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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**Form 10-K      **

**(Mark      One)**

|   | **x** | **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                .** |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Delaware**                                                                                        | **52-2029487**                                                    |
|-----------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization)         | (I.R.S.                EmployerIdentification                No.) |
| **103                Springer Building, 3411 Silverside Road, Wilmington,                Delaware** | **19803**                                                         |
| (Address                of principal executive offices)                                             | (Zip                Code)                                         |

| **(302)                478-6160**                                                                   |
|-----------------------------------------------------------------------------------------------------|
| Registrant’s                telephone number, including area code:                            |
| Securities                registered pursuant to Section 12(b) of the Act:** **      |
| Title                of Each Class                                                                  | Name                of Each Exchange on which Registered |
| None                                                                                                | None |
| Securities                registered pursuant to Section 12(g) of the                Act: |
| None                                                                                                |
|                                                                                                |

***a      Form 15 for this transaction was filed on January 26,      2007.**

***the      closing date for the transaction was March 29, 2006**

**Not      Applicable to Registrant**

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| Large                accelerated filer o | Accelerated                filer o | Non-accelerated                filer x |
|------------------------------------------|------------------------------------|----------------------------------------|

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. **Not      Applicable to Registrant**.

**DOCUMENTS      INCORPORATED BY REFERENCE:**

**None**

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**PART I**

*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**

*Item        5.           Market for        Registrant’s Common Equity, Related Stockholder 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*

Omitted        pursuant to General Instruction J to Form 10-K. 

*Item        7A.           Quantitative        and Qualitative Disclosures About Market Risk*

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*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*

**PART III**

*Item        10.           Directors        and Executive Officers of 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*

**PART IV**

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

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**Exhibit        No.**

|   | 4.1 | Pooling                  and Servicing Agreement dated as of March 1, 2006 (incorporated                  by                  reference to Exhibit 99.1 of the issuing entity’s current report of Form                  8-K filed March 31, 2006). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Master                  Agreement dated as of March 29, 2006 (incorporated by reference                  to Exhibit                  99.3 of the issuing entity’s current report on Form 8-K filed on March 31,                  2006). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Subservicing                  Agreement dated as of May 31, 2006 (incorporated by reference to                  Exhibit                  99.1 of the issuing entity’s current report on Form 8-K filed on June 2,                  2006). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Indemnity                  Letter Agreement dated as of March 27, 2006 (incorporated by reference                  to                  Exhibit 99.2 of the issuing entity’s current report on Form 8-K filed on                  March 31, 2006). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Rule                  13a-14(a)/15d-14(a) Certification (Section 302                  Certification). |
|--------|------|-------------------------------------------------------------------------------------------------------|

|   | 33.1 | Equity                  One, Inc.’s and Popular Mortgage Servicing, Inc.’s Management Report on                  Assessment of Compliance with Applicable Servicing                  Criteria.* |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.2 | The                  Bank of New York’s and The Bank of New York Trust Company’s Assertion of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.3 | JPMorgan                  Chase Bank, National Association Management’s Report on Assessment of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.4 | JPMorgan                  Chase Bank, National Association Management’s Report on Assessment of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.5 | JPMorgan                  Chase Bank, National Association Management’s Report on Assessment of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.6 | ZC                  Sterling Insurance Agency, Inc.’s Report on Assessment of Compliance with                  Securities and Exchange Commission’s Regulation AB Servicing                  Criteria. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.7 | ZC                  Real Estate Tax Solutions Limited’s Report on Assessment of Compliance                  with Securities and Exchange Commission’s Regulation AB Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.1 | Report                  of Independent Registered Public Accounting Firm (PricewaterhouseCoopers                  LLP). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

|   | 34.2 | Report                  of Independent Registered Public Accounting                  Firm |
|--------|------|-------------------------------------------------------------------------------------------|

|   |   | (Ernst                  & Young, LLP). |
|--------|--------|--------------------------------------------|

|   | 34.3 | Report                  of Independent Registered Public Accounting Firm |
|--------|------|--------------------------------------------------------------------------|

|   |   | (PricewaterhouseCoopers                  LLP). |
|--------|--------|------------------------------------------------|

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|   | 34.4 | Report                  of Independent Registered Public Accounting                  Firm |
|--------|------|-------------------------------------------------------------------------------------------|

|   |   | (PricewaterhouseCoopers                  LLP). |
|--------|--------|------------------------------------------------|

|   | 34.5 | Report                  of Independent Registered Public Accounting Firm |
|--------|------|--------------------------------------------------------------------------|

|   |   | (PricewaterhouseCoopers                  LLP). |
|--------|--------|------------------------------------------------|

|   | 34.6 | Report                  of Independent Registered Public Accounting Firm |
|--------|------|--------------------------------------------------------------------------|

|   |   | (Ernst                  & Young, LLP). |
|--------|--------|--------------------------------------------|

|   | 34.7 | Report                    of Independent Registered Public Accounting                    Firm |
|--------|------|-----------------------------------------------------------------------------------------------|

|   |   | (Ernst                    & Young, LLP). |
|--------|--------|----------------------------------------------|

|   | 35.1 | Servicing                  Compliance Statement of Equity One,                  Inc. |
|--------|------|--------------------------------------------------------------------------------------|

|   | 35.2 | Servicing                  Compliance Statement of Popular Mortgage Servicing,                  Inc. |
|--------|------|------------------------------------------------------------------------------------------------------|

**Explanatory        Note**

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

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

*Item        1114(b)(2) of Regulation        AB.           Credit        Enhancement and Other Support, except for certain derivatives instruments        *

*Item        1115(b)(2) of Regulation        AB.           Certain        Derivatives Instruments*

None.

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*Item        1117 of Regulation        AB.           Legal        Proceedings*

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

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

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*Item        1123 of Regulation        AB.           Servicer        Compliance Statement*

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**SIGNATURES**

**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.**

|   |   | POPULAR                  ABS, INC.                                                                  |
|--------|--------|-----------------------------------------------------------------------------------------------------|
|   |   | (Depositor)                                                                                         |
|   |   |                                                                                                |
|   |   |                                                                                                |
|   | By:    | /s/                  Alberto Paracchini                                                             |
|   |   | Name:                  Alberto Paracchini                                                           |
|   |   | Title:                  Executive Vice President                                                    |
|   |   |                            and Chief Financial Officer |

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**Exhibit        Index**

**Exhibit        No.**

|   | 4.1 | Pooling                  and Servicing Agreement dated as of March 1, 2006 (incorporated                  by                  reference to Exhibit 99.1 of the issuing entity’s current report of Form                  8-K filed March 31, 2006). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Master                  Agreement dated as of March 29, 2006 (incorporated by reference                  to Exhibit                  99.3 of the issuing entity’s current report on Form 8-K filed on March 31,                  2006). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Subservicing                  Agreement dated as of May 31, 2006 (incorporated by reference to                  Exhibit                  99.1 of the issuing entity’s current report on Form 8-K filed on June 2,                  2006). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Indemnity                  Letter Agreement dated as of March 27, 2006 (incorporated by reference                  to                  Exhibit 99.2 of the issuing entity’s current report on Form 8-K filed on                  March 31, 2006). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Rule                  13a-14(a)/15d-14(a) Certification (Section 302                  Certification). |
|--------|------|-------------------------------------------------------------------------------------------------------|

|   | 33.1 | Equity                  One, Inc.’s and Popular Mortgage Servicing, Inc.’s Management Report on                  Assessment of Compliance with Applicable Servicing                  Criteria. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.2 | The                  Bank of New York’s and The Bank of New York Trust Company’s Assertion of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.3 | JPMorgan                  Chase Bank, National Association Management’s Report on Assessment of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.4 | JPMorgan                  Chase Bank, National Association Management’s Report on Assessment of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.5 | JPMorgan                  Chase Bank, National Association Management’s Report on Assessment of                  Compliance with Applicable Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.6 | ZC                  Sterling Insurance Agency, Inc.’s Report on Assessment of Compliance with                  Securities and Exchange Commission’s Regulation AB Servicing                  Criteria. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33.7 | ZC                  Real Estate Tax Solutions Limited’s Report on Assessment of Compliance                  with Securities and Exchange Commission’s Regulation AB Servicing                  Criteria. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34.1 | Report                  of Independent Registered Public Accounting Firm (PricewaterhouseCoopers                  LLP). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

|   | 34.2 | Report                  of Independent Registered Public Accounting                  Firm |
|--------|------|-------------------------------------------------------------------------------------------|

|   |   | (Ernst                  & Young, LLP). |
|--------|--------|--------------------------------------------|

|   | 34.3 | Report                  of Independent Registered Public Accounting Firm |
|--------|------|--------------------------------------------------------------------------|

|   |   | (PricewaterhouseCoopers                  LLP). |
|--------|--------|------------------------------------------------|

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|   | 34.4 | Report                  of Independent Registered Public Accounting                  Firm |
|--------|------|-------------------------------------------------------------------------------------------|

|   |   | (PricewaterhouseCoopers                  LLP). |
|--------|--------|------------------------------------------------|

|   | 34.5 | Report                  of Independent Registered Public Accounting Firm |
|--------|------|--------------------------------------------------------------------------|

|   |   | (PricewaterhouseCoopers                  LLP). |
|--------|--------|------------------------------------------------|

|   | 34.6 | Report                  of Independent Registered Public Accounting Firm |
|--------|------|--------------------------------------------------------------------------|

|   |   | (Ernst                  & Young, LLP). |
|--------|--------|--------------------------------------------|

|   | 34.7 | Report                  of Independent Registered Public Accounting                  Firm |
|--------|------|-------------------------------------------------------------------------------------------|

|   |   | (Ernst                  & Young, LLP). |
|--------|--------|--------------------------------------------|

|   | 35.1 | Servicing                  Compliance Statement of Equity One,                  Inc. |
|--------|------|--------------------------------------------------------------------------------------|

|   | 35.2 | Servicing                  Compliance Statement of Popular Mortgage Servicing,                  Inc. |
|--------|------|------------------------------------------------------------------------------------------------------|

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