8-K 1 efc4-0040_5490323form8k.txt ------------------------------------------------------------------------------ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest Event Reported): October 21, 2003 MORGAN STANLEY ABS CAPITAL I INC. (Exact name of registrant as specified in its charter) Delaware 333-104046 13-3939229 ---------------------- ---------------- ---------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 1585 Broadway, 2nd Floor New York, New York 10036 ---------------------- ---------- (Address of Principal (Zip Code) Executive Offices) Registrant's telephone number, including area code (212) 761-4000 ----- -------- ------------------------------------------------------------------------------ ITEM 5. OTHER EVENTS. Description of the Notes and the Mortgage Pool* On October 1, 2003, Morgan Stanley Dean Witter Credit Corporation ("MSDWCC") entered into a Home Equity Loan Purchase Agreement dated as of October 1, 2003 (the "Purchase Agreement"), by and between MSDWCC, as seller and Morgan Stanley ABS Capital I, Inc. (the "Company"), as purchaser, relating to the MSDWCC HELOC Trust 2003-2 (the "Trust"), HELOC Asset Backed Notes, Series 2003-2 (the "Notes"). The Purchase Agreement is annexed hereto as Exhibit 99.1. MSDWCC, as servicer, the Trust, as issuer, entered into a Servicing Agreement, dated as of October, 2003 (the "Servicing Agreement"), providing for the servicing of the Home Equity Loans to be delivered pursuant to the Purchase Agreement. The Servicing Agreement is annexed hereto as Exhibit 99.2. The Trust, as issuer, and Wells Fargo Bank Minnesota, N.A., as indenture trustee (the "Indenture Trustee") entered into an Indenture, dated as of October 1, 2003 (the "Indenture"), providing for the issuance of the Notes. The Indenture is annexed hereto as Exhibit 99.3. The Company, as depositor, and Wilmington Trust Company, as owner trustee (the "Owner Trustee") entered into a Trust Agreement, dated as of October 1, 2003 (the "Trust Agreement"), providing for the creation of the MSDWCC HELOC Asset-Backed Certificates, Series 2003-2 Trust. The Trust Agreement is annexed hereto as Exhibit 99.4. In addition to the above agreements, MBIA Insurance Corporation issued a Note Guaranty Insurance Policy, dated October 29, 2003 (the "Insurance Policy"), providing for the guarantee of certain payments with respect to the Notes upon certain conditions. The Insurance Policy is annexed hereto as Exhibit 99.5. ------------------ * Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Prospectus dated May 9, 2003 and the Prospectus Supplement dated October 23, 2003, of Morgan Stanley ABS Capital I Inc., relating to its HELOC Asset-Backed Notes, Series 2003-2 (the "Prospectus"). ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL ---- ----------------------------------------- INFORMATION AND EXHIBITS. ------------------------ (a) Not applicable. (b) Not applicable. (c) Exhibits: 99.1 The Home Equity Loan Purchase Agreement, dated as of October 1, 2003, by and between MSDWCC and the Company. 99.2 The Servicing Agreement, dated as of October 1, 2003, by and between the MSDWCC and the Trust. 99.3 The Indenture, dated as of October 1, 2003, by and between the Trust and the Indenture Trustee. 99.4 The Trust Agreement, dated as of October 1, 2003, by and between the Company and the Owner Trustee. 99.5 The Note Guaranty Insurance Policy, dated as of October 1, 2003, issued by MBIA Insurance Corporation. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MORGAN STANLEY ABS CAPITAL I INC. By: /s/Steven Shapiro -------------------------- Name: Steven Shapiro Title: Executive Director Dated: January 16, 2004 3 EXHIBIT INDEX Exhibit Description 99.1 The Home Equity Loan Purchase Agreement, dated as of October 1, 2003, by and between MSDWCC and the Company. 99.2 The Servicing Agreement, dated as of October 1, 2003, by and between the MSDWCC and the Trust. 99.3 The Indenture, dated as of October 1, 2003, by and between the Trust and the Indenture Trustee. 99.4 The Trust Agreement, dated as of October 1, 2003, by and between the Company and the Owner Trustee. 99.5 The Note Guaranty Insurance Policy, dated as of October 1, 2003, issued by MBIA Insurance Corporation. 4

Morgan Stanley Dean Witter Credit Corp HELOC Trust HELOC Asset-Backed Notes Record Date: 11/30/03 Distribution Date: 12/26/03 MSDWCC Series: 2003-2 Contact: Customer Service - CTSLink Wells Fargo Bank Minnesota, N.A. Securities Administration Services 7485 New Horizon Way Frederick, MD 21703 Telephone: (301) 815-6600 Fax: (301) 815-6660 Certificateholder Distribution Summary Certificate Certificate Beginning Class Pass-Through Certificate Interest Principal Class CUSIP Description Rate Balance Distribution Distribution Note 55353WAB2 SEN 1.37875% 404,671,024.48 480,448.48 514,805.64 CERT MSH03CERT SUB 0.00000% 17,905,108.22 45,038.88 0.00 OC OC 0.00000% 328,975.52 0.00 0.00 Totals 422,905,108.22 525,487.36 514,805.64

Certificateholder Distribution Summary (continued) Current Ending Cumulative Realized Certificate Total Realized Class Loss Balance Distribution Losses Note 0.00 404,156,218.84 995,254.12 0.00 CERT 1,392.43 20,506,827.99 45,038.88 1,392.43 OC 31,495.81 812,285.35 0.00 31,495.81 Totals 32,888.24 425,475,332.18 1,040,293.00 32,888.24 All distributions required by the Pooling and Servicing Agreement have been calculated by the Certificate Administrator on behalf of the Trustee.

Principal Distribution Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Realized Class Amount Balance Distribution Distribution Accretion Loss (1) Note 405,000,000.00 404,671,024.48 0.00 514,805.64 0.00 0.00 CERT 0.00 17,905,108.22 0.00 0.00 0.00 1,392.43 OC 0.01 328,975.52 0.00 0.00 0.00 31,495.81 Totals 405,000,000.01 422,905,108.22 0.00 514,805.64 0.00 32,888.24 (1) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Principal Distribution Statement (continued) Total Ending Ending Total Principal Certificate Certificate Principal Class Reduction Balance Percentage Distribution Note 514,805.64 404,156,218.84 0.99791659 514,805.64 CERT 1,392.43 20,506,827.99 0.00000000 0.00 OC 31,495.81 812,285.3228,535.00000000 0.00 Totals 547,693.88 425,475,332.18 1.05055638 514,805.64

Principal Distribution Factors Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Class (2) Amount Balance Distribution Distribution Accretion Note 405,000,000.00 999.18771477 0.00000000 1.27112504 0.00000000 CERT 0.00 0.00000000 0.00000000 0.00000000 0.00000000 OC 0.01 0.00000000 0.00000000 0.00000000 0.00000000

Principal Distribution Factors Statement (continued) Total Ending Ending Total Realized Principal Certificate Certificate Principal Class Loss (3) Reduction Balance Percentage Distribution Note 0.00000000 1.27112504 997.91658973 0.99791659 1.27112504 CERT 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 OC 0.00000000 0.00000000 0.00000000 81228535.00000000 0.00000000 (3) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class Amount Rate Balance Interest Shortfall Shortfall Note 405,000,000.00 1.37875% 404,671,024.48 480,448.48 0.00 0.00 CERT 0.00 0.00000% 17,905,108.22 45,038.88 0.00 0.00 OC 0.01 0.00000% 328,975.52 0.00 0.00 0.00 Totals 405,000,000.01 525,487.36 0.00 0.00

Interest Distribution Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (4) Distribution Shortfall Balance Note 0.00 0.00 480,448.48 0.00 404,156,218.84 CERT 0.00 0.00 45,038.88 0.00 20,506,827.99 OC 0.00 0.00 0.00 0.00 812,285.35 Totals 0.00 0.00 525,487.36 0.00 (4) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Factors Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class (5) Amount Rate Balance Interest Shortfall Shortfall Note 405,000,000.00 1.37875% 999.18771477 1.18629254 0.00000000 0.00000000 CERT 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 OC 0.01 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 (5) Per $1 denomination.

Interest Distribution Factors Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (6) Distribution Shortfall Balance Note 0.00000000 0.00000000 1.18629254 0.00000000 997.91658973 CERT 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 OC 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 (6) Amount Does Not Include Excess Special Hazard, Bankruptcy,or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

CERTIFICATEHOLDER ACCOUNT STATEMENT CERTIFICATE ACCOUNT Beginning Balance 0.00 Deposits Payments of Interest and Principal 1,274,090.08 Liquidations, Insurance Proceeds, Reserve Funds 0.00 Proceeds from Repurchased Loans 0.00 Other Amounts (Servicer Advances) 0.00 Realized Loss (Gains, Subsequent Expenses & Recoveries) (32,888.24) Prepayment Penalties 0.00 Total Deposits 1,241,201.84 Withdrawals Reimbursement for Servicer Advances 0.00 Payment of Service Fee 200,908.84 Payment of Interest and Principal 1,040,293.00 Total Withdrawals (Pool Distribution Amount) 1,241,201.84 Ending Balance 0.00

PREPAYMENT/CURTAILMENT INTEREST SHORTFALL Total Prepayment/Curtailment Interest Shortfall 0.00 Servicing Fee Support 0.00 Non-Supported Prepayment/Curtailment Interest Shortfall 0.00

SERVICING FEES Gross Servicing Fee 156,819.84 Credit Enhancer Premium 43,839.00 Owner Trustee Fee 250.00 Supported Prepayment/Curtailment Interest Shortfall 0.00 Net Servicing Fee 200,908.84

OTHER ACCOUNTS Beginning Current Current Ending Account Type Balance Withdrawals Deposits Balance Financial Guaranty 0.00 0.00 0.00 0.00

LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT DELINQUENCY STATUS DELINQUENT BANKRUPTCY FORECLOSURE REO Total No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 1 0 0 1 47,916.89 0.00 0.00 47,916.89 30 Days 2 0 0 0 2 67,307.26 0.00 0.00 0.00 67,307.26 60 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 90 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180+ Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 2 1 0 0 3 67,307.26 47,916.89 0.00 0.00 115,224.15 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0.015964% 0.000000% 0.000000% 0.015964% 0.011262% 0.000000% 0.000000% 0.011262% 30 Days 0.031928% 0.000000% 0.000000% 0.000000% 0.031928% 0.015819% 0.000000% 0.000000% 0.000000% 0.015819% 60 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 90 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180+ Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 0.031928% 0.015964% 0.000000% 0.000000% 0.047893% 0.015819% 0.011262% 0.000000% 0.000000% 0.027081%

(7) Delinquencies are stratified according to information the servicer has provided. Bankruptcy, Foreclosure, and REO are included in the Delinquency amounts. For all categories, 180+ amounts are reported in the 150+ category. OTHER INFORMATION Current Period Class A Insufficient Funds 0.00 Principal Balance of Contaminated Properties 0.00 Periodic Advance 0.00

COLLATERAL STATEMENT Collateral Description 6 Month LIBOR ARM Weighted Average Gross Coupon 3.463483% Weighted Average Net Coupon 3.018505% Weighted Average Pass-Through Rate 2.894111% Weighted Average Maturity(Stepdown Calculation ) 0 Beginning Scheduled Collateral Loan Count 5,948 Number Of Loans Paid In Full (316) Ending Scheduled Collateral Loan Count 6,264 Beginning Scheduled Collateral Balance 422,905,108.22 Ending Scheduled Collateral Balance 425,475,332.18 Ending Actual Collateral Balance at 30-Nov-2003 425,475,332.18 Monthly P &I Constant 0.00 Special Servicing Fee 0.00 Prepayment Penalties 0.00 Realized Loss Amount 0.00 Cumulative Realized Loss 0.00

Miscellaneous Reporting Current Period Additional Balances 19,670,731.13 Investor Amount 404,968,504.19 Investor Floating Allocation % 95.766164% Overcollateralization Shortfall 5,746,024.48 Principal Collections 17,067,618.93 Required Overcollateralization Amt 6,075,000.00 Interest Collections 1,253,492.26 Realized Loss Amount 32,888.24 Cumulative Realized Loss 32,888.24 Sum of 3 Largest Loan Balance 15,432,371.33 Pre-Funding Loan Purchase 39,387,807.53 Pre-Funding Amount Paid as Principal 20,347.82

Filing Compare · HELOC ASSET-BACKED NOTES SERIES 2003-2