TO EXHIBITSSarbanes-Oxley CertificationJP Morgan Chase Bank, National Association Report on Assessment of Compliance with Servicing CriteriaChase Home Finance LLC Report on Assessment of Compliance with Servicing CriteriaJP Morgan Chase Bank, National Association Report on Assessment of Compliance with Servicing Criteria (Paying Agent)JPMorgan Chase Bank, National Associtaion Report on Assessment of Compliance with Servicing Criteria (Paying Agent)(Q4)The Bank of New York Trust Company, N.A. Report on Assessment of Compliance with Servicing Criteria (Paying Agent)Report of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLPReport of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP (Subservicer)Report of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP (JPMorgan Chase Bank, National Association as Paying Agent)Report of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP (JPMorgan Chase Bank, National Association as Paying Agent)(Q4)Report of Independent Registered Public Accounting Firm - Ernst & Young LLP (The Bank of New York Trust Company)Servicer Compliance Statement - JPMorgan Chase Bank, National AssociationSubservicer Compliance Statement - Chase Home Finance LLC    Table of Contents  
 PART I
 THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH
GENERAL INSTRUCTION J(1) TO FORM 10-K
 
 Item 1. Business
 
 Item 1A. Risk Factors
 
 Item 1B. Unresolved Staff Comments
 
 Item 2. Properties
 
 Item 3. Legal Proceedings
 
 Item 4. Submission of Matters to a Vote of Security Holders
 
 PART II
 THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH
GENERAL INSTRUCTION J(1) TO FORM 10-K
 
 Item 5.
    
    Market for Registrants Common Equity and Related Stockholders Matters and Issuer
Purchases of Equity Securities
 
 Item 6. Selected Financial Data
 
 Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
 
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk
 
 Item 8. Financial Statements and Supplementary Data
 
 Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
 
 Item 9A. Controls and Procedures
 
 Item 9B. Other Information




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PART III
 THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH
GENERAL INSTRUCTION J(1) TO FORM 10-K
 
 Item 10. Directors and Executive Officers of the Registrant
 
 Item 11. Executive Compensation
 
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
 
 Item 13. Certain Relationships and Related Transactions
 
 Item 14. Principal Accounting Fees and Services
 THE FOLLOWING ITEMS HAVE BEEN SUBSTITUTED IN ACCORDANCE WITH
GENERAL INSTRUCTION J(2) TO FORM 10-K AND PURSUANT TO REGULATION AB
 
 Item 1112(b) or Regulation AB. Significant Obligor Financial Information
  
 Item 1114(b)(2) and Item 1115(b) of Regulation AB. Significant Enhancement Provider Financial
Information
  
 Item 1117 of Regulation AB. Legal Proceedings
  
 Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions
 
    Table of Contents    
 Item 1122 of Regulation AB. Compliance with applicable Servicing Criteria
    
 Item 1123 of Regulation AB. Servicer Compliance Statement
  
 PART IV
 
 Item 15. Exhibits and Financial Statement Schedules
     Exhibit No.
 4.1
    
    Pooling and Servicing Agreement (Filed as an exhibit to Form 8-K on June 8, 2006)




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10.1
    
    Mortgage Loan Sale Agreement (Chase Home Finance LLC) (Filed as an exhibit to
Form 8-K on June 8, 2006)31.1
    
    Sarbanes-Oxley Certification33.1
    
    JPMorgan Chase Bank, National Association Report on
Assessment of Compliance with Servicing Criteria (Servicer)33.2
    
    Chase Home Finance LLC Report on Assessment of
Compliance with Servicing Criteria (Subservicer)33.3
    
    JPMorgan Chase Bank, National Association Report on
Assessment of Compliance with Servicing Criteria (Paying Agent)33.4
    
    JPMorgan Chase Bank, National Association Report on
Assessment of Compliance with Servicing Criteria (Paying Agent) (Q4)33.5
    
    The Bank of New York Trust Company, N.A. Report on
Assessment of Compliance with Servicing Criteria (Paying Agent)34.1
    
    Report of Independent Registered Public Accounting Firm
(Price- WaterhouseCoopers LLP) (Servicer)34.2
    
    Report of Independent Registered Public Accounting Firm
(Price- WaterhouseCoopers LLP) (Subservicer)34.3
    
    Report of Independent Registered Public Accounting firm )
(Price- WaterhouseCoopers LLP) (JPMorgan Chase Bank,
National
Association as Paying Agent34.4
    
    Report of Independent Registered Public Accounting firm
(Price- WaterhouseCoopers
LLP) (JPMorgan
Chase Bank,
National
Association as Paying Agent)(Q4)34.5
    
    Report of Independent Registered Public Accounting Firm
(Ernst & Young LLP) (The Bank of New York
Trust Company,
N.A., as Paying Agent)35.1
    
    Servicer Compliance Statement  JPMorgan Chase Bank,
National Association35.2
    
    Subservicer Compliance Statement  Chase Home Finance LLC




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31
    
    Rule 13a-14(d)/15d-14(d) Certifications33
    
    Reports on assessment of compliance with servicing
criteria for asset-backed securities:
-JPMorgan Chase Bank, National Association, as Servicer
-Chase Home Finance LLC, as Subservicer
-JPMorgan Chase Bank, National Association, as Paying Agent
-JPMorgan Chase Bank, National Association, as Paying
Agent (Q4)
-The Bank of New York Trust Company, N.A., as Paying Agent34
    
    Attestation reports on assessment of compliance with
servicing criteria for asset-backed securities:
-JPMorgan Chase Bank, National Association, as Servicer
-Chase Home Finance LLC, as Subservicer
-JPMorgan Chase Bank, National Association, as Paying Agent
-JPMorgan Chase Bank, National Association, as Paying
Agent (Q4)
-The Bank of New York Trust Company, N.A., as Paying Agent35
    
    Servicer Compliance Statements
-JPMorgan Chase Bank, National Association, as Servicer
-Chase Home Finance LLC, as Subservicer




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SIGNATURES
  CHASE MORTGAGE FINANCE CORPORATION,
as depositorBy:
    
    /s/ Jerome A. CipponeriName:
    
    Jerome A. CipponeriTitle:
    
    President and CEO(senior officer in charge of securitization of the depositor)




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INDEX TO EXHIBITS
 Exhibit Number
    
    Description4.1
    
    Pooling and Servicing
Agreement (Filed as an
exhibit to Form 8-K on June 8, 2006)10.1
    
    Mortgage Loan Sale
Agreement (Chase Home
Finance LLC) (Filed as an exhibit to Form 8-K on June 8, 2006)31.1
    
    Sarbanes-Oxley Certification33.1
    
    JPMorgan Chase Bank,
National Association Report
on Assessment of Compliance with Servicing Criteria (Servicer)33.2
    
    Chase Home Finance LLC
Report on Assessment of Compliance with Servicing Criteria
(Subservicer)33.3
    
    JPMorgan Chase Bank,
National Association Report
on Assessment of Compliance with Servicing Criteria
(Paying Agent)33.4
    
    JPMorgan Chase Bank,
National Association Report
on Assessment of Compliance with Servicing Criteria (Paying Agent) (Q4)33.5
    
    The Bank of New York Trust
Company, N.A. Report on Assessment of Compliance with
Servicing Criteria
(Paying Agent)34.1
    
    Report of Independent
Registered Public
Accounting Firm (PriceWaterhouseCoopers LLP) (Servicer)34.2
    
    Report of Independent
Registered Public
Accounting Firm (PriceWaterhouseCoopers LLP)
(Subservicer)34.3
    
    Report of Independent Registered Public Accounting firm (PriceWaterhouseCoopers LLP) (JPMorgan Chase Bank, National Association as Paying Agent)




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Exhibit Number
    
    Description34.4
    
    Report of
Independent
Registered Public
Accounting firm (PriceWaterhouseCoopers LLP) (JPMorgan Chase Bank, National Association as Paying Agent) (Q4)34.5
    
    Report of
Independent
Registered Public
Accounting Firm (Ernst & Young LLP) (The Bank of New York Trust Company, N.A., as Paying Agent)35.1
    
    Servicer Compliance Statement  JPMorgan Chase Bank, National Association35.2
    
    Subservier Compliance Statement  Chase Home Finance LLC