DBRS Rates NHEL 2006-HE1 Asset-Backed Certificates

Dominion Bond Rating Service (“DBRS”) has today assigned the above ratings to the Asset-Backed Certificates, Series 2006-HE1 issued by Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE1.

The AAA ratings on the Class A Certificates (“Senior Certificates”) reflect 26.80% of credit enhancement provided by the subordinate classes, initial overcollateralization (2.70%), and monthly excess spread. The AA (high) rating on Class M-1 reflects 22.40% of credit enhancement. The AA rating on Class M-2 reflects 18.40% of credit enhancement. The AA (low) rating on Class M-3 reflects 15.90% of credit enhancement. The A (high) rating on Class M-4 reflects 13.65% of credit enhancement. The “A” rating on Class M-5 reflects 11.50% of credit enhancement. The A (low) rating on Class M-6 reflects 9.55% of credit enhancement. The BBB (high) rating on Class M-7 reflects 7.80% of credit enhancement. The BBB rating on Class M-8 reflects 6.30% of credit enhancement. The BBB (low) rating on Class M-9 reflects 5.10% of credit enhancement. The BB (high) rating on Class B-1 reflects 3.80% of credit enhancement. The BB rating on Class B-2 reflects 2.70% of credit enhancement.

The ratings of the certificates also reflect the quality of the underlying assets and the capabilities of Ocwen Loan Servicing, LLC as Servicer, as well as Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator. HSBC Bank USA, National Association will act as Trustee. In addition, the certificates will also be entitled to the benefits of an interest rate swap agreement with Bear Stearns Financial Products, Inc. (the “Swap Provider”). The Trust will pay to the Swap Provider a fixed payment at 5.152% per annum each month in exchange for a floating payment at one-month LIBOR from the Swap Provider.

Interest and principal payments collected from the mortgage loans will be distributed on the 25th day of each month commencing in March 2006. Interest will be first paid to the Senior Certificates concurrently and then sequentially to the subordinate classes. Until the step-down date, principal collected will be paid exclusively to the Senior Certificates unless they are paid down to zero. After the step-down date, and provided that certain performance tests have been met, principal payments will be distributed among the certificates of all classes on a pro rata basis. In addition, provided that certain performance tests have been met, the level of overcollateralization may be allowed to step down to 5.40% of the then-current balance of the mortgage loans.

The mortgage loans were primarily originated or acquired by Quick Loan Funding Inc. (28.7%), Sunset Direct Lending, LLC (18.6%), and Chapel Mortgage Corporation (11.2%). As of the cut-off date (February 1, 2006), the aggregate principal balance of the mortgage loans is US$980,223,809. The weighted average mortgage rate is 7.857%, the weighted average FICO is 612, and the weighted average combined loan-to-value ratio is 84.77%.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

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