8-K 1 p793072-8k.txt CURRENT REPORT UNITED STATES 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 15, 2004 Morgan Stanley ABS Capital I Inc. (as depositor under the Pooling and Servicing Agreement, dated as of April, 2004, relating to the Morgan Stanley ABS Capital I Inc. Trust 2004-HE2 Mortgage Pass-Through Certificates, Series 2004-HE2) -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 333-104046-20 13-3939229 -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1585 Broadway, New York, New York 10036 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 761-4000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 8.01. Other Events. Attached as Exhibit 4 is Amendment No. 1, dated as of July 20, 2004 (the "Amendment"), to the Pooling and Servicing Agreement, dated as of April 1, 2004 (the "Pooling and Servicing Agreement"), each by and among Morgan Stanley ABS Capital I Inc., as depositor, Chase Manhattan Mortgage Corporation, as a servicer, Countrywide Home Loans Servicing LP, as a servicer, HomEq Servicing Corporation, as a servicer, Aames Capital Corporation, as a responsible party, Accredited Home Lenders, Inc., as a responsible party, NC Capital Corporation, as a responsible party, and Deutsche Bank National Trust Company, as trustee, relating to the Morgan Stanley ABS Capital I Inc. Trust 2004-HE2 Mortgage Pass-Through Certificates, Series 2004-HE2 (the "Certificates"). The Amendment was fully executed by the parties thereto on October 15, 2004, to be effective as of July 20, 2004. The Amendment reduces the required loss percentages in the definition of "Cumulative Loss Trigger Event" in the Pooling and Servicing Agreement. The potential effect of this change is to increase the possibility of an occurence of a Cumulative Loss Trigger Event. Capitalized terms used herein and not defined herein have the same meanings ascribed to such terms in the Pooling and Servicing Agreement. Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits Exhibit 4 Amendment No. 1, dated as of July 20, 2004, to the Pooling and Servicing Agreement, dated as of April 1, 2004, each and among the Company, as depositor, Chase Manhattan Mortgage Corporation, as a servicer, Countrywide Home Loans Servicing LP, as a servicer, HomEq Servicing Corporation, as a servicer, Aames Capital Corporation, as a responsible party, Accredited Home Lenders, Inc., as a responsible party, NC Capital Corporation, as a responsible party, and Deutsche Bank National Trust Company, as trustee. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: October 18, 2004 MORGAN STANLEY ABS CAPITAL I INC. By: /s/ Valerie H. Kay ------------------------------------ Name: Valerie H. Kay Title: Vice President INDEX TO EXHIBITS Item 601(a) of Regulation S-K Exhibit No. Description Page ----------- ----------- ---- 4 Amendment No. 1, dated as of July 20, 2004, to 6 the Pooling and Servicing Agreement, dated as of April 1, 2004, by and among the Company, as depositor, Chase Manhattan Mortgage Corporation, as a servicer, Countrywide Home Loans Servicing LP, as a servicer, HomEq Servicing Corporation, as a servicer, Aames Capital Corporation, as a responsible party, Accredited Home Lenders, Inc., as a responsible party, NC Capital Corporation, as a responsible party, and Deutsche Bank National Trust Company, as trustee.

UNITED STATES 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): September 27, 2004 (Date of earliest event reported) MORGAN STANLEY ABS CAPITAL I INC. (as Depositor under the Pooling and Servicing Agreement, dated as April 1, 2004, providing for the issuance of Mortgage Pass-Through Certificates, Series 2004-HE2) (Exact name of registrant as specified in charter) DELAWARE (State or Other Jurisdiction of Incorporation) 333-113543-02 13-3939229 (Commission File Number) (I.R.S. Employer Identification No.) 1585 BROADWAY, 2ND FLOOR NEW YORK, NEW YORK 10036 (Address of principal executive offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (212) 761-4000 (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 8.01 Other Events. This current report on Form 8-K relates to the monthly distribution reported to the holders of Morgan Stanley ABS Capital I Inc. Mortgage Pass-Through Certificates, Series 2004-HE2, which was made on April 1, 2004 Item 9.01 Financial Statements and Exhibits. (c) Exhibits Exhibit No. Description 99.1 Monthly Remittance Statement to the Certificateholders dated as of September 27, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on behalf of the Registrant by the undersigned thereunto duly authorized. DEUTSCHE BANK NATIONAL TRUST COMPANY, IN ITS CAPACITY AS TRUSTEE UNDER THE POOLING AND SERVICING AGREEMENT ON BEHALF OF MORGAN STANLEY ABS CAPITAL I INC., REGISTRANT Date: Sep 27, 2004 By: /s/ Katherine M. Wannenmacher Katherine M. Wannenmacher Vice President EXHIBIT INDEX DOCUMENT 99.1 Monthly Remittance Statement to the Certificateholders dated as of September 27, 2004.

	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	September 27, 2004 Distribution
	Contents
			TABLE OF CONTENTS
								Page
			1.	Contents				1
			2.	Certificate Payment Report				2
			3.	Collection Account Report				4
			4.	Credit Enhancement Report				7
			5.	Collateral Report				8
			6.	Delinquency Report				11
			7.	REO Report				14
			8.	Foreclosure Report				15
			9.	Prepayment Report				16
			10.	Prepayment Detail Report				19
			11.	Realized Loss Report				26
			12.	Realized Loss Detail Report				29
			13.	Triggers, Adj. Rate Cert. and Miscellaneous Report				30
			14.	Other Related Information				31
				Total Number of Pages				31
			CONTACTS
				Administrator: Kumar Khambhaita
				Direct Phone Number: (714)247-6327
				Address: Deutsche Bank
				1761 E. St. Andrew Place, Santa Ana, CA 92705
				Web Site: https://www.corporatetrust.db.com/invr
				Factor Information: (800) 735-7777
				Main Phone Number: (714) 247-6000
ISSUANCE INFORMATION
	Seller:		Morgan Stanley					Cut-Off Date: April 1, 2004
	Certificate Insurer(s):							Closing Date: April 29, 2004
								First Payment Date: May 25, 2004
	Servicer(s):		Countrywide Home Loans Serv Master Servicer
			Chase Manhattan Mortgage Master Servicer
								Distribution Date: September 27, 2004
	Underwriter(s):		Morgan Stanley Underwriter					Record Date: September 24, 2004
			Countrywide Securities Underwriter					August 31, 2004
			Utendahl Capital Partners, L.P. Underwriter
						Page 1 of 31					© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	REMIC II Series 2004-HE2
	Certificate Payment Report for September 27, 2004 Distribution
	Distribution in Dollars - Current Period
					Prior						Current
	Class	Original			Principal			Total	Realized	Deferred	Principal
Class	Type	Face Value			Balance	Interest	Principal	Distribution	Losses	Interest	Balance
					(1)	(2)	(3)	(4)=(2)+(3)	(5)	(6)	(7)=(1)-(3)-(5)+(6)
A-1		603,687,000.00			541,297,942.98	1,004,784.31	25,226,571.79	26,231,356.10	-	-	516,071,371.19
A-2		18,632,000.00			18,632,000.00	35,268.82	-	35,268.82	-	-	18,632,000.00
A-3		405,000,000.00			303,402,524.59	485,317.62	34,316,645.79	34,801,963.41	-	-	269,085,878.80
A-4		437,676,000.00			437,676,000.00	792,375.93	-	792,375.93	-	-	437,676,000.00
M-1		122,814,000.00			122,814,000.00	245,986.21	-	245,986.21	-	-	122,814,000.00
M-2		61,407,000.00			61,407,000.00	158,455.65	-	158,455.65	-	-	61,407,000.00
M-3		20,177,000.00			20,177,000.00	56,688.96	-	56,688.96	-	-	20,177,000.00
B-1		20,177,000.00			20,177,000.00	62,237.64	-	62,237.64	-	-	20,177,000.00
B-2		14,035,000.00			14,035,000.00	45,221.94	-	45,221.94	-	-	14,035,000.00
B-3		15,790,000.00			15,790,000.00	74,035.36	-	74,035.36	-	-	15,790,000.00
X		35,090,678.79			35,089,713.62	6,015,586.95	-	6,015,586.95	-	-	35,089,713.62
P		-			-	1,316,582.53	-	1,316,582.53	-	-	-
R		-			-	-	-	-	-	-	-
Total		1,754,485,678.79			1,590,498,181.19	10,292,541.92	59,543,217.58	69,835,759.50	-	-	1,530,954,963.61
	Interest Accrual Detail				Current Period Factor Information per $1,000 of Original Face
						Orig. Principal	Prior				Current
	Period	Period				(with Notional)	Principal			Total	Principal
Class	Starting	Ending		Method	Cusip	Balance	Balance	Interest	Principal	Distribution	Balance
							(1)	(2)	(3)	(4)=(2)+(3)	(5)
A-1	08/25/04	09/26/04		A-Act/360	61744CCQ7	603,687,000.00	896.653304	1.664413	41.787502	43.451915	854.865802
A-2	08/25/04	09/26/04		A-Act/360	61744CCS3	18,632,000.00	1,000.000000	1.892916	-	1.892916	1,000.000000
A-3	08/25/04	09/26/04		A-Act/360	61744CCT1	405,000,000.00	749.142036	1.198315	84.732459	85.930774	664.409577
A-4	08/25/04	09/26/04		A-Act/360	61744CCU8	437,676,000.00	1,000.000000	1.810417	-	1.810417	1,000.000000
M-1	08/25/04	09/26/04		A-Act/360	61744CCV6	122,814,000.00	1,000.000000	2.002917	-	2.002917	1,000.000000
M-2	08/25/04	09/26/04		A-Act/360	61744CCW4	61,407,000.00	1,000.000000	2.580417	-	2.580417	1,000.000000
M-3	08/25/04	09/26/04		A-Act/360	61744CCX2	20,177,000.00	1,000.000000	2.809583	-	2.809583	1,000.000000
B-1	08/25/04	09/26/04		A-Act/360	61744CCY0	20,177,000.00	1,000.000000	3.084583	-	3.084583	1,000.000000
B-2	08/25/04	09/26/04		A-Act/360	61744CCZ7	14,035,000.00	1,000.000000	3.222083	-	3.222083	1,000.000000
B-3	08/25/04	09/26/04		A-Act/360	61744CDA1	15,790,000.00	1,000.000000	4.688750	-	4.688750	1,000.000000
X				A-Act/360		35,090,678.79	999.972495	171.429769	-	171.429769	999.972495
P				A-30/Act		-	-	-	-	-	-
R				A-30/Act		-	-	-	-	-	-
							Page 2 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	REMIC II Series 2004-HE2
	Certificate Payment Report for September 27, 2004 Distribution
	Distribution in Dollars - to Date
											Current
	Original				Unscheduled	Scheduled	Total	Total	Realized	Deferred	Principal
Class	Face Value		Interest		Principal	Principal	Principal	Distribution	Losses	Interest	Balance
	(1)		(2)		(3)	(4)	(5)=(3)+(4)	(6)=(2)+(5)	(7)	(8)	(9)=(1)-(5)-(7)+(8)
A-1	603,687,000.00		4,156,207.81		84,726,398.91	2,889,229.90	87,615,628.81	91,771,836.62	-	-	516,071,371.19
A-2	18,632,000.00		138,572.91		-	-	-	138,572.91	-	-	18,632,000.00
A-3	405,000,000.00		2,164,149.09		131,513,808.22	4,400,312.98	135,914,121.20	138,078,270.29	-	-	269,085,878.80
A-4	437,676,000.00		3,089,931.78		-	-	-	3,089,931.78	-	-	437,676,000.00
M-1	122,814,000.00		975,228.46		-	-	-	975,228.46	-	-	122,814,000.00
M-2	61,407,000.00		649,882.24		-	-	-	649,882.24	-	-	61,407,000.00
M-3	20,177,000.00		234,694.94		-	-	-	234,694.94	-	-	20,177,000.00
B-1	20,177,000.00		260,084.33		-	-	-	260,084.33	-	-	20,177,000.00
B-2	14,035,000.00		189,743.45		-	-	-	189,743.45	-	-	14,035,000.00
B-3	15,790,000.00		319,438.27		-	-	-	319,438.27	-	-	15,790,000.00
X	35,090,678.79		35,359,565.07		907.81	57.36	965.17	35,360,530.24	-	-	35,089,713.62
P	-		4,507,391.73		-	-	-	4,507,391.73	-	-	-
R	-		-		-	-	-	-	-	-	-
Total	1,754,485,678.79		52,044,890.08		216,241,114.94	7,289,600.24	223,530,715.18	275,575,605.26	-	-	1,530,954,963.61
	Interest Detail
	Pass-	Prior Principal				Non-	Prior	Unscheduled		Paid or	Current
	Through	(with Notional)			Accrued	Supported	Unpaid	Interest	Optimal	Deferred	Unpaid
Class	Rate	Balance			Interest	Interest SF	Interest	Adjustments	Interest	Interest	Interest
					(1)	(2)	(3)	(4)	(5)=(1)-(2)+(3)+(4)	(6)	(7)=(5)-(6)
A-1	2.02500%	541,297,942.98			1,004,784.31	-	-	-	1,004,784.31	1,004,784.31	-
A-2	2.06500%	18,632,000.00			35,268.82	-	-	-	35,268.82	35,268.82	-
A-3	1.74500%	303,402,524.59			485,317.62	-	-	-	485,317.62	485,317.62	-
A-4	1.97500%	437,676,000.00			792,375.93	-	-	-	792,375.93	792,375.93	-
M-1	2.18500%	122,814,000.00			245,986.21	-	-	-	245,986.21	245,986.21	-
M-2	2.81500%	61,407,000.00			158,455.65	-	-	-	158,455.65	158,455.65	-
M-3	3.06500%	20,177,000.00			56,688.96	-	-	-	56,688.96	56,688.96	-
B-1	3.36500%	20,177,000.00			62,237.64	-	-	-	62,237.64	62,237.64	-
B-2	3.51500%	14,035,000.00			45,221.94	-	-	-	45,221.94	45,221.94	-
B-3	5.11500%	15,790,000.00			74,035.36	-	-	-	74,035.36	74,035.36	-
X		35,089,713.62			6,015,586.95	-	-	-	6,015,586.95	6,015,586.95	-
P		-			1,316,582.53	-	-	-	1,316,582.53	1,316,582.53	-
R		-			-	-	-	-	-	-	-
Total		1,590,498,181.19			10,292,541.92	-	-	-	############	10,292,541.92	-
							Page 3 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collection Account Report for September 27, 2004 Distribution
	Collection Account Report
SUMMARY						GROUP 2	GROUP 1	TOTAL
	Principal Collections					34,316,645.79	25,226,571.79	59,543,217.58
	Principal Other Accounts					0.00	0.00	0.00
	TOTAL NET PRINCIPAL					34,316,645.79	25,226,571.79	59,543,217.58
	Interest Collections					5,182,247.58	3,903,901.11	9,086,148.69
	Interest Withdrawals					0.00	0.00	0.00
	Interest Other Accounts					0.00	0.00	0.00
	Interest Fees					(60,876.91)	(49,312.39)	(110,189.30)
	TOTAL NET INTEREST					5,121,370.67	3,854,588.72	8,975,959.39
	TOTAL PRINCIPAL & INTEREST DISTRIBUTABLE					39,438,016.46	29,081,160.51	68,519,176.97
	Prepayment Penalties Collected							1,316,582.53
	TOTAL AVAILABLE FUNDS FOR DISTRIBUTION							69,835,759.50
PRINCIPAL - COLLECTIONS						GROUP 2	GROUP 1	TOTAL
	Scheduled Principal Received					798,753.54	590,378.42	1,389,131.96
	Prepayments In Full					33,471,328.16	24,600,176.74	58,071,504.90
	Curtailments					46,564.09	36,016.63	82,580.72
	Liquidations					0.00	0.00	0.00
	Insurance Principal					0.00	0.00	0.00
	Repurchased Principal Amounts					0.00	0.00	0.00
	Other Principal					0.00	0.00	0.00
	Total Realized Loss Of Principal					0.00	0.00	0.00
	Delinquent Principal					(692,800.91)	(506,321.78)	(1,199,122.69)
	Advanced Principal					692,800.91	506,321.78	1,199,122.69
	Closing Date Deposit Amount					0.00	0.00	0.00
	TOTAL PRINCIPAL COLLECTED					34,316,645.79	25,226,571.79	59,543,217.58
				Page 4 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collection Account Report for September 27, 2004 Distribution
	Collection Account Report
PRINCIPAL - WITHDRAWALS						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK
PRINCIPAL - OTHER ACCOUNTS						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK
INTEREST - COLLECTIONS						GROUP 2	GROUP 1	TOTAL
	Scheduled Interest					5,501,501.61	4,140,611.44	9,642,113.05
	Liquidation Interest					0.00	0.00	0.00
	Repurchased Interest					0.00	0.00	0.00
	Insurance Interest					0.00	0.00	0.00
	Other Interest					0.00	0.00	0.00
	Relief Act Interest Shortfalls					0.00	0.00	0.00
	Net Prepayment Interest Shortfalls					0.00	0.00	0.00
	Delinquent Interest					(4,656,511.70)	(3,453,486.64)	(8,109,998.34)
	Interest Advanced					4,337,257.67	3,216,776.31	7,554,033.98
	TOTAL INTEREST COLLECTED					5,182,247.58	3,903,901.11	9,086,148.69
				Page 5 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collection Account Report for September 27, 2004 Distribution
	Collection Account Report
INTEREST - WITHDRAWALS						GROUP 2	GROUP 1	TOTAL
	Trust Fund Expenses							0.00
	Nonrecoverable Advances					0.00	0.00	0.00
	Reimbursements to Master Servicer							0.00
	TOTAL INTEREST WITHDRAWALS					0.00	0.00	0.00
INTEREST - OTHER ACCOUNTS						GROUP 2	GROUP 1	TOTAL
	TOTAL INTEREST OTHER ACCOUNTS					0.00	0.00	0.00
INTEREST - FEES						GROUP 2	GROUP 1	TOTAL
	Current Servicing Fees					58,910.45	47,832.77	106,743.22
	Trustee Fees					1,966.46	1,479.62	3,446.08
	TOTAL INTEREST OTHER FEES					60,876.91	49,312.39	110,189.30
				Page 6 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Credit Enhancement Report for September 27, 2004 Distribution
	Credit Enhancement Report
ACCOUNTS						GROUP 2	GROUP 1	TOTAL
	Excess Reserve Fund Balance (Ending)							0.00
INSURANCE						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK
STRUCTURAL FEATURES						GROUP 2	GROUP 1	TOTAL
	Beginning Subordinated Amount							35,089,713.57
	Ending Subordinated Amount							35,089,713.57
	Specified Subordinated Amount							35,089,713.57
	Subordination Reduction Amount							0.00
	Subordination Deficiency Amount							0.00
	Senior Enhancement Percentage							18.91%
				Page 7 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collateral Report for September 27, 2004 Distribution
	Collateral Report
COLLATERAL						GROUP 2	GROUP 1	TOTAL
	Loan Count:
	Original					6063	4696	10759
	Prior					5,599	4,372	9,971
	Prefunding					-	-	-
	Scheduled Paid Offs					-	-	-
	Full Voluntary Prepayments					(165)	(140)	(305)
	Repurchases					-	-	-
	Liquidations					-	-	-
	Current					5,434	4,232	9,666
	Principal Balance:
	Original					1,009,054,438.83	745,061,522.85	1,754,115,961.68
	Prior					907,594,749.41	682,903,431.73	1,590,498,181.14
	Prefunding					-	-	-
	Scheduled Principal					(798,753.54)	(590,378.42)	(1,389,131.96)
	Partial and Full Voluntary Prepayments					(33,517,892.25)	(24,636,193.37)	(58,154,085.62)
	Repurchases					-	-	-
	Liquidations					-	-	-
	Current					873,278,103.62	657,676,859.94	1,530,954,963.56
PREFUNDING						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK
	Group 1
	Group 2
Current Prin Balance by Groups (in millions of dollars)					Total Current Principal Balance (in millions of dollars)
				Page 8 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collateral Report for September 27, 2004 Distribution
	Collateral Report
CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL
	Weighted Average Coupon Original					7.285528%	7.280231%	7.283278%
	Weighted Average Coupon Prior					7.274629%	7.276380%	7.275375%
	Weighted Average Coupon Current					7.273953%	7.275895%	7.274787%
	Weighted Average Months to Maturity Original					345	348	346
	Weighted Average Months to Maturity Prior					342	345	343
	Weighted Average Months to Maturity Current					341	344	342
	Weighted Avg Remaining Amortization Term Original					345	348	346
	Weighted Avg Remaining Amortization Term Prior					342	345	343
	Weighted Avg Remaining Amortization Term Current					340	343	342
	Weighted Average Seasoning Original					4.79	5.14	4.94
	Weighted Average Seasoning Prior					7.78	8.13	7.93
	Weighted Average Seasoning Current					8.78	9.12	8.93
Note: Original information refers to deal issue.
	Group 1
	Group 2
WAC by Groups					Total WAC
WARAT by Groups					Total WARAT
Note: Dates correspond to distribution dates.
				Page 9 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Collateral Report for September 27, 2004 Distribution
	Collateral Report
ARM CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL
	Weighted Average Margin Original					4.214%	4.394%
	Weighted Average Margin Prior					4.149%	4.374%
	Weighted Average Margin Current					4.122%	4.356%
	Weighted Average Max Rate Original					10.217%	10.472%
	Weighted Average Max Rate Prior					10.064%	10.430%
	Weighted Average Max Rate Current					9.996%	10.384%
	Weighted Average Min Rate Original					5.252%	5.471%
	Weighted Average Min Rate Prior					5.165%	5.445%
	Weighted Average Min Rate Current					5.128%	5.420%
	Weighted Average Cap Up Original					1.051%	1.020%
	Weighted Average Cap Up Prior					1.038%	1.019%
	Weighted Average Cap Up Current					1.031%	1.014%
	Weighted Average Cap Down Original					1.051%	1.020%
	Weighted Average Cap Down Prior					1.038%	1.019%
	Weighted Average Cap Down Current					1.031%	1.014%
Note: Original information refers to deal issue.
SERVICING FEES / ADVANCES						GROUP 2	GROUP 1	TOTAL
	Current Servicing Fees					58,910.45	47,832.77	106,743.22
	Delinquent Servicing Fees					319,254.03	236,710.33	555,964.36
	TOTAL SERVICING FEES					378,164.48	284,543.10	662,707.58
	Prepayment Interest Shortfall					86,779.42	72,661.57	159,440.99
	Compensating Interest					(86,779.42)	(72,661.57)	(159,440.99)
	Delinquent Servicing Fees					(319,254.03)	(236,710.33)	(555,964.36)
	COLLECTED SERVICING FEES					58,910.45	47,832.77	106,743.22
	Aggregate Advances with respect to this Distribution					5,030,058.58	3,723,098.09	8,753,156.67
	Current Nonrecoverable Advances					0.00	0.00	0.00
ADDITIONAL COLLATERAL INFORMATION						GROUP 2	GROUP 1	TOTAL
	Net Prepayment Interest Shortfall							0.00
	Net Monthly Excess Cash Flow							0.00
	Ending Pool Stated Principal Balance					873,278,103.62	657,676,859.94	1,530,954,963.56
				Page 10 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Delinquency Report for September 27, 2004 Distribution
	Delinquency Report - Total
				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			26,767,739.21	9,433,019.85	13,906,190.51	50,106,949.57
		% Balance			1.75%	0.62%	0.91%	3.27%
		# Loans			181	81	83	345
		% # Loans			1.87%	0.84%	0.86%	3.57%
FORECLOSURE		Balance		-	-	1,409,139.63	1,796,588.39	3,205,728.02
		% Balance		0.00%	0.00%	0.09%	0.12%	0.21%
		# Loans		-	-	6	9	15
		% # Loans		0.00%	0.00%	0.06%	0.09%	0.16%
BANKRUPTCY		Balance		992,098.51	47,631.08	186,585.98	571,184.31	1,797,499.88
		% Balance		0.06%	0.00%	0.01%	0.04%	0.12%
		# Loans		6	1	2	3	12
		% # Loans		0.06%	0.01%	0.02%	0.03%	0.12%
REO		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL		Balance		992,098.51	26,815,370.29	11,028,745.46	16,273,963.21	55,110,177.47
		% Balance		0.06%	1.75%	0.72%	1.06%	3.60%
		# Loans		6	182	89	95	372
		% # Loans		0.06%	1.88%	0.92%	0.98%	3.85%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent
Total Foreclosure					Total Bankruptcy and REO
Note: Dates correspond to distribution dates.
				Page 11 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Delinquency Report for September 27, 2004 Distribution
	Delinquency Report - Group 1 Group
				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			9,100,905.14	4,210,936.20	3,730,304.42	17,042,145.76
		% Balance			1.38%	0.64%	0.57%	2.59%
		# Loans			62	30	27	119
		% # Loans			1.47%	0.71%	0.64%	2.81%
FORECLOSURE		Balance		-	-	493,813.66	699,344.97	1,193,158.63
		% Balance		0.00%	0.00%	0.08%	0.11%	0.18%
		# Loans		-	-	3	4	7
		% # Loans		0.00%	0.00%	0.07%	0.09%	0.17%
BANKRUPTCY		Balance		446,068.92	-	110,442.91	369,942.81	926,454.64
		% Balance		0.07%	0.00%	0.02%	0.06%	0.14%
		# Loans		3	-	1	2	6
		% # Loans		0.07%	0.00%	0.02%	0.05%	0.14%
REO		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL		Balance		446,068.92	9,100,905.14	4,815,192.77	4,799,592.20	19,161,759.03
		% Balance		0.07%	1.38%	0.73%	0.73%	2.91%
		# Loans		3	62	34	33	132
		% # Loans		0.07%	1.47%	0.80%	0.78%	3.12%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent
Total Foreclosure					Total Bankruptcy and REO
Note: Dates correspond to distribution dates.
				Page 12 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Delinquency Report for September 27, 2004 Distribution
	Delinquency Report - Group 2 Group
				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			17,666,834.07	5,222,083.65	10,175,886.09	33,064,803.81
		% Balance			2.02%	0.60%	1.17%	3.79%
		# Loans			119	51	56	226
		% # Loans			2.19%	0.94%	1.03%	4.16%
FORECLOSURE		Balance		-	-	915,325.97	1,097,243.42	2,012,569.39
		% Balance		0.00%	0.00%	0.10%	0.13%	0.23%
		# Loans		-	-	3	5	8
		% # Loans		0.00%	0.00%	0.06%	0.09%	0.15%
BANKRUPTCY		Balance		546,029.59	47,631.08	76,143.07	201,241.50	871,045.24
		% Balance		0.06%	0.01%	0.01%	0.02%	0.10%
		# Loans		3	1	1	1	6
		% # Loans		0.06%	0.02%	0.02%	0.02%	0.11%
REO		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL		Balance		546,029.59	17,714,465.15	6,213,552.69	11,474,371.01	35,948,418.44
		% Balance		0.06%	2.03%	0.71%	1.31%	4.12%
		# Loans		3	120	55	62	240
		% # Loans		0.06%	2.21%	1.01%	1.14%	4.42%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent
Total Foreclosure					Total Bankruptcy and REO
Note: Dates correspond to distribution dates.
				Page 13 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	REO Report for September 27, 2004 Distribution
	REO Report - Mortgage Loans that Become REO During Current Distribution
SUMMARY				LOAN GROUP
Total Loan Count = 0				Loan Group 1 = Group 1; REO Book Value = 000.00
Total Original Principal Balance = 000.00				Loan Group 2 = Group 2; REO Book Value = 000.00
Total Current Balance = 000.00
REO Book Value = 000.00
REO Book Value reported corresponds to total REO loans, including loans that become REO during current distribution.
Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date
SPACE INTENTIONALLY LEFT BLANK
				Page 14 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Foreclosure Report for September 27, 2004 Distribution
	Foreclosure Report - Mortgage Loans that Become Foreclosure During Current Distribution
SUMMARY				LOAN GROUP
Total Loan Count = 12				Loan Group 1 = Group 1
Total Original Principal Balance = 2,848,713.00				Loan Group 2 = Group 2
Total Current Balance = 2,829,019.32
Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date
1087556 1		174,400.00	173,051.98	May-01-04	6.950%	CA - 80.00%	360	Nov-26-03
1192415 1		248,000.00	246,446.40	May-01-04	7.950%	CA - 80.00%	360	Nov-05-03
1194014 1		74,700.00	74,315.28	May-01-04	8.920%	IL - 90.00%	360	Nov-18-03
309237530 1		135,700.00	134,675.25	Apr-01-04	7.555%	FL - 74.97%	360	Oct-10-03
311044529 1		317,353.00	315,242.87	Apr-01-04	7.650%	VA - 90.00%	360	Nov-24-03
1066622 2		133,200.00	132,287.68	Feb-01-04	7.500%	MS - 90.00%	360	Nov-12-03
1104110 2		59,920.00	59,660.02	Apr-01-04	9.750%	IA - 80.00%	360	Nov-05-03
1121453 2		364,000.00	361,407.22	Apr-01-04	7.300%	NY - 80.00%	360	Nov-26-03
1188068 2		420,000.00	416,606.65	Apr-01-04	6.650%	WA - 80.00%	360	Nov-24-03
1229542 2		177,600.00	176,334.92	May-01-04	7.300%	UT - 80.00%	360	Nov-25-03
311045257 2		351,920.00	349,625.92	May-01-04	7.750%	CA - 80.00%	360	Nov-26-03
311111503 2		391,920.00	389,365.13	May-01-04	7.750%	CA - 80.00%	360	Nov-20-03
				Page 15 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Report for September 27, 2004 Distribution
	Prepayment Report - Voluntary Prepayments
VOLUNTARY PREPAYMENTS						GROUP 2	GROUP 1	TOTAL
	Current
	Number of Paid in Full Loans					165	140	305
	Number of Repurchased Loans					-	-	-
	Total Number of Loans Prepaid in Full					165	140	305
	Paid in Full Balance					33,471,328.16	24,600,176.74	58,071,504.90
	Repurchased Loans Balance					-	-	-
	Curtailments Amount					46,564.09	36,016.63	82,580.72
	Total Prepayment Amount					33,517,892.25	24,636,193.37	58,154,085.62
	Cumulative
	Number of Paid in Full Loans					629	464	1,093
	Number of Repurchased Loans					-	-	-
	Total Number of Loans Prepaid in Full					629	464	1,093
	Paid in Full Balance					131,340,055.25	84,110,026.17	215,450,081.42
	Repurchased Loans Balance					-	-	-
	Curtailments Amount					229,755.73	191,560.74	421,316.47
	Total Prepayment Amount					131,569,810.98	84,301,586.91	215,871,397.89
SPACE INTENTIONALLY LEFT BLANK
Total Prepayments by Groups (in thousands of dollars)					Total Prepayments (in thousands of dollars)
				Page 16 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Report for September 27, 2004 Distribution
	Prepayment Report - Voluntary Prepayments
VOLUNTARY PREPAYMENT RATES						GROUP 2	GROUP 1	TOTAL
	SMM					3.70%	3.61%	3.66%
	3 Months Avg SMM					3.50%	2.93%	3.26%
	12 Months Avg SMM
	Avg SMM Since Cut-off					2.76%	2.38%	2.60%
	CPR					36.36%	35.68%	36.07%
	3 Months Avg CPR					34.80%	30.00%	32.79%
	12 Months Avg CPR
	Avg CPR Since Cut-off					28.56%	25.11%	27.11%
	PSA					2071.26%	1955.11%	2020.31%
	3 Months Avg PSA Approximation					2237.09%	1845.67%	2068.12%
	12 Months Avg PSA Approximation
	Avg PSA Since Cut-off Approximation					2106.30%	1760.47%	1955.76%
	Group 1
	Group 2
CPR by Groups					Total CPR
PSA by Groups					Total PSA
				Page 17 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Report for September 27, 2004 Distribution
	Prepayment Report - Voluntary Prepayments
	Group 1
	Group 2
CPR Avg since Cut-Off by Groups					Total CPR Avg since Cut-Off
PSA Avg since Cut-Off by Groups					Total PSA Avg since Cut-Off
PREPAYMENT CALCULATION METHODOLOGY
Single Monthly Mortality (SMM): (Voluntary partial and full prepayments + Repurchases)/(Beg Principal Balance - Sched Principal)
Conditional Prepayment Rate (CPR): 1-((1-SMM)^12)
PSA Standard Prepayment Model: CPR/(0.02*min(30,WAS))
Average SMM over period between nth month and mth month (AvgSMMn,m): [(1-SMMn) * (1-SMMn+1) .......(1-SMMm)]^(1/months in period n,m)
Average CPR over period between the nth month and mth month (AvgCPRn,m): 1-((1-AvgSMMn,m)^12)
Average PSA Approximation over period between the nth month and mth month: AvgCPRn,m/(0.002*Avg WASn,m))
Average WASn,m: (min(30,WASn)+min(30,WASn+1)+.......+min(30,WASm)/(number of months in the period n,m)
Weighted Average Seasoning (WAS)
Note: Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments and repurchases.
Dates correspond to distribution dates.
				Page 18 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for September 27, 2004 Distribution
	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution
SUMMARY						LOAN GROUP
Total Loan Count = 305						Loan Group 1 = Group 1
Total Original Principal Balance = 58,448,359.00						Loan Group 2 = Group 2
Total Prepayment Amount = 58,071,504.90
Loan Number			Original			Current	State &	Type Prepayment
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	&	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Original Term	Date
1058224 1			208,091.00	206,945.30	Sep-03-04	7.990%	CA - 90.00%	Paid Off - 360	Nov-13-03
1089125 1			81,600.00	81,208.93	Aug-03-04	8.000%	NM - 80.00%	Paid Off - 360	Dec-10-03
1092687 1			256,000.00	254,523.64	Aug-20-04	8.900%	CA - 80.00%	Paid Off - 360	Nov-18-03
1100417 1			130,000.00	129,278.48	Aug-18-04	7.950%	MA - 65.00%	Paid Off - 360	Nov-17-03
1110334 1			238,000.00	236,199.21	Aug-17-04	6.990%	CA - 85.00%	Paid Off - 360	Nov-06-03
1112659 1			245,500.00	243,210.99	Aug-31-04	5.990%	CA - 62.15%	Paid Off - 360	Nov-04-03
1113735 1			218,700.00	217,147.06	Aug-17-04	5.980%	CA - 90.00%	Paid Off - 360	Dec-12-03
1120579 1			104,500.00	103,751.55	Aug-09-04	6.650%	CA - 85.66%	Paid Off - 360	Nov-24-03
1143464 1			55,125.00	54,821.44	Aug-10-04	7.990%	NC - 75.00%	Paid Off - 360	Nov-17-03
1144024 1			188,100.00	187,189.29	Sep-14-04	8.650%	IL - 90.00%	Paid Off - 360	Nov-10-03
1155742 1			81,500.00	81,185.05	Aug-26-04	9.750%	MI - 62.69%	Paid Off - 360	Nov-19-03
1165021 1			163,200.00	162,275.94	Aug-26-04	7.850%	CA - 85.00%	Paid Off - 360	Nov-21-03
1168603 1			137,700.00	136,669.23	Sep-13-04	7.700%	CA - 85.00%	Paid Off - 360	Nov-20-03
1169135 1			270,000.00	268,440.50	Aug-24-04	7.750%	CA - 90.00%	Paid Off - 360	Nov-25-03
1171931 1			311,400.00	309,315.80	Aug-17-04	7.000%	CA - 88.97%	Paid Off - 360	Dec-18-03
1178557 1			316,000.00	314,138.19	Aug-13-04	7.650%	CA - 80.00%	Paid Off - 360	Nov-21-03
1179309 1			196,000.00	194,975.03	Sep-01-04	8.250%	CA - 80.00%	Paid Off - 360	Nov-17-03
1186383 1			134,000.00	133,111.82	Aug-09-04	7.050%	CA - 41.23%	Paid Off - 360	Nov-20-03
1186674 1			150,000.00	149,284.44	Aug-02-04	8.700%	CA - 75.00%	Paid Off - 360	Dec-09-03
1203029 1			287,644.00	285,811.56	Aug-30-04	6.550%	CA - 80.00%	Paid Off - 360	Dec-12-03
1203682 1			288,315.00	286,346.42	Aug-06-04	6.900%	CA - 100.00%	Paid Off - 360	Nov-21-03
1204325 1			156,600.00	155,549.77	Aug-25-04	6.990%	CA - 90.00%	Paid Off - 360	Nov-20-03
1208612 1			188,910.00	187,774.84	Aug-19-04	7.550%	IL - 90.00%	Paid Off - 360	Nov-24-03
1209447 1			308,750.00	306,966.73	Aug-02-04	7.750%	CA - 95.00%	Paid Off - 360	Nov-26-03
1210824 1			120,000.00	119,395.02	Aug-30-04	8.850%	CA - 80.00%	Paid Off - 360	Nov-26-03
1211849 1			96,800.00	96,128.03	Aug-02-04	6.100%	KY - 80.00%	Paid Off - 360	Dec-12-03
1212814 1			305,000.00	303,055.80	Aug-17-04	7.250%	CA - 100.00%	Paid Off - 360	Nov-14-03
1214003 1			187,000.00	185,717.65	Sep-08-04	6.875%	CA - 85.00%	Paid Off - 360	Nov-26-03
1215581 1			196,000.00	194,278.48	Aug-18-04	5.000%	CA - 80.00%	Paid Off - 360	Dec-18-03
1216437 1			139,500.00	138,628.03	Aug-23-04	7.350%	CA - 75.00%	Paid Off - 360	Nov-26-03
1238241 1			105,000.00	104,460.40	Aug-09-04	7.650%	CA - 76.09%	Paid Off - 360	Dec-17-03
1241879 1			284,900.00	283,284.37	Aug-04-04	7.150%	CA - 77.00%	Paid Off - 360	Dec-10-03
1246937 1			186,400.00	185,036.56	Aug-12-04	6.050%	NV - 80.00%	Paid Off - 360	Dec-11-03
1254164 1			250,000.00	248,003.25	Aug-10-04	5.350%	FL - 86.21%	Paid Off - 360	Dec-31-03
1254842 1			144,500.00	143,827.78	Aug-25-04	8.150%	CA - 85.00%	Paid Off - 360	Dec-23-03
1262841 1			251,300.00	249,680.53	Aug-30-04	6.490%	CA - 86.66%	Paid Off - 360	Dec-29-03
1265768 1			252,000.00	250,455.34	Aug-27-04	6.750%	CA - 86.90%	Paid Off - 360	Dec-31-03
1276324 1			128,000.00	127,094.49	Aug-09-04	6.000%	CA - 80.00%	Paid Off - 360	Dec-30-03
1282840 1			163,400.00	162,623.52	Aug-03-04	7.250%	FL - 95.00%	Paid Off - 360	Jan-05-04
1296368 1			248,000.00	246,914.42	Aug-24-04	8.450%	CA - 80.00%	Paid Off - 360	Jan-07-04
1319484 1			308,750.00	307,406.41	Sep-02-04	7.700%	CA - 95.00%	Paid Off - 360	Jan-28-04
1325700 1			235,000.00	233,768.79	Sep-02-04	6.750%	CA - 87.69%	Paid Off - 360	Jan-28-04
6621023 1			105,000.00	104,244.70	Aug-25-04	7.250%	CA - 79.55%	Paid Off - 360	Nov-12-03
6722865 1			208,000.00	206,426.11	Aug-27-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-07-03
					Page 19 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for September 27, 2004 Distribution
	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution
Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date
6759564 1			77,000.00	76,361.19	Aug-19-04	6.950%	AZ - 79.55%	Paid Off - 360	Nov-07-03
6768199 1			135,000.00	133,970.58	Aug-24-04	6.950%	CA - 71.05%	Paid Off - 360	Oct-08-03
6792219 1			120,000.00	119,376.07	Aug-03-04	8.275%	RI - 80.00%	Paid Off - 360	Nov-19-03
6824595 1			101,000.00	100,359.27	Aug-18-04	7.275%	IL - 77.69%	Paid Off - 360	Dec-03-03
6834248 1			216,000.00	214,423.40	Aug-30-04	7.175%	CA - 90.00%	Paid Off - 360	Nov-06-03
6837727 1			99,000.00	98,338.45	Aug-25-04	7.625%	CO - 90.00%	Paid Off - 360	Nov-04-03
6852424 1			130,000.00	128,979.49	Aug-03-04	6.800%	CA - 75.14%	Paid Off - 360	Nov-10-03
6873588 1			54,600.00	53,123.99	Aug-30-04	7.870%	MI - 78.00%	Paid Off - 180	Nov-05-03
6885314 1			95,000.00	94,383.05	Aug-26-04	8.625%	CA - 55.56%	Paid Off - 360	Nov-04-03
6890008 1			65,000.00	64,595.99	Aug-09-04	7.990%	IL - 84.42%	Paid Off - 360	Nov-05-03
6899595 1			96,250.00	95,622.61	Aug-24-04	7.137%	PA - 30.85%	Paid Off - 360	Nov-20-03
6907458 1			247,000.00	245,464.92	Aug-23-04	7.990%	CA - 95.00%	Paid Off - 360	Nov-07-03
6926096 1			140,600.00	139,710.28	Aug-24-04	7.900%	AZ - 95.00%	Paid Off - 360	Nov-06-03
6927572 1			138,400.00	137,731.85	Aug-26-04	8.650%	CA - 80.00%	Paid Off - 360	Nov-18-03
6928269 1			148,000.00	146,803.95	Aug-11-04	6.650%	CA - 80.00%	Paid Off - 360	Nov-04-03
6941206 1			100,800.00	100,323.98	Aug-02-04	8.750%	NC - 80.00%	Paid Off - 360	Nov-26-03
6946844 1			157,250.00	156,003.72	Aug-26-04	6.750%	CA - 85.00%	Paid Off - 360	Nov-10-03
6959008 1			100,000.00	99,280.68	Aug-05-04	7.250%	MN - 40.82%	Paid Off - 360	Nov-04-03
6976506 1			276,900.00	275,553.58	Aug-30-04	9.200%	CA - 78.00%	Paid Off - 360	Nov-12-03
6979246 1			128,000.00	127,354.27	Aug-03-04	8.425%	VA - 80.00%	Paid Off - 360	Nov-19-03
6979912 1			62,400.00	61,972.05	Aug-30-04	6.875%	TX - 80.00%	Paid Off - 360	Dec-01-03
7022123 1			260,000.00	257,852.20	Aug-09-04	5.900%	CA - 80.00%	Paid Off - 360	Nov-26-03
7035136 1			268,000.00	265,916.47	Aug-27-04	6.850%	CA - 80.00%	Paid Off - 360	Nov-12-03
7041861 1			210,000.00	208,496.78	Aug-03-04	7.275%	NY - 84.00%	Paid Off - 360	Nov-12-03
7042817 1			143,000.00	142,190.34	Aug-02-04	7.850%	MD - 84.12%	Paid Off - 360	Dec-02-03
7056273 1			244,000.00	242,066.17	Aug-20-04	6.750%	CA - 80.00%	Paid Off - 360	Nov-05-03
7059957 1			340,000.00	337,827.19	Aug-02-04	7.850%	CA - 89.47%	Paid Off - 360	Nov-04-03
7070454 1			250,000.00	248,433.81	Aug-25-04	7.950%	CA - 70.03%	Paid Off - 360	Nov-12-03
7078064 1			270,000.00	268,261.99	Aug-04-04	7.200%	CA - 90.00%	Paid Off - 360	Nov-18-03
7078889 1			184,000.00	182,318.01	Aug-30-04	6.000%	NV - 80.00%	Paid Off - 360	Nov-10-03
7082231 1			80,500.00	80,138.79	Aug-17-04	9.000%	MN - 51.94%	Paid Off - 360	Nov-21-03
7082541 1			128,000.00	127,327.51	Aug-03-04	8.700%	MO - 80.00%	Paid Off - 360	Nov-04-03
7083246 1			168,000.00	166,974.75	Aug-19-04	8.100%	CA - 64.62%	Paid Off - 360	Nov-07-03
7085702 1			60,000.00	59,813.41	Aug-30-04	10.100%	WI - 80.00%	Paid Off - 360	Dec-31-03
7085796 1			150,000.00	149,101.44	Aug-13-04	8.250%	NJ - 68.18%	Paid Off - 360	Nov-13-03
7086164 1			90,100.00	89,619.57	Aug-10-04	8.150%	FL - 85.00%	Paid Off - 360	Dec-02-03
7089139 1			155,200.00	154,072.71	Aug-26-04	7.200%	CT - 80.00%	Paid Off - 360	Nov-03-03
7093713 1			103,500.00	102,913.93	Aug-02-04	7.850%	FL - 90.00%	Paid Off - 360	Dec-02-03
7123507 1			190,950.00	189,625.23	Aug-03-04	6.825%	CA - 95.00%	Paid Off - 360	Dec-04-03
7129998 1			185,000.00	183,952.56	Aug-31-04	7.850%	CA - 78.06%	Paid Off - 360	Nov-28-03
7133901 1			224,000.00	222,137.44	Aug-17-04	6.500%	CA - 80.00%	Paid Off - 360	Nov-06-03
7147996 1			102,400.00	101,839.19	Aug-30-04	8.400%	IL - 80.00%	Paid Off - 360	Nov-21-03
7152930 1			311,200.00	309,112.33	Aug-03-04	6.990%	CA - 81.04%	Paid Off - 360	Nov-14-03
7175310 1			125,000.00	124,372.62	Aug-25-04	8.450%	MD - 50.00%	Paid Off - 360	Nov-26-03
7177704 1			117,000.00	116,250.49	Aug-30-04	7.225%	CA - 90.00%	Paid Off - 360	Nov-21-03
7184999 1			180,000.00	178,818.47	Aug-20-04	7.100%	NJ - 90.00%	Paid Off - 360	Dec-02-03
7245807 1			260,000.00	258,437.62	Aug-19-04	7.550%	FL - 47.27%	Paid Off - 360	Dec-04-03
7397046 1			115,000.00	114,366.82	Aug-10-04	7.990%	IL - 69.70%	Paid Off - 360	Dec-01-03
7406738 1			272,000.00	269,897.31	Aug-19-04	6.250%	CA - 80.00%	Paid Off - 360	Nov-19-03
7410786 1			134,400.00	133,258.35	Aug-03-04	5.750%	GA - 80.00%	Paid Off - 360	Nov-12-03
7419937 1			275,710.00	273,537.76	Aug-02-04	6.150%	CA - 86.16%	Paid Off - 360	Dec-04-03
7422814 1			251,200.00	249,381.63	Aug-13-04	6.800%	CA - 80.00%	Paid Off - 360	Nov-25-03
					Page 20 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for September 27, 2004 Distribution
	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution
Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date
7426038 1			221,250.00	220,247.13	Aug-03-04	8.950%	CA - 75.00%	Paid Off - 360	Dec-01-03
7426704 1			123,452.00	122,914.95	Aug-18-04	9.150%	FL - 95.00%	Paid Off - 360	Dec-02-03
7445776 1			206,250.00	205,022.64	Aug-10-04	7.650%	MA - 75.00%	Paid Off - 360	Dec-02-03
7447191 1			152,000.00	151,286.60	Aug-13-04	8.780%	VA - 80.00%	Paid Off - 360	Nov-19-03
7449119 1			75,100.00	74,711.42	Aug-31-04	8.300%	AZ - 50.07%	Paid Off - 360	Dec-03-03
7456972 1			193,500.00	192,382.41	Aug-02-04	7.750%	CA - 88.76%	Paid Off - 360	Dec-01-03
7468822 1			272,000.00	270,014.28	Aug-23-04	6.550%	NY - 90.37%	Paid Off - 360	Dec-05-03
7507267 1			181,800.00	180,859.47	Aug-04-04	8.300%	CA - 90.00%	Paid Off - 360	Dec-08-03
309029835 1			99,000.00	98,280.57	Aug-05-04	7.750%	CA - 90.00%	Paid Off - 360	Sep-15-03
309085632 1			133,000.00	131,484.13	Aug-05-04	7.375%	AZ - 91.10%	Paid Off - 360	Oct-03-03
309150838 1			75,000.00	74,473.54	Aug-05-04	7.375%	FL - 71.43%	Paid Off - 360	Oct-28-03
309226526 1			144,500.00	143,570.69	Aug-26-04	7.875%	CA - 85.00%	Paid Off - 360	Oct-30-03
309238526 1			164,000.00	162,662.16	Aug-31-04	6.600%	CA - 80.00%	Paid Off - 360	Oct-07-03
309261161 1			172,500.00	171,594.90	Aug-25-04	8.625%	VA - 75.00%	Paid Off - 360	Oct-21-03
309292071 1			75,500.00	75,056.78	Aug-09-04	8.275%	MI - 79.47%	Paid Off - 360	Oct-20-03
309292124 1			76,000.00	75,613.19	Aug-12-04	8.990%	WA - 80.00%	Paid Off - 360	Oct-24-03
309302961 1			130,000.00	129,025.56	Aug-23-04	7.750%	MA - 53.72%	Paid Off - 360	Oct-31-03
310014237 1			104,800.00	103,967.46	Aug-13-04	6.875%	CA - 80.00%	Paid Off - 360	Oct-31-03
310025446 1			273,982.00	272,151.25	Aug-06-04	7.625%	CA - 90.00%	Paid Off - 360	Oct-21-03
310036157 1			216,750.00	215,371.70	Aug-23-04	7.875%	CA - 85.00%	Paid Off - 360	Oct-23-03
310067319 1			200,000.00	195,859.59	Aug-10-04	6.590%	NY - 60.54%	Paid Off - 240	Oct-31-03
310078438 1			280,000.00	278,174.71	Aug-04-04	7.750%	CA - 80.00%	Paid Off - 360	Oct-28-03
310078490 1			259,250.00	257,272.44	Aug-26-04	6.990%	CA - 85.00%	Paid Off - 360	Oct-22-03
310078598 1			195,300.00	193,661.94	Aug-12-04	6.580%	CA - 67.34%	Paid Off - 360	Oct-29-03
310089247 1			144,000.00	143,013.77	Aug-04-04	7.500%	OH - 80.00%	Paid Off - 360	Oct-29-03
310089254 1			189,728.00	188,362.80	Aug-12-04	7.259%	MI - 80.00%	Paid Off - 360	Oct-24-03
310089369 1			220,000.00	218,335.38	Aug-19-04	6.990%	CA - 80.00%	Paid Off - 360	Oct-23-03
310089384 1			170,000.00	168,553.50	Aug-04-04	6.625%	CA - 39.08%	Paid Off - 360	Oct-28-03
310102227 1			119,000.00	118,332.48	Aug-17-04	8.500%	GA - 85.00%	Paid Off - 360	Oct-20-03
310133146 1			108,000.00	107,506.41	Aug-09-04	9.500%	FL - 75.00%	Paid Off - 360	Oct-31-03
310144443 1			198,000.00	196,575.79	Aug-19-04	7.250%	CA - 90.00%	Paid Off - 360	Oct-30-03
310145284 1			176,000.00	175,032.68	Aug-04-04	7.999%	FL - 80.00%	Paid Off - 360	Nov-12-03
310155756 1			153,600.00	152,645.33	Aug-31-04	7.990%	MN - 80.00%	Paid Off - 360	Oct-23-03
310155964 1			264,000.00	261,907.66	Aug-26-04	6.750%	CA - 80.00%	Paid Off - 360	Oct-28-03
310167979 1			146,400.00	145,464.35	Aug-25-04	7.850%	VA - 80.00%	Paid Off - 360	Oct-31-03
310222997 1			319,240.00	316,943.73	Aug-04-04	7.250%	CA - 80.00%	Paid Off - 360	Oct-31-03
310235274 1			140,250.00	139,398.86	Aug-06-04	7.500%	CA - 85.00%	Paid Off - 360	Nov-13-03
310301094 1			272,000.00	270,175.94	Aug-12-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-18-03
311056554 1			252,000.00	250,310.00	Aug-24-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-25-03
311100310 1			116,000.00	115,330.02	Aug-31-04	7.750%	CA - 80.00%	Paid Off - 360	Nov-26-03
311111465 1			123,750.00	123,056.12	Aug-09-04	7.899%	FL - 75.00%	Paid Off - 360	Nov-28-03
311178033 1			159,000.00	158,249.18	Aug-03-04	8.750%	CA - 84.57%	Paid Off - 360	Nov-28-03
311189104 1			192,000.00	190,834.50	Aug-03-04	7.499%	MN - 80.00%	Paid Off - 360	Nov-26-03
311199682 1			110,500.00	109,891.58	Aug-31-04	7.990%	VA - 83.08%	Paid Off - 360	Nov-28-03
1027256 2			232,000.00	230,086.35	Aug-30-04	6.550%	CA - 80.00%	Paid Off - 360	Nov-07-03
1092863 2			431,840.00	431,838.76	Aug-16-04	4.750%	CA - 80.00%	Paid Off - 300	Nov-21-03
1102979 2			97,750.00	97,366.65	Aug-03-04	9.650%	FL - 78.20%	Paid Off - 360	Nov-20-03
1125897 2			386,520.00	384,417.25	Aug-26-04	8.050%	CA - 90.00%	Paid Off - 360	Nov-26-03
1125926 2			186,000.00	182,859.95	Aug-18-04	7.450%	NH - 75.00%	Paid Off - 240	Nov-28-03
1129832 2			81,000.00	79,041.64	Aug-02-04	7.750%	FL - 77.14%	Paid Off - 180	Nov-19-03
1135637 2			75,000.00	74,467.30	Aug-16-04	6.700%	TX - 53.96%	Paid Off - 360	Nov-26-03
1140940 2			216,000.00	214,438.74	Aug-20-04	5.900%	CA - 80.00%	Paid Off - 360	Dec-19-03
					Page 21 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for September 27, 2004 Distribution
	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution
Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date
1144909 2			283,000.00	280,984.16	Aug-13-04	7.300%	CA - 89.84%	Paid Off - 360	Nov-13-03
1147027 2			60,000.00	59,853.89	Aug-24-04	12.000%	PA - 75.00%	Paid Off - 360	Dec-03-03
1147098 2			378,750.00	376,647.97	Aug-20-04	7.950%	CA - 75.00%	Paid Off - 360	Dec-05-03
1148738 2			281,675.00	279,843.79	Aug-04-04	7.150%	VA - 95.00%	Paid Off - 360	Nov-19-03
1148812 2			92,000.00	91,363.61	Aug-27-04	7.450%	CA - 80.00%	Paid Off - 360	Nov-06-03
1149352 2			123,000.00	122,270.44	Aug-19-04	7.650%	MI - 69.89%	Paid Off - 360	Nov-05-03
1149781 2			272,000.00	270,916.75	Aug-26-04	9.576%	CA - 73.51%	Paid Off - 360	Nov-06-03
1153995 2			214,500.00	212,841.74	Aug-02-04	6.250%	CA - 67.03%	Paid Off - 360	Nov-14-03
1155528 2			146,200.00	145,450.91	Aug-02-04	8.350%	MI - 85.00%	Paid Off - 360	Dec-04-03
1159783 2			198,500.00	197,234.69	Aug-04-04	7.250%	CA - 94.98%	Paid Off - 360	Nov-07-03
1159812 2			162,000.00	160,546.82	Aug-02-04	6.100%	CA - 53.11%	Paid Off - 360	Nov-12-03
1164871 2			157,500.00	156,221.09	Aug-27-04	5.990%	CA - 70.00%	Paid Off - 360	Nov-21-03
1167260 2			172,000.00	170,744.30	Aug-16-04	6.550%	CA - 80.00%	Paid Off - 360	Nov-24-03
1167487 2			150,000.00	149,080.61	Aug-19-04	7.450%	CA - 78.13%	Paid Off - 360	Nov-24-03
1167721 2			345,100.00	345,100.00	Aug-19-04	4.750%	CA - 85.00%	Paid Off - 300	Nov-05-03
1170109 2			101,600.00	101,113.11	Aug-12-04	8.000%	FL - 80.00%	Paid Off - 360	Dec-08-03
1170200 2			180,000.00	178,647.53	Aug-31-04	6.400%	CA - 80.00%	Paid Off - 360	Nov-13-03
1171702 2			221,250.00	219,931.56	Aug-27-04	8.200%	CA - 75.00%	Paid Off - 360	Nov-13-03
1172813 2			304,000.00	301,801.88	Aug-13-04	6.600%	CA - 83.29%	Paid Off - 360	Nov-12-03
1173027 2			296,000.00	293,581.59	Sep-02-04	7.000%	NY - 80.00%	Paid Off - 360	Nov-26-03
1174803 2			84,800.00	84,474.29	Aug-12-04	9.750%	GA - 80.00%	Paid Off - 360	Nov-14-03
1175235 2			46,800.00	46,326.67	Aug-31-04	10.550%	CA - 20.00%	Paid Off - 240	Nov-21-03
1178240 2			400,400.00	397,587.16	Aug-31-04	6.750%	CA - 72.80%	Paid Off - 360	Nov-12-03
1183361 2			63,500.00	62,793.52	Aug-27-04	9.800%	CA - 20.00%	Paid Off - 240	Nov-14-03
1183686 2			305,100.00	303,320.21	Aug-12-04	7.700%	CA - 90.00%	Paid Off - 360	Nov-18-03
1184589 2			140,000.00	139,403.43	Sep-02-04	9.250%	CA - 80.00%	Paid Off - 360	Nov-05-03
1184814 2			59,000.00	58,383.95	Aug-06-04	10.300%	CA - 20.00%	Paid Off - 240	Nov-21-03
1184948 2			162,350.00	161,207.22	Aug-27-04	6.740%	MA - 85.00%	Paid Off - 360	Nov-24-03
1184962 2			46,000.00	45,616.24	Aug-30-04	9.550%	MI - 59.74%	Paid Off - 360	Nov-24-03
1185195 2			182,700.00	181,331.04	Aug-18-04	6.550%	CA - 90.00%	Paid Off - 360	Nov-10-03
1188003 2			176,000.00	174,798.91	Aug-19-04	6.900%	CA - 74.26%	Paid Off - 360	Nov-12-03
1188994 2			36,980.00	36,617.13	Aug-31-04	10.800%	CA - 20.00%	Paid Off - 240	Nov-12-03
1190299 2			325,000.00	322,845.82	Aug-20-04	7.050%	CA - 69.89%	Paid Off - 360	Nov-25-03
1195221 2			322,000.00	320,441.47	Aug-05-04	7.950%	FL - 70.00%	Paid Off - 360	Dec-16-03
1195334 2			217,500.00	216,028.69	Aug-27-04	6.950%	CA - 72.50%	Paid Off - 360	Nov-24-03
1197878 2			292,500.00	290,653.66	Aug-04-04	7.300%	NY - 90.00%	Paid Off - 360	Nov-20-03
1201793 2			521,000.00	517,506.16	Aug-13-04	6.990%	IL - 61.29%	Paid Off - 360	Nov-10-03
1202747 2			334,826.00	333,352.78	Aug-31-04	8.450%	MD - 80.00%	Paid Off - 360	Dec-12-03
1202928 2			182,000.00	181,067.85	Aug-17-04	8.350%	CA - 70.00%	Paid Off - 360	Nov-18-03
1203108 2			71,911.00	71,240.58	Aug-30-04	10.550%	CA - 20.00%	Paid Off - 240	Dec-12-03
1204774 2			163,000.00	162,239.88	Aug-11-04	9.050%	AZ - 100.00%	Paid Off - 360	Nov-25-03
1205905 2			219,000.00	217,644.43	Aug-13-04	7.400%	VA - 89.39%	Paid Off - 360	Nov-26-03
1207238 2			128,700.00	128,027.36	Aug-18-04	8.250%	RI - 90.00%	Paid Off - 360	Nov-20-03
1209198 2			153,500.00	152,729.59	Aug-11-04	8.450%	CA - 83.88%	Paid Off - 360	Dec-04-03
1209430 2			54,000.00	53,056.43	Aug-20-04	9.900%	CA - 20.00%	Paid Off - 180	Dec-19-03
1209795 2			33,000.00	32,616.82	Aug-13-04	9.900%	CA - 20.00%	Paid Off - 240	Dec-11-03
1211817 2			155,700.00	154,902.56	Aug-04-04	8.350%	AZ - 90.00%	Paid Off - 360	Dec-24-03
1211987 2			24,200.00	23,771.46	Aug-02-04	9.750%	KY - 20.00%	Paid Off - 180	Dec-12-03
1212004 2			176,400.00	175,217.05	Aug-18-04	6.990%	NV - 90.00%	Paid Off - 360	Nov-24-03
1212209 2			115,150.00	114,497.95	Aug-24-04	7.850%	VA - 70.00%	Paid Off - 360	Nov-26-03
1212663 2			427,500.00	423,820.54	Aug-26-04	6.900%	HI - 90.00%	Paid Off - 360	Nov-17-03
1215239 2			182,750.00	181,561.44	Aug-30-04	7.150%	CA - 79.46%	Paid Off - 360	Nov-20-03
					Page 22 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for September 27, 2004 Distribution
	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution
Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date
1215245 2			202,500.00	201,388.29	Aug-05-04	8.250%	CA - 75.00%	Paid Off - 360	Dec-05-03
1216233 2			539,100.00	535,477.87	Aug-26-04	7.000%	CA - 90.00%	Paid Off - 360	Nov-24-03
1218032 2			217,500.00	216,725.06	Aug-25-04	9.450%	MA - 75.00%	Paid Off - 360	Dec-10-03
1220350 2			80,400.00	79,663.84	Aug-23-04	10.250%	CA - 20.00%	Paid Off - 240	Dec-18-03
1222996 2			140,000.00	139,310.48	Aug-30-04	7.900%	CA - 59.57%	Paid Off - 360	Jan-30-04
1223715 2			292,500.00	290,573.63	Sep-10-04	7.250%	VA - 90.00%	Paid Off - 360	Nov-25-03
1225796 2			248,000.00	246,600.45	Aug-17-04	7.800%	CA - 80.00%	Paid Off - 360	Dec-05-03
1225973 2			365,500.00	363,005.72	Aug-31-04	6.900%	CA - 85.00%	Paid Off - 360	Nov-25-03
1227235 2			251,000.00	248,938.13	Aug-31-04	5.950%	CA - 71.71%	Paid Off - 360	Nov-28-03
1227241 2			45,000.00	44,569.97	Aug-02-04	10.990%	CA - 20.00%	Paid Off - 240	Nov-26-03
1228993 2			306,000.00	306,000.03	Aug-02-04	4.750%	MI - 90.00%	Paid Off - 300	Dec-17-03
1229170 2			285,000.00	283,216.75	Aug-05-04	7.350%	CA - 95.00%	Paid Off - 360	Nov-26-03
1229900 2			274,000.00	271,791.29	Aug-26-04	5.300%	NV - 80.00%	Paid Off - 360	Dec-17-03
1230971 2			275,000.00	273,796.57	Aug-17-04	8.450%	MN - 78.57%	Paid Off - 360	Dec-08-03
1234469 2			104,800.00	104,554.21	Aug-26-04	11.450%	GA - 65.50%	Paid Off - 360	Dec-31-03
1235885 2			157,250.00	153,594.89	Aug-24-04	6.600%	CA - 85.00%	Paid Off - 180	Dec-15-03
1236588 2			86,400.00	85,885.51	Aug-26-04	6.900%	FL - 80.00%	Paid Off - 360	Dec-08-03
1237065 2			217,500.00	216,363.35	Aug-11-04	8.250%	CA - 75.00%	Paid Off - 360	Dec-05-03
1237881 2			133,000.00	132,423.84	Aug-02-04	8.500%	CA - 70.00%	Paid Off - 360	Dec-04-03
1238944 2			49,000.00	48,458.16	Aug-18-04	8.750%	CA - 20.00%	Paid Off - 240	Dec-18-03
1239609 2			70,000.00	68,803.88	Aug-02-04	10.150%	CA - 12.28%	Paid Off - 180	Dec-12-03
1241748 2			288,000.00	286,317.59	Aug-30-04	7.000%	CA - 84.96%	Paid Off - 360	Dec-29-03
1242079 2			98,800.00	97,714.18	Aug-02-04	8.800%	CA - 20.00%	Paid Off - 240	Dec-15-03
1242185 2			193,600.00	192,467.28	Aug-25-04	6.990%	HI - 80.00%	Paid Off - 360	Dec-08-03
1242330 2			476,000.00	472,356.10	Aug-16-04	7.500%	CA - 85.00%	Paid Off - 360	Dec-08-03
1242461 2			90,000.00	89,127.46	Aug-19-04	9.800%	CA - 20.00%	Paid Off - 240	Dec-30-03
1242675 2			207,000.00	205,926.76	Aug-25-04	7.605%	CA - 90.00%	Paid Off - 360	Dec-24-03
1242910 2			202,500.00	201,433.35	Aug-18-04	7.525%	HI - 90.00%	Paid Off - 360	Dec-12-03
1243111 2			380,000.00	377,886.94	Aug-23-04	7.250%	AZ - 80.00%	Paid Off - 360	Dec-24-03
1245433 2			135,000.00	134,384.83	Aug-11-04	8.250%	MO - 75.00%	Paid Off - 360	Dec-12-03
1246074 2			468,000.00	465,522.63	Aug-25-04	7.500%	CA - 90.00%	Paid Off - 360	Dec-29-03
1246720 2			101,500.00	100,733.22	Aug-09-04	5.650%	WA - 89.82%	Paid Off - 360	Dec-10-03
1246966 2			46,600.00	46,177.94	Aug-12-04	10.800%	NV - 20.00%	Paid Off - 240	Dec-11-03
1247939 2			238,000.00	236,641.72	Aug-09-04	7.450%	CA - 70.00%	Paid Off - 360	Dec-10-03
1248758 2			122,500.00	121,952.95	Aug-24-04	8.350%	VA - 50.41%	Paid Off - 360	Dec-29-03
1251605 2			224,800.00	223,435.34	Aug-05-04	6.800%	CA - 80.00%	Paid Off - 360	Dec-30-03
1252427 2			204,250.00	203,186.18	Aug-16-04	7.600%	CA - 95.00%	Paid Off - 360	Dec-31-03
1252485 2			218,450.00	217,304.96	Aug-26-04	7.550%	CA - 85.00%	Paid Off - 360	Dec-26-03
1256345 2			63,000.00	62,345.40	Aug-10-04	9.250%	CA - 20.00%	Paid Off - 240	Dec-15-03
1256513 2			196,000.00	195,022.44	Aug-05-04	7.800%	VA - 70.00%	Paid Off - 360	Dec-29-03
1259212 2			394,200.00	391,653.70	Aug-19-04	6.750%	IL - 90.00%	Paid Off - 360	Jan-05-04
1259895 2			58,500.00	58,258.86	Aug-04-04	8.850%	ID - 90.00%	Paid Off - 360	Dec-31-03
1260340 2			94,500.00	93,934.60	Aug-16-04	6.875%	NH - 70.00%	Paid Off - 360	Dec-30-03
1261587 2			126,825.00	126,269.97	Aug-24-04	8.450%	FL - 95.00%	Paid Off - 360	Dec-19-03
1262806 2			68,500.00	67,852.54	Aug-26-04	10.000%	NV - 20.00%	Paid Off - 240	Dec-17-03
1262949 2			175,500.00	174,475.18	Aug-26-04	7.000%	CA - 53.18%	Paid Off - 360	Dec-31-03
1262988 2			494,400.00	491,129.53	Aug-23-04	6.550%	CA - 80.00%	Paid Off - 360	Dec-17-03
1267664 2			60,000.00	59,740.99	Aug-31-04	8.570%	GA - 46.15%	Paid Off - 360	Dec-30-03
1268710 2			260,000.00	258,554.22	Aug-31-04	7.250%	CA - 80.00%	Paid Off - 360	Dec-22-03
1271498 2			351,000.00	349,214.16	Aug-05-04	7.700%	CA - 90.00%	Paid Off - 360	Dec-30-03
1272354 2			21,800.00	21,578.05	Aug-09-04	9.800%	IL - 20.00%	Paid Off - 240	Dec-29-03
1274591 2			162,000.00	161,167.53	Aug-03-04	7.650%	CA - 79.02%	Paid Off - 360	Dec-30-03
					Page 23 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for September 27, 2004 Distribution
	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution
Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date
1276658 2			571,500.00	567,824.19	Aug-30-04	6.500%	HI - 90.00%	Paid Off - 360	Dec-24-03
1283965 2			232,500.00	231,269.23	Aug-05-04	7.500%	VA - 73.81%	Paid Off - 360	Dec-29-03
1289378 2			135,900.00	135,166.24	Aug-19-04	7.400%	VA - 90.00%	Paid Off - 360	Dec-31-03
1294371 2			387,000.00	384,433.98	Sep-14-04	6.600%	CA - 90.00%	Paid Off - 360	Jan-09-04
1322552 2			248,500.00	247,133.71	Aug-27-04	6.500%	CA - 70.00%	Paid Off - 360	Jan-30-04
1337410 2			337,500.00	335,356.75	Sep-02-04	6.400%	CA - 90.00%	Paid Off - 360	Jan-29-04
6659578 2			232,000.00	230,330.76	Aug-17-04	7.800%	CA - 78.38%	Paid Off - 360	Sep-19-03
6660096 2			65,000.00	64,620.80	Aug-04-04	7.700%	CA - 65.00%	Paid Off - 360	Nov-20-03
6910815 2			138,000.00	137,194.96	Aug-10-04	7.700%	CA - 44.52%	Paid Off - 360	Dec-01-03
6911269 2			230,000.00	228,584.76	Aug-31-04	7.430%	CA - 80.00%	Paid Off - 360	Dec-08-03
6925413 2			344,000.00	342,290.85	Aug-31-04	8.500%	NJ - 80.00%	Paid Off - 360	Nov-24-03
6925898 2			225,000.00	223,982.41	Aug-04-04	9.550%	CA - 90.00%	Paid Off - 360	Nov-13-03
6949835 2			194,650.00	193,078.17	Aug-02-04	7.500%	CA - 85.00%	Paid Off - 360	Nov-07-03
6986358 2			93,600.00	93,119.18	Aug-17-04	8.950%	AZ - 80.00%	Paid Off - 360	Nov-10-03
6989950 2			332,800.00	330,572.54	Aug-24-04	7.000%	MD - 80.00%	Paid Off - 360	Dec-02-03
7025122 2			430,000.00	427,488.61	Aug-12-04	8.300%	CA - 93.89%	Paid Off - 360	Nov-26-03
7026722 2			107,000.00	106,092.17	Aug-26-04	5.850%	FL - 66.88%	Paid Off - 360	Nov-13-03
7052901 2			73,800.00	73,478.93	Aug-19-04	9.150%	NC - 90.00%	Paid Off - 360	Dec-02-03
7053568 2			254,800.00	253,183.76	Aug-23-04	7.275%	RI - 84.93%	Paid Off - 360	Nov-14-03
7088469 2			189,000.00	188,107.51	Aug-20-04	8.750%	NY - 90.00%	Paid Off - 360	Nov-20-03
7093128 2			135,000.00	134,383.02	Aug-04-04	9.500%	ME - 75.00%	Paid Off - 360	Nov-19-03
7097646 2			384,000.00	381,224.80	Aug-25-04	6.800%	NY - 80.00%	Paid Off - 360	Dec-01-03
7107870 2			176,000.00	174,626.42	Aug-30-04	6.200%	RI - 80.00%	Paid Off - 360	Dec-01-03
7136919 2			63,000.00	62,782.17	Aug-04-04	10.250%	FL - 70.00%	Paid Off - 360	Nov-18-03
7152191 2			340,000.00	337,415.50	Aug-06-04	6.775%	CA - 80.00%	Paid Off - 360	Nov-26-03
7164734 2			352,000.00	349,092.96	Aug-11-04	5.900%	CA - 80.00%	Paid Off - 360	Dec-05-03
7172583 2			45,050.00	44,909.93	Aug-17-04	10.750%	MS - 85.00%	Paid Off - 360	Nov-10-03
7173334 2			267,750.00	266,109.00	Aug-03-04	7.450%	CA - 84.46%	Paid Off - 360	Nov-26-03
7174446 2			45,000.00	44,852.43	Aug-13-04	10.500%	IL - 17.65%	Paid Off - 360	Dec-01-03
7176058 2			204,000.00	202,821.77	Aug-26-04	7.750%	CA - 80.00%	Paid Off - 360	Nov-17-03
7185235 2			65,880.00	65,666.29	Aug-26-04	10.550%	FL - 61.00%	Paid Off - 360	Nov-12-03
7196040 2			116,000.00	115,375.11	Aug-25-04	8.100%	IL - 80.00%	Paid Off - 360	Nov-21-03
7390483 2			120,000.00	119,195.26	Aug-25-04	6.990%	CA - 80.00%	Paid Off - 360	Nov-20-03
7399561 2			155,000.00	154,237.64	Aug-31-04	8.550%	CA - 73.11%	Paid Off - 360	Nov-21-03
7400780 2			160,000.00	158,927.03	Aug-03-04	6.990%	NV - 76.19%	Paid Off - 360	Nov-26-03
7406177 2			135,000.00	134,272.91	Aug-31-04	8.100%	CA - 69.95%	Paid Off - 360	Nov-19-03
7429967 2			150,000.00	148,955.21	Aug-02-04	7.350%	NV - 34.48%	Paid Off - 360	Dec-02-03
7439903 2			118,575.00	118,276.44	Aug-18-04	11.725%	VA - 85.00%	Paid Off - 360	Dec-02-03
7457847 2			271,200.00	268,897.42	Aug-24-04	5.990%	CA - 80.00%	Paid Off - 360	Nov-21-03
7467591 2			135,080.00	134,218.74	Aug-25-04	7.280%	TX - 80.00%	Paid Off - 360	Nov-25-03
7470010 2			147,000.00	146,305.89	Aug-02-04	8.750%	CA - 77.37%	Paid Off - 360	Dec-01-03
7487274 2			248,000.00	245,689.09	Aug-25-04	5.250%	CA - 80.00%	Paid Off - 360	Dec-01-03
8684537 2			184,500.00	183,533.35	Aug-31-04	6.750%	CA - 90.00%	Paid Off - 360	Jan-21-04
310025589 2			106,000.00	105,237.52	Aug-31-04	7.250%	CA - 90.99%	Paid Off - 360	Oct-31-03
310035940 2			391,000.00	388,451.12	Aug-03-04	7.750%	MD - 85.00%	Paid Off - 360	Oct-31-03
310067533 2			304,000.00	302,286.51	Aug-10-04	7.875%	CA - 95.00%	Paid Off - 360	Nov-19-03
310078828 2			147,680.00	146,736.40	Aug-25-04	7.850%	CA - 80.00%	Paid Off - 360	Oct-31-03
310167366 2			211,920.00	210,072.11	Aug-30-04	6.250%	CA - 80.00%	Paid Off - 360	Oct-27-03
310168207 2			357,000.00	354,781.25	Aug-18-04	7.990%	CA - 85.00%	Paid Off - 360	Oct-29-03
310200828 2			427,500.00	425,220.67	Aug-18-04	8.750%	MD - 90.00%	Paid Off - 360	Oct-31-03
310299429 2			136,000.00	135,252.49	Aug-13-04	7.999%	KY - 80.00%	Paid Off - 360	Nov-25-03
311045129 2			75,000.00	74,584.87	Aug-02-04	7.990%	CA - 83.33%	Paid Off - 360	Nov-28-03
					Page 24 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Prepayment Detail Report for September 27, 2004 Distribution
	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution
Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date
312029201 2			477,600.00	474,943.44	Aug-17-04	7.250%	CT - 80.00%	Paid Off - 360	Dec-22-03
					Page 25 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Realized Loss Report for September 27, 2004 Distribution
	Realized Loss Report - Collateral
COLLATERAL REALIZED LOSSES						GROUP 2	GROUP 1	TOTAL
	Current
	Number of Loans Liquidated					-	-	-
	Collateral Realized Loss/(Gain) Amount					-	-	-
	Net Liquidation Proceeds					-	-	-
	Cumulative
	Number of Loans Liquidated					-	-	-
	Collateral Realized Loss/(Gain) Amount					-	-	-
	Net Liquidation Proceeds					-	-	-
	Note: Collateral Realized Loss Amount may include adjustments to loans liquidated in prior periods.
	Applied Realized Loss Amount Current							0.00
	Applied Realized Loss Amount Aggregate							0.00
	Cumulative Loss Percentage							0.00%
	Group 1						3 Months Moving Average
	Group 2
Collateral Loss Severity Approximation by Groups					Collateral Loss Severity Approximation
				Page 26 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Realized Loss Report for September 27, 2004 Distribution
	Realized Loss Report - Collateral
DEFAULT SPEEDS						GROUP 2	GROUP 1	TOTAL
	MDR					0.00%	0.00%	0.00%
	3 Months Avg MDR					0.00%	0.00%	0.00%
	12 Months Avg MDR
	Avg MDR Since Cut-off					0.00%	0.00%	0.00%
	CDR					0.00%	0.00%	0.00%
	3 Months Avg CDR					0.00%	0.00%	0.00%
	12 Months Avg CDR
	Avg CDR Since Cut-off					0.00%	0.00%	0.00%
	SDA					0.00%	0.00%	0.00%
	3 Months Avg SDA Approximation					0.00%	0.00%	0.00%
	12 Months Avg SDA Approximation
	Avg SDA Since Cut-off Approximation					0.00%	0.00%	0.00%
	Loss Severity Approximation for Current Period
	3 Months Avg Loss Severity Approximation
	12 Months Avg Loss Severity Approximation
	Avg Loss Severity Approximation Since Cut-off
	Group 1
	Group 2
CDR by Groups					Total CDR
SDA by Groups					Total SDA
				Page 27 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Realized Loss Report for September 27, 2004 Distribution
	Realized Loss Report - Collateral
	Group 1
	Group 2
CDR Avg since Cut-Off by Groups					Total CDR Avg since Cut-Off
SDA Avg since Cut-Off by Groups					Total SDA Avg since Cut-Off
COLLATERAL REALIZED LOSS CALCULATION METHODOLOGY
Monthly Default Rate (MDR): (Beg Principal Balance of Liquidated Loans)/(Total Beg Principal Balance)
Conditional Default Rate (CDR): 1-((1-MDR)^12)
SDA Standard Default Assumption: CDR/IF(WAS<61,MIN(30,WAS)0.02,MAX(0.03,MIN(30,WAS)0.02-0.0095*(WAS-60)))
Average MDR over period between nth month and mth month (AvgMDRn,m): [(1-MDRn) * (1-MDRn+1) .......(1-MDRm)]^(1/months in period n,m)
Average CDR over period between the nth month and mth month (AvgCDRn,m): 1-((1-AvgMDRn,m)^12)
Average SDA Approximation over period between the nth month and mth month:
AvgCDRn,m/IF(Avg WASn,m<61,MIN(30,Avg WASn,m)0.02,MAX(0.03,MIN(30,Avg WASn,m)0.02-0.0095*(Avg WASn,m-60)))
Average WASn,m: (WASn + WASn+1 +.......+ WASm )/(number of months in the period n,m)
Loss Severity Approximation for current period: sum(Realized Loss Amount)/sum(Beg Principal Balance of Liquidated Loans)
Average Loss Severity Approximation over period between nth month and mth month: Avg(Loss Severityn,m)
Note: Default rates are calculated since deal issue date and include realized gains and additional realized losses and gains from prior periods.
Dates correspond to distribution dates.
				Page 28 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Realized Loss Detail Report for September 27, 2004 Distribution
	Realized Loss Detail Report - Loans Liquidated During Current Distribution
SUMMARY							LOAN GROUP
Total Loan Count Current Losses = 0
Total Loan Count Revisions = 0						Loan Group 1 = Group 1
Total Prior Principal Balance = 0.00						Loan Group 2 = Group 2
Total Current Realized Loss Amount = 0.00
Total Revisions Amount = 0.00
Total Realized Loss Amount = 0.00
Total Net Liquidation Proceeds = 0.00
Note: Total Realized Loss Amount may include adjustments to loans liquidated in prior periods.
Loan Number			Current	State &		Prior	Realized		Cumulative
&		Loan	Note	LTV at	Original	Principal	Loss/(Gain)	Realized	Realized
Loan Group		Status	Rate	Origination	Term	Balance	Revisions	Loss/(Gain)	Loss/(Gain)
SPACE INTENTIONALLY LEFT BLANK
					Page 29 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Triggers, Adj. Rate Cert. and Miscellaneous Report for September 27, 2004 Distribution
	Triggers, Adj. Rate Cert. and Miscellaneous Report
TRIGGER EVENTS						GROUP 2	GROUP 1	TOTAL
	Has a Stepdown Date occurred?							No
	Has Optional Termination date occurred?							No
	Has Cumulative Loss Trigger Event occurred?							No
	Has Delinquency Trigger Event occurred?							No
	Cumulative Loss Trigger Event calculation
	If Cumulative Loss Percentage > Applicable Percentage
	Cumulative Loss Percentage							0.00%
	Applicable percentage							0.00%
	Delinquency Trigger Event calculation
	The event will happen if (a) equals or exceeds (b)
	(a) The percentage obtained by dividing (x) by (y)							1.31%
	(x) Three months rolling average of 60+ Day Delinquency							20,059,516.97
	(y) Ending pool balance							1,530,954,963.56
	(b) 45% of prior period Senior Enhancement Percentage							8.19%
ADJUSTABLE RATE CERTIFICATE INFORMATION						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK
ADDITIONAL INFORMATION						GROUP 2	GROUP 1	TOTAL
	Basis Risk Carry Forward Amount							0.00
				Page 30 of 31				© COPYRIGHT 2004 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2004-HE2
	Mortgage Pass-Through Certificates
	Series 2004-HE2
	Other Related Information for September 27, 2004 Distribution
	Other Related Information
ADDITIONAL INFORMATION						GROUP 2	GROUP 1	TOTAL
	Twelve months Scheduled Payments
	Current month Scheduled Payments							11,031,245.01
	1 month prior Scheduled Payments							11,420,305.03
	2 months prior Scheduled Payments							11,753,241.31
	3 months prior Scheduled Payments							11,988,851.02
	4 months prior Scheduled Payments							12,158,798.74
	5 months prior Scheduled Payments							0.00
	6 months prior Scheduled Payments							0.00
	7 months prior Scheduled Payments							0.00
	8 months prior Scheduled Payments							0.00
	9 months prior Scheduled Payments							0.00
	10 months prior Scheduled Payments							0.00
	11 months prior Scheduled Payments							0.00
	12 months prior Scheduled Payments							0.00
	Twelve months 60+ days delinquencies
	Current month 60+ days delinquent							13,906,190.51
	1 month prior 60+ days delinquent							1,644,585.58
	2 months prior 60+ days delinquent							893,511.36
	3 months prior 60+ days delinquent							0.00
	4 months prior 60+ days delinquent							0.00
	5 months prior 60+ days delinquent							0.00
	6 months prior 60+ days delinquent							0.00
	7 months prior 60+ days delinquent							0.00
	8 months prior 60+ days delinquent							0.00
	9 months prior 60+ days delinquent							0.00
	10 months prior 60+ days delinquent							0.00
	11 months prior 60+ days delinquent							0.00
	12 months prior 60+ days delinquent							0.00
				Page 31 of 31				© COPYRIGHT 2004 Deutsche Bank

Filing Compare · Morgan Stanley ABS Capital I Inc. Trust 2004-HE2