SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K /A

Current Report Pursuant To Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 26, 2002

MORGAN STANLEY ABS CAPITAL I INC.

(as Depositor), The Provident Bank as Servicer and

Deutsche Bank National Trust Company, as Trustee.

MORGAN STANLEY ABS CAPITAL I INC TRUSTS 2002-HE3

(Exact name of Registrant as specified in its Charter)

DELAWARE

(State or Other Jurisdiction of Incorporation)

333-65702-07 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

Item 5. Other Events

Attached hereto is a copy of the Monthly Remittance Statements to the

Certificateholders which was derived from the monthly information

submitted by the Master Servicer of the Trust to the Trustee.

Item 7. Financial Statement and Exhibits

Exhibits: (as noted in Item 5 above)

Monthly Remittance Statement to the Certificateholders dated as of

October 26, 2002.

SIGNATURE

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.

Deutsche Bank National Trust Company,

not in its individual capacity, but solely

as a duly authorized agent of the Registrant

pursuant to the Pooling and Servicing

Agreement, dated as of Novemeber 1, 2002.

Date: Jan 23, 2003 By: /s/ Katie Wannenmacher

Katie Wannenmacher

Vice President

EXHIBIT INDEX

DOCUMENT

Monthly Remittance Statement to the Certificateholders

dated as of December 26, 2002.


	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates


	December 26, 2002 Distribution


	Contents



			TABLE OF CONTENTS

								Page

			1.	Contents				1
			2.	Certificate Payment Report				2
			3.	Collection Account Report				8
			4.	Credit Enhancement Report				11
			5.	Collateral Report				12
			6.	Delinquency Report				15
			7.	REO Report				18
			8.	Foreclosure Report				19
			9.	Prepayment Report				20
			10.	Prepayment Detail Report				23
			11.	Realized Loss Report				24
			12.	Realized Loss Detail Report				27
			13.	Triggers, Adj. Rate Cert. and Miscellaneous Report				28




				Total Number of Pages				28



			CONTACTS

				Administrator: Jeremy B Conyers
				Direct Phone Number: (714)247-6274
				Address: Deutsche Bank
				1761 E. St. Andrew Place, Santa Ana, CA 92705

				Web Site: http://www.corporatetrust.db.com/invr
				Factor Information: (800) 735-7777
				Main Phone Number: (714) 247-6000



ISSUANCE INFORMATION

	Seller:		Morgan Stanley					Cut-Off Date: November 1, 2002
	Certificate Insurer(s):							Closing Date: November 26, 2002
								First Payment Date: December 26, 2002
	Servicer(s):		Provident Bank Master Servicer


								Distribution Date: December 26, 2002
	Underwriter(s):		Morgan Stanley & Co. Inc					Record Date: December 24, 2002







						Page 1 of 28					© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates
	REMIC I Series 2002-HE3
	Certificate Payment Report for December 26, 2002 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)

LT-ACCRUAL		257,361,171.17			257,361,171.17	1,671,784.48	1,166,702.91	2,838,487.39	-	-	256,194,468.26
LT1-A-1		120,466,000.00			120,466,000.00	782,531.37	909,837.95	1,692,369.32	-	-	119,556,162.05
LT1-A-2		85,045,000.00			85,045,000.00	552,441.19	256,483.38	808,924.57	-	-	84,788,516.62
LT1-M-1		15,176,000.00			15,176,000.00	98,581.31	-	98,581.31	-	-	15,176,000.00
LT1-M-2		13,911,500.00			13,911,500.00	90,367.28	-	90,367.28	-	-	13,911,500.00
LT1-B-1		10,750,000.00			10,750,000.00	69,830.59	-	69,830.59	-	-	10,750,000.00
LT1-B-2		3,161,500.00			3,161,500.00	20,536.69	-	20,536.69	-	-	3,161,500.00
LT-GRP I		1,172.35			1,172.35	7.61	5.31	12.92	-	-	1,167.04
LT-GRP II		827.65			827.65	5.39	3.75	9.14	-	-	823.90
LT-R		-			-	-	-	-	-	-	-


Total		505,873,171.17			505,873,171.17	3,286,085.91	2,333,033.31	5,619,119.22	-	-	503,540,137.86


	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)

LT-ACCRUAL	11/26/02	12/25/02		A-Act/360		257,361,171.17	1,000.000000	6.495869	4.533329	11.029198	995.466671
LT1-A-1	11/26/02	12/25/02		A-Act/360		120,466,000.00	1,000.000000	6.495869	7.552653	14.048523	992.447347
LT1-A-2	11/26/02	12/25/02		A-Act/360		85,045,000.00	1,000.000000	6.495869	3.015855	9.511724	996.984145
LT1-M-1	11/26/02	12/25/02		A-Act/360		15,176,000.00	1,000.000000	6.495869	-	6.495869	1,000.000000
LT1-M-2	11/26/02	12/25/02		A-Act/360		13,911,500.00	1,000.000000	6.495869	-	6.495869	1,000.000000
LT1-B-1	11/26/02	12/25/02		A-Act/360		10,750,000.00	1,000.000000	6.495869	-	6.495869	1,000.000000
LT1-B-2	11/26/02	12/25/02		A-Act/360		3,161,500.00	1,000.000000	6.495869	-	6.495869	1,000.000000
LT-GRP I	11/26/02	12/25/02		A-Act/360		1,172.35	1,000.000000	6.491236	4.533288	11.024523	995.466712
LT-GRP II	11/26/02	12/25/02		A-Act/360		827.65	1,000.000000	6.512415	4.533317	11.045732	995.466683
LT-R	11/26/02	12/25/02		A-Act/360		-	-	-	-	-	-


							Page 2 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates
	REMIC I Series 2002-HE3
	Certificate Payment Report for December 26, 2002 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)

LT-ACCRUAL	257,361,171.17		1,671,784.48		-	1,166,702.91	1,166,702.91	2,838,487.39	-	-	256,194,468.26
LT1-A-1	120,466,000.00		782,531.37		-	909,837.95	909,837.95	1,692,369.32	-	-	119,556,162.05
LT1-A-2	85,045,000.00		552,441.19		-	256,483.38	256,483.38	808,924.57	-	-	84,788,516.62
LT1-M-1	15,176,000.00		98,581.31		-	-	-	98,581.31	-	-	15,176,000.00
LT1-M-2	13,911,500.00		90,367.28		-	-	-	90,367.28	-	-	13,911,500.00
LT1-B-1	10,750,000.00		69,830.59		-	-	-	69,830.59	-	-	10,750,000.00
LT1-B-2	3,161,500.00		20,536.69		-	-	-	20,536.69	-	-	3,161,500.00
LT-GRP I	1,172.35		7.61		-	5.31	5.31	12.92	-	-	1,167.04
LT-GRP II	827.65		5.39		-	3.75	3.75	9.14	-	-	823.90
LT-R	-		-		-	-	-	-	-	-	-


Total	505,873,171.17		3,286,085.91		-	2,333,033.31	2,333,033.31	5,619,119.22	-	-	503,540,137.86


	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)

LT-ACCRUAL	7.79504%	257,361,171.17			1,671,784.48	-	-	-	1,671,784.48	1,671,784.48	-
LT1-A-1	7.79504%	120,466,000.00			782,531.37	-	-	-	782,531.37	782,531.37	-
LT1-A-2	7.79504%	85,045,000.00			552,441.19	-	-	-	552,441.19	552,441.19	-
LT1-M-1	7.79504%	15,176,000.00			98,581.31	-	-	-	98,581.31	98,581.31	-
LT1-M-2	7.79504%	13,911,500.00			90,367.28	-	-	-	90,367.28	90,367.28	-
LT1-B-1	7.79504%	10,750,000.00			69,830.59	-	-	-	69,830.59	69,830.59	-
LT1-B-2	7.79504%	3,161,500.00			20,536.69	-	-	-	20,536.69	20,536.69	-
LT-GRP I	7.78558%	1,172.35			7.61	-	-	-	7.61	7.61	-
LT-GRP II	7.80844%	827.65			5.39	-	-	-	5.39	5.39	-
LT-R		-			-	-	-	-	-	-	-


Total		505,873,171.17			3,286,085.91	-	-	-	3,286,085.91	3,286,085.91	-


							Page 3 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates
	REMIC II Series 2002-HE3
	Certificate Payment Report for December 26, 2002 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		240,932,000.00			240,932,000.00	357,382.47	1,819,675.89	2,177,058.36	-	-	239,112,324.11
A-2		170,090,000.00			170,090,000.00	272,144.00	512,966.76	785,110.76	-	-	169,577,033.24
M-1		30,352,000.00			30,352,000.00	62,727.47	-	62,727.47	-	-	30,352,000.00
M-2		27,823,000.00			27,823,000.00	83,005.28	-	83,005.28	-	-	27,823,000.00
B-1		21,500,000.00			21,500,000.00	82,954.17	-	82,954.17	-	-	21,500,000.00
B-2		6,323,000.00			6,323,000.00	31,615.00	-	31,615.00	-	-	6,323,000.00
X		8,852,780.00			8,852,780.00	2,396,257.51	390.67	2,396,648.18	-	391.17	8,852,780.50
UT-R		-			-	-	-	-	-	-	-


Total		505,872,780.00			505,872,780.00	3,286,085.90	2,333,033.32	5,619,119.22	-	391.17	503,540,137.85


	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	11/26/02	12/25/02		A-Act/360	61746RAL5	240,932,000.00	1,000.000000	1.483333	7.552653	9.035987	992.447347
A-2	11/26/02	12/25/02		A-Act/360	61746RAA9	170,090,000.00	1,000.000000	1.600000	3.015855	4.615855	996.984145
M-1	11/26/02	12/25/02		A-Act/360	61746RAB7	30,352,000.00	1,000.000000	2.066667	-	2.066667	1,000.000000
M-2	11/26/02	12/25/02		A-Act/360	61746RAC5	27,823,000.00	1,000.000000	2.983333	-	2.983333	1,000.000000
B-1	11/26/02	12/25/02		A-Act/360	61746RAD3	21,500,000.00	1,000.000000	3.858333	-	3.858333	1,000.000000
B-2	11/26/02	12/25/02		F-30/360	61746RAE1	6,323,000.00	1,000.000000	5.000000	-	5.000000	1,000.000000
X	11/26/02	12/25/02		A-Act/360		514,725,951.17	1,000.000000	4.655405	0.000759	4.656163	995.467427
UT-R	11/26/02	12/25/02		A-Act/360		-	-	-	-	-	-


							Page 4 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates
	REMIC II Series 2002-HE3
	Certificate Payment Report for December 26, 2002 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	240,932,000.00		357,382.47		1,539,672.85	280,003.04	1,819,675.89	2,177,058.36	-	-	239,112,324.11
A-2	170,090,000.00		272,144.00		434,033.88	78,932.88	512,966.76	785,110.76	-	-	169,577,033.24
M-1	30,352,000.00		62,727.47		-	-	-	62,727.47	-	-	30,352,000.00
M-2	27,823,000.00		83,005.28		-	-	-	83,005.28	-	-	27,823,000.00
B-1	21,500,000.00		82,954.17		-	-	-	82,954.17	-	-	21,500,000.00
B-2	6,323,000.00		31,615.00		-	-	-	31,615.00	-	-	6,323,000.00
X	8,852,780.00		2,396,257.51		330.56	60.11	390.67	2,396,648.18	-	391.17	8,852,780.50
UT-R	-		-		-	-	-	-	-	-	-


Total	505,872,780.00		3,286,085.90		1,974,037.29	358,996.03	2,333,033.32	5,619,119.22	-	391.17	503,540,137.85


	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	1.78000%	240,932,000.00			357,382.47	-	-	-	357,382.47	357,382.47	-
A-2	1.92000%	170,090,000.00			272,144.00	-	-	-	272,144.00	272,144.00	-
M-1	2.48000%	30,352,000.00			62,727.47	-	-	-	62,727.47	62,727.47	-
M-2	3.58000%	27,823,000.00			83,005.28	-	-	-	83,005.28	83,005.28	-
B-1	4.63000%	21,500,000.00			82,954.17	-	-	-	82,954.17	82,954.17	-
B-2	6.00000%	6,323,000.00			31,615.00	-	-	-	31,615.00	31,615.00	-
X	5.68425%	514,725,951.17			2,396,257.51	-	-	-	2,396,257.51	2,396,648.68	-
UT-R		-			-	-	-	-	-	-	-


Total		1,011,745,951.17			3,286,085.90	-	-	-	3,286,085.90	3,286,477.07	-


							Page 5 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates
	REMIC III Series 2002-HE3
	Certificate Payment Report for December 26, 2002 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)

P		-			-	75,941.69	-	75,941.69	-	-	-


Total		-			-	75,941.69	-	75,941.69	-	-	-


	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)

P	11/26/02	12/25/02		A-Act/360		-	-	-	-	-	-


							Page 6 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates
	REMIC III Series 2002-HE3
	Certificate Payment Report for December 26, 2002 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)

P	-		75,941.69		-	-	-	75,941.69	-	-	-


Total	-		75,941.69		-	-	-	75,941.69	-	-	-


	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)

P		-			75,941.69	-	-	-	75,941.69	75,941.69	-


Total		-			75,941.69	-	-	-	75,941.69	75,941.69	-


							Page 7 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Collection Account Report for December 26, 2002 Distribution


	Collection Account Report


SUMMARY						GROUP 2	GROUP 1	TOTAL

	Principal Collections					513,052.67	1,819,980.65	2,333,033.32
	Principal Other Accounts					0.00	0.00	0.00
	TOTAL NET PRINCIPAL					513,052.67	1,819,980.65	2,333,033.32

	Interest Collections					1,388,270.86	1,948,096.96	3,336,367.82
	Interest Withdrawals					0.00	0.00	0.00
	Interest Other Accounts					0.00	0.00	0.00
	Interest Fees					(26,075.32)	(24,206.60)	(50,281.92)
	TOTAL NET INTEREST					1,362,195.54	1,923,890.36	3,286,085.90

	TOTAL AVAILABLE FUNDS FOR DISTRIBUTION					1,875,248.21	3,743,871.01	5,619,119.22


PRINCIPAL - COLLECTIONS						GROUP 2	GROUP 1	TOTAL

	Scheduled Principal Received					153,890.53	205,105.50	358,996.03
	Prepayments In Full					221,698.54	1,606,124.59	1,827,823.13
	Curtailments					10,314.00	8,750.56	19,064.56
	Liquidations					0.00	0.00	0.00
	Insurance Principal					0.00	0.00	0.00
	Repurchased Principal Amounts					55,108.25	0.00	55,108.25
	Other Principal					72,041.35	0.00	72,041.35
	Total Realized Loss Of Principal					0.00	0.00	0.00
	Delinquent Principal					(110,960.19)	(165,637.15)	(276,597.34)
	Advanced Principal					110,960.19	165,637.15	276,597.34

	TOTAL PRINCIPAL COLLECTED					513,052.67	1,819,980.65	2,333,033.32


				Page 8 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Collection Account Report for December 26, 2002 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					1,450,355.95	2,049,421.90	3,499,777.85
	Liquidation Interest					0.00	0.00	0.00
	Repurchased Interest					430.53	0.00	430.53
	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					(1,039,665.99)	(1,687,147.81)	(2,726,813.80)
	Interest Advanced					977,150.37	1,585,822.87	2,562,973.24

	TOTAL INTEREST COLLECTED					1,388,270.86	1,948,096.96	3,336,367.82


				Page 9 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Collection Account Report for December 26, 2002 Distribution


	Collection Account Report


INTEREST - WITHDRAWALS						GROUP 2	GROUP 1	TOTAL

	Trust Fund Expenses							0.00
	Nonrecoverable Advances							0.00
	Reimbursements to Master Servicer							0.00

	TOTAL INTEREST WITHDRAWALS							0.00


INTEREST - OTHER ACCOUNTS						GROUP 2	GROUP 1	TOTAL

	Prepayment Charges							75,941.69



	TOTAL INTEREST OTHER ACCOUNTS							75,941.69


INTEREST - FEES						GROUP 2	GROUP 1	TOTAL

	Current Servicing Fees					24,680.19	22,229.73	46,909.92

	Trustee Fees					1,395.13	1,976.87	3,372.00


	TOTAL INTEREST OTHER FEES					26,075.32	24,206.60	50,281.92


				Page 10 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Credit Enhancement Report for December 26, 2002 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							8,853,171.17
	Ending Subordinated Amount							8,852,780.50
	Specified Subordinated Amount							8,852,780.50


	Senior Enhancement Percentage							18.84%


				Page 11 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Collateral Report for December 26, 2002 Distribution


	Collateral Report


COLLATERAL						GROUP 2	GROUP 1	TOTAL
	Loan Count:
	*Original*					1384	2098	3482
	Prior					-	-	-
	Prefunding					-	-	-
	Scheduled Paid Offs					-	-	-
	Full Voluntary Prepayments					(3)	(15)	(18)
	Repurchases					(1)	-	(1)
	Liquidations					-	-	-
	Current					1,380	2,083	3,463

	*Principal Balance:*
	Original					209,269,932.72	296,531,197.10	505,801,129.82
	Prior					-	-	-
	Prefunding					-	-	-
	Scheduled Principal					(153,890.53)	(205,105.50)	(358,996.03)
	Partial and Full Voluntary Prepayments					(232,012.54)	(1,614,875.15)	(1,846,887.69)
	Repurchases					(55,108.25)	-	(55,108.25)
	Liquidations					-	-	-
	Current					208,828,921.40	294,711,216.45	503,540,137.85

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 12 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Collateral Report for December 26, 2002 Distribution


	Collateral Report


CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL

	Weighted Average Coupon Original					8.319130%	8.293584%	8.304153%
	Weighted Average Coupon Prior
	Weighted Average Coupon Current					8.319130%	8.293584%	8.304153%
	Weighted Average Months to Maturity Original					329	349	341
	Weighted Average Months to Maturity Prior					-	-	-
	Weighted Average Months to Maturity Current					329	349	341
	Weighted Avg Remaining Amortization Term Original					349	353	351
	Weighted Avg Remaining Amortization Term Prior					-	-	-
	Weighted Avg Remaining Amortization Term Current					349	353	351
	Weighted Average Seasoning Original					4.53	4.53	4.53
	Weighted Average Seasoning Prior					-	-	-
	Weighted Average Seasoning Current					4.53	4.53	4.53

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 13 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Collateral Report for December 26, 2002 Distribution


	Collateral Report


ARM CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL

	Weighted Average Margin Original					3.715%	6.186%
	Weighted Average Margin Prior
	Weighted Average Margin Current					3.715%	6.186%
	Weighted Average Max Rate Original					7.588%	13.386%
	Weighted Average Max Rate Prior
	Weighted Average Max Rate Current					7.588%	13.386%
	Weighted Average Min Rate Original					4.238%	7.273%
	Weighted Average Min Rate Prior
	Weighted Average Min Rate Current					4.238%	7.273%
	Weighted Average Cap Up Original					0.512%	0.873%
	Weighted Average Cap Up Prior
	Weighted Average Cap Up Current					0.512%	0.873%
	Weighted Average Cap Down Original					0.512%	0.873%
	Weighted Average Cap Down Prior
	Weighted Average Cap Down Current					0.512%	0.873%

Note: Original information refers to deal issue.

SERVICING FEES / ADVANCES						GROUP 2	GROUP 1	TOTAL

	Current Servicing Fees					24,680.19	22,229.73	46,909.92
	Delinquent Servicing Fees					62,515.62	101,324.93	163,840.55
	TOTAL SERVICING FEES					87,195.81	123,554.66	210,750.47


	Prepayment Interest Shortfall					849.37	6,298.31	7,147.68
	Compensating Interest					(849.37)	(6,298.31)	(7,147.68)

	Delinquent Servicing Fees					(62,515.62)	(101,324.93)	(163,840.55)

	COLLECTED SERVICING FEES					24,680.19	22,229.73	46,909.92

	Aggregate Advances with respect to this Distribution					1,088,110.56	1,751,460.02	2,839,570.58
	Current Nonrecoverable Advances					0.00	0.00	0.00
	Cumulative 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							2,396,257.51


	Ending Pool Stated Principal Balance					208,828,921.40	294,711,216.45	503,540,137.85


				Page 14 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Delinquency Report for December 26, 2002 Distribution


	Delinquency Report - Total


				CURRENT	1 PAYMENT	2 PAYMTS	3+ PAYMTS	TOTAL
DELINQUENT		Balance			2,638,583.94	1,591,128.41	-	4,229,712.35
		% Balance			0.52%	0.32%	0.00%	0.84%
		# Loans			25	9	-	34
		% # Loans			0.72%	0.26%	0.00%	0.98%
FORECLOSURE		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%
BANKRUPTCY		Balance		671,482.63	-	-	-	671,482.63
		% Balance		0.13%	0.00%	0.00%	0.00%	0.13%
		# Loans		4	-	-	-	4
		% # Loans		0.12%	0.00%	0.00%	0.00%	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		671,482.63	2,638,583.94	1,591,128.41	-	4,901,194.98
		% Balance		0.13%	0.52%	0.32%	0.00%	0.97%
		# Loans		4	25	9	-	38
		% # Loans		0.12%	0.72%	0.26%	0.00%	1.10%
Note: Current = 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 15 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Delinquency Report for December 26, 2002 Distribution


	Delinquency Report - Group 1 Group


				CURRENT	1 PAYMENT	2 PAYMTS	3+ PAYMTS	TOTAL
DELINQUENT		Balance			1,831,728.87	492,410.66	-	2,324,139.53
		% Balance			0.62%	0.17%	0.00%	0.79%
		# Loans			17	5	-	22
		% # Loans			0.82%	0.24%	0.00%	1.06%
FORECLOSURE		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%
BANKRUPTCY		Balance		241,631.88	-	-	-	241,631.88
		% Balance		0.08%	0.00%	0.00%	0.00%	0.08%
		# Loans		2	-	-	-	2
		% # Loans		0.10%	0.00%	0.00%	0.00%	0.10%
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		241,631.88	1,831,728.87	492,410.66	-	2,565,771.41
		% Balance		0.08%	0.62%	0.17%	0.00%	0.87%
		# Loans		2	17	5	-	24
		% # Loans		0.10%	0.82%	0.24%	0.00%	1.15%
Note: Current = 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 16 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Delinquency Report for December 26, 2002 Distribution


	Delinquency Report - Group 2 Group


				CURRENT	1 PAYMENT	2 PAYMTS	3+ PAYMTS	TOTAL
DELINQUENT		Balance			806,855.07	1,098,717.75	-	1,905,572.82
		% Balance			0.39%	0.53%	0.00%	0.91%
		# Loans			8	4	-	12
		% # Loans			0.58%	0.29%	0.00%	0.87%
FORECLOSURE		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%
BANKRUPTCY		Balance		429,850.75	-	-	-	429,850.75
		% Balance		0.21%	0.00%	0.00%	0.00%	0.21%
		# Loans		2	-	-	-	2
		% # Loans		0.14%	0.00%	0.00%	0.00%	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		429,850.75	806,855.07	1,098,717.75	-	2,335,423.57
		% Balance		0.21%	0.39%	0.53%	0.00%	1.12%
		# Loans		2	8	4	-	14
		% # Loans		0.14%	0.58%	0.29%	0.00%	1.01%
Note: Current = 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 17 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	REO Report for December 26, 2002 Distribution


	REO Report - Mortgage Loans that Become REO During Current Distribution


SUMMARY				LOAN GROUP

Total Loan Count = 0				Loan Group 1 = Group 1 Group; REO Book Value = 000.00
Total Original Principal Balance = 000.00				Loan Group 2 = Group 2 Group; 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 18 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Foreclosure Report for December 26, 2002 Distribution


	Foreclosure Report - Mortgage Loans that Become Foreclosure During Current Distribution


SUMMARY				LOAN GROUP

Total Loan Count = 0				Loan Group 1 = Group 1 Group
Total Original Principal Balance = 000.00				Loan Group 2 = Group 2 Group
Total Current Balance = 000.00


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 19 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Prepayment Report for December 26, 2002 Distribution


	Prepayment Report - Voluntary Prepayments


VOLUNTARY PREPAYMENTS						GROUP 2	GROUP 1	TOTAL

	*Current*
	Number of Paid in Full Loans					3	15	18
	Number of Repurchased Loans					1	-	1
	Total Number of Loans Prepaid in Full					4	15	19

	Paid in Full Balance					221,698.54	1,606,124.59	1,827,823.13
	Repurchased Loans Balance					55,108.25	-	55,108.25
	Curtailments Amount					10,314.00	8,750.56	19,064.56
	Total Prepayment Amount					287,120.79	1,614,875.15	1,901,995.94

	*Cumulative*
	Number of Paid in Full Loans					3	15	18
	Number of Repurchased Loans					1	-	1
	Total Number of Loans Prepaid in Full					4	15	19

	Paid in Full Balance					221,698.54	1,606,124.59	1,827,823.13
	Repurchased Loans Balance					55,108.25	-	55,108.25
	Curtailments Amount					10,314.00	8,750.56	19,064.56
	Total Prepayment Amount					287,120.79	1,614,875.15	1,901,995.94

SPACE INTENTIONALLY LEFT BLANK


Total Prepayments by Groups (in thousands of dollars)					Total Prepayments (in thousands of dollars)


				Page 20 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Prepayment Report for December 26, 2002 Distribution


	Prepayment Report - Voluntary Prepayments


VOLUNTARY PREPAYMENT RATES						GROUP 2	GROUP 1	TOTAL

	SMM					0.14%	0.54%	0.38%
	3 Months Avg SMM
	12 Months Avg SMM
	Avg SMM Since Cut-off					0.14%	0.54%	0.38%

	CPR					1.64%	6.35%	4.42%
	3 Months Avg CPR
	12 Months Avg CPR
	Avg CPR Since Cut-off					1.64%	6.35%	4.42%

	PSA					180.60%	701.07%	488.56%
	3 Months Avg PSA Approximation
	12 Months Avg PSA Approximation
	Avg PSA Since Cut-off Approximation					180.60%	701.07%	488.56%



	Group 1
	Group 2


CPR by Groups					Total CPR


PSA by Groups					Total PSA


				Page 21 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Prepayment Report for December 26, 2002 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/(0.02*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 22 of 28				© COPYRIGHT 2002 Deutsche Bank


	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Prepayment Detail Report for December 26, 2002 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution


SUMMARY						LOAN GROUP

Total Loan Count = 19						Loan Group 1 = Group 1 Group
Total Original Principal Balance = 1,889,650.00						Loan Group 2 = Group 2 Group
Total Prepayment Amount = 1,882,931.38


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

203223632 1			219,000.00	218,494.05	Nov-12-02	10.750%	CA - 73.00%	Paid Off - 360	Apr-09-02
204057234 1			119,000.00	118,581.62	Nov-07-02	8.750%	UT - 85.00%	Paid Off - 360	Apr-17-02
204108356 1			125,000.00	124,652.73	Nov-25-02	8.990%	NJ - 36.23%	Paid Off - 360	May-13-02
205304177 1			70,500.00	68,467.85	Nov-18-02	7.259%	IN - 75.00%	Paid Off - 120	Jun-05-02
205314455 1			40,000.00	39,910.00	Nov-20-02	9.500%	GA - 64.52%	Paid Off - 360	Jul-05-02
206035171 1			140,800.00	140,480.73	Nov-04-02	8.875%	CO - 80.46%	Paid Off - 360	Jun-26-02
206045461 1			104,250.00	104,042.40	Nov-26-02	9.500%	CA - 75.00%	Paid Off - 360	Jun-25-02
206107308 1			96,000.00	95,777.05	Nov-14-02	8.759%	IN - 100.00%	Paid Off - 360	Jun-17-02
206139067 1			139,000.00	138,622.41	Nov-19-02	7.990%	CA - 64.65%	Paid Off - 360	Jun-27-02
206179767 1			89,600.00	89,434.24	Nov-15-02	9.850%	IL - 80.00%	Paid Off - 360	Jul-02-02
206212085 1			130,500.00	130,273.08	Nov-15-02	8.750%	MA - 90.00%	Paid Off - 360	Jul-24-02
206242507 1			132,800.00	132,491.02	Nov-25-02	8.750%	RI - 80.00%	Paid Off - 360	Jul-08-02
207108261 1			50,500.00	50,412.36	Nov-19-02	8.759%	IN - 80.00%	Paid Off - 360	Jul-16-02
207118954 1			80,250.00	79,608.92	Nov-12-02	8.999%	FL - 75.00%	Paid Off - 180	Jul-30-02
207129140 1			75,000.00	74,876.13	Nov-08-02	8.999%	OH - 75.00%	Paid Off - 360	Jul-31-02
205148969 2			72,800.00	72,602.25	Nov-13-02	9.100%	OH - 80.00%	Paid Off - 180	Jun-07-02
206107169 2			59,400.00	59,278.67	Nov-19-02	9.379%	IN - 90.00%	Paid Off - 180	Jun-24-02
206264093 2			90,000.00	89,817.62	Nov-15-02	8.000%	WA - 62.07%	Paid Off - 360	Jul-30-02
1934306 2			55,250.00	55,108.25	Nov-30-02	9.375%	MO - 85.00%	Repur/Subs - 360	May-17-02


					Page 23 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Realized Loss Report for December 26, 2002 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 losses may include adjustments to loans liquidated in prior periods.


	Cumulative Loss Percentage							0.00%


	Group 1						3 Months Moving Average
	Group 2

Collateral Loss Severity Approximation by Groups					Collateral Loss Severity Approximation


				Page 24 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Realized Loss Report for December 26, 2002 Distribution


	Realized Loss Report - Collateral


DEFAULT SPEEDS						GROUP 2	GROUP 1	TOTAL

	MDR					0.00%	0.00%	0.00%
	3 Months Avg MDR
	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
	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
	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 25 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Realized Loss Report for December 26, 2002 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 26 of 28				© COPYRIGHT 2002 Deutsche Bank


	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Realized Loss Detail Report for December 26, 2002 Distribution


	Realized Loss Detail Report - Loans Liquidated During Current Distribution


SUMMARY						LOAN GROUP

Total Loan Count = 0						Loan Group 1 = Group 1 Group
Total Original Principal Balance = 0.00						Loan Group 2 = Group 2 Group
Total Prior Principal Balance = 0.00
Total Realized Loss Amount = 0.00
Total Net Liquidation Proceeds = 0.00


Loan Number			Original	Prior		Current	State &
&		Loan	Principal	Principal	Realized	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Balance	Loss/(Gain)	Rate	Origination	Term	Date
SPACE INTENTIONALLY LEFT BLANK


					Page 27 of 28				© COPYRIGHT 2002 Deutsche Bank
	Morgan Stanley ABS Capital I Trust 2002-HE3
	Mortgage Pass-Through Certificates

	Triggers, Adj. Rate Cert. and Miscellaneous Report for December 26, 2002 Distribution


	Triggers, Adj. Rate Cert. and Miscellaneous Report


TRIGGER EVENTS						GROUP 2	GROUP 1	TOTAL

	Has a Stepdown Date occurred?							No

	Does Trigger Event exist?							No

	1. Does (A) equal or exceed (B)?							No
	(A) 60+ Day Delinq % (quotient of (x) over (y))							0.45%
	(x) Rolling 3-month avg. of 60+ Day Delinq. Loans							2,262,611.04
	(y) Stated Principal Balance							503,540,137.85
	(B) 40% of Sr. Enhancement Percentage							7.50%

	2. Does (A) exceed (B)?							No
	(A) Realized Loss % (quotient of (x) over (y))							0.00%
	(x) Agg. Realized Losses to date							0.00
	(y) Cut-off Date Pool Principal Balance							505,873,171.17
	(B) Applicable Percentage							100.00%


	Senior Enhancement Percentage (Prior)							18.75%



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

	Interest Rate Cap Payment							0.00

	Group II Additional Principal Funding Amount							72,041.35


				Page 28 of 28				© COPYRIGHT 2002 Deutsche Bank

MORGAN STANLEY ABS CAPITAL I INC TRUSTS 2002 HE3 8-K/A