INSTITUTIONAL HOLDERS ISSUE NOTICE OF NON-PERFORMANCE IDENTIFYING ALLEGED FAILURES BY SERVICER AND MASTER SERVICER TO PERFORM COVENANTS AND AGREEMENTS IN MORE THAN $28 BILLION OF MORGAN STANLEY-ISSUED RMBS AND $45 BILLION OF WELLS FARGO-ISSUED RMBS

Today, the holders of significant Voting Rights in more than $28 billion of Morgan Stanley-issued RMBS and $45 billion of Wells Fargo-issued RMBS sent a Notice of Non-Performance (Notice) to Morgan Stanley and Wells Fargo, as Servicer or Master Servicer, identifying specific covenants in Pooling and Servicing Agreements (PSAs) that the Holders allege Morgan Stanley and Wells Fargo have failed to perform.  The Notice covers more than $5 billion of Morgan Stanley-issued RMBS and $15 billion of Wells Fargo-issued RMBS in which the Holders have 25% or 50% or more of the Voting Rights, as applicable.  The Notice also covers $23 billion of Morgan Stanley-issued RMBS and $30 billion of Wells Fargo-issued RMBS in which the holders have significant Voting Rights, but less than 25% or 50%, as applicable.

The Holders’ Notice alleges that each of these failures has materially affected the rights of the Certificateholders and constitutes an ongoing Event of Default in the Servicer’s performance under the relevant PSAs.

The Notice of Non-Performance was issued on behalf of Holders in the following Morgan Stanley and Wells-Fargo-issued RMBS:

IXIS 2005-HE3 MSM 2006-3AR WFMBS 2004-CC WFMBS 2006-12
IXIS 2005-HE4 MSM 2006-5AR WFMBS 2004-DD WFMBS 2006-13
IXIS 2006-HE1 MSM 2006-6AR WFMBS 2004-E WFMBS 2006-14
IXIS 2006-HE2 MSM 2006-7 WFMBS 2004-EE WFMBS 2006-15
IXIS 2006-HE3 MSM 2006-8AR WFMBS 2004-F WFMBS 2006-16
IXIS 2007-HE1 MSM 2006-9AR WFMBS 2004-G WFMBS 2006-17
MSAC 2006-HE2 MSM 2007-10XS WFMBS 2004-H WFMBS 2006-19
MSAC 2006-HE3 MSM 2007-11AR WFMBS 2004-I WFMBS 2006-2
MSAC 2006-HE4 MSM 2007-12 WFMBS 2004-J WFMBS 2006-20
MSAC 2006-HE5 MSM 2007-13 WFMBS 2004-K WFMBS 2006-3
MSAC 2006-HE6 MSM 2007-14AR WFMBS 2004-L WFMBS 2006-4
MSAC 2006-HE8 MSM 2007-15AR WFMBS 2004-M WFMBS 2006-5
MSAC 2006-NC2 MSM 2007-1XS WFMBS 2004-N WFMBS 2006-6
MSAC 2006-NC3 MSM 2007-2AX WFMBS 2004-O WFMBS 2006-7
MSAC 2006-NC4 MSM 2007-3XS WFMBS 2004-P WFMBS 2006-8
MSAC 2006-WMC2 MSM 2007-5AX WFMBS 2004-Q WFMBS 2006-9
MSAC 2007-HE1 MSM 2007-6XS WFMBS 2004-R WFMBS 2006-AR1
MSAC 2007-HE2 MSM 2007-7AX WFMBS 2004-S WFMBS 2006-AR10
MSAC 2007-HE3 MSM 2007-8XS WFMBS 2004-T WFMBS 2006-AR11
MSAC 2007-HE4 SAST 2004-1 WFMBS 2004-U WFMBS 2006-AR12
MSAC 2007-HE5 SAST 2004-2 WFMBS 2004-V WFMBS 2006-AR13
MSAC 2007-HE6 SAST 2004-3 WFMBS 2004-W WFMBS 2006-AR14
MSAC 2007-HE7 SAST 2005-1 WFMBS 2004-X WFMBS 2006-AR16
MSAC 2007-NC1 SAST 2005-2 WFMBS 2004-Y WFMBS 2006-AR17
MSAC 2007-NC2 SAST 2005-3 WFMBS 2004-Z WFMBS 2006-AR18
MSAC 2007-NC3 SAST 2005-4 WFMBS 2005-1 WFMBS 2006-AR19
MSAC 2007-NC4 SAST 2006-1 WFMBS 2005-10 WFMBS 2006-AR2
MSAC 2007-SEA1 SAST 2006-2 WFMBS 2005-11 WFMBS 2006-AR3
MSHEL 2006-3 SAST 2006-3 WFMBS 2005-12 WFMBS 2006-AR4
MSHEL 2007-1 SAST 2007-1 WFMBS 2005-13 WFMBS 2006-AR5
MSHEL 2007-2 SAST 2007-2 WFMBS 2005-14 WFMBS 2006-AR6
MSIX 2006-1 SAST 2007-3 WFMBS 2005-15 WFMBS 2006-AR7
MSIX 2006-2 SAST 2007-4 WFMBS 2005-16 WFMBS 2006-AR8
MSM 2004-1 WFALT 2005-1 WFMBS 2005-17 WFMBS 2007-1
MSM 2004-10AR WFALT 2005-2 WFMBS 2005-18 WFMBS 2007-10
MSM 2004-11AR WFALT 2007-PA1 WFMBS 2005-2 WFMBS 2007-11
MSM 2004-2AR WFALT 2007-PA2 WFMBS 2005-3 WFMBS 2007-12
MSM 2004-3 WFALT 2007-PA3 WFMBS 2005-4 WFMBS 2007-13
MSM 2004-4 WFALT 2007-PA4 WFMBS 2005-5 WFMBS 2007-14
MSM 2004-5AR WFALT 2007-PA5 WFMBS 2005-6 WFMBS 2007-15
MSM 2004-6AR WFALT 2007-PA6 WFMBS 2005-7 WFMBS 2007-2
MSM 2004-7AR WFHET 2004-1 WFMBS 2005-8 WFMBS 2007-3
MSM 2004-8AR WFHET 2004-2 WFMBS 2005-9 WFMBS 2007-4
MSM 2004-9 WFHET 2005-2 WFMBS 2005-AR1 WFMBS 2007-5
MSM 2005-1 WFHET 2005-3 WFMBS 2005-AR10 WFMBS 2007-6
MSM 2005-10 WFHET 2005-4 WFMBS 2005-AR11 WFMBS 2007-7
MSM 2005-11AR WFHET 2006-1 WFMBS 2005-AR12 WFMBS 2007-8
MSM 2005-2AR WFHET 2006-3 WFMBS 2005-AR13 WFMBS 2007-9
MSM 2005-3AR WFHET 2007-1 WFMBS 2005-AR14 WFMBS 2007-AR3
MSM 2005-4 WFHET 2007-2 WFMBS 2005-AR15 WFMBS 2007-AR4
MSM 2005-5AR WFMBS 2004-1 WFMBS 2005-AR16 WFMBS 2007-AR8
MSM 2005-6AR WFMBS 2004-2 WFMBS 2005-AR2 WMLT 2005-A
MSM 2005-7 WFMBS 2004-3 WFMBS 2005-AR3 WMLT 2005-B
MSM 2005-9AR WFMBS 2004-4 WFMBS 2005-AR4 WMLT 2005-WMC1
MSM 2006-11 WFMBS 2004-5 WFMBS 2005-AR5 WMLT 2006-A
MSM 2006-12XS WFMBS 2004-6 WFMBS 2005-AR6 WMLT 2006-ALT1
MSM 2006-13AX WFMBS 2004-7 WFMBS 2005-AR7 WMLT 2006-AMN1
MSM 2006-15XS WFMBS 2004-A WFMBS 2005-AR8 WMLT 2007-A
MSM 2006-16AX WFMBS 2004-AA WFMBS 2005-AR9  
MSM 2006-17XS WFMBS 2004-B WFMBS 2006-1  
MSM 2006-1AR WFMBS 2004-BB WFMBS 2006-10
MSM 2006-2 WFMBS 2004-C WFMBS 2006-11  

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