

                                    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): June 27, 2005
                             (Date of earliest event reported)


                                MORGAN STANLEY ABS CAPITAL I INC.
              (as Depositor under the Pooling and Servicing Agreement, dated as
              March 1, 2005, providing for the issuance of Mortgage Pass-Through
                              Certificates, Series 2005-HE2)
                      (Exact name of registrant as specified in charter)



                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-113543-28                        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 2005-HE2, which
     was made on March 1, 2005


     Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits

     Exhibit No. Description

     99.1 Monthly Remittance Statement to the Certificateholders dated as of
     June 27, 2005.


                                  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:  Jun 30, 2005               By:  /s/  Katherine M. Wannenmacher
                                            Katherine M. Wannenmacher
                                            Vice President



                                   EXHIBIT INDEX

         DOCUMENT

         99.1 Monthly Remittance Statement to the Certificateholders dated as of
              June 27, 2005.



Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

				External Parties						Table of Contents

													Page
				Seller
										1. Certificate Payment Report					2
				Morgan Stanley
										2. Collection Account Report					6

										3. Credit Enhancement Report					8
										4. Collateral Report					9
				Certificate Insurer(s)						5. Delinquency Report					12

										6. REO Report					16

										7. Foreclosure Report					17
										8. Prepayment Report					18
										9. Prepayment Detail Report					21

										10. Realized Loss Report					27
										11. Realized Loss Detail Report					30
				Servicer(s)
										12. Triggers and Adj. Cert. Report					31
				Option One
										13. Other Related Information					32



				Underwriter(s)
				Morgan Stanley


										Total Number of Pages					32


				Dates						Contacts

				Cut-Off Date:			March 01, 2005			Marion Hogan
				Close Date:			March 30, 2005			Administrator
				First Distribution Date:			April 25, 2005			(714) 247-6282
										marion.c.hogan@db.com

										Address:
										1761 East St. Andrew Place, Santa Ana, CA 92705
				Distribution Date:			June 27, 2005
										Factor Information:			(800) 735-7777
				Record Date:			May 31, 2005
										Main Phone Number:			(714) 247-6000

							June 24, 2005


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






Page 1 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Certificate Payment Report
Current Period Distribution - REMIC II
					Prior												Current
	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-1ss	SR	$	326,085,000.00		307,934,090.04		931,500.62		9,150,366.45		10,081,867.07		0.00		0.00		298,783,723.59

A-1mz	SR	$	81,522,000.00		76,984,230.77		236,405.74		2,287,612.66		2,524,018.40		0.00		0.00		74,696,618.11
A-2ss	SR	$	366,742,000.00		345,989,480.77		1,049,789.75		11,584,839.91		12,634,629.66		0.00		0.00		334,404,640.86
A-2mz	SR	$	40,750,000.00		38,444,114.23		117,703.06		1,287,232.51		1,404,935.57		0.00		0.00		37,156,881.72
A-3a	SR	$	240,000,000.00		217,209,594.39		633,165.97		15,322,360.15		15,955,526.12		0.00		0.00		201,887,234.24
A-3b	SR	$	191,902,000.00		191,902,000.00		582,262.65		0.00		582,262.65		0.00		0.00		191,902,000.00
A-3mz	SR	$	47,990,000.00		45,457,685.81		139,176.28		1,702,516.00		1,841,692.28		0.00		0.00		43,755,169.81
M-1	SUB	$	49,257,000.00		49,256,999.99		157,581.35		0.00		157,581.35		0.00		0.00		49,256,999.99
M-2	SUB	$	44,490,000.00		44,490,000.00		143,962.23		0.00		143,962.23		0.00		0.00		44,490,000.00
M-3	SUB	$	28,601,000.00		28,601,000.00		93,596.77		0.00		93,596.77		0.00		0.00		28,601,000.00
M-4	SUB	$	26,218,000.00		26,218,000.00		89,403.38		0.00		89,403.38		0.00		0.00		26,218,000.00
M-5	SUB	$	25,423,000.00		25,423,000.00		87,857.65		0.00		87,857.65		0.00		0.00		25,423,000.00
M-6	SUB	$	22,245,000.00		22,245,000.00		77,894.58		0.00		77,894.58		0.00		0.00		22,245,000.00
B-1	SUB	$	19,067,000.00		19,067,000.00		74,980.98		0.00		74,980.98		0.00		0.00		19,067,000.00
B-2	SUB	$	15,890,000.00		15,890,000.00		63,944.01		0.00		63,944.01		0.00		0.00		15,890,000.00
B-3	SUB	$	15,890,000.00		15,890,000.00		72,683.51		0.00		72,683.51		0.00		0.00		15,890,000.00
X	NOF	$	46,874,277.00		46,873,915.16		4,031,451.15		0.00		4,031,451.15		0.00		0.00		46,873,915.16
P	NOF	$	0.00		0.00		797,781.44		0.00		797,781.44		0.00		0.00		0.00
R	NOF/RES	$	0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00


Total			1,588,946,277.00		1,517,876,111.16		9,381,141.12		41,334,927.68		50,716,068.80		0.00		0.00		1,476,541,183.48






Page 2 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

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)		(1)		(2)		(3)		(4)=(2)+(3)	(5)
A-1ss	05/25/05		06/26/05		A-Act/360		61744CMU7		326,085,000.00		944.336875		2.856619		28.061292		30.917911	916.275583
A-1mz	05/25/05		06/26/05		A-Act/360		61744CMV5		81,522,000.00		944.336876		2.899901		28.061292		30.961193	916.275583
A-2ss	05/25/05		06/26/05		A-Act/360		61744CMW3		366,742,000.00		943.413846		2.862475		31.588528		34.451003	911.825318
A-2mz	05/25/05		06/26/05		A-Act/360		61744CMX1		40,750,000.00		943.413846		2.888419		31.588528		34.476947	911.825318
A-3a	05/25/05		06/26/05		A-Act/360		61744CMY9		240,000,000.00		905.039977		2.638192		63.843167		66.481359	841.196809
A-3b	05/25/05		06/26/05		A-Act/360		61744CMZ6		191,902,000.00		1,000.000000		3.034167		0.000000		3.034167	1,000.000000
A-3mz	05/25/05		06/26/05		A-Act/360		61744CNA0		47,990,000.00		947.232461		2.900110		35.476474		38.376584	911.755987
M-1	05/25/05		06/26/05		A-Act/360		61744CNB8		49,257,000.00		1,000.000000		3.199167		0.000000		3.199167	1,000.000000
M-2	05/25/05		06/26/05		A-Act/360		61744CNC6		44,490,000.00		1,000.000000		3.235833		0.000000		3.235833	1,000.000000
M-3	05/25/05		06/26/05		A-Act/360		61744CND4		28,601,000.00		1,000.000000		3.272500		0.000000		3.272500	1,000.000000
M-4	05/25/05		06/26/05		A-Act/360		61744CNE2		26,218,000.00		1,000.000000		3.410000		0.000000		3.410000	1,000.000000
M-5	05/25/05		06/26/05		A-Act/360		61744CNF9		25,423,000.00		1,000.000000		3.455833		0.000000		3.455833	1,000.000000
M-6	05/25/05		06/26/05		A-Act/360		61744CNG7		22,245,000.00		1,000.000000		3.501667		0.000000		3.501667	1,000.000000
B-1	05/25/05		06/26/05		A-Act/360		61744CNH5		19,067,000.00		1,000.000000		3.932500		0.000000		3.932500	1,000.000000
B-2	05/25/05		06/26/05		A-Act/360		61744CNJ1		15,890,000.00		1,000.000000		4.024167		0.000000		4.024167	1,000.000000
B-3	05/25/05		06/26/05		A-Act/360		61744CNK8		15,890,000.00		1,000.000000		4.574167		0.000000		4.574167	1,000.000000
X	05/25/05		06/26/05		A-Act/360				46,874,277.00		999.992281		86.005618		0.000000		86.005618	999.992281
P	05/25/05		06/26/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000
R	05/25/05		06/26/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000




Page 3 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 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-1ss	326,085,000.00		2,505,326.30		26,432,045.96		869,230.45		27,301,276.41		29,806,602.71		0.00		0.00		298,783,723.59
A-1mz	81,522,000.00		636,111.43		6,608,072.28		217,309.61		6,825,381.89		7,461,493.32		0.00		0.00		74,696,618.11
A-2ss	366,742,000.00		2,825,157.02		31,311,815.60		1,025,543.54		32,337,359.14		35,162,516.16		0.00		0.00		334,404,640.86
A-2mz	40,750,000.00		316,843.27		3,479,166.51		113,951.77		3,593,118.28		3,909,961.55		0.00		0.00		37,156,881.72
A-3a	240,000,000.00		1,734,988.33		36,913,030.84		1,199,734.92		38,112,765.76		39,847,754.09		0.00		0.00		201,887,234.24
A-3b	191,902,000.00		1,525,887.43		0.00		0.00		0.00		1,525,887.43		0.00		0.00		191,902,000.00
A-3mz	47,990,000.00		373,914.40		4,101,523.84		133,306.35		4,234,830.19		4,608,744.59		0.00		0.00		43,755,169.81
M-1	49,257,000.00		413,580.93		0.01		0.00		0.01		413,580.94		0.00		0.00		49,256,999.99
M-2	44,490,000.00		377,954.91		0.00		0.00		0.00		377,954.91		0.00		0.00		44,490,000.00
M-3	28,601,000.00		245,801.76		0.00		0.00		0.00		245,801.76		0.00		0.00		28,601,000.00
M-4	26,218,000.00		235,044.37		0.00		0.00		0.00		235,044.37		0.00		0.00		26,218,000.00
M-5	25,423,000.00		231,059.76		0.00		0.00		0.00		231,059.76		0.00		0.00		25,423,000.00
M-6	22,245,000.00		204,925.89		0.00		0.00		0.00		204,925.89		0.00		0.00		22,245,000.00
B-1	19,067,000.00		197,804.24		0.00		0.00		0.00		197,804.24		0.00		0.00		19,067,000.00
B-2	15,890,000.00		168,773.87		0.00		0.00		0.00		168,773.87		0.00		0.00		15,890,000.00
B-3	15,890,000.00		192,344.04		0.00		0.00		0.00		192,344.04		0.00		0.00		15,890,000.00
X	46,874,277.00		14,188,347.34		349.64		12.20		361.84		14,188,709.18		0.00		0.00		46,873,915.16
P	0.00		2,020,056.58		0.00		0.00		0.00		2,020,056.58		0.00		0.00		0.00
R	0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00


Total	1,588,946,277.00		28,393,921.87		108,846,004.68		3,559,088.84		112,405,093.52		140,799,015.39		0.00		0.00		1,476,541,183.48



Page 4 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

Interest Detail - REMIC II
	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		Adjustment		Interest		Interest		Interest
					(1)		(2)		(3)		(4)		(5)=(1)-(2)+(3)+(4)		(6)		(7)=(5)-(6)
A-1ss	3.30000%		307,934,090.04		931,500.62		0.00		0.00		0.00		931,500.62		931,500.62		0.00
A-1mz	3.35000%		76,984,230.77		236,405.74		0.00		0.00		0.00		236,405.74		236,405.74		0.00
A-2ss	3.31000%		345,989,480.77		1,049,789.75		0.00		0.00		0.00		1,049,789.75		1,049,789.75		0.00
A-2mz	3.34000%		38,444,114.23		117,703.06		0.00		0.00		0.00		117,703.06		117,703.06		0.00
A-3a	3.18000%		217,209,594.39		633,165.97		0.00		0.00		0.00		633,165.97		633,165.97		0.00
A-3b	3.31000%		191,902,000.00		582,262.65		0.00		0.00		0.00		582,262.65		582,262.65		0.00
A-3mz	3.34000%		45,457,685.81		139,176.28		0.00		0.00		0.00		139,176.28		139,176.28		0.00
M-1	3.49000%		49,256,999.99		157,581.35		0.00		0.00		0.00		157,581.35		157,581.35		0.00
M-2	3.53000%		44,490,000.00		143,962.23		0.00		0.00		0.00		143,962.23		143,962.23		0.00
M-3	3.57000%		28,601,000.00		93,596.77		0.00		0.00		0.00		93,596.77		93,596.77		0.00
M-4	3.72000%		26,218,000.00		89,403.38		0.00		0.00		0.00		89,403.38		89,403.38		0.00
M-5	3.77000%		25,423,000.00		87,857.65		0.00		0.00		0.00		87,857.65		87,857.65		0.00
M-6	3.82000%		22,245,000.00		77,894.58		0.00		0.00		0.00		77,894.58		77,894.58		0.00
B-1	4.29000%		19,067,000.00		74,980.98		0.00		0.00		0.00		74,980.98		74,980.98		0.00
B-2	4.39000%		15,890,000.00		63,944.01		0.00		0.00		0.00		63,944.01		63,944.01		0.00
B-3	4.99000%		15,890,000.00		72,683.51		0.00		0.00		0.00		72,683.51		72,683.51		0.00
X	93.82503%		46,873,915.16		0.00		0.00		0.00		0.00		0.00		4,031,451.15		0.00
P	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		797,781.44		0.00
R	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00


Total			1,517,876,111.16		4,551,908.53		0.00		0.00		0.00		4,551,908.53		9,381,141.12		0.00



Page 5 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Collection Account Report
SUMMARY

								Group 3		Group 2		Group 1		Total
Principal Collections								17,024,876.15		12,872,072.42		11,437,979.11		41,334,927.68
Principal Withrawals								0.00		0.00		0.00		0.00
Principal Other Accounts								0.00		0.00		0.00		0.00
TOTAL NET PRINCIPAL								17,024,876.15		12,872,072.42		11,437,979.11		41,334,927.68
Interest Collections								3,268,418.47		2,722,691.18		2,732,763.22		8,723,872.88
Interest Withdrawals								-0.00		-0.00		-0.00		-0.00
Interest Other Accounts								317,469.01		251,271.69		229,040.74		797,781.44
Interest Fees								-56,686.71		-33,482.10		-50,344.40		-140,513.19
TOTAL NET INTEREST								3,529,200.78		2,940,480.77		2,911,459.56		9,381,141.13
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION								20,554,076.93		15,812,553.19		14,349,438.67		50,716,068.81



PRINCIPAL - COLLECTIONS

									Group 3		Group 2		Group 1		Total
Scheduled Principal Received									423,958.60		372,638.05		371,460.83		1,168,057.48
Prepayments In Full									16,064,432.54		12,417,549.26		11,040,708.33		39,522,690.13
Curtailments									33,605.19		16,556.14		25,809.95		75,971.28
Liquidations									0.00		0.00		0.00		0.00
Insurance Principal									0.00		0.00		0.00		0.00
Repurchased Principal Amounts									502,879.82		65,328.97		0.00		568,208.79
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									-327,181.31		-316,956.67		-275,156.94		-919,294.92
Advanced Principal									327,181.31		316,956.67		275,156.94		919,294.92
TOTAL PRINCIPAL COLLECTED									17,024,876.15		12,872,072.42		11,437,979.11		41,334,927.68


PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK



PRINCIPAL - OTHER ACCOUNTS

								Group 3		Group 2		Group 1		Total
Closing Deposit
TOTAL OTHER ACCOUNTS PRINCIPAL								0.00		0.00		0.00		0.00





Page 6 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

INTEREST - COLLECTIONS

								Group 3		Group 2		Group 1		Total
Scheduled Interest								3,444,484.30		2,888,134.40		2,882,069.38		9,214,688.08
Liquidation Interest								0.00		0.00		0.00		0.00
Repurchased Interest								2,885.05		511.74		0.00		3,396.79
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								-38,221.20		-26,752.43		-29,770.46		-94,744.09
Compensating Interest								38,221.20		26,752.42		29,770.46		94,744.09
Delinquent Interest								-2,615,446.60		-2,413,687.19		-2,187,121.20		-7,216,254.99
Interest Advanced								2,436,495.72		2,247,732.22		2,037,815.05		6,722,042.99
TOTAL INTEREST COLLECTED								3,268,418.47		2,722,691.18		2,732,763.22		8,723,872.88


INTEREST - WITHDRAWALS

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



INTEREST - OTHER ACCOUNTS

								Group 3		Group 2		Group 1		Total
Prepayment Charges								317,469.01		251,271.69		229,040.74		797,781.44
TOTAL INTEREST OTHER ACCOUNTS								317,469.01		251,271.69		229,040.74		797,781.44



INTEREST - FEES

								Group 3		Group 2		Group 1		Total
Current Servicing Fees								55,841.45		32,766.70		49,628.23		138,236.39
Current Trustee Fees								845.25		715.40		716.16		2,276.81
TOTAL INTEREST OTHER FEES								56,686.71		33,482.10		50,344.40		140,513.19




Page 7 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Credit Enhancement Report
ACCOUNTS

SPACE INTENTIONALLY LEFT BLANK



INSURANCE

SPACE INTENTIONALLY LEFT BLANK



STRUCTURAL FEATURES

								Group 3		Group 2		Group 1		Total
Overcollateralization Amount														46,873,915.16
Overcollateralization Target Amount														46,873,915.16
Overcollateralization Deficiency Amount														0.00
Overcollateralization Release Amount														0.00




Page 8 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Collateral Report


COLLATERAL



									Group 3		Group 2		Group 1		Total



Loan Count:


Original								3,369		2,867		3,482		9,718
Prior								3,263		2,750		3,353		9,366
Prefunding								0		0		0		0
Scheduled Paid Offs								-0		-0		-0		-0
Full Voluntary Prepayments								-78		-63		-74		-215
Repurchases								-2		-1		-0		-3
Liquidations								-0		-0		-0		-0
Current								3,183		2,686		3,279		9,148
Principal Balance:


Original								588,824,042.09		499,990,160.81		500,130,978.76		1,588,945,181.66
Prior								563,501,584.76		476,931,992.58		477,442,533.82		1,517,876,111.16
Prefunding								0.00		0.00		0.00		0.00
Scheduled Principal								-423,958.60		-372,638.05		-371,460.83		-1,168,057.48
Partial Prepayments								-33,605.19		-16,556.14		-25,809.95		-75,971.28
Full Voluntary Prepayments								-16,064,432.54		-12,417,549.26		-11,040,708.33		-39,522,690.13
Repurchases								-502,879.82		-65,328.97		-0.00		-568,208.79
Liquidations								-0.00		-0.00		-0.00		-0.00
Current								546,476,708.61		464,059,920.16		466,004,554.71		1,476,541,183.48





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK






Page 9 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

CHARACTERISTICS

								Group 3		Group 2		Group 1		Total
Weighted Average Coupon Original								7.35029%		7.28066%		7.25938%		7.29976%
Weighted Average Coupon Prior								7.34232%		7.27700%		7.25586%		7.29457%
Weighted Average Coupon Current								7.34132%		7.26807%		7.24587%		7.28828%
Weighted Average Months to Maturity Original								351		350		350		350
Weighted Average Months to Maturity Prior								349		349		349		349
Weighted Average Months to Maturity Current								348		348		348		348
Weighted Avg Remaining Amortization Term Original								351		350		350		350
Weighted Avg Remaining Amortization Term Prior								349		349		349		349
Weighted Avg Remaining Amortization Term Current								348		348		348		348
Weighted Average Seasoning Original								5.37		5.24		5.32		5.31
Weighted Average Seasoning Prior								6.37		6.24		6.32		6.31
Weighted Average Seasoning Current								7.37		7.24		7.32		7.31









Page 10 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

ARM CHARACTERISTICS

								Group 3		Group 2		Group 1		Total
Weighted Average Margin Original								6.14265%		5.69932%		6.10156%		5.99015%
Weighted Average Margin Prior								6.13663%		5.70182%		6.09916%		5.98807%
Weighted Average Margin Current								6.14071%		5.70278%		6.09670%		5.98927%
Weighted Average Max Rate Original								13.52419%		13.80343%		13.45496%		13.58859%
Weighted Average Max Rate Prior								13.51154%		13.79506%		13.45011%		13.57980%
Weighted Average Max Rate Current								13.50586%		13.78698%		13.43815%		13.57110%
Weighted Average Min Rate Original								7.28857%		7.30824%		7.23762%		7.27777%
Weighted Average Min Rate Prior								7.27828%		7.30332%		7.23478%		7.27162%
Weighted Average Min Rate Current								7.27750%		7.29408%		7.22456%		7.26504%
Weighted Average Cap Up Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Up Prior								1.13434%		1.25886%		1.11134%		1.16565%
Weighted Average Cap Up Current								1.13203%		1.25908%		1.11071%		1.16461%
Weighted Average Cap Down Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Down Prior								1.13434%		1.25886%		1.11134%		1.16565%
Weighted Average Cap Down Current								1.13203%		1.25908%		1.11071%		1.16461%




SERVICING FEES & ADVANCES

									Group 3		Group 2		Group 1		Total




Current Servicing Fees								55,841.45		32,766.70		49,628.23		138,236.39
Delinquent Servicing Fees								178,950.88		165,954.96		149,306.16		494,212.00
TOTAL SERVICING FEES								234,792.33		198,721.67		198,934.40		632,448.40


Compensating Interest								-38,221.20		-26,752.42		-29,770.46		-94,744.09
Delinquent Servicing Fees								-178,950.88		-165,954.96		-149,306.16		-494,212.00
COLLECTED SERVICING FEES								17,620.26		6,014.29		19,857.77		43,492.32


Aggregate Advances with respect to this Distribution								2,763,677.03		2,564,688.89		2,312,971.99		7,641,337.92





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														3.0900%




Page 11 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Delinquency Report

	TOTAL
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				22,115,937.73		3,718,780.04		2,515,014.03		28,349,731.80
			% Balance				1.50%		0.25%		0.17%		1.92%
			# Loans				146		26		17		189
			% # Loans				1.60%		0.28%		0.19%		2.07%
	FORECLOSURE		Balance		377,432.43		1,587,814.24		322,026.31		1,147,962.69		3,435,235.67
			% Balance		0.03%		0.11%		0.02%		0.08%		0.23%
			# Loans		3		10		3		5		21
			% # Loans		0.03%		0.11%		0.03%		0.05%		0.23%
	BANKRUPTCY		Balance		1,306,641.48		310,279.44		164,000.00		30,635.90		1,811,556.82
			% Balance		0.09%		0.02%		0.01%		0.00%		0.12%
			# Loans		12		2		1		1		16
			% # Loans		0.13%		0.02%		0.01%		0.01%		0.17%
	REO		Balance		0.00		0.00		0.00		262,400.00		262,400.00
			% Balance		0.00%		0.00%		0.00%		0.02%		0.02%
			# Loans		0		0		0		1		1
			% # Loans		0.00%		0.00%		0.00%		0.01%		0.01%
	TOTAL		Balance		1,684,073.91		24,014,031.41		4,204,806.35		3,956,012.62		33,858,924.29
			% Balance		0.11%		1.63%		0.28%		0.27%		2.29%
			# Loans		15		158		30		24		227
			% # Loans		0.16%		1.73%		0.33%		0.26%		2.48%









Page 12 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution


	GROUP 1
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				6,770,032.21		946,417.86		535,819.58		8,252,269.65
			% Balance				1.45%		0.20%		0.11%		1.77%
			# Loans				55		8		3		66
			% # Loans				1.68%		0.24%		0.09%		2.01%
	FORECLOSURE		Balance		377,432.43		793,998.94		322,026.31		619,202.77		2,112,660.45
			% Balance		0.08%		0.17%		0.07%		0.13%		0.45%
			# Loans		3		5		3		3		14
			% # Loans		0.09%		0.15%		0.09%		0.09%		0.43%
	BANKRUPTCY		Balance		829,958.76		0.00		164,000.00		0.00		993,958.76
			% Balance		0.18%		0.00%		0.04%		0.00%		0.21%
			# Loans		8		0		1		0		9
			% # Loans		0.24%		0.00%		0.03%		0.00%		0.27%
	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		1,207,391.19		7,564,031.15		1,432,444.17		1,155,022.35		11,358,888.86
			% Balance		0.26%		1.62%		0.31%		0.25%		2.44%
			# Loans		11		60		12		6		89
			% # Loans		0.34%		1.83%		0.37%		0.18%		2.71%










Page 13 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

	GROUP 2
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				6,574,233.62		1,166,211.24		652,466.19		8,392,911.05
			% Balance				1.42%		0.25%		0.14%		1.81%
			# Loans				41		7		5		53
			% # Loans				1.53%		0.26%		0.19%		1.97%
	FORECLOSURE		Balance		0.00		416,934.67		0.00		0.00		416,934.67
			% Balance		0.00%		0.09%		0.00%		0.00%		0.09%
			# Loans		0		2		0		0		2
			% # Loans		0.00%		0.07%		0.00%		0.00%		0.07%
	BANKRUPTCY		Balance		352,387.35		310,279.44		0.00		30,635.90		693,302.69
			% Balance		0.08%		0.07%		0.00%		0.01%		0.15%
			# Loans		2		2		0		1		5
			% # Loans		0.07%		0.07%		0.00%		0.04%		0.19%
	REO		Balance		0.00		0.00		0.00		262,400.00		262,400.00
			% Balance		0.00%		0.00%		0.00%		0.06%		0.06%
			# Loans		0		0		0		1		1
			% # Loans		0.00%		0.00%		0.00%		0.04%		0.04%
	TOTAL		Balance		352,387.35		7,301,447.73		1,166,211.24		945,502.09		9,765,548.41
			% Balance		0.08%		1.57%		0.25%		0.20%		2.10%
			# Loans		2		45		7		7		61
			% # Loans		0.07%		1.68%		0.26%		0.26%		2.27%










Page 14 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

	GROUP 3
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				8,771,671.90		1,606,150.94		1,326,728.26		11,704,551.10
			% Balance				1.61%		0.29%		0.24%		2.14%
			# Loans				50		11		9		70
			% # Loans				1.57%		0.35%		0.28%		2.20%
	FORECLOSURE		Balance		0.00		376,880.63		0.00		528,759.92		905,640.55
			% Balance		0.00%		0.07%		0.00%		0.10%		0.17%
			# Loans		0		3		0		2		5
			% # Loans		0.00%		0.09%		0.00%		0.06%		0.16%
	BANKRUPTCY		Balance		124,295.37		0.00		0.00		0.00		124,295.37
			% Balance		0.02%		0.00%		0.00%		0.00%		0.02%
			# Loans		2		0		0		0		2
			% # Loans		0.06%		0.00%		0.00%		0.00%		0.06%
	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		124,295.37		9,148,552.53		1,606,150.94		1,855,488.18		12,734,487.02
			% Balance		0.02%		1.67%		0.29%		0.34%		2.33%
			# Loans		2		53		11		11		77
			% # Loans		0.06%		1.67%		0.35%		0.35%		2.42%









Page 15 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 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
407169343 2
			262,400.00		262,400.00		01-Dec-2004		7.500%		GA - 80.00%		360		01-Nov-2004



TOTAL			262,400.00		262,400.00



Page 16 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 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
1824669 1
			41,000.00		40,642.79		01-Jan-2005		11.700%		OR - 20.00%		240		01-Nov-2004

1922971 1			304,000.00		304,000.00		01-Jan-2005		6.950%		TX - 80.00%		360		01-Dec-2004
21060025 1			153,600.00		152,849.11		01-Mar-2005		7.900%		CA - 80.00%		360		01-Dec-2004
41062517 1			124,100.00		123,613.71		01-Mar-2005		8.990%		IL - 85.00%		360		01-Dec-2004
121035728 1			54,000.00		53,788.38		01-Mar-2005		8.990%		MN - 51.43%		360		01-Dec-2004
121035837 1			160,000.00		159,217.01		01-Mar-2005		7.100%		WI - 80.00%		360		01-Jan-2005
651006267 1			52,000.00		51,788.15		01-Feb-2005		8.800%		SC - 80.00%		360		01-Dec-2004
731007520 1			306,000.00		304,530.73		01-Mar-2005		7.990%		GA - 85.00%		360		01-Dec-2004
2010040926520 1			79,900.00		79,525.78		01-Feb-2005		8.790%		NC - 85.00%		360		01-Nov-2004
2010041034910 1			56,800.00		56,594.69		01-May-2005		10.040%		GA - 80.00%		360		01-Nov-2004
2020040857240 1			133,500.00		132,745.23		01-Apr-2005		9.350%		VA - 75.00%		360		01-Sep-2004
2020040967880 1			192,000.00		190,712.38		01-Feb-2005		6.990%		FL - 80.00%		360		01-Nov-2004
2070041055870 1			189,000.00		188,092.51		01-May-2005		7.990%		MO - 89.15%		360		01-Dec-2004
2100041055320 1			276,250.00		274,559.98		01-Jan-2005		6.760%		CO - 84.48%		360		01-Dec-2004
321021417 2			264,000.00		262,585.89		01-Mar-2005		7.440%		CO - 80.00%		360		01-Dec-2004
651005867 2			155,000.00		154,348.78		01-Mar-2005		8.650%		RI - 67.39%		360		01-Dec-2004
1809138 3			361,250.00		359,908.30		01-Dec-2004		9.250%		NY - 85.00%		360		01-Dec-2004
21060026 3			204,000.00		203,002.71		01-Mar-2005		7.900%		CA - 80.00%		360		01-Dec-2004
81051442 3			102,800.00		102,302.44		01-Mar-2005		7.950%		VA - 80.00%		360		01-Dec-2004
741008097 3			72,000.00		71,575.48		01-Mar-2005		6.950%		OH - 75.00%		360		01-Dec-2004
2070040946040 3			170,000.00		168,851.62		01-Dec-2004		7.440%		WI - 85.00%		360		01-Nov-2004


TOTAL			3,451,200.00		3,435,235.67



Page 17 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Prepayment Report

VOLUNTARY PREPAYMENTS


									Group 3		Group 2		Group 1		Total




Current


Number of Paid in Full Loans								78		63		74		215
Number of Repurchased Loans								2		1		0		3
Total Number of Loans Prepaid in Full								80		64		74		218
Curtailments Amount								33,605.19		16,556.14		25,809.95		75,971.28
Paid in Full Balance								16,064,432.54		12,417,549.26		11,040,708.33		39,522,690.13
Repurchased Loans Balance								502,879.82		65,328.97		0.00		568,208.79
Total Prepayment Amount								16,600,917.55		12,499,434.37		11,066,518.28		40,166,870.20

Cumulative


Number of Paid in Full Loans								184		180		203		567
Number of Repurchased Loans								2		1		0		3
Total Number of Loans Prepaid in Full								186		181		203		570
Paid in Full Balance								40,285,698.84		34,653,484.46		32,833,472.86		107,772,656.16
Repurchased Loans Balance								502,879.82		65,328.97		0.00		568,208.79
Curtailments Amount								264,610.68		76,480.93		162,952.79		504,044.40
Total Prepayment Amount								41,053,189.34		34,795,294.36		32,996,425.65		108,844,909.35










Page 18 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

VOLUNTARY PREPAYMENTS RATES


									Group 3		Group 2		Group 1		Total



SMM								2.95%		2.62%		2.32%		2.65%
3 Months Avg SMM								2.38%		2.38%		2.25%		2.34%
12 Months Avg SMM								2.38%		2.38%		2.25%		2.34%
Avg SMM Since Cut-off								2.38%		2.38%		2.25%		2.34%


CPR								30.17%		27.31%		24.55%		27.54%
3 Months Avg CPR								25.14%		25.10%		23.92%		24.75%
12 Months Avg CPR								25.14%		25.10%		23.92%		24.75%
Avg CPR Since Cut-off								25.14%		25.10%		23.92%		24.75%


PSA								2,046.47%		1,886.99%		1,676.54%		1,882.76%
3 Months Avg PSA Approximation								1,973.52%		2,011.53%		1,892.03%		1,959.76%
12 Months Avg PSA Approximation								1,973.52%		2,011.53%		1,892.03%		1,959.76%
Avg PSA Since Cut-off Approximation								1,973.52%		2,011.53%		1,892.03%		1,959.76%










Page 19 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 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/(0.002min(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) Conditional Prepayment Rate (CPR): 1-((1-SMM)^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) Dates correspond to distribution dates. Note: Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments, liquidations, and repurchases.













Page 20 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Prepayment Detail Report
Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original							Current		State &		Type Prepayment		First


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

1716760 1			132,000.00		130,953.83			25-May-2005		6.750%		CA - 80.00%		Paid Off - 360		01-Sep-2004


1718353 1			46,000.00		45,497.18			01-Jan-1900		10.900%		CA - 20.00%		Paid Off - 240		01-Sep-2004

1718977 1			37,000.00		36,549.49			01-Jan-1900		10.400%		CA - 20.00%		Paid Off - 240		01-Sep-2004

1771640 1			37,000.00		36,573.32			01-Jan-1900		10.300%		CA - 20.00%		Paid Off - 240		01-Oct-2004

1776585 2			127,500.00		126,786.56			01-Jan-1900		6.725%		SC - 85.00%		Paid Off - 360		01-Dec-2004

1798022 2			197,600.00		196,789.42			01-Jan-1900		7.990%		FL - 80.00%		Paid Off - 360		01-Dec-2004

1808991 1			36,676.00		36,427.51			01-Jan-1900		11.350%		FL - 20.00%		Paid Off - 240		01-Dec-2004

1815321 1			44,500.00		44,132.21			01-Jan-1900		11.100%		IL - 20.00%		Paid Off - 240		01-Nov-2004

1825206 3			80,000.00		79,797.50			01-Jan-1900		11.700%		CA - 20.00%		Paid Off - 360		01-Oct-2004

1827349 2			36,980.00		36,593.84			01-Jan-1900		10.300%		MD - 20.00%		Paid Off - 240		01-Oct-2004

1830696 2			32,400.00		32,095.70			01-Jan-1900		10.050%		FL - 20.00%		Paid Off - 240		01-Nov-2004

1833315 3			89,400.00		89,121.16			01-Jan-1900		10.100%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1834989 1			35,600.00		35,267.76			01-Jan-1900		10.100%		CA - 20.00%		Paid Off - 240		01-Nov-2004

1836581 1			66,000.00		65,194.82			01-Jan-1900		9.400%		CA - 20.00%		Paid Off - 240		01-Nov-2004

1837998 3			97,000.00		96,712.24			01-Jan-1900		10.350%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1840132 3			90,000.00		89,818.00			01-Jan-1900		10.500%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1840588 1			68,000.00		67,764.92			01-Jan-1900		10.250%		CA - 20.00%		Paid Off - 360		01-Oct-2004

1840974 2			195,500.00		194,557.18			01-Jan-1900		7.175%		MD - 69.57%		Paid Off - 360		01-Dec-2004

1841448 2			55,600.00		55,432.50			01-Jan-1900		10.250%		WA - 20.00%		Paid Off - 360		01-Nov-2004

1841722 2			46,600.00		46,192.09			01-Jan-1900		10.600%		RI - 20.00%		Paid Off - 240		01-Nov-2004

1844573 3			130,000.00		129,640.41			01-Jan-1900		10.650%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1852400 1			195,000.00		193,962.61			01-Jan-1900		7.475%		FL - 46.99%		Paid Off - 360		01-Nov-2004

1858976 1			39,980.00		39,606.82			01-Jan-1900		10.300%		CA - 20.00%		Paid Off - 240		01-Nov-2004

1866425 1			215,920.00		215,912.01			01-Jan-1900		5.850%		AZ - 80.00%		Paid Off - 360		01-Nov-2004

1867644 2			222,650.00		221,458.38			01-Jan-1900		7.800%		FL - 84.98%		Paid Off - 360		01-Nov-2004

1869588 2			284,000.00		283,230.26			01-Jan-1900		10.000%		NJ - 80.00%		Paid Off - 360		01-Dec-2004

1871417 1			112,000.00		110,883.31			01-Jan-1900		5.550%		TX - 74.67%		Paid Off - 360		01-Nov-2004

1877375 3			489,600.00		489,600.00			01-Jan-1900		8.550%		CA - 88.22%		Paid Off - 360		01-Dec-2004

1878881 2			300,000.00		298,014.22			01-Jan-1900		6.350%		CA - 38.96%		Paid Off - 360		01-Nov-2004

1881728 2			250,000.00		249,099.96			01-Jan-1900		9.400%		CA - 73.53%		Paid Off - 360		01-Nov-2004

1888159 1			44,580.00		43,865.09			01-Jan-1900		9.700%		IL - 20.00%		Paid Off - 240		01-Nov-2004

1889022 1			174,962.00		174,961.55			01-Jan-1900		7.075%		MI - 80.00%		Paid Off - 360		01-Dec-2004

1889064 1			43,740.00		43,437.22			01-Jan-1900		11.200%		MI - 20.00%		Paid Off - 240		01-Dec-2004

1890667 1			330,000.00		328,695.41			01-Jan-1900		5.600%		CA - 83.12%		Paid Off - 360		01-Dec-2004

1890884 3			96,000.00		95,702.95			01-Jan-1900		10.950%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1893030 1			131,750.00		131,267.47			01-Jan-1900		8.550%		IL - 85.00%		Paid Off - 360		01-Dec-2004

1894189 2			311,000.00		309,536.13			01-Jan-1900		7.300%		CA - 72.33%		Paid Off - 360		01-Dec-2004




Page 21 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

1895457 3			400,000.00		397,637.33			01-Jan-1900		6.125%		CA - 80.00%		Paid Off - 360		01-Dec-2004


1895510 3			100,000.00		99,797.04			01-Jan-1900		11.350%		CA - 20.00%		Paid Off - 360		01-Dec-2004

1900601 1			119,700.00		119,205.03			01-Jan-1900		7.950%		KY - 95.00%		Paid Off - 360		01-Dec-2004

1908568 3			106,000.00		105,646.03			01-Jan-1900		9.000%		CA - 20.00%		Paid Off - 360		01-Dec-2004

1919246 2			348,000.00		347,908.25			01-Jan-1900		6.375%		CA - 74.84%		Paid Off - 300		01-Dec-2004

1920447 1			495,000.02		495,000.00			01-Jan-1900		7.750%		CA - 90.00%		Paid Off - 360		01-Dec-2004

1922803 2			308,100.00		308,100.00			01-Jan-1900		6.500%		CA - 79.92%		Paid Off - 300		01-Dec-2004

1926929 3			499,280.00		496,454.79			01-Jan-1900		6.350%		NJ - 79.00%		Paid Off - 360		01-Dec-2004

1935957 1			130,000.00		129,095.15			01-Jan-1900		5.250%		NV - 44.83%		Paid Off - 360		01-Dec-2004

11070915 2			297,500.00		296,244.73			04-May-2005		7.850%		CA - 85.00%		Paid Off - 360		01-Dec-2004

11071130 2			204,300.00		203,268.82			02-May-2005		7.740%		CA - 90.00%		Paid Off - 360		01-Nov-2004

11071600 1			116,000.00		115,458.72			18-May-2005		7.350%		CA - 53.95%		Paid Off - 360		01-Dec-2004

11071705 3			125,990.00		125,303.93			10-May-2005		6.550%		CA - 69.99%		Paid Off - 360		01-Dec-2004

11071716 3			200,450.00		199,337.26			27-May-2005		6.450%		CA - 95.00%		Paid Off - 360		01-Dec-2004

21060342 1			167,000.00		166,220.35			09-May-2005		7.340%		CA - 67.89%		Paid Off - 360		01-Dec-2004

31029705 1			289,000.00		289,000.00			02-May-2005		6.540%		CA - 85.00%		Paid Off - 360		01-Nov-2004

31029939 2			145,000.00		144,117.84			20-May-2005		6.700%		CA - 69.05%		Paid Off - 360		01-Dec-2004

41062831 1			88,000.00		87,675.84			31-May-2005		7.600%		IL - 80.00%		Paid Off - 360		01-Jan-2005

51053427 1			98,500.00		98,031.95			02-May-2005		7.250%		GA - 62.74%		Paid Off - 360		01-Dec-2004

71062496 1			128,000.00		127,546.99			25-May-2005		7.800%		FL - 80.00%		Paid Off - 360		01-Jan-2005

81050911 1			295,750.00		294,514.78			31-May-2005		7.900%		MD - 65.00%		Paid Off - 360		01-Dec-2004

81051381 1			50,000.00		49,820.62			02-May-2005		8.650%		VA - 78.13%		Paid Off - 360		01-Dec-2004

81051461 2			180,000.00		179,216.00			23-May-2005		7.690%		MD - 90.00%		Paid Off - 360		01-Dec-2004

81051735 3			400,000.00		398,504.96			20-May-2005		8.450%		VA - 80.00%		Paid Off - 360		01-Dec-2004

81051739 3			230,000.00		229,039.42			26-May-2005		7.900%		MD - 78.23%		Paid Off - 360		#######

81051790 1			102,750.00		102,333.57			03-May-2005		8.050%		VA - 75.00%		Paid Off - 360		01-Dec-2004

91028975 2			164,350.00		163,599.23			25-May-2005		7.450%		IL - 95.00%		Paid Off - 360		01-Dec-2004

121035886 1			161,250.00		160,688.89			12-May-2005		8.800%		WI - 75.00%		Paid Off - 360		01-Dec-2004

141041576 2			244,800.00		243,404.54			25-May-2005		7.250%		NY - 80.00%		Paid Off - 360		01-Nov-2004

141041855 3			50,000.00		49,896.58			04-May-2005		11.990%		NY - 13.89%		Paid Off - 360		01-Nov-2004

141042584 3			64,000.00		63,852.99			04-May-2005		9.900%		NY - 80.00%		Paid Off - 360		01-Jan-2005

141042901 3			100,000.00		99,685.12			18-May-2005		8.440%		NY - 80.00%		Paid Off - 360		01-Jan-2005

151026637 2			229,600.00		228,776.13			09-May-2005		8.650%		PA - 94.97%		Paid Off - 360		01-Dec-2004

161037276 1			106,500.00		106,281.56			02-May-2005		10.440%		ME - 71.00%		Paid Off - 360		01-Jan-2005

161037671 3			264,550.00		259,895.53			03-May-2005		8.090%		MA - 65.00%		Paid Off - 180		01-Dec-2004

171022601 2			354,440.00		354,440.00			19-May-2005		5.990%		AZ - 80.00%		Paid Off - 360		01-Dec-2004

171022758 3			130,000.00		129,285.25			18-May-2005		6.500%		AZ - 78.79%		Paid Off - 360		01-Dec-2004

211024412 2			228,000.00		227,084.82			23-May-2005		8.100%		VA - 80.00%		Paid Off - 360		01-Dec-2004




Page 22 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

211024476 3			405,613.80		404,546.06			06-May-2005		9.250%		NC - 90.00%		Paid Off - 360		01-Jan-2005


231057441 2			200,000.00		199,326.83			26-May-2005		8.050%		NJ - 80.00%		Paid Off - 360		01-Jan-2005

231058052 3			382,500.00		381,322.49			16-May-2005		8.490%		MA - 85.00%		Paid Off - 360		01-Jan-2005

251033456 2			181,600.00		180,719.94			04-May-2005		7.150%		CA - 80.00%		Paid Off - 360		01-Dec-2004

251033961 2			194,000.00		192,923.08			11-May-2005		6.450%		CA - 84.35%		Paid Off - 360		01-Dec-2004

261049202 1			83,850.00		83,450.78			17-May-2005		7.250%		NC - 65.00%		Paid Off - 360		01-Dec-2004

271015000 3			512,000.00		508,309.23			04-May-2005		5.900%		NY - 66.06%		Paid Off - 360		01-Nov-2004

271015704 1			347,600.00		346,342.53			26-May-2005		9.350%		CT - 80.00%		Paid Off - 360		01-Dec-2004

271016241 2			200,250.00		199,159.53			11-May-2005		6.550%		FL - 75.00%		Paid Off - 360		01-Dec-2004

271016321 1			203,400.00		203,400.00			04-May-2005		6.600%		AZ - 90.00%		Paid Off - 360		01-Nov-2004

271016330 2			151,200.00		150,468.16			03-May-2005		7.950%		NH - 80.00%		Paid Off - 360		01-Nov-2004

271016510 2			169,600.00		168,711.47			27-May-2005		6.750%		CA - 80.00%		Paid Off - 360		01-Dec-2004

271016770 2			188,500.00		187,680.62			17-May-2005		7.700%		NJ - 68.80%		Paid Off - 360		01-Dec-2004

271016886 1			104,000.00		103,311.58			24-May-2005		6.350%		VA - 80.00%		Paid Off - 360		01-Nov-2004

281012513 3			82,450.00		81,968.57			03-May-2005		7.000%		PA - 85.00%		Paid Off - 360		01-Nov-2004

281012908 1			108,900.00		108,355.50			11-May-2005		6.990%		NY - 72.60%		Paid Off - 360		01-Dec-2004

311024695 2			183,750.00		183,251.99			17-May-2005		10.000%		NJ - 75.00%		Paid Off - 360		01-Dec-2004

321021434 2			209,000.00		208,016.61			16-May-2005		7.300%		CO - 95.00%		Paid Off - 360		01-Dec-2004

321021616 2			164,000.00		163,421.41			24-May-2005		8.750%		CO - 80.00%		Paid Off - 360		01-Dec-2004

321021712 1			117,000.00		116,491.44			03-May-2005		7.700%		CO - 90.00%		Paid Off - 360		01-Dec-2004

331031550 1			324,000.00		322,853.30			04-May-2005		7.800%		NY - 90.00%		Paid Off - 360		01-Jan-2005

341020077 1			70,000.00		69,775.71			10-May-2005		9.200%		NC - 80.00%		Paid Off - 360		01-Dec-2004

361021138 1			50,000.00		49,780.86			31-May-2005		9.700%		MI - 59.52%		Paid Off - 360		01-Sep-2004

361021883 3			74,400.00		74,094.83			19-May-2005		7.990%		MI - 80.00%		Paid Off - 360		01-Dec-2004

381016775 2			152,000.00		151,282.73			17-May-2005		7.300%		MA - 74.15%		Paid Off - 360		01-Dec-2004

381017147 3			100,000.00		99,428.73			25-May-2005		6.300%		RI - 54.05%		Paid Off - 360		01-Dec-2004

381017314 1			111,000.00		110,777.95			13-May-2005		10.550%		RI - 59.36%		Paid Off - 360		01-Jan-2005

381017326 2			175,000.00		174,237.81			04-May-2005		7.690%		RI - 59.52%		Paid Off - 360		01-Dec-2004

405209146 2			108,000.00		107,044.63			03-May-2005		7.250%		NJ - 80.00%		Paid Off - 360		01-Jul-2004

406032413 2			139,500.00		139,499.97			13-May-2005		7.125%		CA - 90.00%		Paid Off - 360		01-Aug-2004

407192250 2			281,600.00		281,405.99			23-May-2005		6.890%		UT - 80.00%		Paid Off - 360		01-Oct-2004

408027538 2			188,501.00		187,422.59			26-May-2005		7.500%		NV - 79.87%		Paid Off - 360		01-Nov-2004

408039631 2			136,000.00		135,173.50			18-May-2005		7.500%		FL - 100.00%		Paid Off - 360		01-Oct-2004

408052885 3			365,000.00		363,502.82			23-May-2005		7.990%		CA - 100.00%		Paid Off - 360		01-Dec-2004

408107336 3			253,000.00		253,000.00			17-May-2005		6.500%		NY - 65.71%		Paid Off - 360		01-Nov-2004

408174212 3			126,400.00		125,790.41			13-May-2005		7.999%		MD - 80.00%		Paid Off - 360		01-Nov-2004

408187406 2			172,250.00		171,517.33			13-May-2005		9.259%		CA - 68.90%		Paid Off - 360		01-Oct-2004

408198191 3			387,000.00		385,050.54			31-May-2005		7.750%		CA - 90.00%		Paid Off - 360		01-Nov-2004




Page 23 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

408199169 1			179,000.00		177,549.20			10-May-2005		6.000%		OR - 52.65%		Paid Off - 360		01-Oct-2004


408231455 3			153,000.00		151,967.75			17-May-2005		6.250%		CA - 69.55%		Paid Off - 360		01-Nov-2004

408244199 2			298,350.00		296,429.47			23-May-2005		7.200%		CA - 85.00%		Paid Off - 360		01-Nov-2004

408254280 3			176,214.00		175,624.15			16-May-2005		9.750%		VA - 86.00%		Paid Off - 360		01-Nov-2004

409024745 2			130,500.00		130,084.74			27-May-2005		9.990%		MD - 75.00%		Paid Off - 360		01-Nov-2004

409090509 1			306,000.00		303,792.14			03-May-2005		6.125%		VA - 85.00%		Paid Off - 360		01-Nov-2004

409091232 3			467,500.00		465,252.24			09-May-2005		7.990%		CA - 85.00%		Paid Off - 360		01-Nov-2004

409145615 2			151,200.00		150,545.02			19-May-2005		8.500%		CA - 80.00%		Paid Off - 360		01-Nov-2004

409145887 1			142,400.00		141,923.43			06-May-2005		9.750%		WI - 80.00%		Paid Off - 360		01-Nov-2004

409157776 3			99,000.00		98,651.08			04-May-2005		9.350%		VA - 90.00%		Paid Off - 360		01-Dec-2004

409169306 3			155,200.00		154,386.86			12-May-2005		6.750%		CT - 80.00%		Paid Off - 360		01-Dec-2004

409237730 2			84,500.00		84,078.51			12-May-2005		7.800%		IL - 65.00%		Paid Off - 360		01-Nov-2004

409239278 2			248,000.00		246,242.29			26-May-2005		5.990%		CA - 80.00%		Paid Off - 360		01-Nov-2004

409271576 2			200,000.00		198,941.98			02-May-2005		6.700%		NJ - 64.52%		Paid Off - 360		01-Dec-2004

409282604 2			234,850.00		233,876.41			04-May-2005		7.990%		NY - 77.00%		Paid Off - 360		01-Dec-2004

409283155 1			77,000.00		76,772.53			03-May-2005		9.590%		NY - 70.00%		Paid Off - 360		01-Dec-2004

409295708 2			224,000.00		223,167.02			19-May-2005		8.475%		CA - 70.00%		Paid Off - 360		01-Dec-2004

409306087 2			187,000.00		186,089.28			24-May-2005		7.125%		CA - 85.00%		Paid Off - 360		01-Dec-2004

409306163 2			327,250.00		326,099.52			27-May-2005		8.750%		NV - 85.00%		Paid Off - 360		01-Dec-2004

410049313 2			286,400.00		286,400.00			02-May-2005		6.375%		WA - 80.00%		Paid Off - 360		01-Dec-2004

410049321 2			344,000.00		342,088.75			03-May-2005		7.490%		VA - 79.63%		Paid Off - 360		01-Dec-2004

410118419 2			170,000.00		169,151.38			10-May-2005		6.999%		GA - 89.47%		Paid Off - 360		01-Dec-2004

410120628 3			144,500.00		144,497.54			24-May-2005		6.375%		MD - 72.25%		Paid Off - 360		01-Dec-2004

410143204 2			110,700.00		110,199.10			17-May-2005		7.499%		IL - 90.00%		Paid Off - 360		01-Dec-2004

410154636 2			60,000.00		59,890.14			10-May-2005		11.875%		KS - 80.00%		Paid Off - 360		01-Dec-2004

410155452 2			262,500.00		260,835.64			26-May-2005		5.750%		NY - 75.00%		Paid Off - 360		01-Dec-2004

410187960 3			221,750.00		220,621.56			05-May-2005		6.900%		CA - 63.00%		Paid Off - 360		01-Dec-2004

410256299 3			450,000.00		447,642.36			11-May-2005		6.750%		CA - 65.69%		Paid Off - 360		01-Dec-2004

511031598 3			647,000.00		643,577.35			25-May-2005		6.700%		NV - 69.42%		Paid Off - 360		01-Dec-2004

521020840 1			147,000.00		146,600.79			13-May-2005		9.100%		MI - 70.00%		Paid Off - 360		01-Jan-2005

561000930 2			207,000.00		205,951.73			24-May-2005		6.925%		FL - 51.75%		Paid Off - 360		01-Dec-2004

621004641 1			305,000.00		303,660.95			23-May-2005		7.650%		FL - 60.40%		Paid Off - 360		01-Dec-2004

631004604 3			225,000.00		223,796.89			04-May-2005		7.490%		CA - 75.00%		Paid Off - 360		01-Nov-2004

651005368 3			74,160.00		73,950.10			27-May-2005		8.900%		MI - 80.00%		Paid Off - 360		01-Jan-2005

651005833 1			128,000.00		127,618.67			19-May-2005		9.550%		PA - 80.00%		Paid Off - 360		01-Dec-2004

661002229 3			99,375.00		99,078.35			25-May-2005		9.540%		FL - 77.33%		Paid Off - 360		01-Dec-2004

661002517 3			308,800.00		307,228.60			20-May-2005		6.900%		CA - 80.00%		Paid Off - 360		01-Dec-2004

661002849 2			310,000.00		308,375.91			16-May-2005		6.750%		CA - 67.39%		Paid Off - 360		01-Dec-2004




Page 24 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

671001222 3			108,000.00		107,199.24			31-May-2005		5.750%		AZ - 80.00%		Paid Off - 360		01-Nov-2004


681002562 3			53,200.00		53,095.48			19-May-2005		11.500%		MA - 24.74%		Paid Off - 360		01-Dec-2004

691000887 1			130,150.00		129,525.07			02-May-2005		7.990%		MD - 95.00%		Paid Off - 360		01-Nov-2004

691000965 3			550,000.00		547,585.31			12-May-2005		7.650%		MD - 37.93%		Paid Off - 360		01-Dec-2004

691000979 3			103,550.00		103,057.96			25-May-2005		7.250%		DE - 95.00%		Paid Off - 360		01-Dec-2004

691001292 2			168,300.00		167,644.91			17-May-2005		8.250%		MD - 90.00%		Paid Off - 360		01-Dec-2004

711004588 2			296,000.00		294,662.08			31-May-2005		7.750%		MA - 80.00%		Paid Off - 360		01-Dec-2004

731007461 2			179,000.00		177,916.13			31-May-2005		7.500%		GA - 62.81%		Paid Off - 360		01-Dec-2004

761004560 3			88,650.00		88,134.75			06-May-2005		7.100%		WI - 90.00%		Paid Off - 360		01-Nov-2004

761004800 1			101,200.00		100,715.06			02-May-2005		8.000%		IL - 84.33%		Paid Off - 360		01-Nov-2004

781001336 1			100,000.00		98,079.19			04-May-2005		7.000%		PA - 68.03%		Paid Off - 180		01-Dec-2004

1000031405 2			32,000.00		31,668.46			01-Jan-1900		9.650%		FL - 20.00%		Paid Off - 240		01-Nov-2004

1000034359 1			328,500.00		328,499.95			01-Jan-1900		7.425%		CA - 90.00%		Paid Off - 360		01-Nov-2004

1000041591 3			130,000.00		129,555.74			01-Jan-1900		9.650%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1000056245 3			328,000.00		#######			01-Jan-1900		6.900%		FL - 80.00%		Paid Off - 360		01-Dec-2004

1000056334 3			82,000.00		81,359.26			01-Jan-1900		10.250%		FL - 20.00%		Paid Off - 240		01-Dec-2004

1000066341 3			500,000.00		497,949.09			01-Jan-1900		7.990%		CA - 77.52%		Paid Off - 360		01-Dec-2004

1000067395 3			117,400.00		117,046.55			01-Jan-1900		9.500%		CA - 20.00%		Paid Off - 360		01-Dec-2004

1000069981 3			423,000.00		423,000.00			01-Jan-1900		6.375%		CA - 90.00%		Paid Off - 300		01-Dec-2004

2010041032180 1			115,000.00		114,519.92			03-May-2005		8.690%		NC - 34.85%		Paid Off - 360		01-Nov-2004

2010041033250 3			115,200.00		114,513.02			27-May-2005		7.190%		NC - 80.00%		Paid Off - 360		01-Nov-2004

2010041034410 1			235,000.00		233,950.55			16-May-2005		8.350%		VA - 73.44%		Paid Off - 360		01-Nov-2004

2010041036290 3			141,950.00		141,268.42			09-May-2005		7.990%		NC - 85.00%		Paid Off - 360		01-Nov-2004

2020041070950 3			290,000.00		288,368.27			03-May-2005		7.190%		VA - 82.86%		Paid Off - 360		01-Nov-2004

2020041072300 3			155,975.00		155,139.50			16-May-2005		7.440%		MD - 79.99%		Paid Off - 360		01-Nov-2004

2030041031870 3			206,000.00		204,951.70			05-May-2005		6.900%		NJ - 87.66%		Paid Off - 360		01-Dec-2004

2030041032250 3			50,100.00		49,834.78			27-May-2005		7.500%		PA - 54.46%		Paid Off - 360		01-Nov-2004

2030041035340 3			80,000.00		79,637.39			02-May-2005		7.490%		PA - 39.02%		Paid Off - 360		01-Dec-2004

2060041088130 1			195,500.00		194,443.57			12-May-2005		6.590%		FL - 85.00%		Paid Off - 360		01-Dec-2004

2070040830190 1			84,000.00		83,572.62			04-May-2005		7.700%		WI - 80.00%		Paid Off - 360		01-Nov-2004

2070040942370 1			146,500.00		145,655.01			16-May-2005		6.250%		IL - 67.82%		Paid Off - 360		01-Dec-2004

2070041054320 1			161,000.00		160,273.49			03-May-2005		7.940%		IL - 84.74%		Paid Off - 360		01-Dec-2004

2080040914460 3			50,000.00		49,851.59			02-May-2005		10.390%		MI - 25.38%		Paid Off - 360		01-Nov-2004

2080040919790 3			127,500.00		126,850.00			02-May-2005		7.690%		MI - 82.79%		Paid Off - 360		01-Nov-2004

2080041023360 3			75,000.00		74,615.99			17-May-2005		7.690%		MI - 51.72%		Paid Off - 360		01-Nov-2004

2090040999700 3			69,600.00		69,209.14			27-May-2005		7.200%		NY - 79.09%		Paid Off - 360		01-Nov-2004

2090041005400 1			178,500.00		177,147.00			10-May-2005		5.840%		MA - 85.00%		Paid Off - 360		01-Nov-2004

2090041006890 1			134,000.00		133,310.06			02-May-2005		6.840%		NY - 54.69%		Paid Off - 360		01-Dec-2004




Page 25 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

2200040603250 1			103,000.00		102,303.77			31-May-2005		6.240%		CA - 55.68%		Paid Off - 360		01-Nov-2004


2200040926290 3			126,000.00		125,300.65			09-May-2005		7.950%		FL - 90.00%		Paid Off - 360		01-Oct-2004

2200041034580 1			132,825.00		130,219.09			17-May-2005		6.750%		CA - 34.06%		Paid Off - 180		01-Dec-2004

2210041074560 1			112,000.00		111,512.14			09-May-2005		7.690%		MO - 80.00%		Paid Off - 360		01-Dec-2004

2220040981490 3			141,000.00		140,171.00			03-May-2005		6.965%		VA - 78.33%		Paid Off - 360		01-Nov-2004

2220040981770 1			198,000.00		196,773.30			27-May-2005		6.740%		VA - 82.50%		Paid Off - 360		01-Nov-2004

2220041082230 3			114,100.00		113,698.00			13-May-2005		8.740%		VA - 70.00%		Paid Off - 360		01-Dec-2004

2220041082630 3			214,400.00		213,360.15			20-May-2005		7.940%		MD - 80.00%		Paid Off - 360		01-Nov-2004

2220041083490 3			137,000.00		136,364.87			31-May-2005		8.165%		MD - 84.83%		Paid Off - 360		01-Nov-2004

2220041084620 1			215,200.00		214,180.74			03-May-2005		7.940%		VA - 80.00%		Paid Off - 360		01-Dec-2004

2220041085160 1			180,000.00		178,978.49			26-May-2005		6.340%		VA - 80.00%		Paid Off - 360		01-Dec-2004

2250041008100 3			85,000.00		84,631.01			10-May-2005		8.490%		FL - 70.25%		Paid Off - 360		01-Nov-2004

2260041073640 1			101,500.00		101,127.50			12-May-2005		8.540%		AZ - 78.08%		Paid Off - 360		01-Dec-2004

2260041077380 3			231,300.00		230,497.57			26-May-2005		7.900%		AZ - 90.00%		Paid Off - 360		01-Jan-2005

2260041078960 1			229,500.00		228,297.59			24-May-2005		6.750%		AZ - 85.00%		Paid Off - 360		01-Dec-2004

2280040984100 1			72,000.00		71,484.07			26-May-2005		6.890%		SD - 71.29%		Paid Off - 360		01-Nov-2004

2300040942780 1			178,500.00		177,327.45			03-May-2005		6.390%		NV - 79.33%		Paid Off - 360		01-Nov-2004

2300040943010 1			357,000.00		354,272.76			06-May-2005		5.590%		CA - 76.77%		Paid Off - 360		01-Nov-2004

2300040943260 3			153,750.00		153,128.64			16-May-2005		8.840%		NV - 75.00%		Paid Off - 360		01-Nov-2004

2350040960570 1			196,000.00		194,460.41			04-May-2005		5.440%		MD - 73.96%		Paid Off - 360		01-Nov-2004

2350040961770 3			280,000.00		278,977.69			18-May-2005		8.565%		MD - 80.00%		Paid Off - 360		01-Dec-2004

2350041062160 3			195,000.00		194,235.80			10-May-2005		8.990%		NJ - 57.86%		Paid Off - 360		01-Nov-2004

2350041063750 1			166,500.00		165,796.19			02-May-2005		7.840%		NJ - 90.00%		Paid Off - 360		01-Dec-2004

2350041064460 3			285,000.00		283,795.29			05-May-2005		7.840%		NJ - 75.00%		Paid Off - 360		01-Dec-2004

2360040937740 3			252,000.00		250,825.90			27-May-2005		7.350%		CA - 80.00%		Paid Off - 360		01-Dec-2004

2360040938280 3			425,000.00		422,874.88			25-May-2005		6.990%		CA - 85.00%		Paid Off - 360		01-Dec-2004

1000005425 2			65,600.00		65,328.97			01-Jan-1900		9.400%		CA - 20.00%		Repur/Subs - 360		01-Oct-2004

1000049192 3			85,000.00		84,693.93			01-Jan-1900		9.400%		CA - 20.00%		Repur/Subs - 360		01-Nov-2004

1000069678 3			419,150.00		418,185.89			01-Jan-1900		6.375%		CA - 83.00%		Repur/Subs - 300		01-Dec-2004



TOTAL			40,270,461.82		40,090,898.92



Page 26 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Realized Loss Report

COLLATERAL REALIZED LOSSES



									Group 3		Group 2		Group 1		Total


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




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 27 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 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 28 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 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 29 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Realized Loss Detail Report
Loan Number			Current		State &				Prior		Realized				Cumulative

&		Loan	Note		LTV at		Original		Principal		Loss/(Gain)		Realized		Realized

Loan Group		Status	Rate		Origination		Term		Balance		Revision		Loss/(Gain)		Loss/(Gain)





TOTAL



Page 30 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Triggers and Adj. Cert. Report
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
						3 months rolling 60+ days includes 60+ bkcs and all flcs								0.00
						Ending Balance								1,476,541,183.48
						Prior period Senior Enhancement Percentage								19.3700%



ADJUSTABLE RATE CERTIFICATE INFORMATION

SPACE INTENTIONALLY LEFT BLANK



ADDITIONAL INFORMATION

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




Page 31 of 32
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

June 27, 2005 Distribution
Other Related Information
ADDITIONAL INFORMATION

								Group 3		Group 2		Group 1		Total
Current Scheduled Payments														10,382,745.56
Current Scheduled Payments 1 Month Prior														10,627,011.35
Current Scheduled Payments 2 Month Prior														10,868,495.06
Current Scheduled Payments 3 Month Prior														0.00
Current Scheduled Payments 4 Month Prior														0.00
Current Scheduled Payments 5 Month Prior														0.00
Current Scheduled Payments 6 Month Prior														0.00
Current Scheduled Payments 7 Month Prior														0.00
Current Scheduled Payments 8 Month Prior														0.00
Current Scheduled Payments 9 Month Prior														0.00
Current Scheduled Payments 10 Month Prior														0.00
Current Scheduled Payments 11 Month Prior														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 32 of 32

Morgan Stanley ABS Capital I Inc. Trust 2005-HE2 8-K