

                                    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):
                             (Date of earliest event reported)


                                MORGAN STANLEY ABS CAPITAL I INC.
                 (as Depositor under the Pooling and Servicing Agreement,
                  dated as August 1, 2004, providing for the issuance of
                   Mortgage Pass-Through Certificates, Series 2004-HE7)
                      (Exact name of registrant as specified in charter)


                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-113543-15                        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-HE7, which was made on
     August 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
     .


                                  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 28, 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
              .



Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution

				External Parties					Table of Contents

												Page
				Seller								Page
				Seller					1. Certificate Payment Report					2
				Morgan Stanley					1. Certificate Payment Report					2
				Morgan Stanley					2. Collection Account Report					4
									2. Collection Account Report					4
									3. Credit Enhancement Report					6
									4. Collateral Report					7
				Certificate Insurer(s)					5. Delinquency Report					10
				Certificate Insurer(s)					5. Delinquency Report					10
									6. REO Report					14

									7. Foreclosure Report					15
									8. Prepayment Report					16
									9. Prepayment Detail Report					19
									9. Prepayment Detail Report					19
									10. Realized Loss Report					22
									11. Realized Loss Detail Report					25
				Servicer(s)					11. Realized Loss Detail Report					25
				Servicer(s)					12. Triggers and Adj. Cert. Report					26
				Chase Manhattan Mortgage					12. Triggers and Adj. Cert. Report					26
				Chase Manhattan Mortgage					13. Other Related Information					27
				New Century Mortgage Corporation					13. Other Related Information					27
				New Century Mortgage Corporation
				HomeQ Servicing Corp.
				Countrywide Home Loans Serv


				Underwriter(s)
				Morgan Stanley & Co. Inc


									Total Number of Pages					27
									Total Number of Pages

				Dates					Contacts

				Cut-Off Date:		August 01, 2004			Marion Hogan
				Close Date:		September 08, 2004			Administrator
				First Distribution Date:		September 27, 2004			(714) 247-6282
									marion.c.hogan@db.com
									marion.c.hogan@db.com
									Address:
									1761 East St. Andrew Place, Santa Ana, CA 92705
				Distribution Date:		September 27, 2004
									Factor Information:			(800) 735-7777
				Record Date:		August 31, 2004			Factor Information:			(800) 735-7777
									Main Phone Number:			(714) 247-6000

						September 24, 2004
						September 24, 2004

									https://www.corporatetrust.db.com/invr



Page 1 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution
Certificate Payment Report
Current Period Distribution - REMIC II
					Prior											Current
	Class		Original		Principal					Total		Realized		Deferred		Principal
	Class		Original		Principal					Total		Realized		Deferred		Principal
Class	Type	Cur	Face Value		Balance	Interest		Principal		Distribution		Loss		Interest		Balance


					(1)	(2)		(3)		(4)=(2)+(3)		(5)		(6)		(7)=(1)-(3)-(5)+(6)

A-1	FLT	$	368,465,000.00		368,465,000.00	396,227.81		4,301,060.90		4,697,288.71		0.00		0.00		364,163,939.10
A-1	FLT	$	368,465,000.00		368,465,000.00	396,227.81		4,301,060.90		4,697,288.71		0.00		0.00		364,163,939.10
A-2A	FLT	$	253,850,000.00		253,850,000.00	277,666.07		4,338,765.86		4,616,431.93		0.00		0.00		249,511,234.14
A-2B	FLT	$	63,462,000.00		63,462,000.00	71,425.60		1,084,682.92		1,156,108.52		0.00		0.00		62,377,317.08
A-3	FLT	$	225,035,000.00		225,035,000.00	248,523.03		3,917,226.59		4,165,749.62		0.00		0.00		221,117,773.41
A-4	FLT	$	90,000,000.00		90,000,000.00	88,468.75		3,565,253.25		3,653,722.00		0.00		0.00		86,434,746.75
A-5	FLT	$	74,405,000.00		74,405,000.00	80,600.25		0.00		80,600.25		0.00		0.00		74,405,000.00
A-6	FLT	$	40,410,000.00		40,410,000.00	48,466.74		0.00		48,466.74		0.00		0.00		40,410,000.00
M-1	MEZ	$	41,572,000.00		41,572,000.00	50,957.46		0.00		50,957.46		0.00		0.00		41,572,000.00
M-2	MEZ	$	36,120,000.00		36,120,000.00	44,846.49		0.00		44,846.49		0.00		0.00		36,120,000.00
M-3	MEZ	$	23,852,000.00		23,852,000.00	30,244.00		0.00		30,244.00		0.00		0.00		23,852,000.00
M-4	MEZ	$	42,935,000.00		42,935,000.00	65,091.25		0.00		65,091.25		0.00		0.00		42,935,000.00
M-5	MEZ	$	19,764,000.00		19,764,000.00	32,049.25		0.00		32,049.25		0.00		0.00		19,764,000.00
B-1	SUB	$	13,630,000.00		13,630,000.00	25,339.50		0.00		25,339.50		0.00		0.00		13,630,000.00
B-2	SUB	$	10,223,000.00		10,223,000.00	19,545.10		0.00		19,545.10		0.00		0.00		10,223,000.00
B-3	SUB	$	13,630,000.00		13,630,000.00	37,568.63		0.00		37,568.63		0.00		0.00		13,630,000.00
X	SUB	$	45,661,353.00		45,661,353.00	5,806,230.48		372.17		5,806,602.65		0.00		0.00		45,660,980.83
P	EXE	$	0.00		0.00	153,336.21		0.00		153,336.21		0.00		0.00		0.00

Total			1,363,014,353.00		1,363,014,353.00	7,476,586.62		17,207,361.69		24,683,948.31		0.00		0.00		1,345,806,991.31
Total




Interest Accrual Detail Current Period Factor Information per $1,0000 of Original Face-
								Orig. Principal		Prior							Current
								Orig. Principal		Prior							Current
	Period		Period					(with Notional)		Principal						Total	Principal
	Period		Period
Class	Starting		Ending		Method	Cusip		Balance		Balance		Interest		Principal		Distribution	Balance

								(1)		(1)		(2)		(3)		(4)=(2)+(3)	(5)
A-1	09/08/04		09/26/04		A-Act/360	61744CFX9		368,465,000.00		1,000.000000		1.075347		11.672916		12.748263	988.327084
A-2A	09/08/04		09/26/04		A-Act/360	61744CFY7		253,850,000.00		1,000.000000		1.093819		17.091849		18.185668	982.908151
A-2B	09/08/04		09/26/04		A-Act/360	61744CGM2		63,462,000.00		1,000.000000		1.125486		17.091849		18.217335	982.908151
A-3	09/08/04		09/26/04		A-Act/360	61744CFZ4		225,035,000.00		1,000.000000		1.104375		17.407188		18.511563	982.592812
A-4	09/08/04		09/26/04		A-Act/360	61744CGA8		90,000,000.00		1,000.000000		0.982986		39.613925		40.596911	960.386075
A-5	09/08/04		09/26/04		A-Act/360	61744CGB6		74,405,000.00		1,000.000000		1.083264		0.000000		1.083264	1,000.000000
A-6	09/08/04		09/26/04		A-Act/360	61744CGC4		40,410,000.00		1,000.000000		1.199375		0.000000		1.199375	1,000.000000
M-1	09/08/04		09/26/04		A-Act/360	61744CGD2		41,572,000.00		1,000.000000		1.225764		0.000000		1.225764	1,000.000000
M-2	09/08/04		09/26/04		A-Act/360	61744CGE0		36,120,000.00		1,000.000000		1.241597		0.000000		1.241597	1,000.000000
M-3	09/08/04		09/26/04		A-Act/360	61744CGF7		23,852,000.00		1,000.000000		1.267986		0.000000		1.267986	1,000.000000
M-4	09/08/04		09/26/04		A-Act/360	61744CGG5		42,935,000.00		1,000.000000		1.516042		0.000000		1.516042	1,000.000000
M-5	09/08/04		09/26/04		A-Act/360	61744CGH3		19,764,000.00		1,000.000000		1.621597		0.000000		1.621597	1,000.000000
B-1	09/08/04		09/26/04		A-Act/360	61744CGJ9		13,630,000.00		1,000.000000		1.859098		0.000000		1.859098	1,000.000000
B-2	09/08/04		09/26/04		A-Act/360	61744CGK6		10,223,000.00		1,000.000000		1.911875		0.000000		1.911875	1,000.000000
B-3	09/08/04		09/26/04		A-Act/360	61744CGL4		13,630,000.00		1,000.000000		2.756319		0.000000		2.756319	1,000.000000
X	09/08/04		09/26/04		A-Act/360			45,661,353.00		1,000.000000		127.158529		0.008151		127.166680	999.991849
P	09/08/04		09/26/04		A-Act/360			0.00		0.000000		0.000000		0.000000		0.000000	0.000000



Page 2 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution

Distribution to Date - REMIC II
																Current


	Original				Unscheduled	Scheduled		Total		Total		Realized		Deferred		Principal

Class	Face Value		Interest		Principal	Principal		Principal		Distribution		Loss		Interest		Balance
	(1)		(2)		(3)	(4)		(5)=(3)+(4)		(6)=(2)+(5)		(7)		(8)		(9)=(1)-(5)-(7)+(8)
A-1	368,465,000.00		396,227.81		4,004,161.92	296,898.97		4,301,060.90		4,697,288.71		0.00		0.00		364,163,939.10
A-2A	253,850,000.00		277,666.07		4,039,264.14	299,501.72		4,338,765.86		4,616,431.93		0.00		0.00		249,511,234.14
A-2B	63,462,000.00		71,425.60		1,009,808.08	74,874.84		1,084,682.92		1,156,108.52		0.00		0.00		62,377,317.08
A-3	225,035,000.00		248,523.03		3,646,823.41	270,403.18		3,917,226.59		4,165,749.62		0.00		0.00		221,117,773.41
A-4	90,000,000.00		88,468.75		3,319,146.52	246,106.73		3,565,253.25		3,653,722.00		0.00		0.00		86,434,746.75
A-5	74,405,000.00		80,600.25		0.00	0.00		0.00		80,600.25		0.00		0.00		74,405,000.00
A-6	40,410,000.00		48,466.74		0.00	0.00		0.00		48,466.74		0.00		0.00		40,410,000.00
M-1	41,572,000.00		50,957.46		0.00	0.00		0.00		50,957.46		0.00		0.00		41,572,000.00
M-2	36,120,000.00		44,846.49		0.00	0.00		0.00		44,846.49		0.00		0.00		36,120,000.00
M-3	23,852,000.00		30,244.00		0.00	0.00		0.00		30,244.00		0.00		0.00		23,852,000.00
M-4	42,935,000.00		65,091.25		0.00	0.00		0.00		65,091.25		0.00		0.00		42,935,000.00
M-5	19,764,000.00		32,049.25		0.00	0.00		0.00		32,049.25		0.00		0.00		19,764,000.00
B-1	13,630,000.00		25,339.50		0.00	0.00		0.00		25,339.50		0.00		0.00		13,630,000.00
B-2	10,223,000.00		19,545.10		0.00	0.00		0.00		19,545.10		0.00		0.00		10,223,000.00
B-3	13,630,000.00		37,568.63		0.00	0.00		0.00		37,568.63		0.00		0.00		13,630,000.00
X	45,661,353.00		5,806,230.48		346.48	25.69		372.17		5,806,602.65		0.00		0.00		45,660,980.83
P	0.00		153,336.21		0.00	0.00		0.00		153,336.21		0.00		0.00		0.00

Total	1,363,014,353.00		7,476,586.62		16,019,550.55	1,187,811.13		17,207,361.69		24,683,948.31		0.00		0.00		1,345,806,991.31


Interest Detail - REMIC II
	Pass		Prior Principal			Non-		Prior		Unscheduled				Paid or		Current
	Pass		Prior Principal			Non-		Prior		Unscheduled				Paid or

	Through		(with Notional)		Accrued	Supported		Unpaid		Interest		Optimal		Deferred		Unpaid

Class	Rate		Balance		Interest	Interest SF		Interest		Adjustment		Interest		Interest		Interest
					(1)	(2)		(3)		(4)		(5)=(1)-(2)+(3)+(4)		(6)		(7)=(5)-(6)
A-1	2.03750%		368,465,000.00		396,227.81	0.00		0.00		0.00		396,227.81		396,227.81		0.00
A-2A	2.07250%		253,850,000.00		277,666.07	0.00		0.00		0.00		277,666.07		277,666.07		0.00
A-2B	2.13250%		63,462,000.00		71,425.60	0.00		0.00		0.00		71,425.60		71,425.60		0.00
A-3	2.09250%		225,035,000.00		248,523.03	0.00		0.00		0.00		248,523.03		248,523.03		0.00
A-4	1.86250%		90,000,000.00		88,468.75	0.00		0.00		0.00		88,468.75		88,468.75		0.00
A-5	2.05250%		74,405,000.00		80,600.25	0.00		0.00		0.00		80,600.25		80,600.25		0.00
A-6	2.27250%		40,410,000.00		48,466.74	0.00		0.00		0.00		48,466.74		48,466.74		0.00
M-1	2.32250%		41,572,000.00		50,957.46	0.00		0.00		0.00		50,957.46		50,957.46		0.00
M-2	2.35250%		36,120,000.00		44,846.49	0.00		0.00		0.00		44,846.49		44,846.49		0.00
M-3	2.40250%		23,852,000.00		30,244.00	0.00		0.00		0.00		30,244.00		30,244.00		0.00
M-4	2.87250%		42,935,000.00		65,091.25	0.00		0.00		0.00		65,091.25		65,091.25		0.00
M-5	3.07250%		19,764,000.00		32,049.25	0.00		0.00		0.00		32,049.25		32,049.25		0.00
B-1	3.52250%		13,630,000.00		25,339.50	0.00		0.00		0.00		25,339.50		25,339.50		0.00
B-2	3.62250%		10,223,000.00		19,545.10	0.00		0.00		0.00		19,545.10		19,545.10		0.00
B-3	5.22250%		13,630,000.00		37,568.63	0.00		0.00		0.00		37,568.63		37,568.63		0.00
X	240.93195%		45,661,353.00		0.00	0.00		0.00		0.00		0.00		5,806,230.48		0.00
P	0.00000%		0.00		0.00	0.00		0.00		0.00		0.00		153,336.21		0.00

Total			1,363,014,353.00		1,517,019.93	0.00		0.00		0.00		1,517,019.93		7,476,586.62		0.00



Page 3 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution
Collection Account Report
SUMMARY
SUMMARY
							Group 3		Group 2		Group 1		Total
Principal Collections							7,482,387.64		5,422,461.74		4,300,924.40		17,205,773.78
Principal Withrawals							0.00		0.00		0.00		0.00
Principal Other Accounts							253.91		1,104.26		229.46		1,587.63
TOTAL NET PRINCIPAL							7,482,641.55		5,423,566.00		4,301,153.86		17,207,361.41
Interest Collections							2,878,866.35		2,115,127.50		2,504,542.59		7,498,536.44
Interest Withdrawals							-0.00		-0.00		-0.00		-0.00
Interest Other Accounts							0.00		0.00		0.00		153,336.21
Interest Fees							-57,541.94		-52,735.13		-65,008.68		-175,285.75
TOTAL NET INTEREST							2,821,324.41		2,062,392.37		2,439,533.91		7,476,586.90
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION							10,303,965.96		7,485,958.37		6,740,687.77		24,683,948.31



PRINCIPAL - COLLECTIONS
PRINCIPAL - COLLECTIONS
								Group 3		Group 2		Group 1		Total
Scheduled Principal Received								442,771.35		340,720.76		404,319.03		1,187,811.14
Prepayments In Full								6,987,630.91		5,062,929.30		3,880,433.51		15,930,993.72
Curtailments								51,985.38		18,811.68		16,171.85		86,968.92
Liquidations								0.00		0.00		0.00		0.00
Insurance Principal								0.00		0.00		0.00		0.00
Repurchased Principal Amounts								0.00		0.00		0.00		0.00
Other Principal								0.00		0.00		0.00		0.00
Total Realized Loss Of Principal								-0.00		-0.00		-0.00		-0.00
Delinquent Principal								-333,048.09		-236,536.53		-262,780.66		-832,365.28
Advanced Principal								333,048.09		236,536.53		262,780.66		832,365.28
TOTAL PRINCIPAL COLLECTED								7,482,387.64		5,422,461.74		4,300,924.40		17,205,773.78


PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK



PRINCIPAL - OTHER ACCOUNTS
PRINCIPAL - OTHER ACCOUNTS
							Group 3		Group 2		Group 1		Total
Closing Deposit							253.91		1,104.26		229.46		1,587.63
TOTAL OTHER ACCOUNTS PRINCIPAL							253.91		1,104.26		229.46		1,587.63





Page 4 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution

INTEREST - COLLECTIONS
INTEREST - COLLECTIONS
							Group 3		Group 2		Group 1		Total
Scheduled Interest							3,041,588.39		2,224,989.19		2,628,343.38		7,894,920.96
Liquidation Interest							0.00		0.00		0.00		0.00
Repurchased Interest							0.00		0.00		0.00		0.00
Insurance Interest							0.00		0.00		0.00		0.00
Other Interest							0.00		0.00		0.00		0.00
Relief Act Interest Shortfalls							-0.00		-0.00		-0.00		-0.00
Prepayment Interest Shortfalls							-5,013.65		-7,465.77		-1,514.66		-13,994.08
Compensating Interest							5,013.65		7,465.77		1,514.66		13,994.08
Delinquent Interest							-2,278,331.46		-1,506,407.74		-1,741,580.86		-5,526,320.05
Interest Advanced							2,115,609.41		1,396,546.05		1,617,780.07		5,129,935.54
TOTAL INTEREST COLLECTED							2,878,866.35		2,115,127.50		2,504,542.59		7,498,536.44


INTEREST - WITHDRAWALS
INTEREST - WITHDRAWALS
							Group 3		Group 2		Group 1		Total
Nonrecoverable Advances									0.00		0.00		0.00
TOTAL INTEREST WITHDRAWALS							0.00		0.00		0.00		0.00



INTEREST - OTHER ACCOUNTS
INTEREST - OTHER ACCOUNTS
							Group 3		Group 2		Group 1		Total
Prepayment Charges													153,336.21
TOTAL INTEREST OTHER ACCOUNTS							0.00		0.00		0.00		153,336.21



INTEREST - FEES
INTEREST - FEES
							Group 3		Group 2		Group 1		Total
Current Servicing Fees							56,097.73		58,015.62		86,506.42		171,537.47
Current Trustee Fees							1,444.21		1,162.96		1,980.36		3,748.29
TOTAL INTEREST OTHER FEES							57,541.94		52,735.13		65,008.68		175,285.75




Page 5 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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REMIC 2004-HE7

September 27, 2004 Distribution
Credit Enhancement Report
ACCOUNTS

SPACE INTENTIONALLY LEFT BLANK



INSURANCE

SPACE INTENTIONALLY LEFT BLANK



STRUCTURAL FEATURES
STRUCTURAL FEATURES
							Group 3		Group 2		Group 1		Total
Overcollateralization Amount													45,661,352.71
Overcollateralization Target Amount													45,660,980.83
Overcollateralization Deficiency Amount													0.00
Overcollateralization Release Amount													371.88




Page 6 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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REMIC 2004-HE7

September 27, 2004 Distribution
Collateral Report


COLLATERAL



								Group 3		Group 2		Group 1		Total



*Loan Count:*


Original							2,913		2,686		3,175		8,774
Prior							2,913		2,686		3,175		8,774
Prefunding							0		0		0		0
Scheduled Paid Offs							-0		-0		-0		-0
Full Voluntary Prepayments							-35		-35		-22		-92
Repurchases							-0		-0		-0		-0
Liquidations							-0		-0		-0		-0
Current							2,878		2,651		3,153		8,682
*Principal Balance:*


Original							525,167,443.96		387,673,715.22		450,171,605.90		1,363,012,765.08
Prior							525,167,443.96		387,673,715.22		450,171,605.90		1,363,012,765.08
Prefunding							0.00		0.00		0.00		0.00
Scheduled Principal							-442,771.35		-340,720.76		-404,319.03		-1,187,811.14
Partial Prepayments							-51,985.38		-18,811.68		-16,171.85		-86,968.92
Full Voluntary Prepayments							-6,987,630.91		-5,062,929.30		-3,880,433.51		-15,930,993.72
Repurchases							-0.00		-0.00		-0.00		-0.00
Liquidations							-0.00		-0.00		-0.00		-0.00
Current							517,685,056.32		382,251,253.48		445,870,681.51		1,345,806,991.30





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK






Page 7 of 27
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September 27, 2004 Distribution

CHARACTERISTICS
CHARACTERISTICS
							Group 3		Group 2		Group 1		Total
Weighted Average Coupon Original							6.94999%		6.88720%		7.00624%		6.95071%
Weighted Average Coupon Prior							6.94999%		6.88720%		7.00624%		6.95071%
Weighted Average Coupon Current							6.94999%		6.88720%		7.00624%		6.95071%
Weighted Average Months to Maturity Original							350		348		345		348
Weighted Average Months to Maturity Prior							350		348		345		348
Weighted Average Months to Maturity Current							350		348		345		348
Weighted Avg Remaining Amortization Term Original							350		348		345		348
Weighted Avg Remaining Amortization Term Prior							350		348		345		348
Weighted Avg Remaining Amortization Term Current							350		348		345		348
Weighted Average Seasoning Original							4.12		4.68		3.92		4.21
Weighted Average Seasoning Prior							4.12		4.68		3.92		4.21
Weighted Average Seasoning Current							4.12		4.68		3.92		4.21









Page 8 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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September 27, 2004 Distribution

ARM CHARACTERISTICS
ARM CHARACTERISTICS
							Group 3		Group 2		Group 1		Total
Weighted Average Margin Original							5.87304%		5.85031%		5.57262%		5.76776%
Weighted Average Margin Prior							5.87304%		5.85031%		5.57262%		5.76776%
Weighted Average Margin Current							5.87304%		5.85031%		5.57262%		5.76776%
Weighted Average Max Rate Original							13.11170%		13.21390%		13.28133%		13.19807%
Weighted Average Max Rate Prior							13.11170%		13.21390%		13.28133%		13.19807%
Weighted Average Max Rate Current							13.11170%		13.21390%		13.28133%		13.19807%
Weighted Average Min Rate Original							6.87276%		6.87660%		6.90543%		6.88462%
Weighted Average Min Rate Prior							6.87276%		6.87660%		6.90543%		6.88462%
Weighted Average Min Rate Current							6.87276%		6.87660%		6.90543%		6.88462%
Weighted Average Cap Up Original							1.06665%		1.01245%		1.19722%		1.09311%
Weighted Average Cap Up Prior							1.06665%		1.01245%		1.19722%		1.09311%
Weighted Average Cap Up Current							1.06665%		1.01245%		1.19722%		1.09311%
Weighted Average Cap Down Original							1.06665%		1.01245%		1.19722%		1.09311%
Weighted Average Cap Down Prior							1.06665%		1.01245%		1.19722%		1.09311%
Weighted Average Cap Down Current							1.06665%		1.01245%		1.19722%		1.09311%




SERVICING FEES & ADVANCES

								Group 3		Group 2		Group 1		Total




Current Servicing Fees							56,097.73		58,015.62		86,506.42		171,537.47
Delinquent Servicing Fees							162,722.04		109,861.68		123,800.79		396,384.52
TOTAL SERVICING FEES							218,819.77		161,530.72		187,571.51		567,922.01


Compensating Interest							-5,013.65		-7,465.77		-1,514.66		-13,994.08
Delinquent Servicing Fees							-162,722.04		-109,861.68		-123,800.79		-396,384.52
COLLECTED SERVICING FEES							51,084.08		44,203.27		62,256.06		157,543.41


Aggregate Advances with respect to this Distribution							1,748,990.43		1,307,245.91		1,394,634.27		2,701,880.18





ADDITIONAL COLLATERAL INFORMATION
							Group 3		Group 2		Group 1		Total
Net Prepayment Interest Shortfall							0.00		0.00		0.00		0.00
Libor For Current Period													1.7225%




Page 9 of 27
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REMIC 2004-HE7

September 27, 2004 Distribution
Delinquency Report

	TOTAL
					< 1 PAYMENT	1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance			6,129,366.16		2,006,408.43		0.00		8,135,774.59
			% Balance			0.46%		0.15%		0.00%		0.60%
			# Loans			45		10		0		55
			% # Loans			0.52%		0.12%		0.00%		0.63%
	FORECLOSURE		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	BANKRUPTCY		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	REO		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		0.00	6,129,366.16		2,006,408.43		0.00		8,135,774.59
			% Balance		0.00%	0.46%		0.15%		0.00%		0.60%
			# Loans		0	45		10		0		55
			% # Loans		0.00%	0.52%		0.12%		0.00%		0.63%









Page 10 of 27
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September 27, 2004 Distribution


	GROUP 1
					< 1 PAYMENT	1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance			1,483,105.90		53,137.12		0.00		1,536,243.02
			% Balance			0.33%		0.01%		0.00%		0.34%
			# Loans			12		1		0		13
			% # Loans			0.38%		0.03%		0.00%		0.41%
	FORECLOSURE		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	BANKRUPTCY		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	REO		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		0.00	1,483,105.90		53,137.12		0.00		1,536,243.02
			% Balance		0.00%	0.33%		0.01%		0.00%		0.34%
			# Loans		0	12		1		0		13
			% # Loans		0.00%	0.38%		0.03%		0.00%		0.41%










Page 11 of 27
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REMIC 2004-HE7

September 27, 2004 Distribution

	GROUP 2
					< 1 PAYMENT	1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance			2,828,213.90		131,299.49		0.00		2,959,513.39
			% Balance			0.74%		0.03%		0.00%		0.77%
			# Loans			20		1		0		21
			% # Loans			0.75%		0.04%		0.00%		0.79%
	FORECLOSURE		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	BANKRUPTCY		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	REO		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		0.00	2,828,213.90		131,299.49		0.00		2,959,513.39
			% Balance		0.00%	0.74%		0.03%		0.00%		0.77%
			# Loans		0	20		1		0		21
			% # Loans		0.00%	0.75%		0.04%		0.00%		0.79%










Page 12 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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REMIC 2004-HE7

September 27, 2004 Distribution

	GROUP 3
					< 1 PAYMENT	1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance			1,818,046.36		1,821,971.82		0.00		3,640,018.18
			% Balance			0.35%		0.35%		0.00%		0.70%
			# Loans			13		8		0		21
			% # Loans			0.45%		0.28%		0.00%		0.73%
	FORECLOSURE		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	BANKRUPTCY		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	REO		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		0.00	1,818,046.36		1,821,971.82		0.00		3,640,018.18
			% Balance		0.00%	0.35%		0.35%		0.00%		0.70%
			# Loans		0	13		8		0		21
			% # Loans		0.00%	0.45%		0.28%		0.00%		0.73%









Page 13 of 27
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REMIC 2004-HE7

September 27, 2004 Distribution
REO Report
Loan Number			Original		Stated			Current		State &

													First
&			Principal		Principal	Paid to		Note		LTV at		Original		Payment

Loan Group			Balance		Balance	Date		Rate		Origination		Term		Date
SPACE INTENTIONALLY LEFT BLANK
SPACE INTENTIONALLY LEFT BLANK



TOTAL



Page 14 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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REMIC 2004-HE7

September 27, 2004 Distribution
Foreclosure Report
Loan Number			Original		Stated			Current		State &

													First
&			Principal		Principal	Paid to		Note		LTV at		Original		Payment

Loan Group			Balance		Balance	Date		Rate		Origination		Term		Date




TOTAL



Page 15 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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September 27, 2004 Distribution
Prepayment Report

VOLUNTARY PREPAYMENTS
VOLUNTARY PREPAYMENTS

								Group 3		Group 2		Group 1		Total




*Current*


Number of Paid in Full Loans							35		35		22		92
Number of Repurchased Loans							0		0		0		0
Total Number of Loans Prepaid in Full							35		35		22		92
Curtailments Amount							51,985.38		18,811.68		16,171.85		86,968.92
Paid in Full Balance							6,987,630.91		5,062,929.30		3,880,433.51		15,930,993.72
Repurchased Loans Balance							0.00		0.00		0.00		0.00
Total Prepayment Amount							7,039,616.29		5,081,740.98		3,896,605.36		16,017,962.64

*Cumulative*


Number of Paid in Full Loans							35		35		22		92
Number of Repurchased Loans							0		0		0		0
Total Number of Loans Prepaid in Full							35		35		22		92
Paid in Full Balance							6,987,630.91		5,062,929.30		3,880,433.51		15,930,993.72
Repurchased Loans Balance							0.00		0.00		0.00		0.00
Curtailments Amount							51,985.38		18,811.68		16,171.85		86,968.92
Total Prepayment Amount							7,039,616.29		5,081,740.98		3,896,605.36		16,017,962.64










Page 16 of 27
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REMIC 2004-HE7

September 27, 2004 Distribution

VOLUNTARY PREPAYMENTS RATES
VOLUNTARY PREPAYMENTS RATES

								Group 3		Group 2		Group 1		Total



SMM							1.34%		1.31%		0.87%		1.18%
3 Months Avg SMM							1.34%		1.31%		0.87%		1.18%
12 Months Avg SMM							1.34%		1.31%		0.87%		1.18%
Avg SMM Since Cut-off							1.34%		1.31%		0.87%		1.18%


CPR							14.96%		14.66%		9.91%		13.24%
3 Months Avg CPR							14.96%		14.66%		9.91%		13.24%
12 Months Avg CPR							14.96%		14.66%		9.91%		13.24%
Avg CPR Since Cut-off							14.96%		14.66%		9.91%		13.24%


PSA							1,813.81%		1,567.28%		1,264.71%		1,570.78%
3 Months Avg PSA Approximation							1,813.81%		1,567.28%		1,264.71%		1,570.78%
12 Months Avg PSA Approximation							1,813.81%		1,567.28%		1,264.71%		1,570.78%
Avg PSA Since Cut-off Approximation							1,813.81%		1,567.28%		1,264.71%		1,570.78%










Page 17 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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REMIC 2004-HE7

September 27, 2004 Distribution






PREPAYMENT CALCULATION METHODOLOGY

	Single Monthly Mortality (SMM): (Voluntary partial and full prepayments + Repurchases + Liquidations )/(Beg Principal Balance - Sched Principal)

	Conditional Prepayment Rate (CPR): 1-((1-SMM)^12)
	PSA Standard Prepayment Model: CPR/(0.002*min(30,WAS))
	PSA Standard Prepayment Model: CPR/(0.002*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, liquidations, and repurchases.
	Dates correspond to distribution dates.




Page 18 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

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REMIC 2004-HE7

September 27, 2004 Distribution
Prepayment Detail Report
Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First
Loan Number			Original						Current		State &		Type Prepayment

&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

90746 2			276,000.00		274,718.92		30-Aug-2004		5.300%		CA - 80.00%		Paid Off - 360		01-May-2004
90746 2			276,000.00		274,718.92		30-Aug-2004		5.300%		CA - 80.00%		Paid Off - 360		01-May-2004
91363 1			120,000.00		119,731.19		30-Aug-2004		9.000%		CA - 80.00%		Paid Off - 360		01-May-2004
104711 1			166,500.00		166,024.57		30-Aug-2004		7.900%		CA - 90.00%		Paid Off - 360		01-May-2004
118190 2			195,500.00		194,669.64		30-Aug-2004		5.700%		MO - 85.00%		Paid Off - 360		01-May-2004
125450 3			400,000.00		398,618.40		30-Aug-2004		6.900%		CA - 80.00%		Paid Off - 360		01-May-2004
170118 1			270,000.00		269,462.42		30-Aug-2004		9.500%		CA - 90.00%		Paid Off - 360		01-May-2004
195933 1			172,000.00		171,486.67		30-Aug-2004		6.030%		NV - 80.00%		Paid Off - 360		01-Jun-2004
212381 1			158,100.00		157,533.99		30-Aug-2004		6.600%		FL - 85.00%		Paid Off - 360		01-May-2004
225722 2			124,000.00		123,520.77		30-Aug-2004		6.200%		FL - 80.00%		Paid Off - 360		01-May-2004
239251 3			206,010.00		205,167.29		30-Aug-2004		5.900%		CA - 63.00%		Paid Off - 360		01-May-2004
241638 1			140,000.00		139,458.92		30-Aug-2004		6.200%		MN - 77.78%		Paid Off - 360		01-May-2004
251850 1			256,000.00		255,198.87		30-Aug-2004		5.780%		NY - 80.00%		Paid Off - 360		01-Jun-2004
254227 2			131,000.00		130,501.84		30-Aug-2004		6.400%		RI - 78.44%		Paid Off - 360		01-May-2004
313361 1			266,000.00		265,240.46		30-Aug-2004		7.900%		CA - 95.00%		Paid Off - 360		01-May-2004
369900 1			319,920.00		318,988.56		30-Aug-2004		6.200%		FL - 80.00%		Paid Off - 360		01-Jun-2004
386060 2			44,250.00		44,188.82		30-Aug-2004		10.000%		KS - 75.00%		Paid Off - 360		01-Jun-2004
390427 3			191,250.00		190,804.06		30-Aug-2004		8.800%		CA - 85.00%		Paid Off - 360		01-May-2004
406207 1			127,600.00		127,210.51		30-Aug-2004		9.830%		PA - 79.75%		Paid Off - 360		01-May-2004
427393 3			185,250.00		184,993.43		30-Aug-2004		9.900%		AZ - 95.00%		Paid Off - 360		01-Jun-2004
437541 1			157,500.00		157,177.59		30-Aug-2004		7.950%		MA - 90.00%		Paid Off - 360		01-Jun-2004
438929 2			214,400.00		213,787.40		30-Aug-2004		6.300%		GA - 80.00%		Paid Off - 360		01-Jun-2004
454058 2			118,750.00		118,339.99		30-Aug-2004		6.800%		CA - 84.82%		Paid Off - 360		01-May-2004
460717 2			40,500.00		40,373.39		30-Aug-2004		8.200%		MN - 90.00%		Paid Off - 360		01-Jun-2004
463844 2			70,000.00		69,353.70		30-Aug-2004		7.355%		IA - 65.42%		Paid Off - 180		01-Jun-2004
578682 1			160,000.00		159,714.55		30-Aug-2004		8.625%		CA - 80.00%		Paid Off - 360		01-Jun-2004
621334 1			90,000.00		89,722.85		30-Aug-2004		5.875%		CA - 56.25%		Paid Off - 360		01-Jun-2004
644963 2			182,750.00		182,471.29		30-Aug-2004		7.380%		CA - 85.00%		Paid Off - 360		01-Jul-2004
662916 3			346,000.00		344,914.94		30-Aug-2004		5.800%		MA - 89.87%		Paid Off - 360		01-Jun-2004
686907 3			344,000.00		343,210.66		30-Aug-2004		7.380%		CA - 80.00%		Paid Off - 360		01-Jun-2004
709345 2			105,600.00		105,314.89		30-Aug-2004		6.600%		FL - 80.00%		Paid Off - 360		01-Jun-2004
712851 3			175,500.00		175,128.15		30-Aug-2004		7.780%		MD - 90.00%		Paid Off - 360		01-Jun-2004
716068 3			280,000.00		279,131.98		30-Aug-2004		5.830%		CA - 80.00%		Paid Off - 360		01-Jun-2004
723056 3			80,000.00		79,858.57		30-Aug-2004		6.630%		CA - 72.73%		Paid Off - 360		01-Jul-2004
807917 3			128,000.00		127,832.13		30-Aug-2004		8.130%		TX - 80.00%		Paid Off - 360		01-Jul-2004
823948 3			87,450.00		87,338.77		30-Aug-2004		8.280%		IL - 55.00%		Paid Off - 360		01-Jul-2004
830455 2			139,400.00		139,227.16		30-Aug-2004		8.405%		WI - 85.00%		Paid Off - 360		01-Jul-2004
838458 3			168,225.00		167,997.58		30-Aug-2004		7.980%		FL - 95.00%		Paid Off - 360		01-Jul-2004
838458 3			168,225.00		167,997.58		30-Aug-2004		7.980%		FL - 95.00%		Paid Off - 360		01-Jul-2004



Page 19 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution

Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First
Loan Number			Original						Current		State &		Type Prepayment

&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

870873 1			152,000.00		151,756.40		30-Aug-2004		7.130%		CA - 78.35%		Paid Off - 360		01-Jul-2004
870873 1			152,000.00		151,756.40		30-Aug-2004		7.130%		CA - 78.35%		Paid Off - 360		01-Jul-2004
891994 3			312,000.00		311,344.46		30-Aug-2004		5.730%		CA - 80.00%		Paid Off - 360		01-Jul-2004
899757 3			202,500.00		202,023.94		30-Aug-2004		5.130%		CA - 75.00%		Paid Off - 360		01-Jul-2004
910141 3			116,800.00		116,601.43		30-Aug-2004		6.830%		CA - 80.00%		Paid Off - 360		01-Jul-2004
944579 2			146,250.00		146,024.63		30-Aug-2004		7.405%		MD - 75.00%		Paid Off - 360		01-Jul-2004
954461 1			120,000.00		119,797.98		30-Aug-2004		6.880%		FL - 80.00%		Paid Off - 360		01-Jul-2004
956391 2			83,850.00		83,693.80		30-Aug-2004		6.380%		MI - 65.00%		Paid Off - 360		01-Jul-2004
1035104 3			400,000.00		399,303.18		30-Aug-2004		6.705%		CA - 86.96%		Paid Off - 360		01-Jul-2004
1295082 3			93,800.00		93,536.73		27-Aug-2004		9.950%		VA - 20.00%		Paid Off - 360		01-Mar-2004
1395715 3			113,000.00		112,398.26		10-Sep-2004		5.850%		FL - 69.33%		Paid Off - 360		01-May-2004
1411393 3			61,875.00		61,773.41		23-Aug-2004		10.400%		SC - 75.00%		Paid Off - 360		01-May-2004
1421087 3			70,200.00		69,198.26		17-Aug-2004		5.650%		FL - 52.00%		Paid Off - 180		01-May-2004
1450823 1			240,000.00		239,719.95		30-Aug-2004		8.700%		CA - 80.00%		Paid Off - 360		01-Jul-2004
1498367 3			105,300.00		105,158.21		30-Aug-2004		8.000%		MA - 90.00%		Paid Off - 360		01-Jul-2004
1537525 1			118,960.00		118,960.00		25-Aug-2004		7.450%		NV - 80.00%		Paid Off - 360		01-Jul-2004
1537535 1			29,740.00		29,669.58		25-Aug-2004		10.850%		NV - 20.00%		Paid Off - 240		01-Jul-2004
1544242 1			262,500.00		262,288.18		26-Aug-2004		10.450%		CA - 75.00%		Paid Off - 360		01-Jul-2004
1550347 1			112,000.00		111,808.48		25-Aug-2004		6.800%		MA - 80.00%		Paid Off - 360		01-Jul-2004
1593044 1			270,000.00		269,438.27		25-Aug-2004		5.850%		CA - 90.00%		Paid Off - 360		01-Jul-2004
8659877 2		BK	112,500.00		111,937.47		01-Sep-2004		6.990%		CA - 90.00%		Paid Off - 360		01-Mar-2004
8871396 1			180,500.00		180,043.52		30-Aug-2004		8.400%		AZ - 97.13%		Paid Off - 360		01-May-2004
9080864 3			344,000.00		343,101.27		30-Aug-2004		8.200%		CA - 80.00%		Paid Off - 360		01-May-2004
2003092400011 2			140,760.00		139,778.21		11-Aug-2004		6.800%		MN - 90.00%		Paid Off - 360		01-Jan-2004
2003100100269 2			288,000.00		286,053.60		02-Aug-2004		6.950%		CA - 91.43%		Paid Off - 360		01-Jan-2004
2003100200241 2			108,900.00		108,210.49		19-Aug-2004		7.300%		NV - 90.00%		Paid Off - 360		01-Jan-2004
2003102900204 2			144,500.00		143,522.48		09-Aug-2004		6.950%		CA - 85.00%		Paid Off - 360		01-Jan-2004
2003103100036 2			94,920.00		94,240.24		11-Aug-2004		6.650%		MN - 80.00%		Paid Off - 360		01-Jan-2004
2003103100189 2			186,332.00		185,200.84		01-Sep-2004		6.800%		MO - 88.00%		Paid Off - 360		01-Feb-2004
2003111000101 3			330,700.00		328,376.89		31-Aug-2004		6.750%		CA - 94.49%		Paid Off - 360		01-Jan-2004
2003111100082 2			227,920.00		226,396.93		18-Aug-2004		6.300%		WA - 80.00%		Paid Off - 360		01-Feb-2004
2003111300157 2			197,600.00		196,400.49		07-Sep-2004		6.800%		CA - 80.00%		Paid Off - 360		01-Feb-2004
2003111800339 2			152,000.00		151,012.94		25-Aug-2004		6.450%		CA - 80.00%		Paid Off - 360		01-Feb-2004
2003112500067 2			63,750.00		63,481.04		20-Aug-2004		7.850%		MI - 85.00%		Paid Off - 360		01-Mar-2004
2003120400183 2			42,400.00		42,169.14		13-Sep-2004		6.550%		SD - 80.00%		Paid Off - 360		01-Mar-2004
2003120400349 2			214,448.00		213,525.11		25-Aug-2004		7.750%		CA - 80.00%		Paid Off - 360		01-Mar-2004
2003121200249 3			39,920.00		39,736.44		15-Sep-2004		7.250%		MI - 80.00%		Paid Off - 360		01-Apr-2004
2003121600140 2			220,500.00		219,740.55		19-Aug-2004		8.850%		MI - 90.00%		Paid Off - 360		01-Mar-2004
2003122200054 2			200,000.00		198,879.09		05-Aug-2004		6.400%		CA - 80.00%		Paid Off - 360		01-Mar-2004
2003122200054 2			200,000.00		198,879.09		05-Aug-2004		6.400%		CA - 80.00%		Paid Off - 360		01-Mar-2004



Page 20 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution

Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First
Loan Number			Original						Current		State &		Type Prepayment

&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

2003122400051 2			126,000.00		125,441.33		11-Aug-2004		7.600%		CA - 74.12%		Paid Off - 360		01-Mar-2004
2003122400051 2			126,000.00		125,441.33		11-Aug-2004		7.600%		CA - 74.12%		Paid Off - 360		01-Mar-2004
2004010600045 3			122,000.00		121,542.99		04-Aug-2004		8.100%		MI - 80.00%		Paid Off - 360		01-Apr-2004
2004011300322 3			420,000.00		418,117.55		13-Sep-2004		6.600%		CA - 80.00%		Paid Off - 360		01-Apr-2004
2004011400262 3			122,000.00		121,431.56		05-Aug-2004		7.350%		MI - 80.00%		Paid Off - 360		01-Mar-2004
2004011500101 2			150,400.00		149,464.24		15-Sep-2004		5.850%		CA - 80.00%		Paid Off - 360		01-Mar-2004
2004020200077 3			220,000.00		219,105.46		03-Aug-2004		7.100%		IL - 80.00%		Paid Off - 360		01-Apr-2004
2004020400273 3			499,900.00		498,183.19		31-Aug-2004		7.950%		NV - 89.27%		Paid Off - 360		01-Apr-2004
2004020900020 2			96,000.00		95,663.31		01-Sep-2004		6.700%		NV - 80.00%		Paid Off - 360		01-May-2004
2004021300263 2			240,000.00		239,424.13		12-Aug-2004		8.600%		NV - 94.12%		Paid Off - 360		01-May-2004
2004022600147 3			240,000.00		239,166.44		01-Sep-2004		6.750%		IL - 88.81%		Paid Off - 360		01-May-2004
2004022700300 2			74,800.00		74,537.67		30-Aug-2004		6.700%		TX - 85.00%		Paid Off - 360		01-May-2004
2004031500006 3			142,400.00		142,170.65		02-Jul-2004		10.500%		MI - 80.00%		Paid Off - 360		01-May-2004
2004031900344 3			182,134.00		181,382.21		18-Aug-2004		5.850%		NV - 80.00%		Paid Off - 360		01-May-2004
2004032900037 3			132,200.00		132,200.00		06-Aug-2004		9.000%		IL - 83.67%		Paid Off - 360		01-Jul-2004
2004033100304 2			132,000.00		131,663.76		30-Aug-2004		6.850%		KS - 80.00%		Paid Off - 360		01-Jun-2004
2004041300130 3			50,400.00		50,307.76		13-Sep-2004		8.500%		TX - 90.00%		Paid Off - 360		01-Jun-2004
2004041600233 3			96,800.00		96,474.66		04-Aug-2004		5.400%		KY - 80.00%		Paid Off - 360		01-Jun-2004


TOTAL			15,984,914.00		15,930,993.72
TOTAL


Page 21 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution
Realized Loss Report

COLLATERAL REALIZED LOSSES



								Group 3		Group 2		Group 1		Total


*Current*
*Current*



Number of Loans Liquidated							0		0		0		0
Collateral Principal Realized Loss/(Gain) Amount							0.00		0.00		0.00		0.00
Collateral Interest Realized Loss/(Gain) Amount							0.00		0.00		0.00		0.00
Net Liquidation Proceeds							0.00		0.00		0.00		0.00

*Cumulative*
*Cumulative*



Number of Loans Liquidated							0		0		0		0
Collateral Realized Loss/(Gain) Amount							0.00		0.00		0.00		0.00
Net Liquidation Proceeds							0.00		0.00		0.00		0.00










Page 22 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution


DEFAULT SPEEDS



								Group 3		Group 2		Group 1		Total



MDR							0.00%		0.00%		0.00%		0.00%
3 Months Avg MDR							0.00%		0.00%		0.00%		0.00%
12 Months Avg MDR							0.00%		0.00%		0.00%		0.00%
Avg MDR Since Cut-off							0.00%		0.00%		0.00%		0.00%


CDR							0.00%		0.00%		0.00%		0.00%
3 Months Avg CDR							0.00%		0.00%		0.00%		0.00%
12 Months Avg CDR							0.00%		0.00%		0.00%		0.00%
Avg CDR Since Cut-off							0.00%		0.00%		0.00%		0.00%


SDA							0.00%		0.00%		0.00%		0.00%
3 Months Avg SDA Approximation							0.00%		0.00%		0.00%		0.00%
12 Months Avg SDA Approximation							0.00%		0.00%		0.00%		0.00%
Avg SDA Since Cut-off Approximation							0.00%		0.00%		0.00%		0.00%


Loss Severity Approximation for Current Period							0.00%		0.00%		0.00%		0.00%
3 Months Avg Loss Severity Approximation							0.00%		0.00%		0.00%		0.00%
12 Months Avg Loss Severity Approximation							0.00%		0.00%		0.00%		0.00%
Avg Loss Severity Approximation Since Cut-off							0.00%		0.00%		0.00%		0.00%












Page 23 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution





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 24 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution
Realized Loss Detail Report
Loan Number			Original		Prior			Current		State &

													First
&			Principal		Principal	Realized		Note		LTV at		Original		Payment

Loan Group			Balance		Balance	Loss/(Gain)		Rate		Origination		Term		Date

SPACE INTENTIONALLY LEFT BLANK
SPACE INTENTIONALLY LEFT BLANK



TOTAL



Page 25 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution
Triggers and Adj. Cert. Report
TRIGGER EVENTS
TRIGGER EVENTS
							Group 3		Group 2		Group 1		Total
Trigger Event in effect (0=No , 1=Yes)													0
Stepdown Date has occurred (0 = No, 1=Yes)													0
Balances 60+ days includes Bankruptcy and Foreclosure													0.00
Ending Balance													1,345,806,991.30
Senior Enhancement Percentage													18.1500%



ADJUSTABLE RATE CERTIFICATE INFORMATION

SPACE INTENTIONALLY LEFT BLANK



ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
							Group 3		Group 2		Group 1		Total
Basis Risk CarryForward Amount paid													0.00
Basis Risk CarryForward Amount unpaid													0.00
Excess Reserve Fund Account Balance													0.00




Page 26 of 27
Morgan Stanley ABS Capital I Inc. 2004-HE7

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
REMIC 2004-HE7

September 27, 2004 Distribution
Other Related Information
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
							Group 3		Group 2		Group 1		Total
Current Scheduled Payments							3,484,359.74		2,565,709.94		3,032,662.42		9,082,732.10
Current Scheduled Payments 1 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 2 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 3 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 4 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 5 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 6 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 7 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 8 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 9 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 10 Month Prior							0.00		0.00		0.00		0.00
Current Scheduled Payments 11 Month Prior							0.00		0.00		0.00		0.00





Sched. Payments for 60+Day Delinquent Loans							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 3 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 4 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 5 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 6 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 7 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 8 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 9 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 10 Month Prior							0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 11 Month Prior							0.00		0.00		0.00		0.00




Page 27 of 27

Morgan Stanley ABS Capital I Inc. Trust 2004-HE7 8-K