Sast 2006-3 FWP Free writing prospectus

SUBJECT TO REVISION

FREE WRITING PROSPECTUS DATED SEPTEMBER 26, 2006

$1,078,545,000 (Approximate)

SAXON ASSET SECURITIES TRUST 2006-3

MORTGAGE LOAN ASSET BACKED NOTES, SERIES 2006-3

SAXON ASSET SECURITIES COMPANY

Depositor

SAXON FUNDING MANAGEMENT, INC.

Seller and Master Servicer

SAXON MORTGAGE SERVICES, INC.

Servicer

September 26, 2006

IMPORTANT NOTICE REGARDING THE CONDITIONS

FOR THIS OFFERING OF ASSET-BACKED SECURITIES

The asset-backed securities referred to in these materials are being offered when, as and if issued. In particular, you are advised that asset-backed securities, and the asset pools backing them, are subject to modification or revision (including, among other things, the possibility that one or more classes of securities may be split, combined or eliminated), at any time prior to issuance or availability of a final prospectus. As a result, you may commit to purchase securities that have characteristics that may change, and you are advised that all or a portion of the securities may not be issued that have the characteristics described in these materials. Our obligation to sell securities to you is conditioned on the securities and the underlying transaction having the characteristics described in these materials. If we determine that condition is not satisfied in any material respect, we will notify you, and neither the issuing entity nor the underwriter will have any obligation to you to deliver all or any portion of the securities which you have committed to purchase, and there will be no liability between us as a consequence of the non-delivery.

IMPORTANT INFORMATION AND IRS CIRCULAR 230 NOTICE

This material has been prepared for information purposes to support the promotion or marketing of the transaction or matters addressed herein. This is not a research report and was not prepared by the Morgan Stanley research department. It was prepared by Morgan Stanley sales, trading, banking or other non-research personnel. This material was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. Past performance is not necessarily a guide to future performance. Please see additional important information and qualifications at the end of this material.

STATEMENT REGARDING THIS FREE WRITING PROSPECTUS

The depositor has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the depositor has filed with the SEC for more complete information about the depositor, issuing trust and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, the depositor or any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-866-718-1649.

The registration statement referred to above (including the prospectus) is incorporated in this free writing prospectus by reference and may be accessed by clicking on the following hyperlink:http://www.sec.gov/Archives/edgar/data/1014299/000114420406012322/0001144204-06-012322.txt

IMPORTANT NOTICE RELATING TO AUTOMATICALLY GENERATED EMAIL DISCLAIMERS

Any legends, disclaimers or other notices that may appear at the bottom of this e-mail or at the bottom of the e-mail communication to which this material may have beenattached are not applicable to these materials and should be disregarded.  Such legends, disclaimers or other notices have been automatically generated as a result of these materials having been sent via Bloomberg or another email system.

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

$1,078,545,000 (Approximate)

Saxon Asset Securities Trust 2006-3

Subject to a +/- 5% Variance

Class(1, 3, 4)	Principal Amount ($) (1)	Note Type	Expected Rating (Moody’s/S&P)	WAL (Yrs) Call/Mat (2) (3)	Prin Window (Mths) to Call/Mat (2) (3)	Stated Final Maturity (5)
A-1	491,450,000	SEN-FLT	Aaa/AAA	1.00 / 1.00	1 - 23 / 1 - 23	November 2036
A-2	110,900,000	SEN-FLT	Aaa/AAA	2.00 / 2.00	23 - 27 / 23 - 27	November 2036
A-3	211,325,000	SEN-FLT	Aaa/AAA	3.50 / 3.52	27 - 77 / 27 - 84	November 2036
A-4	47,070,000	SEN-FLT	Aaa/AAA	6.38 / 9.69	77 - 77 / 84 - 187	November 2036
M-1	43,450,000	MEZ-FLT	Aa1/AA+	4.86 / 5.38	48 - 77 / 48 - 159	November 2036
M-2	39,600,000	MEZ-FLT	Aa2/AA+	4.66 / 5.17	44 - 77 / 44 - 152	November 2036
M-3	24,200,000	MEZ-FLT	Aa3/AA	4.56 / 5.06	43 - 77 / 43 - 145	November 2036
M-4	23,100,000	MEZ-FLT	A1/AA-	4.51 / 4.99	41 - 77 / 41 - 139	November 2036
M-5	20,900,000	MEZ-FLT	A2/A+	4.47 / 4.93	40 - 77 / 40 - 133	November 2036
M-6	18,700,000	MEZ-FLT	A3/A	4.44 / 4.87	40 - 77 / 40 - 127	November 2036
B-1	20,350,000	SUB-FLT	Baa1/A-	4.41 / 4.80	39 - 77 / 39 - 121	November 2036
B-2	17,050,000	SUB-FLT	Baa2/BBB+	4.39 / 4.73	38 - 77 / 38 - 112	November 2036
B-3	10,450,000	SUB-FLT	Baa3/BBB	4.38 / 4.65	38 - 77 / 38 - 102	November 2036
Total:	1,078,545,000

(1)	Class sizes are subject to a permitted variance in the aggregate of +/-5%. Class sizes are also subject to change based upon the final pool and rating agency evaluation of subordination and overcollateralization levels and excess spread.
(2)	See “Pricing Prepayment Speed” herein.

(3)	The Notes are subject to a 10% Clean-up Call (as described herein). After the first payment date on which the Clean-up Call is exercisable, the margin on the Class A-1, Class A-2, Class A-3, and Class A-4 Notes will double and the margin on the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, and Class B-3 Notes will increase by 1.5 times.
(4)	All Notes are subject to the Fixed Rate Cap and the Available Funds Cap Rate (each as described herein).

(5) The Stated Final Maturity is calculated as one month past the latest maturing thirty year mortgage loan.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 2

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Summary of Terms

Issuing Entity or the Trust:	Saxon Asset Securities Trust 2006-3, a Delaware statutory trust
Sponsor, Seller and Master Servicer:	Saxon Funding Management, Inc.
Depositor:	Saxon Asset Securities Company
Servicer:	Saxon Mortgage Services, Inc.
Indenture Trustee and Trust Administrator:	Deutsche Bank Trust Company Americas
Owner Trustee:	Wilmington Trust Company
Swap Provider:	Morgan Stanley Capital Services Inc.
Joint Lead Underwriters:	Morgan Stanley and Greenwich Capital Markets, Inc.
Co-Manager:	Credit Suisse Securities (USA) LLC
Notes:	The Class A-1, Class A-2, Class A-3 and Class A-4 Notes are collectively referred to herein as the “Senior Notes” or the “Class A Notes”. The Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2 and Class B-3 Notes are collectively referred to as the “Subordinate Notes.” The Senior Notes and the Subordinate Notes are the subject of this Free Writing Prospectus and are collectively referred to herein as the “Notes”. The Issuing Entity will also issue ownership certificates, which are not the subject of this Free Writing Prospectus.
Rating Agencies:	Moody’s Investor Services, Inc. (“Moody’s”) and Standard and Poor’s Ratings Services (“S&P”), a division of The McGraw-Hill Companies, Inc.
Registration:	The Notes will be available in book-entry form through DTC and upon request through Clearstream, Luxembourg and the Euroclear System.
Cut-Off Date:	September 1, 2006, for any mortgage loan in the mortgage pool transferred to the Trust on the Closing Date. For any mortgage loan subsequently transferred to the Trust during the Pre-Funding Period (as described below), the first day of the month in which such mortgage loan is transferred to the Trust.
Expected Pricing Date:	On or about the week of September 25, 2006.
Expected Closing Date:	On or about October 10, 2006.
Payment Dates:	Payment of principal and interest on the Notes will be made on the 25th day of each month or, if such day is not a business day, on the first business day thereafter, commencing in October 2006.
Interest Accrual:	The price to be paid by investors for the Notes will not include accrued interest (settling flat).

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 3

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Interest Accrual Period:	The “Interest Accrual Period” for the Notes with respect to any Payment Date will be the period beginning with the previous Payment Date (or, in the case of the first Payment Date, the Closing Date) and ending on the day prior to such Payment Date (on an actual/360 basis).
Record Date:	With respect to the Notes, the business day immediately preceding each Payment Date.
Federal Tax Status:	The Notes are anticipated to be debt for Federal income tax purposes, and an opinion will be delivered to that effect from counsel acceptable to the underwriters.
	The Trust will be classified as a taxable mortgage pool. The Trust will not, however, be subject to federal income tax as a corporation as long as the ownership certificates are owned exclusively by a “real estate investment trust” or by a “qualified REIT subsidiary.” Saxon Securities and Certificates, Inc., the initial holder of the ownership certificates, will represent that it qualifies as a “qualified REIT subsidiary” and that it will own the ownership certificates directly or indirectly through a “qualified REIT subsidiary.”
ERISA Eligibility:	The Notes are expected to be ERISA eligible.
SMMEA Eligibility:	The Notes are not expected to be SMMEA eligible.
Optional Termination:	On the first Payment Date on which the Aggregate Pool Balance is less than or equal to 20% of the Aggregate Pool Balance as of the Cut-Off Date, the Master Servicer will, unless the Master Servicer exercises its right to object to the date of the auction and causes it to be delayed in accordance with the Sale and Servicing Agreement, begin to solicit bids for the purchase of the mortgage loans and other property remaining in the trust. The Trust must sell the assets of the trust estate to the highest bidder so long as certain criteria described in the prospectus supplement are met. The terms of the transaction allow for a clean-up call of the mortgage loans and the redemption of the Notes (the “Clean-up Call”), which may be exercised once the Aggregate Pool Balance is less than or equal to 10% of the Aggregate Pool Balance as of the Cut-Off Date.
Pricing Prepayment Speed:	The Notes were priced based on the following collateral prepayment assumptions:
		100% PPC for the Fixed Rate Mortgage Loans (100% PPC for the Fixed Rate Mortgage Loans assumes 2.2% CPR in the first month of life of the mortgage loan increasing to 22% CPR over 10 months and remaining constant at 22% CPR thereafter)
		100% PPC for the Adjustable Rate Mortgage Loans (100% PPC for the Adjustable Rate Mortgage Loans assumes 8% CPR in the first month of the life of the mortgage loan and an additional 2% each month until reaching 30% CPR in month 12 and remaining constant at 30% CPR through month 22, remaining constant at 55% CPR for months 23 through 27 and then remaining constant at 35% CPR for month 28 and thereafter.)
Initial Mortgage Loans:	As of the Cut-Off Date, the aggregate principal balance of the Initial Mortgage Loans was approximately $876,095,123 of first and second lien, conforming and non-conforming balance, fixed-rate and adjustable-rate mortgage loans (the “Initial Mortgage Loans” or the “Closing Date Mortgage Loans”). See the attached collateral descriptions for additional information on the Initial Mortgage Loans.
Pre-Funding Account:	On the Closing Date, a deposit of approximately $223,904,877 (the “Pre-Funding Amount”) will be made to an account (the “Pre-Funding Account”). After the Closing Date but on or prior to December 10, 2006 (the “Pre-Funding Period”), the Pre-Funding Amount will be used to purchase Subsequent Mortgage Loans having similar characteristics as the Initial Mortgage Loans.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 4

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Subsequent Mortgage Loans:	In addition to the Closing Date Mortgage Loans, it is expected that approximately $223,904,877 of additional first and second lien, conforming and non-conforming balance, fixed-rate and adjustable-rate mortgage loans (the “Subsequent Mortgage Loans”) will be transferred to the Trust during the Pre-Funding Period.
Repurchase or Substitute of Mortgage Loans:	The Seller shall have the option, at any time to purchase any Delinquent Mortgage Loan or substitute an Eligible Substitute Mortgage Loan for any Delinquent Mortgage Loan as defined in the Sale and Servicing Agreement.
Total Note Size:	Approximately $1,078,545,000.
Servicing Fee:	The “Servicing Fee” applicable to each mortgage loan, and with respect to each Payment Date, equals the scheduled principal balance of such mortgage loan, on the first day of the month preceding such Payment Date, multiplied by one-twelfth of approximately 0.25% per annum, subject to increase if Saxon Mortgage Services, Inc. or an affiliate thereof is no longer the Servicer as described under “Retained Interest” below.
Retained Interest:	So long as Saxon Mortgage Services, Inc. or an affiliate thereof is the Servicer, the Seller will retain an interest in each mortgage loan, payable to the Seller on each Payment Date (the “Retained Interest”), equal to the scheduled principal balance of the mortgage loan, on the first day of the month of such Payment Date, multiplied by one-twelfth of: (i) approximately 0.05% per annum for the first ten Payment Dates following the Closing Date, (ii) approximately 0.15% per annum for the eleventh through thirtieth Payment Dates, inclusive, following the Closing Date, (iii) approximately 0.40% per annum for the thirty-first through forty-eighth Payment Dates, inclusive, following the Closing Date and (iv) approximately 0.55% per annum for the forty-ninth Payment Date following the Closing Date and each Payment Date thereafter. If, at any time prior to the thirty-first Payment Date following the Closing Date, Saxon Mortgage Services, Inc. or an affiliate thereof ceases to be the Servicer, the Retained Interest will not be payable to the Seller on any subsequent Payment Date and the amount of the Retained Interest will be added to the Servicing Fee for such Payment Dates. If, at any time on or after the thirty-first Payment Date following the Closing Date, Saxon Mortgage Services, Inc. or an affiliate thereof ceases to be the Servicer, a portion of the Retained Interest equal to 0.25% per annum on the scheduled principal balance of each mortgage loan will not be payable to the Seller on each succeeding Payment Date and such amount will be added to the Servicing Fee for such Payment Dates.
Master Servicing Fee:	The “Master Servicing Fee” applicable to each mortgage loan, and with respect to each Payment Date, equals the scheduled principal balance of such mortgage loan as of the first day of the Due Period with respect to such Payment Date, multiplied by one-twelfth of approximately 0.05% per annum.
Interest Rate:	The “Interest Rate” for any Payment Date for each Class of Notes will be equal to the lesser of (i) the Formula Rate and (ii) the Available Funds Cap Rate.
Formula Rate:	The “Formula Rate” with respect to each Class of Notes will be equal to the lesser of (i) One-Month LIBOR plus the respective margin for such Class and (ii) the Fixed Rate Cap.
Fixed Rate Cap:	As to any Payment Date, a per annum rate equal to 12.25% for each Class of Notes.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 5

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

 

Interest Funds:	The “Interest Funds” with respect to the mortgage loans and any determination date are equal to the sum, without duplication of (i) all scheduled interest due during the related Due Period and collected by the servicer as of the related determination date less (a) any Retained Interest, (b) the related servicing fee and master servicing fee, (c) any applicable PMI Insurance Premium, (d) any Net Swap Payments or Priority Swap Termination Payment payable by the issuing entity to the Counterparty and (e) any other fees or expenses payable from amounts on deposit in the collection account, the master servicer custodial account or the payment account, (ii) all advances relating to interest, (iii) all Compensating Interest, (iv) liquidation proceeds to the extent the liquidation proceeds relate to interest, less all non-recoverable advances relating to interest and certain expenses reimbursed during the related Due Period, (v) any Net Swap Payments or (unless otherwise paid to a replacement counterparty following the early termination of the Swap Agreement as described under “Description of the Notes—Swap Agreement”) Swap Termination Payments payable by the Counterparty to the issuing entity and (vi) the interest component of any Subsequent Recoveries for such date.
Compensating Interest:	As of any Payment Date, an amount payable by the Servicer or the Master Servicer, as the case may be, equal to the lesser of (i) prepayment interest shortfalls for such date in respect of any prepayments in full and (ii) the Servicing Fee or Master Servicing Fee, as applicable, for such date.
Available Funds Cap Rate:	As to any Payment Date, a per annum rate equal to (i) the quotient of (a) Interest Funds and (b) the aggregate principal amount of the Notes minus the Principal Deficiency Amount as of the beginning of the related Interest Accrual Period, multiplied by (ii) 360 divided by the actual number of days in the related Interest Accrual Period.
Aggregate Pool Balance:	As of any Payment Date, the sum of (i) the aggregate principal balance of the mortgage loans and (ii) any amount on deposit in the Pre-Funding Account.
Swap Agreement:	On the Closing Date, the Issuing Entity will enter into an interest rate hedge agreement (the “Swap Agreement”) with an initial notional amount for the October 2006 Payment Date of approximately $857,442,224 with respect to the Notes. Under the Swap Agreement, the Issuing Entity will be obligated to pay on the Payment Date an amount equal to 5.166% per annum on the notional amount as set forth in the Swap Agreement and set forth on page 23 of this Free Writing Prospectus to the Swap Provider on a 30/360 basis and the Issuing Entity will be entitled to receive on the Business Day immediately preceding each Payment Date an amount equal to one-month LIBOR on the notional amount as set forth in the Swap Agreement from the Swap Provider on an actual/360 basis, until the Swap Agreement is terminated. Only the net amount of the two obligations will be paid by the appropriate party (“Net Swap Payment”). Generally, Net Swap Payments made by the Swap Provider will constitute part of the Available Funds on each Payment Date and will be applied as part of Interest Funds and Net Swap Payments made by the Issuing Entity will be paid from Interest Funds prior to payments on the Notes.
	Upon early termination of the Swap Agreement, the Issuing Entity or the Swap Provider may be liable to make a termination payment (the ‘‘Swap Termination Payment’’) to the other party (regardless of which party caused the termination). The Swap Termination Payment will be computed in accordance with the procedures set forth in the Swap Agreement. In the event that the Issuing Entity is required to make a Swap Termination Payment, that payment will be paid on the related Payment Date, and on any subsequent Payment Dates until paid in full. If the Swap Termination Payment is a Priority Swap Termination Payment, it will be paid prior to payments to Noteholders. “Priority Swap Termination Payment” means any Swap Termination Payment resulting from an event of default or termination event (each as defined in the Swap Agreement) under the Swap Agreement with respect to which the Swap Provider was not the sole defaulting or affected party.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 6

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Credit Enhancements:	Consists of the following:
	1.	Net Monthly Excess Cashflow;
	2.	100% of the Pledged Prepayment Penalty Cashflow;
	3.	Primary Mortgage Insurance;
	4.	Overcollateralization Amount; and
	5.	Subordination.
Net Monthly Excess Cashflow:	The “Net Monthly Excess Cashflow” for any Payment Date is equal to the sum of (i) any Overcollateralization Release Amount and (ii) the excess of (a) the Available Funds for such Payment Date over (b) the sum for such Payment Date of (1) the Monthly Interest Payment Amounts for the Notes and (2) the Principal Funds.
Pledged Prepayment Penalty Cashflow:	The interest collections from the mortgage loans will be supplemented by 100% of the maximum contractual prepayment penalty cashflow owed and not waived by the Servicer on any mortgage loan.
Payments of Pledged Prepayment Penalty Cashflow:	Any Pledged Prepayment Penalty Cashflow will be payable in the same manner as Net Monthly Excess Cashflow.
Overcollateralization Amount:	The “Overcollateralization Amount” is equal to the excess of the Aggregate Pool Balance as of the last day of the related Due Period over the aggregate principal amount of the Notes after giving effect to principal paid on such Payment Date. To the extent the Overcollateralization Amount is reduced below the Overcollateralization Target Amount, Net Monthly Excess Cashflow and Pledged Prepayment Penalty Cashflow will be directed to build the Overcollateralization Amount until the Overcollateralization Target Amount is reached.
Overcollateralization Floor:	The “Overcollateralization Floor” prior to the Distribution Date in October 2026 will be equal to 0.50% of the Aggregate Pool Balance as of the Cut-Off Date. Thereafter, the Overcollateralization Floor will be equal to the greater of (i) 0.50% of the Aggregate Pool Balance as of the Cut-Off Date, and (ii) the sum of (a) 0.10% of the Aggregate Pool Balance as of the Cut-Off Date and (b) the aggregate balance, as of the last day of the related Due Period, of all outstanding mortgage loans having original terms to maturity of 40 years.
Overcollateralization Target Amount:	Prior to the Stepdown Date, the “Overcollateralization Target Amount” will be equal to 4.20% of the Aggregate Pool Balance as of the Cut-Off Date. On and after the Stepdown Date (assuming a Trigger Event is not in effect) the Overcollateralization Target Amount will be equal to the greater of (i) the lesser of (a) 4.20% of the Aggregate Pool Balance as of the Cut-Off Date and (b) 8.40% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Overcollateralization Floor for such Distribution Date. On or after the Stepdown Date, if a Trigger Event is in effect, the Overcollateralization Target Amount will be equal to the Overcollateralization Target Amount as of the preceding Payment Date.
Overcollateralization Deficiency Amount:	An “Overcollateralization Deficiency Amount” with respect to any Payment Date equals the amount, if any, by which the Overcollateralization Target Amount exceeds the Overcollateralization Amount on such Payment Date (after giving effect to payments in respect of the Principal Funds on such Payment Date).
Overcollateralization Release Amount:	The “Overcollateralization Release Amount” means, with respect to any Payment Date, the lesser of (i) the aggregate Principal Funds for such Payment Date and (ii) the excess, if any, of (a) the Overcollateralization Amount for such Payment Date (assuming that 100% of the aggregate Principal Funds is applied as a principal payment on such Payment Date) over (b) the Overcollateralization Target Amount for such Payment Date.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 7

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Stepdown Date:	The earlier to occur of (i) the Payment Date following the Payment Date on which the aggregate principal amount of the Senior Notes has been reduced to zero and (ii) the later to occur of (a) the Payment Date in October 2009 and (b) the first Payment Date on which (1) the excess of the Aggregate Pool Balance over the aggregate principal amount of the Senior Notes (both amounts from immediately after any application of Principal Payment Amounts to the Notes on the prior Payment Date) divided by (2) the Aggregate Pool Balance on the current Payment Date is greater than or equal to 48.00%.
Senior Credit Enhancement Percentage:	The “Senior Credit Enhancement Percentage” for a Payment Date is equal to (i) the aggregate principal amount of the Subordinate Notes and the Overcollateralization Amount minus the Principal Deficiency Amount divided by (ii) the Aggregate Pool Balance.
Primary Mortgage Insurance Policy:	A loan level primary mortgage insurance policy (the “MGIC PMI Policy”) will be acquired from Mortgage Guaranty Insurance Corporation (“MGIC”) on or prior to the Closing Date. Approximately 17.17% of the Initial Mortgage Loans have original loan-to-value ratios in excess of 80%, will be covered by the MGIC PMI Policy.
	For certain limited documentation or stated documentation mortgage loans with original loan-to-value ratios greater than or equal to 80%, the MGIC PMI Policy covers a portion of the loss on the related mortgage loans to a level where the uninsured exposure of the mortgage loans is reduced to an amount equal to approximately 80% of the original loan-to-value ratio of such mortgage loan. For certain full documentation mortgage loans with original loan-to-value ratios greater than or equal to 90%, the MGIC PMI Policy covers a portion of the loss on the related mortgage loans to a level where the uninsured exposure of the mortgage loan is reduced to an amount equal to approximately 90% of the original loan-to-value ratio of such mortgage loan.
Trigger Event:	A “Trigger Event,” on any Payment Date on or after the Stepdown Date, is in effect for the Notes if either a Delinquency Trigger Event or a Loss Trigger Event is in effect.
	A Delinquency Trigger Event is in effect on any Payment Date if on that Payment Date the 60+ day delinquency percentage (including loans in bankruptcy, foreclosure, or REO) is greater than a given percentage of the prior period’s Credit Enhancement Percentage to the note specified below:
	Class A Notes remain outstanding33.33% of the Senior Credit Enhancement Percentage
	On and after Class A Notes pay off39.90% of the Class M-1 Credit Enhancement Percentage
	A Loss Trigger Event is in effect if on any Payment Date, the cumulative losses as a percentage of the Aggregate Pool Balance as of the Cut-Off Date, for the related Payment Dates, is greater than:
	Payment Date	Cumulative Loss %
	Months 25-36	1.55% in the first month plus an additional 1/12th of 1.90% for every month thereafter
	Months 37-48	3.45% in the first month plus an additional 1/12th of 1.95% for every month thereafter
	Months 49-60	5.40% in the first month plus an additional 1/12th of 1.60% for every month thereafter
	Months 61-72	7.00% in the first month plus an additional 1/12th of 0.85% for every month thereafter
	Months 73 and thereafter	7.85%

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 8

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Class Sizes:	Classes	Rating (Moody’s/S&P)	Class Sizes
	A	Aaa/AAA	78.25%
	M-1	Aa1/AA+	3.95%
	M-2	Aa2/AA+	3.60%
	M-3	Aa3/AA	2.20%
	M-4	A1/AA-	2.10%
	M-5	A2/A+	1.90%
	M-6	A3/A	1.70%
	B-1	Baa1/A-	1.85%
	B-2	Baa2/BBB+	1.55%
	B-3	Baa3/BBB	0.95%
Credit Enhancement:	Classes	Initial Credit Enhancement (Including Initial O/C)	Initial Credit Enhancement (Including O/C Target)	Target Credit Enhancement After Stepdown Date
	A	21.75%	24.00%	48.00%
	M-1	17.80%	20.05%	40.10%
	M-2	14.20%	16.45%	32.90%
	M-3	12.00%	14.25%	28.50%
	M-4	9.90%	12.15%	24.30%
	M-5	8.00%	10.25%	20.50%
	M-6	6.30%	8.55%	17.10%
	B-1	4.45%	6.70%	13.40%
	B-2	2.90%	5.15%	10.30%
	B-3	1.95%	4.20%	8.40%
Available Funds:	Payments to holders of each class of Notes will be made on each Payment Date from “Available Funds.” With respect to any Payment Date, Available Funds will be deposited in the payment account, and will be equal to the sum of the Interest Funds and Principal Funds.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 9

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

   

Interest Payments:	On each Payment Date, the Indenture Trustee shall withdraw from the payment account the Interest Funds for such Payment Date and pay it in the following order of priority:
	(i)	To the holders of the Class A Notes, the Monthly Interest Payment Amounts, pro rata, for such classes for such Payment Date;
	(ii)	To the holders of the Class M-1 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(iii)	To the holders of the Class M-2 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(iv)	To the holders of the Class M-3 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(v)	To the holders of the Class M-4 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(vi)	To the holders of the Class M-5 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(vii)	To the holders of the Class M-6 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(viii)	To the holders of the Class B-1 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(ix)	To the holders of the Class B-2 Notes, the Monthly Interest Payment Amount for such class for such Payment Date;
	(x)	To the holders of the Class B-3 Notes, the Monthly Interest Payment Amount for such class for such Payment Date; and
	(xi)	Any remainder will be treated as Net Monthly Excess Cashflow.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 10

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Principal Payments:	On each Payment Date, the Principal Payment Amount is paid in the following order of priority:
	(i)	To the Class A Notes, allocated among the Class A Notes pursuant to the Class A Principal Allocation, the Class A Principal Payment Amount;
	(ii)	To the Class M-1 Notes, the Class M-1 Principal Payment Amount;
	(iii)	To the Class M-2 Notes, the Class M-2 Principal Payment Amount;
	(iv)	To the Class M-3 Notes, the Class M-3 Principal Payment Amount;
	(v)	To the Class M-4 Notes, the Class M-4 Principal Payment Amount;
	(vi)	To the Class M-5 Notes, the Class M-5 Principal Payment Amount;
	(vii)	To the Class M-6 Notes, the Class M-6 Principal Payment Amount;
	(viii)	To the Class B-1 Notes, the Class B-1 Principal Payment Amount;
	(ix)	To the Class B-2 Notes, the Class B-2 Principal Payment Amount;
	(x)	To the Class B-3 Notes, the Class B-3 Principal Payment Amount; and
	(xi)	Any remainder will be treated as Net Monthly Excess Cashflow.
	Notwithstanding the priority described above, prior to the Stepdown Date and on any Payment Date on which a Trigger Event exists, Principal Funds will generally be applied to the most senior class of Notes, as more fully described in the prospectus supplement.
Class A Principal Allocation:	Any principal amounts allocated to the Class A Notes are required to be distributed first, to the Class A-1 Notes, until their aggregate principal amount has been reduced to zero, second, to the Class A-2 Notes, until their aggregate principal amount has been reduced to zero, third, to the Class A-3 Notes, until their aggregate principal amount has been reduced to zero, and fourth, to the Class A-4 Notes, until their aggregate principal amount has been reduced to zero.
	However, on any payment date on which the Overcollateralization Amount has been reduced to zero, and either (i) the aggregate principal amount of the Subordinate Notes has been reduced to zero, or (ii) the aggregate principal amount of the Subordinate Notes is less than or equal to the Principal Deficiency Amount for such Payment Date, any payments of principal to be made on the Class A Notes shall be made to such holders on a pro rata basis, rather than sequentially as described above.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 11

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Net Monthly Excess Cashflow and Pledged Prepayment Penalty	With respect to any Payment Date, any Net Monthly Excess Cashflow and Pledged Prepayment Penalty Cashflow shall be paid in the following order of priority:
	(i)	To pay the Extra Principal Payment Amount on the Notes;
	(ii)	To the holders of the Class A-1, Class A-2, Class A-3 and Class A-4 Notes, pro rata, any Available Funds Shortfall Amount allocable to such Notes;
	(iii)	To the holders of the Class M-1, M-2, M-3, M-4, M-5, M-6, B-1, B-2, and B-3 Notes, sequentially and in that order, in an amount equal to the Available Funds Shortfall Amount allocable to such Notes;
	(iv)	To the holders of the Class M-1, M-2, M-3, M-4, M-5, M-6, B-1, B-2, and B-3 Notes, sequentially and in that order, any Deferred Interest allocable to such Notes;
	(v)	To pay any Swap Termination Payment (other than a Priority Swap Termination Payment) owed to the Swap Provider; and
	(vi)	To the holder of the ownership interest in the Issuing Entity.

Monthly Interest Payment Amount:	The “Monthly Interest Payment Amount” for any Payment Date and each class of Notes equals the amount of interest accrued during the related Interest Accrual Period at the related Interest Rate on the principal amount of such class minus, in the case of the Subordinate Notes, the Principal Deficiency Amounts of such class immediately prior to such Payment Date.
Deferred Interest:	With respect to any class of Subordinate Notes for any Payment Date an amount equal to the sum of (i) the aggregate amount of interest accrued at the applicable Interest Rate during the related Interest Accrual Period on the Principal Deficiency Amount for that class, (ii) any amount due pursuant to clause (i) for such class for prior Payment Dates that remains unpaid and (iii) interest accrued during the Interest Accrual Period related to such Payment Date on the amount described in clause (ii) at the related Formula Rate for the most recently ended Interest Accrual Period.
Principal Deficiency Amount:	For any Payment Date, the excess, if any, of the aggregate principal amount of the notes, immediately prior to such Payment Date over the Aggregate Pool Balance as of the first day of the related Due Period. The Principal Deficiency Amount will be allocated among the Subordinate Notes in reverse order of seniority.
Available Funds Shortfall Amount:	The “Available Funds Shortfall Amount” for any class of Notes and Payment Date equals the sum of (i) the excess of the amount that would have been the Monthly Interest Payment Amount for such class of Notes had the Interest Rate for such class of Notes been determined without regard to the Available Funds Cap Rate (but in no event greater than the Fixed Rate Cap)over the actual Monthly Interest Payment Amount paid for such Payment Date, (ii) the excess described in clause (i) for any preceding Payment Date that remains unpaid and (iii) interest on the amount described in clause (ii) at the applicable Interest Rate determined for this purpose without regard to the Available Funds Cap Rate.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 12

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Principal Funds:	“Principal Funds” means with respect to any Payment Date, the sum of (i) all scheduled payments of principal collected or advanced on the mortgage loans by the Servicer that were due during the related Due Period, (ii) the principal portion of all partial and full principal prepayments of the mortgage loans applied by the Servicer or Master Servicer as applicable during such Prepayment Period, (iii) the principal portion of all net liquidation proceeds and insurance proceeds received during such Prepayment Period, (iv) that portion of the purchase price, representing principal of any repurchased mortgage, deposited to the collection account during such Prepayment Period and (v) the principal portion of any related substitution adjustments deposited in the collection account during such Prepayment Period.
Principal Payment Amount:	The “Principal Payment Amount” means for any Payment Date the sum of the Basic Principal Payment Amount and the Extra Principal Payment Amount.
Basic Principal Payment Amount:	The “Basic Principal Payment Amount” means for any Payment Date the excess of (i) the Principal Funds for such Payment Date over (ii) the Overcollateralization Release Amount, if any, for such Payment Date.
Extra Principal Payment Amount:	The “Extra Principal Payment Amount” with respect to any Payment Date is the lesser of (i) the sum of the Net Monthly Excess Cashflow and Pledged Prepayment Penalty Cashflow for such Payment Date and (ii) the Overcollateralization Deficiency Amount for such Payment Date.
Class A Principal Payment Amount:	With respect to any Payment Date prior to the Stepdown Date or as to which a Trigger Event exists, 100% of the Principal Payment Amount. With respect to any Payment Date on or after the Stepdown Date and as to which a Trigger Event is not in effect, the excess of the Class A aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 52.00% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.
Class M-1 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date) and the Class M-1 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 59.90% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.
Class M-2 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date) and the Class M-2 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 67.10% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 13

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Class M-3 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date), the Class M-2 aggregate principal amount (after giving effect to payments on that date) and the Class M-3 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 71.50% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.
Class M-4 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date), the Class M-2 aggregate principal amount (after giving effect to payments on that date), the Class M-3 aggregate principal amount (after giving effect to payments on that date) and the Class M-4 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 75.70% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.
Class M-5 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date), the Class M-2 aggregate principal amount (after giving effect to payments on that date), the Class M-3 aggregate principal amount (after giving effect to payments on that date), the Class M-4 aggregate principal amount (after giving effect to payments on that date) and the Class M-5 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 79.50% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.
Class M-6 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date), the Class M-2 aggregate principal amount (after giving effect to payments on that date), the Class M-3 aggregate principal amount (after giving effect to payments on that date), the Class M-4 aggregate principal amount (after giving effect to payments on that date), the Class M-5 aggregate principal amount (after giving effect to payments on that date) and the Class M-6 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 82.90% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period the Overcollateralization Floor for such Distribution Date.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 14

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Class B-1 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date), the Class M-2 aggregate principal amount (after giving effect to payments on that date), the Class M-3 aggregate principal amount (after giving effect to payments on that date), the Class M-4 aggregate principal amount (after giving effect to payments on that date), the Class M-5 aggregate principal amount (after giving effect to payments on that date), the Class M-6 aggregate principal amount (after giving effect to payments on that date) and the Class B-1 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 86.60% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.
Class B-2 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date), the Class M-2 aggregate principal amount (after giving effect to payments on that date), the Class M-3 aggregate principal amount (after giving effect to payments on that date), the Class M-4 aggregate principal amount (after giving effect to payments on that date), the Class M-5 aggregate principal amount (after giving effect to payments on that date), the Class M-6 aggregate principal amount (after giving effect to payments on that date), the Class B-1 aggregate principal amount (after giving effect to payments on that date) and the Class B-2 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 89.70% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date..
Class B-3 Principal Payment Amount:	With respect to any Payment Date on or after the Stepdown Date and as long as a Trigger Event is not in effect, is the excess of the sum of the Class A aggregate principal amount (after giving effect to payments on that date), the Class M-1 aggregate principal amount (after giving effect to payments on that date), the Class M-2 aggregate principal amount (after giving effect to payments on that date), the Class M-3 aggregate principal amount (after giving effect to payments on that date), the Class M-4 aggregate principal amount (after giving effect to payments on that date), the Class M-5 aggregate principal amount (after giving effect to payments on that date), the Class M-6 aggregate principal amount (after giving effect to payments on that date), the Class B-1 aggregate principal amount (after giving effect to payments on that date), the Class B-2 aggregate principal amount (after giving effect to payments on that date) and the Class B-3 aggregate principal amount immediately prior to such Payment Date over the lesser of (i) approximately 91.60% of the Aggregate Pool Balance as of the last day of the related Due Period and (ii) the Aggregate Pool Balance as of the last day of the related Due Period less the Overcollateralization Floor for such Distribution Date.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 15

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Realized Losses:	“Realized Loss” means, with respect to any defaulted mortgage loan that is liquidated (other than a Non-Recoverable Mortgage Loan), the amount of loss realized equal to the portion of the Principal Amount remaining unpaid after application of all liquidation proceeds and insurance proceeds, if any, net of amounts reimbursable to the Servicer and the Master Servicer for related Advances, Servicing Advances and Servicing Fees in respect of such mortgage loan. All Realized Losses on the mortgage loans will be allocated on each Payment Date, first to the Net Monthly Excess Cashflow and second in reduction of the Overcollateralization Amount. Realized Losses will not result in any reduction of the principal amount of any class of Notes. Realized Losses may result in Principal Deficiency Amounts for any class of Subordinate Notes, beginning with the most subordinate classes. It is possible that under certain loss scenarios there will not be enough principal and interest on the mortgage loans to pay the Class A Notes all interest and principal amounts to which such Notes are then entitled and it is likely that under certain loss scenarios there will not be enough principal and interest on the mortgage loans to pay the Subordinate Notes all interest and principal amounts to which such Notes are entitled.
Non-Recoverable Mortgage Loan:	A “Non-Recoverable Mortgage Loan” is any Defaulted Mortgage loan as to which the servicer has determined that the expenses associated with the liquidation and foreclosure thereof will exceed the proceeds.
Due Period:	A “Due Period” with respect to any Payment Date is the period commencing on the second day of the month preceding the month in which such Payment Date occurs and ending on the first day of the month in which such Payment Date occurs.
Prepayment Period:	The “Prepayment Period” for any Payment Date is the period beginning on the day after the determination date in the month immediately preceding the month in which the Payment Date occurs (or in the case of the first Payment Date, the Cut-Off Date) and ending on the determination date of the month in which such Payment Date occurs.
Delinquent Mortgage Loan:	Any mortgage loan that is 60+ Days Delinquent, including in foreclosure, bankruptcy or REO.
Original Loan Sellers:	Saxon Capital, Inc
	People’s Choice
	Lime Financial Services, Ltd.
	Lender’s Direct Capital Corporation
	Freedom Mortgage Corporation

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 16

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Note Sensitivity Tables*

to 10% Clean-up Call

Class A-1 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	16.45	1.67	1.23	1.00	0.85	0.73	0.65
MDUR (yr)	10.10	1.56	1.17	0.96	0.81	0.71	0.63
First Prin Pay	1	1	1	1	1	1	1
Last Prin Pay	299	41	27	23	20	17	14

Class A-2 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	25.89	3.93	2.58	2.00	1.75	1.51	1.31
MDUR (yr)	13.61	3.49	2.38	1.88	1.65	1.43	1.25
First Prin Pay	299	41	27	23	20	17	14
Last Prin Pay	326	57	36	27	23	21	18

Class A-3 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.20	8.24	5.42	3.50	2.20	1.90	1.70
MDUR (yr)	14.24	6.42	4.57	3.10	2.05	1.78	1.60
First Prin Pay	326	57	36	27	23	21	18
Last Prin Pay	359	160	106	77	33	26	23

Class A-4 to Call  

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.88	13.29	8.79	6.38	3.08	2.23	1.92
MDUR (yr)	14.22	9.23	6.84	5.29	2.78	2.07	1.80
First Prin Pay	359	160	106	77	33	26	23
Last Prin Pay	359	160	106	77	59	29	24

* Assume 100% of prepayment penalties are collected

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 17

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Note Sensitivity Tables*

to 10% Clean-up Call

Class M-1 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.77	4.86	4.88	3.52	2.47
MDUR (yr)	13.97	6.60	4.77	4.17	4.20	3.15	2.27
First Prin Pay	316	50	39	48	59	29	24
Last Prin Pay	359	160	106	77	59	47	35

Class M-2 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.76	4.66	4.81	3.88	2.88
MDUR (yr)	13.96	6.60	4.76	4.02	4.16	3.43	2.62
First Prin Pay	316	50	38	44	55	47	35
Last Prin Pay	359	160	106	77	59	47	35

Class M-3 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.76	4.56	4.44	3.71	2.85
MDUR (yr)	13.93	6.59	4.75	3.93	3.87	3.30	2.59
First Prin Pay	316	50	38	43	50	42	33
Last Prin Pay	359	160	106	77	59	47	35

Class M-4 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.76	4.51	4.21	3.46	2.64
MDUR (yr)	13.83	6.57	4.74	3.89	3.69	3.10	2.42
First Prin Pay	316	50	37	41	47	39	30
Last Prin Pay	359	160	106	77	59	47	35

Class M-5 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.75	4.47	4.05	3.30	2.48
MDUR (yr)	13.80	6.57	4.73	3.85	3.56	2.96	2.28
First Prin Pay	316	50	37	40	44	37	28
Last Prin Pay	359	160	106	77	59	47	35

Class M-6 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.75	4.44	3.94	3.19	2.39
MDUR (yr)	13.73	6.55	4.73	3.82	3.47	2.87	2.21
First Prin Pay	316	50	37	40	43	35	27
Last Prin Pay	359	160	106	77	59	47	35

* Assume 100% of prepayment penalties are collected

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 18

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

  
Note Sensitivity Tables*

to 10% Clean-up Call

Class B-1 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.75	4.41	3.85	3.10	2.33
MDUR (yr)	13.16	6.43	4.66	3.76	3.36	2.78	2.14
First Prin Pay	316	50	37	39	41	33	26
Last Prin Pay	359	160	106	77	59	47	35

Class B-2 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.75	4.39	3.78	3.03	2.32
MDUR (yr)	12.81	6.36	4.63	3.72	3.29	2.70	2.12
First Prin Pay	316	50	37	38	40	32	26
Last Prin Pay	359	160	106	77	59	47	35

Class B-3 to Call

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.07	8.70	5.75	4.38	3.73	2.99	2.27
MDUR (yr)	11.48	6.05	4.46	3.61	3.17	2.61	2.04
First Prin Pay	316	50	37	38	39	32	25
Last Prin Pay	359	160	106	77	59	47	35

* Assume 100% of prepayment penalties are collected

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 19

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Note Sensitivity Tables*

to Maturity

Class A-1 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	16.45	1.67	1.23	1.00	0.85	0.73	0.65
MDUR (yr)	10.10	1.56	1.17	0.96	0.81	0.71	0.63
First Prin Pay	1	1	1	1	1	1	1
Last Prin Pay	299	41	27	23	20	17	14

Class A-2 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	25.89	3.93	2.58	2.00	1.75	1.51	1.31
MDUR (yr)	13.61	3.49	2.38	1.88	1.65	1.43	1.25
First Prin Pay	299	41	27	23	20	17	14
Last Prin Pay	326	57	36	27	23	21	18

Class A-3 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.20	8.26	5.44	3.52	2.20	1.90	1.70
MDUR (yr)	14.24	6.43	4.58	3.11	2.05	1.78	1.60
First Prin Pay	326	57	36	27	23	21	18
Last Prin Pay	359	173	115	84	33	26	23

Class A-4 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.99	19.06	13.14	9.69	3.80	2.23	1.92
MDUR (yr)	14.24	11.39	9.04	7.28	3.24	2.07	1.80
First Prin Pay	359	173	115	84	33	26	23
Last Prin Pay	361	330	246	187	147	29	24

* Assume 100% of prepayment penalties are collected

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 20

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Note Sensitivity Tables*

to Maturity

Class M-1 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.64	6.46	5.38	7.27	5.76	4.16
MDUR (yr)	13.98	6.96	5.12	4.49	5.84	4.74	3.55
First Prin Pay	316	50	39	48	67	29	24
Last Prin Pay	361	297	213	159	126	119	98

Class M-2 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.62	6.44	5.17	5.37	4.62	3.84
MDUR (yr)	13.96	6.95	5.11	4.33	4.54	4.00	3.40
First Prin Pay	316	50	38	44	55	47	38
Last Prin Pay	361	287	204	152	119	95	77

Class M-3 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.59	6.41	5.06	4.84	4.02	3.17
MDUR (yr)	13.93	6.93	5.10	4.24	4.14	3.53	2.85
First Prin Pay	316	50	38	43	50	42	33
Last Prin Pay	361	277	195	145	113	90	73

Class M-4 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.57	6.39	4.99	4.59	3.76	2.91
MDUR (yr)	13.84	6.90	5.07	4.18	3.95	3.32	2.63
First Prin Pay	316	50	37	41	47	39	30
Last Prin Pay	361	269	188	139	108	87	70

Class M-5 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.53	6.36	4.93	4.41	3.58	2.74
MDUR (yr)	13.81	6.89	5.05	4.14	3.81	3.17	2.49
First Prin Pay	316	50	37	40	44	37	28
Last Prin Pay	361	259	180	133	104	83	67

Class M-6 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.49	6.32	4.87	4.28	3.45	2.63
MDUR (yr)	13.73	6.86	5.03	4.09	3.70	3.06	2.39
First Prin Pay	316	50	37	40	43	35	27
Last Prin Pay	361	249	172	127	99	79	63

* Assume 100% of prepayment penalties are collected

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 21

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Note Sensitivity Tables*\

to Maturity

Class B-1 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.43	6.28	4.80	4.16	3.35	2.55
MDUR (yr)	13.17	6.71	4.94	4.00	3.57	2.95	2.31
First Prin Pay	316	50	37	39	41	33	26
Last Prin Pay	361	239	164	121	93	74	59

Class B-2 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.33	6.20	4.73	4.05	3.24	2.51
MDUR (yr)	12.81	6.59	4.86	3.93	3.47	2.85	2.27
First Prin Pay	316	50	37	38	40	32	26
Last Prin Pay	361	224	152	112	86	69	54

Class B-3 to Mat

Prepay Speed	0% PPC	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC	175% PPC
WAL (yr)	29.09	9.21	6.11	4.65	3.95	3.15	2.42
MDUR (yr)	11.49	6.22	4.64	3.76	3.31	2.73	2.16
First Prin Pay	316	50	37	38	39	32	25
Last Prin Pay	361	207	140	102	79	63	49

* Assume 100% of prepayment penalties are collected

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 22

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Available Funds Cap Rate Schedule

	Available Funds		Available Funds
Payment Date	Cap Rate (%)(1)(2)	Payment Date	Cap Rate (%)(1)(2)
1	12.25	40	12.25
2	12.25	41	12.25
3	12.25	42	12.25
4	12.25	43	12.25
5	12.25	44	12.25
6	12.25	45	12.25
7	12.25	46	12.25
8	12.25	47	11.69
9	12.25	48	11.85
10	12.25	49	12.08
11	12.25	50	11.73
12	12.25	51	12.10
13	12.25	52	11.69
14	12.25	53	11.70
15	12.25	54	12.25
16	12.25	55	11.83
17	12.25	56	12.25
18	12.25	57	11.83
19	12.25	58	12.21
20	12.25	59	11.79
21	12.25	60	11.78
22	12.25	61	12.15
23	12.25	62	11.75
24	12.25	63	12.12
25	12.25	64	11.71
26	12.25	65	11.69
27	12.25	66	12.25
28	12.25	67	11.65
29	12.25	68	12.02
30	12.25	69	11.61
31	12.25	70	11.97
32	12.25	71	11.57
33	12.25	72	11.55
34	12.25	73	11.91
35	12.25	74	11.51
36	12.25	75	11.87
37	12.25	76	11.46
38	12.25	77	11.44
39	12.25

(1) Available Funds Cap Rate subject to the Fixed Rate Cap of 12.25%.

(2) Assumes no losses, Pricing Prepayment Speed, 10% Clean-Up Call and 1 month LIBOR and 6 month LIBOR increase instantly to and remain constant at 20.000%.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 23

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Swap Schedule

Period	Notional ($)	Period	Notional ($)
1	857,442,224.47	25	354,547,046.09
2	844,874,889.32	26	315,078,058.71
3	1,072,502,664.92	27	274,406,648.45
4	1,051,688,767.54	28	254,971,838.95
5	1,027,937,138.98	29	213,624,716.57
6	1,001,335,170.19	30	172,981,516.40
7	972,057,313.38	31	158,031,603.22
8	940,263,503.70	32	142,535,149.87
9	906,250,821.37	33	136,222,229.59
10	870,493,726.18	34	130,408,668.49
11	833,705,667.23	35	124,865,015.77
12	796,759,982.15	36	119,406,154.43
13	760,966,651.92	37	114,376,707.07
14	726,499,501.40	38	109,505,522.86
15	693,617,928.62	39	104,603,418.82
16	662,250,664.18	40	100,037,411.19
17	632,236,082.55	41	90,170,270.14
18	603,617,370.47	42	72,881,302.80
19	575,047,888.69	43	68,494,935.31
20	544,648,227.17	44	62,221,944.36
21	515,602,109.83	45	60,074,557.87
22	480,100,509.48	46	58,048,154.39
23	435,021,866.23	47	-
24	393,371,838.52

Page 24

Excess Spread ^(1,2)

Period	FWD 1M LIBOR (%)(3)	FWD 6M LIBOR (%)(3)	STATIC LIBOR (%)(3)	FORWARD LIBOR (%)(3)	Period	FWD 1M LIBOR (%)(3)	FWD 6M LIBOR (%)(3)	STATIC LIBOR (%)(3)	FORWARD LIBOR (%)(3)
1	5.36	5.40	3.97	3.97	40	4.87	4.94	4.44	4.51
2	5.36	5.35	1.33	1.33	41	4.88	4.95	4.44	4.52
3	5.38	5.31	3.12	3.12	42	4.89	4.96	4.88	4.92
4	5.30	5.26	3.18	3.18	43	4.89	4.97	4.47	4.54
5	5.28	5.21	3.25	3.25	44	4.90	4.98	4.62	4.67
6	5.25	5.15	3.34	3.34	45	4.91	4.98	4.48	4.53
7	5.17	5.09	3.38	3.39	46	4.92	4.99	4.61	4.65
8	5.12	5.03	3.46	3.46	47	4.93	5.00	4.39	4.53
9	5.08	4.98	3.51	3.52	48	4.94	5.00	4.38	4.53
10	5.00	4.92	3.57	3.58	49	4.94	5.01	4.40	4.53
11	4.95	4.88	3.48	3.50	50	4.95	5.01	4.22	4.36
12	4.89	4.84	3.47	3.50	51	4.95	5.01	4.38	4.51
13	4.85	4.81	3.48	3.53	52	4.96	5.02	4.20	4.34
14	4.80	4.78	3.46	3.51	53	4.96	5.02	4.19	4.33
15	4.76	4.76	3.48	3.55	54	4.96	5.03	4.71	4.82
16	4.74	4.75	3.45	3.53	55	4.97	5.03	4.17	4.32
17	4.72	4.74	3.45	3.54	56	4.97	5.04	4.34	4.47
18	4.70	4.74	3.54	3.64	57	4.98	5.04	4.15	4.29
19	4.69	4.74	3.47	3.58	58	4.98	5.05	4.32	4.44
20	4.69	4.74	3.62	3.73	59	4.99	5.06	4.13	4.27
21	4.69	4.74	3.69	3.83	60	4.99	5.06	4.13	4.27
22	4.68	4.75	4.05	4.17	61	5.00	5.07	4.29	4.42
23	4.69	4.76	4.17	4.29	62	5.01	5.07	4.11	4.25
24	4.69	4.77	4.44	4.52	63	5.01	5.08	4.27	4.40
25	4.70	4.78	4.54	4.63	64	5.02	5.08	4.09	4.22
26	4.71	4.78	4.50	4.59	65	5.02	5.09	4.08	4.21
27	4.73	4.79	4.48	4.59	66	5.03	5.10	4.42	4.53
28	4.74	4.80	4.41	4.52	67	5.03	5.10	4.06	4.19
29	4.75	4.81	4.41	4.53	68	5.04	5.11	4.22	4.34
30	4.75	4.82	4.78	4.86	69	5.04	5.11	4.03	4.16
31	4.74	4.83	4.22	4.34	70	5.05	5.12	4.20	4.31
32	4.75	4.85	4.36	4.46	71	5.06	5.12	4.01	4.14
33	4.77	4.86	4.25	4.36	72	5.06	5.13	4.00	4.13
34	4.80	4.88	4.38	4.46	73	5.06	5.13	4.16	4.28
35	4.82	4.89	4.29	4.38	74	5.07	5.14	3.98	4.10
36	4.83	4.90	4.57	4.63	75	5.07	5.14	4.14	4.25
37	4.83	4.91	4.69	4.74	76	5.08	5.14	3.95	4.07
38	4.84	4.92	4.48	4.55	77	5.08	5.15	3.94	4.06
39	4.86	4.93	4.56	4.62

(1)  Assumes the Pricing Prepayment Speed.

(2) Calculated as (a) interest collections on the collateral (net of the trust administrations, master servicing, servicing and Mortgage Insurance fees) plus Pledged Prepayment Penalty Cashflow, plus or minus net swap proceeds, less total interest on the Offered Notes (before payments of any Available Funds Shortfall Amount) divided by (b) collateral balance as of the beginning of the period and multiplied by 12.

(3) Approximate (rounded to two decimals).

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 25

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Breakeven Losses

Class	M1	M2	M3	M4	M5	M6
Rating (M/S)	Aa1/AA+	Aa2/AA+	Aa3/AA	A1/AA-	A2/A+	A3/A
Loss Severity	30%	30%	30%	30%	30%	30%
CDR	56.32	42.84	36.09	30.49	26.00	22.36
Collateral Loss	22.53%	19.68%	17.92%	16.23%	14.70%	13.31%
Loss Severity	40%	40%	40%	40%	40%	40%
CDR	35.75	28.41	24.50	21.11	18.31	15.96
Collateral Loss	23.76%	20.73%	18.86%	17.07%	15.46%	13.99%
Loss Severity	50%	50%	50%	50%	50%	50%
CDR	26.06	21.18	18.50	16.11	14.10	12.40
Collateral Loss	24.53%	21.39%	19.46%	17.61%	15.93%	14.43%
Class	B1	B2	B3
Rating (M/S)	Baa1/A-	Baa2/BBB+	Baa3/BBB
Loss Severity	30%	30%	30%
CDR	18.74	16.01	14.68
Collateral Loss	11.78%	10.52%	9.86%
Loss Severity	40%	40%	40%
CDR	13.56	11.72	10.83
Collateral Loss	12.37%	11.04%	10.37%
Loss Severity	50%	50%	50%
CDR	10.62	9.24	8.58
Collateral Loss	12.75%	11.38%	10.70%
Assumptions

Forward LIBOR

Pricing Speed

P&I Advances

12 Month Recovery Lag

Triggers fail

Defaults are in addition to prepayments

Run to Maturity

Break is first dollar of principal loss

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 26

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Mortgage Loans Collateral Summary

Aggregate Mortgage Loans

As of the Cut-Off Date

Total Outstanding Balance	$876,095,123
Number of Loans	4,634

	Average		Minimum		Maximum
Original Loan Amount		$189,188		$13,700		$1,500,000
Outstanding Principal Balance		$189,058		$13,677		$1,500,000

	Weighted Average			Minimum			Maximum
Mortgage Rate		8.550	%		5.875	%		13.950	%
Gross Margin		6.345	%		3.328	%		9.990	%
Initial Periodic Rate Cap		2.978	%		1.000	%		3.000	%
Periodic Rate Cap		1.003	%		1.000	%		1.500	%
Minimum Mortgage Rate		6.961	%		2.950	%		11.990	%
Maximum Mortgage Rate		14.518	%		11.875	%		19.2000	%
Months to Roll		27			2			61
Combined Original LTV		79.92	%		11.52	%		100.00	%
Original LTV		77.32	%		10.00	%		100.00	%
Credit Score		613			481			806
Original Term		358			120			480
Remaining Term		356			84			480
Seasoning		2			0			96

Top Property State Concentrations	CA(19.20%), MD(13.41%), FL(11.65%)
Maximum Zip Code Concentration	20744(0.56%), 20748(0.44%), 20774(0.42%)

			Earliest		Latest
First Payment Date				October 1, 1998		November 1, 2006
Maturity Date				September 1, 2013		October 1, 2046
First Lien	96.74	%
Second Lien	3.26	%

* All weighted average credit scores are non-zero weighted averages

* Combined Original LTV is the loan-to-value ratio for the 1st liens and the combined loan-to-value ratio for the 2nd liens

* Original LTV is the is the loan-to-value ratio for the 1st liens and the loan-to-value ratio for the 2nd liens

* The Weighted Average Combined Original LTV in the last column of each of the following tables is based on the loan-to-value ratio for 1st liens and combined loan-to-value ratio for 2nd liens

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 27

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Original Sellers of the Mortgage Loans

Original Seller	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Saxon		3,713		706,132,024.05		80.60		8.628		605		190,178.30		79.32
Peoples Choice		650		104,951,468.53		11.98		8.337		661		161,463.80		83.58
Lime Financial		121		31,636,333.77		3.61		7.812		641		261,457.30		79.98
Lenders Direct		119		23,999,194.63		2.74		8.333		639		201,673.90		81.24
Freedom Mortgage		31		9,376,101.57		1.07		8.159		573		302,454.89		81.10
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Current Scheduled Principal Balance of the Mortgage Loans

Remaining Scheduled Principal Balances of the Mortgage Loans ($)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Less than 50,000.00		275		9,818,956.16		1.12		11.266		629		35,705.30		90.75
50,000.01 - 100,000.00		1,016		77,429,112.73		8.84		9.779		606		76,209.76		81.08
100,000.01 - 150,000.00		999		124,914,412.61		14.26		9.098		604		125,039.45		80.26
150,000.01 - 200,000.00		680		119,040,271.07		13.59		8.532		607		175,059.22		79.23
200,000.01 - 250,000.00		500		112,650,165.85		12.86		8.254		605		225,300.33		78.17
250,000.01 - 300,000.00		375		102,821,751.15		11.74		8.272		614		274,191.34		78.93
300,000.01 - 350,000.00		255		82,444,593.41		9.41		8.100		616		323,312.13		79.27
350,000.01 - 400,000.00		180		67,539,023.40		7.71		8.034		622		375,216.80		81.94
400,000.01 - 450,000.00		125		53,130,363.26		6.06		8.210		621		425,042.91		79.06
450,000.01 - 500,000.00		100		47,657,155.30		5.44		8.123		621		476,571.55		80.74
500,000.01 - 550,000.00		50		26,294,662.41		3.00		8.089		636		525,893.25		82.63
550,000.01 - 600,000.00		30		17,262,145.98		1.97		8.113		643		575,404.87		81.35
600,000.01 - 650,000.00		18		11,245,517.29		1.28		8.966		618		624,750.96		84.19
650,000.01 - 700,000.00		12		8,069,040.80		0.92		8.397		622		672,420.07		81.38
700,000.01 - 750,000.00		8		5,817,575.29		0.66		8.560		641		727,196.91		81.50
750,000.01 - 800,000.00		5		3,918,158.70		0.45		7.829		638		783,631.74		77.50
800,000.01 - 850,000.00		2		1,632,500.00		0.19		8.605		602		816,250.00		72.53
900,000.01 - 950,000.00		1		936,574.08		0.11		9.500		723		936,574.08		75.00
950,000.01 - 1,000,000.00		2		1,973,143.06		0.23		8.302		624		986,571.53		75.97
Greater than 1,000,000.00		1		1,500,000.00		0.17		10.550		676		1,500,000.00		39.47
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 28

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Original Scheduled Principal Balance of the Mortgage Loans

Original Scheduled Principal Balances of the Mortgage Loans ($)	Number of Mortgage Loans		Total Original Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Less than 50,000.00		275		9,818,956.16		1.12		11.266		629		35,705.30		90.75
50,000.01 - 100,000.00		1,016		77,429,112.73		8.84		9.779		606		76,209.76		81.08
100,000.01 - 150,000.00		998		124,767,912.61		14.24		9.098		604		125,017.95		80.28
150,000.01 - 200,000.00		681		119,186,771.07		13.60		8.533		607		175,017.28		79.21
200,000.01 - 250,000.00		500		112,650,165.85		12.86		8.254		605		225,300.33		78.17
250,000.01 - 300,000.00		375		102,821,751.15		11.74		8.272		614		274,191.34		78.93
300,000.01 - 350,000.00		253		81,744,760.67		9.33		8.099		616		323,101.82		79.20
350,000.01 - 400,000.00		182		68,238,856.14		7.79		8.036		622		374,938.77		81.99
400,000.01 - 450,000.00		125		53,130,363.26		6.06		8.210		621		425,042.91		79.06
450,000.01 - 500,000.00		100		47,657,155.30		5.44		8.123		621		476,571.55		80.74
500,000.01 - 550,000.00		50		26,294,662.41		3.00		8.089		636		525,893.25		82.63
550,000.01 - 600,000.00		30		17,262,145.98		1.97		8.113		643		575,404.87		81.35
600,000.01 - 650,000.00		18		11,245,517.29		1.28		8.966		618		624,750.96		84.19
650,000.01 - 700,000.00		12		8,069,040.80		0.92		8.397		622		672,420.07		81.38
700,000.01 - 750,000.00		8		5,817,575.29		0.66		8.560		641		727,196.91		81.50
750,000.01 - 800,000.00		5		3,918,158.70		0.45		7.829		638		783,631.74		77.50
800,000.01 - 850,000.00		2		1,632,500.00		0.19		8.605		602		816,250.00		72.53
900,000.01 - 950,000.00		1		936,574.08		0.11		9.500		723		936,574.08		75.00
950,000.01 - 1,000,000.00		2		1,973,143.06		0.23		8.302		624		986,571.53		75.97
Greater than 1,000,000.00		1		1,500,000.00		0.17		10.550		676		1,500,000.00		39.47
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 29

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Seasoning of the Mortgage Loans

Seasoning of the Mortgage Loans (in months)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
0		1,429		266,083,874.37		30.37		8.727		604		186,202.85		78.96
1		1,158		218,121,717.15		24.90		8.596		605		188,360.72		78.76
2		1,152		246,449,987.28		28.13		8.361		609		213,932.28		80.11
3		159		30,829,216.12		3.52		8.834		617		193,894.44		80.19
4		398		64,095,083.80		7.32		8.453		656		161,042.92		83.93
5		267		42,764,639.97		4.88		8.303		664		160,167.19		83.79
6		10		1,710,575.31		0.20		8.539		692		171,057.53		83.63
7		5		516,908.99		0.06		9.569		597		103,381.80		83.24
8 or greater		56		5,523,119.56		0.63		8.079		643		98,627.14		84.83
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Original Term of the Mortgage Loans

Original Term (in months)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
109 - 120		3		173,665.49		0.02		9.009		675		57,888.50		78.56
133 - 144		1		103,500.00		0.01		8.600		571		103,500.00		49.76
169 - 180		68		5,706,531.85		0.65		9.847		617		83,919.59		74.81
229 - 240		180		11,338,851.70		1.29		10.933		628		62,993.62		91.89
289 - 300		10		1,117,846.24		0.13		8.928		601		111,784.62		80.21
349 - 360		4,353		853,781,735.81		97.45		8.509		613		196,136.40		79.79
469 - 480		19		3,872,991.46		0.44		8.705		609		203,841.66		81.65
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 30

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Current Mortgage Interest Rates of the Mortgage Loans

Current Mortgage Rates of the Mortgage Loans (%)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance ($)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
5.001 - 6.000		9		2,603,787.24		0.30		5.933		652		289,309.69		74.69
6.001 - 7.000		321		88,679,615.41		10.12		6.757		644		276,260.48		76.36
7.001 - 8.000		1,159		280,279,594.49		31.99		7.612		631		241,828.81		76.57
8.001 - 9.000		1,155		233,923,032.70		26.70		8.554		607		202,530.76		80.06
9.001 - 10.000		945		159,870,304.79		18.25		9.550		588		169,174.93		82.54
10.001 - 11.000		529		69,584,967.99		7.94		10.515		585		131,540.58		83.85
11.001 - 12.000		328		29,735,600.92		3.39		11.477		609		90,657.32		91.80
12.001 - 13.000		169		10,356,422.85		1.18		12.374		619		61,280.61		96.67
13.001 - 14.000		19		1,061,796.16		0.12		13.406		593		55,884.01		97.48
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Original Combined Loan-to-Value Ratio of the Mortgage Loans

Original Combined Loan-to-Value Ratio (%)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance ($)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
10.01 - 15.00		3		201,960.18		0.02		8.616		609		67,320.06		12.33
15.01 - 20.00		3		244,906.32		0.03		8.711		562		81,635.44		17.97
20.01 - 25.00		15		1,075,482.62		0.12		8.787		589		71,698.84		22.99
25.01 - 30.00		11		1,539,979.72		0.18		9.104		596		139,998.16		26.79
30.01 - 35.00		14		1,701,292.55		0.19		8.634		595		121,520.90		31.99
35.01 - 40.00		20		3,775,416.37		0.43		9.191		625		188,770.82		38.22
40.01 - 45.00		34		4,319,686.00		0.49		8.175		596		127,049.59		42.42
45.01 - 50.00		54		8,081,798.21		0.92		8.286		594		149,662.93		48.14
50.01 - 55.00		84		14,389,139.24		1.64		8.324		597		171,299.28		53.01
55.01 - 60.00		121		22,685,732.61		2.59		8.535		578		187,485.39		57.80
60.01 - 65.00		202		38,315,127.43		4.37		8.134		590		189,678.85		63.19
65.01 - 70.00		247		50,815,457.41		5.80		8.208		591		205,730.60		68.54
70.01 - 75.00		355		75,935,616.00		8.67		8.183		596		213,903.14		73.96
75.01 - 80.00		1,555		333,909,946.99		38.11		8.100		628		214,733.08		79.69
80.01 - 85.00		458		97,197,563.67		11.09		8.786		593		212,221.75		84.37
85.01 - 90.00		545		109,845,385.45		12.54		8.804		611		201,551.17		89.61
90.01 - 95.00		260		51,744,676.02		5.91		9.087		618		199,017.98		94.75
95.01 - 100.00		653		60,315,955.76		6.88		10.821		640		92,367.47		99.94
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 31

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Remaining Scheduled Terms to Maturity of the Mortgage Loans

Remaining Months to Maturity of the Mortgage Loans (in months)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance ($)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
73 - 84		1		17,209.88		0.00		10.125		777		17,209.88		68.80
109 - 120		3		173,665.49		0.02		9.009		675		57,888.50		78.56
133 - 144		1		103,500.00		0.01		8.600		571		103,500.00		49.76
157 - 168		3		148,507.17		0.02		8.664		636		49,502.39		86.78
169 - 180		64		5,540,814.80		0.63		9.878		616		86,575.23		74.51
205 - 216		2		40,466.67		0.00		12.050		635		20,233.34		94.63
217 - 228		11		405,326.18		0.05		10.955		654		36,847.83		98.36
229 - 240		167		10,893,058.85		1.24		10.928		627		65,227.90		91.64
289 - 300		10		1,117,846.24		0.13		8.928		601		111,784.62		80.21
325 - 336		1		152,410.20		0.02		7.625		664		152,410.20		95.00
337 - 348		14		2,139,594.09		0.24		7.070		624		152,828.15		81.53
349 - 360		4,338		851,489,731.52		97.19		8.513		613		196,286.25		79.79
469 - 480		19		3,872,991.46		0.44		8.705		609		203,841.66		81.65
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Gross Margin of the Mortgage Loans

Gross Margins of ARMs Only (%)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
3.001 - 3.500		3		841,673.97		0.12		7.890		647		280,557.99		86.53
3.501 - 4.000		10		2,277,117.13		0.34		7.838		630		227,711.71		75.71
4.001 - 4.500		57		13,147,975.48		1.94		7.852		613		230,666.24		75.34
4.501 - 5.000		77		20,664,253.57		3.06		7.346		625		268,366.93		76.21
5.001 - 5.500		296		71,273,397.05		10.54		7.666		621		240,788.50		76.92
5.501 - 6.000		736		179,008,312.89		26.47		7.779		642		243,217.82		78.70
6.001 - 6.500		771		167,166,002.58		24.72		8.698		599		216,817.12		80.38
6.501 - 7.000		375		75,349,336.16		11.14		8.816		598		200,931.56		79.68
7.001 - 7.500		347		65,436,148.15		9.68		9.224		593		188,576.80		82.07
7.501 - 8.000		260		47,718,681.27		7.06		9.508		572		183,533.39		83.05
8.001 - 8.500		114		23,370,036.46		3.46		9.521		589		205,000.32		85.50
8.501 - 9.000		28		5,456,138.32		0.81		9.788		600		194,862.08		87.72
9.001 - 9.500		20		3,284,069.61		0.49		10.736		598		164,203.48		92.59
9.501 - 10.000		11		1,220,777.95		0.18		11.401		568		110,979.81		94.47
Total:		3,105		676,213,920.59		100.00		8.457		611		217,782.26		79.93

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 32

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Maximum Lifetime Mortgage Interest Rates of the Mortgage Loans

Maximum Lifetime Mortgage Interest Rates of ARMs Only (%)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
11.501 - 12.000		9		2,603,787.24		0.39		5.933		652		289,309.69		74.69
12.001 - 12.500		54		15,342,630.12		2.27		6.331		650		284,122.78		77.31
12.501 - 13.000		163		44,844,615.45		6.63		6.839		637		275,120.34		76.73
13.001 - 13.500		299		78,236,357.18		11.57		7.305		635		261,660.06		77.52
13.501 - 14.000		526		133,122,809.65		19.69		7.752		626		253,085.19		77.87
14.001 - 14.500		387		93,116,599.37		13.77		8.232		615		240,611.37		80.18
14.501 - 15.000		495		102,852,683.16		15.21		8.696		604		207,783.20		80.52
15.001 - 15.500		332		64,527,630.01		9.54		9.237		592		194,360.33		81.58
15.501 - 16.000		385		70,536,868.44		10.43		9.683		585		183,212.65		82.37
16.001 - 16.500		185		29,554,695.98		4.37		10.206		578		159,755.11		84.03
16.501 - 17.000		167		26,798,043.73		3.96		10.657		584		160,467.33		83.11
17.001 - 17.500		55		7,926,921.41		1.17		11.240		572		144,125.84		87.46
17.501 - 18.000		35		5,243,777.88		0.78		11.719		556		149,822.23		86.16
18.001 - 18.500		5		740,340.53		0.11		12.272		566		148,068.11		83.91
18.501 - 19.000		7		716,160.44		0.11		12.274		531		102,308.63		79.09
19.001 - 19.500		1		50,000.00		0.01		13.200		543		50,000.00		47.62
Total:		3,105		676,213,920.59		100.00		8.457		611		217,782.26		79.93

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 33

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Minimum Lifetime Mortgage Interest Rates of the Mortgage Loans

Minimum Lifetime Mortgage Interest Rates of ARMs Only (%)	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
2.501 - 3.000		1		583,598.18		0.09		8.950		602		583,598.18		77.81
3.001 - 3.500		2		538,197.63		0.08		7.379		677		269,098.82		81.75
3.501 - 4.000		8		1,780,770.46		0.26		7.753		635		222,596.31		73.89
4.001 - 4.500		54		12,403,407.23		1.83		7.906		612		229,692.73		75.06
4.501 - 5.000		55		14,558,050.96		2.15		7.446		612		264,691.84		75.92
5.001 - 5.500		233		55,462,171.92		8.20		7.699		611		238,035.07		76.41
5.501 - 6.000		271		65,454,145.24		9.68		7.794		618		241,528.21		76.62
6.001 - 6.500		658		146,410,484.03		21.65		8.581		602		222,508.33		80.11
6.501 - 7.000		382		90,408,112.79		13.37		8.141		616		236,670.45		79.81
7.001 - 7.500		394		87,988,269.93		13.01		8.433		620		223,320.48		80.77
7.501 - 8.000		408		86,773,693.76		12.83		8.588		612		212,680.62		81.43
8.001 - 8.500		210		43,921,958.97		6.50		8.888		611		209,152.19		83.15
8.501 - 9.000		129		25,582,346.81		3.78		9.132		614		198,312.77		82.69
9.001 - 9.500		86		15,118,205.96		2.24		9.695		613		175,793.09		83.58
9.501 - 10.000		110		16,451,953.65		2.43		9.937		592		149,563.22		82.26
10.001 -10.500		37		4,663,010.28		0.69		10.373		597		126,027.30		83.14
10.501 - 11.000		43		4,679,199.91		0.69		10.793		587		108,818.60		79.49
11.001 - 11.500		13		1,837,855.22		0.27		11.342		569		141,373.48		78.87
11.501 - 12.000		11		1,598,487.66		0.24		11.846		563		145,317.06		85.22
Total:		3,105		676,213,920.59		100.00		8.457		611		217,782.26		79.93

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 34

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Next Interest Rate Adjustment Date of the Mortgage Loans

Next Interest Rate Adjustment Date of the Mortgage Loans	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
November 2006		1		94,308.87		0.01		7.875		512		94,308.87		85.00
April 2007		1		142,504.81		0.02		6.800		562		142,504.81		74.97
July 2007		3		514,885.15		0.08		6.984		641		171,628.38		90.03
August 2007		1		208,050.00		0.03		6.349		665		208,050.00		95.00
November 2007		4		945,361.42		0.14		7.379		698		236,340.36		80.00
January 2008		2		177,936.83		0.03		8.360		627		88,968.42		75.01
February 2008		6		935,305.37		0.14		8.013		619		155,884.23		80.00
March 2008		4		1,025,925.27		0.15		7.929		709		256,481.32		80.00
April 2008		129		32,785,030.54		4.85		7.568		664		254,147.52		79.93
May 2008		191		48,421,392.20		7.16		7.821		658		253,515.14		80.67
June 2008		58		15,108,118.98		2.23		8.459		616		260,484.81		79.62
July 2008		601		132,453,931.89		19.59		8.417		607		220,389.24		80.13
August 2008		406		86,242,835.80		12.75		8.843		596		212,420.78		79.70
September 2008		397		81,876,146.04		12.11		8.902		595		206,237.14		80.65
October 2008		95		21,548,421.00		3.19		8.923		594		226,825.48		80.15
November 2008		2		412,730.18		0.06		7.892		619		206,365.09		80.34
January 2009		2		296,274.64		0.04		8.577		549		148,137.32		82.11
March 2009		1		371,330.99		0.05		7.900		641		371,330.99		80.00
April 2009		3		728,374.35		0.11		7.539		645		242,791.45		79.78
May 2009		17		3,721,160.08		0.55		7.385		632		218,891.77		79.78
June 2009		67		10,746,377.30		1.59		9.233		610		160,393.69		80.74
July 2009		399		85,759,556.25		12.68		8.228		607		214,936.23		80.42
August 2009		342		69,285,783.37		10.25		8.434		607		202,590.01		79.10
September 2009		300		64,673,665.63		9.56		8.669		603		215,578.89		78.59
October 2009		53		12,212,318.00		1.81		8.156		613		230,421.09		79.18
April 2011		3		725,090.16		0.11		7.468		670		241,696.72		80.00
May 2011		2		391,231.38		0.06		8.064		623		195,615.69		74.22
July 2011		2		775,099.52		0.11		6.580		619		387,549.76		76.61
August 2011		2		534,267.57		0.08		8.337		691		267,133.79		83.63
September 2011		9		2,798,107.00		0.41		8.390		646		310,900.78		82.58
October 2011		2		302,400.00		0.04		7.209		664		151,200.00		49.75
Total:		3,105		676,213,920.59		100.00		8.457		611		217,782.26		79.93

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 35

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Occupancy Type of the Mortgaged Premises of the Mortgage Loans

Occupancy Status of the Loans	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Primary		4,386		835,587,413.53		95.38		8.513		612		190,512.41		80.04
Investment		233		36,186,691.39		4.13		9.327		647		155,307.69		76.97
Second Home		15		4,321,017.63		0.49		9.267		670		288,067.84		82.19
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Origination Program of the Mortgage Loans

Origination Program	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Full Documentation		2,904		489,006,463.27		55.82		8.473		601		168,390.66		80.45
Stated Documentation		1,452		320,130,589.08		36.54		8.704		632		220,475.61		78.95
12 Months Bank Statements		177		42,278,682.83		4.83		8.414		607		238,862.61		82.63
Limited Documentation		101		24,679,387.37		2.82		8.333		625		244,350.37		77.45
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Mortgage Loan Purpose of the Mortgage Loans

Loan Purpose	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Refinance - Cashout		2,979		591,062,888.39		67.47		8.472		601		198,409.83		77.91
Purchase		1,486		256,884,245.95		29.32		8.727		642		172,869.61		84.53
Refinance - Rate Term		169		28,147,988.21		3.21		8.589		603		166,556.14		80.18
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 36

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Index Type of the Mortgage Loans

Index Type	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Fixed Rate		1,529		199,881,201.96		22.82		8.865		621		130,726.75		79.89
Libor - 6 Month		3,105		676,213,920.59		77.18		8.457		611		217,782.26		79.93
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Property Type of the Mortgage Loans

Property Types of the Loans	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Single Family Detach		3,476		632,632,156.01		72.21		8.576		611		182,000.04		79.71
Planned Unit Dev.		561		129,873,142.59		14.82		8.466		614		231,502.93		81.56
Low Rise Condo		259		42,680,981.18		4.87		8.500		632		164,791.43		79.92
Two to Four Family		172		40,715,660.43		4.65		8.442		632		236,718.96		78.96
Single Family Attach		87		16,705,373.86		1.91		8.439		597		192,015.79		75.12
Townhouse		51		8,808,537.68		1.01		8.471		608		172,716.43		84.01
High Rise Condo		10		2,412,440.64		0.28		9.508		606		241,244.06		86.06
Deminimus PUD		11		1,639,129.50		0.19		9.655		572		149,011.77		79.60
Manufactured House		7		627,700.66		0.07		8.364		631		89,671.52		71.11
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 37

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Loan Types of the Mortgage Loans

Mortgage Loan Types	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
2/28 ARM		815		148,994,644.56		17.01		8.699		609		182,815.51		79.98
30 Yr Fixed		1,033		130,989,574.82		14.95		8.901		621		126,805.01		79.80
3/27 ARM		561		90,821,336.91		10.37		9.011		598		161,891.87		79.22
2/28 ARM 40/30 BALLOON		400		90,746,420.45		10.36		8.694		597		226,866.05		80.30
2/28 ARM - 5 Yr IO		314		89,462,858.83		10.21		7.935		636		284,913.56		80.65
3/27 ARM - 5 Yr IO		248		68,999,092.66		7.88		7.674		626		278,222.15		80.31
2/28 ARM 50/30 BALLOON		277		67,626,509.73		7.72		8.759		594		244,139.02		79.97
3/27 ARM 50/30 BALLOON		176		44,029,384.99		5.03		8.459		595		250,166.96		78.80
3/27 ARM 40/30 BALLOON		190		41,146,139.75		4.70		8.379		607		216,558.63		79.66
40/30 BALLOON		116		24,259,601.44		2.77		8.271		618		209,134.50		77.71
Dual Amort - 10/40 - 2 Year/6 Month		82		23,274,931.28		2.66		7.667		662		283,840.63		79.90
50/30 BALLOON		88		19,350,918.10		2.21		8.138		616		219,896.80		77.71
30/20 BALLOON		141		7,551,905.45		0.86		11.976		640		53,559.61		99.53
30 Yr Fixed - 5 Yr IO		20		5,107,006.01		0.58		7.991		641		255,350.30		78.92
15 Yr Fixed		53		4,591,240.73		0.52		9.418		604		86,627.18		68.69
20 Yr Fixed		39		3,786,946.25		0.43		8.852		605		97,101.19		76.67
Dual Amort - 10/40 - 3 Year/6 Month		12		3,064,620.65		0.35		7.259		639		255,385.05		79.90
40 Yr Fixed		10		1,733,706.31		0.20		8.391		620		173,370.63		84.42
5/25 ARM		8		1,623,475.59		0.19		8.447		650		202,934.45		86.27
5/25 ARM 50/30 BALLOON		3		1,327,698.95		0.15		7.804		628		442,566.32		79.99
5/25 ARM - 5 Yr IO		3		1,190,797.00		0.14		7.331		682		396,932.33		71.01
3/37 ARM		5		1,162,200.00		0.13		9.617		557		232,440.00		73.30
25 Yr Fixed		10		1,117,846.24		0.13		8.928		601		111,784.62		80.21
30/15 BALLOON		15		1,115,291.12		0.13		11.613		673		74,352.74		100.00
2/38 ARM		4		977,085.15		0.11		8.176		651		244,271.29		86.66
Dual Amort - 10/40 - 5 Year/6 Month		4		916,891.69		0.10		7.661		654		229,222.92		78.14
5/25 ARM 40/30 BALLOON		2		467,332.40		0.05		8.456		617		233,666.20		74.37
2/28 ARM - 2 Yr IO		1		382,500.00		0.04		8.000		700		382,500.00		78.06
10 Yr Fixed		3		173,665.49		0.02		9.009		675		57,888.50		78.56
12 Yr Fixed		1		103,500.00		0.01		8.600		571		103,500.00		49.76
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 38

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Geographic Distribution of Mortgaged Premises of the Mortgage Loans

Geographic Distribution of the Mortgages Properties	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Alabama		15		1,728,233.54		0.20		9.211		598		115,215.57		80.68
Alaska		15		2,466,673.73		0.28		9.317		575		164,444.92		76.05
Arizona		169		31,992,783.11		3.65		8.481		614		189,306.41		77.36
Arkansas		16		1,526,382.19		0.17		8.695		612		95,398.89		84.31
California		569		168,178,029.20		19.20		8.114		626		295,567.71		78.06
Colorado		38		6,806,556.70		0.78		8.835		602		179,119.91		84.12
Connecticut		58		10,459,227.85		1.19		8.489		600		180,331.51		78.13
Delaware		24		4,352,966.09		0.50		8.160		613		181,373.59		78.81
District of Columbia		36		9,082,548.38		1.04		8.523		597		252,293.01		71.28
Florida		583		102,057,821.75		11.65		8.601		619		175,056.30		80.21
Georgia		225		33,046,790.34		3.77		9.100		606		146,874.62		83.11
Hawaii		17		4,079,356.64		0.47		8.113		630		239,962.16		76.60
Idaho		11		1,385,096.82		0.16		7.835		630		125,917.89		71.25
Illinois		126		21,255,943.96		2.43		9.030		617		168,697.97		84.26
Indiana		57		6,056,690.75		0.69		9.345		606		106,257.73		83.56
Iowa		16		1,397,067.81		0.16		9.868		610		87,316.74		85.14
Kansas		15		1,351,701.38		0.15		8.852		624		90,113.43		80.93
Kentucky		44		4,240,167.67		0.48		9.398		594		96,367.45		82.41
Louisiana		17		2,197,303.15		0.25		9.533		586		129,253.13		87.05
Maine		3		361,127.78		0.04		9.662		603		120,375.93		83.48
Maryland		494		117,501,103.11		13.41		8.027		601		237,856.48		78.53
Massachusetts		42		10,059,528.70		1.15		8.689		602		239,512.59		82.09
Michigan		254		28,612,243.81		3.27		9.240		625		112,646.63		81.87
Minnesota		42		7,465,207.70		0.85		8.846		608		177,743.04		83.39
Mississippi		13		1,495,946.13		0.17		9.242		581		115,072.78		79.46
Missouri		52		5,380,862.87		0.61		9.758		600		103,478.13		84.89
Montana		14		2,368,888.57		0.27		8.850		614		169,206.33		82.06
Nebraska		9		1,016,567.54		0.12		9.620		592		112,951.95		88.27
Nevada		66		15,126,493.06		1.73		8.430		635		229,189.29		81.81
New Hampshire		6		1,112,190.47		0.13		8.993		581		185,365.08		79.49
New Jersey		19		5,161,597.60		0.59		8.872		608		271,663.03		84.59
New Mexico		24		2,899,891.91		0.33		9.419		617		120,828.83		85.77
New York		251		71,044,681.11		8.11		8.261		626		283,046.54		77.89
North Carolina		59		9,156,907.60		1.05		9.399		611		155,201.82		85.79
North Dakota		1		55,135.03		0.01		7.300		703		55,135.03		80.00
Ohio		216		21,560,614.45		2.46		9.472		598		99,817.66		84.94
Oklahoma		19		1,813,795.12		0.21		8.901		602		95,462.90		83.10
Oregon		62		13,509,340.54		1.54		8.499		616		217,892.59		80.74
Pennsylvania		105		14,641,014.96		1.67		8.567		616		139,438.24		80.24
Rhode Island		14		3,001,851.50		0.34		8.423		590		214,417.96		80.98
South Carolina		69		9,491,889.79		1.08		9.328		585		137,563.62		81.77
South Dakota		1		85,482.48		0.01		8.550		658		85,482.48		84.65
Tennessee		103		12,480,736.84		1.42		9.456		604		121,172.20		82.33
Texas		143		15,656,514.80		1.79		9.402		617		109,486.12		85.43
Utah		14		2,008,753.91		0.23		9.112		585		143,482.42		83.63
Vermont		3		384,338.53		0.04		10.021		576		128,112.84		77.70
Virginia		265		52,721,757.67		6.02		8.501		598		198,950.03		80.19
Washington		83		17,512,343.86		2.00		8.396		614		210,992.09		78.57
West Virginia		17		2,417,368.20		0.28		8.829		601		142,198.13		76.48
Wisconsin		115		15,799,438.63		1.80		9.749		603		137,386.42		79.97
Wyoming		5		530,167.22		0.06		9.202		610		106,033.44		73.87
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 39

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Credit Score of the Mortgage Loans

Credit Score	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Not Available		8		957,244.30		0.11		10.311		0		119,655.54		61.74
476 - 500		9		1,291,146.50		0.15		10.995		497		143,460.72		62.83
501 - 525		221		36,290,217.84		4.14		9.988		514		164,209.13		72.92
526 - 550		337		57,696,308.78		6.59		9.568		538		171,205.66		76.11
551 - 575		627		116,781,743.67		13.33		8.834		562		186,254.77		76.73
576 - 600		842		160,689,250.67		18.34		8.586		587		190,842.34		79.53
601 - 625		856		161,836,162.59		18.47		8.382		613		189,060.94		81.94
626 - 650		717		134,428,157.41		15.34		8.188		638		187,486.97		81.56
651 - 675		510		99,475,407.70		11.35		8.160		662		195,049.82		82.29
676 - 700		270		56,666,393.79		6.47		8.173		685		209,875.53		81.47
701 - 725		118		24,747,637.52		2.82		8.257		713		209,725.74		81.55
726 - 750		61		12,152,990.16		1.39		8.133		737		199,229.35		82.98
751 - 775		36		8,243,567.41		0.94		8.023		762		228,987.98		80.75
776 - 800		20		4,615,042.85		0.53		8.234		783		230,752.14		79.42
801 - 825		2		223,851.36		0.03		7.871		805		111,925.68		70.95
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Credit Grade of the Mortgage Loans

Credit Grade	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
A		547		123,406,059.23		14.09		8.392		605		225,605.23		79.52
A-		382		74,352,728.20		8.49		8.814		581		194,640.65		77.12
A+		3,195		585,085,593.12		66.78		8.482		626		183,125.38		81.62
B		216		38,065,753.80		4.34		9.082		564		176,230.34		73.37
B+		82		15,973,813.25		1.82		8.842		572		194,802.60		73.20
C		166		30,020,584.73		3.43		9.199		563		180,846.90		67.29
SD		46		9,190,590.22		1.05		8.088		613		199,795.44		80.09
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 40

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Amortization Type of the Mortgage Loans

Amortization Type	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Balloon		1,408		297,621,202.38		33.97		8.650		602		211,378.69		80.09
Interest Only		586		165,142,254.50		18.85		7.823		633		281,812.72		80.38
Fully Amortizing		2,640		413,331,665.67		47.18		8.770		614		156,565.02		79.63
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

Prepayment Penalty Type of the Mortgage Loans

Original Prepayment Penalty Term (in months)	Number of Mortgage Loans	Total Outstanding Principal Balance ($	)	Percentage By Principal Balance (	%)	Weighted Average Mortgage Rate (	%)	Weighted Average Credit Score	Average Balance ($	)	Weighted Average Combined Original Loan-to-Value Ratio (	%)
No Prepayment Penalty	1,464	295,314,916.95		33.71		8.569		610	201,717.84		80.27
6	1	90,751.93		0.01		8.750		616	90,751.93		75.21
12	160	35,644,466.44		4.07		8.680		627	222,777.92		78.27
24	1,540	296,106,833.10		33.80		8.633		613	192,277.16		80.97
30	2	390,500.00		0.04		9.641		654	195,250.00		86.25
36	1,464	248,299,123.95		28.34		8.409		615	169,603.23		78.49
60	3	248,530.18		0.03		9.814		594	82,843.39		77.46
Total:	4,634	876,095,122.55		100.00		8.550		613	189,058.08		79.92

Delinquency Status of the Mortgage Loans

Delinquency Status	Number of Mortgage Loans		Total Outstanding Principal Balance ($)		Percentage By Principal Balance (%)		Weighted Average Mortgage Rate (%)		Weighted Average Credit Score		Average Balance ($)		Weighted Average Combined Original Loan-to-Value Ratio (%)
Current		4,569		862,963,594.73		98.50		8.547		613		188,873.63		79.89
Delinquent 30 Days		65		13,131,527.82		1.50		8.774		617		202,023.50		82.14
Total:		4,634		876,095,122.55		100.00		8.550		613		189,058.08		79.92

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 41

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

Morgan Stanley Contacts

	NAME	PHONE EXTENSION
Asset Finance:	Lydia Foo	212-761-1297
	Albert Han	212-761-4023
	John Chappell	212-761-8056
Asset Structuring:	Alex Saporito	212-761-2604
	Josh Hollander	212-761-7373
	Ari Lerner	212-761-1802
	Nathan Coelen	212-761-2076
	Lu Zhang	212-761-3068
Asset Backed Syndication:	Robert Paterson	212-761-2057
	Nicole Limberg	212-761-2084

Rating Agency Contacts

	NAME	PHONE EXTENSION
Moodys:	Yvonne Zhang	212-553-4094
S&P:	Natalia Skulthan	212-438-8012

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

Page 42

Saxon Asset Securities Trust
Mortgage Loan Asset Backed Notes, Series 2006-3

TERM SHEET DISCLAIMER

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© 2005 Morgan Stanley