SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
                       
FORM 10-K
                       
Annual Report Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934 
for the fiscal year ended December 31, 1998
                       
Commission File Number: 33-92146
                       
American Southwest Financial Securities Corporation 
(Exact Name of registrant as specified in its charter)
                       
Arizona      			0742739
(State or Other Juris-		(I.R.S. Employer
diction of Incorporation)     Identification No.)
  
2390 Camelback Road Suite 225
Phoenix, AZ  85016 
(Address of Principal Executive Office)
 
212-526-5594 
(Registrant's telephone number, including area code) 

  
Securities registered pursuant to Section 12(b) of the 
Act:     None
  
Securities registered pursuant to Section 12(g) of the 
Act:     None
  
Indicate by check mark whether the registrant (1) has filed 
all reports required to be filed  by Section 13 or 15(d) of 
the Securities Exchange Act of 1934 during the preceding 12 
months (or for such shorter period that the registrant was 
required to file such reports),and (2) has been subject to such 
filing requirements for the past 90 days. 
  
Yes  X   No _
  
Indicate by check mark if disclosure of delinquent filers pursuant 
to Item 405 of Regulation S-K is not contained herein, and will not 
be contained, to the best of registrant's knowledge, in definitive 
proxy or information statements incorporated by reference in part 
III of this Form 10-K or any amendment to this Form 10-K.  

Not applicable.
  
Aggregate market value of voting stock held by non-affiliates of the 
Registrant as of December 31, 1998.  

Not applicable.
  
Number of shares of common stock outstanding as of December 31, 1998.  

Not applicable.
 Table of Contents
                        
  
PART I
  
Item 1. Business..................................................3
  
Item 2. Properties................................................3
  
Item 3. Legal Proceedings.........................................3
  
Item 4. Submission Of Matters To A Vote Of Security Holders.......3
  
PART II
  
Item 5. Market For Registrant's Common Equity And 
Related Shareholder Matters.......................................3
  
Item 6. Selected Financial Data...................................3
  
Item 7. Management's Discussion And Analysis Of Financial Condition 
And Results Of Operations...............................4
  
Item 8. Financial Statements And Supplementary Data...............4
  
Item 9. Changes In And Disagreements With Accountants On 
Accounting And Financial Disclosure.....................4
  
PART III
  
Item 10. Directors And Executive Officers Of The Registrant.......4
  
Item 11. Executive Compensation...................................4
  
Item 12. Security Ownership Of Certain Beneficial Owners And 
            Management......................................4
  
Item 13. Certain Relationships And Related Transactions...4
  
PART IV
  
Item 14. Exhibits, Financial Statement Schedules And Reports 
On Form 8-K.....................................4
  
Signatures................................................4
  
Exhibit Index.............................................4

    
PART I
  
ITEM 1.         BUSINESS
  
This Annual Report on Form 10-K relates to the Trust Fund 
formed, American Southwest Financial Securities Corporation
as sponsor, LaSalle National Bank, as Trustee, and 
ABN AMRO Bank N.V., as fiscal agent. The Offered Certificates 
have been registered pursuant to the Act under a Registration 
Statement on Form S-3 (the "Registration Statement").
  
Capitalized terms used herein and not defined have the same 
meanings ascribed to such terms in the Pooling and Servicing 
Agreement.
  
This Annual Report is being filed by the Trustee, in its capacity 
as such under the Pooling and Servicing Agreement, on behalf of 
Registrant.  The information contained herein has been supplied 
to the Trustee by one or more of the Borrowers or other third 
parties without independent review or investigation by the 
Trustee.  Pursuant to the Pooling and Servicing Agreement, the 
Trustee is not responsible for the accuracy or completeness of 
such information.
  
ITEM 2.         PROPERTIES
  
See Exhibits 99.1 and 99.2 hereto for Servicer's Annual 
Statement of Compliance and Servicer s Independent Accountant's
Report on Servicer's servicing activities.
  
ITEM 3.         LEGAL PROCEEDINGS
  
Except for claims arising in the ordinary course of business and 
which are covered by liability insurance, there are no material 
pending legal proceedings involving the Trust Fund, the Mortgages 
comprising the Trust Fund or the Trustee, the Special Servicer or 
the Servicer with respect to or affecting their respective duties 
under the Pooling and Servicing Agreement.
  
ITEM 4.        SUBMISSION OF MATTERS TO A VOTE OF SECURITY  
HOLDERS
  
No matters were submitted to a vote of Certificateholders during 
the fiscal year covered by this report.
  
PART II
  
ITEM 5.         MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED       
                STOCKHOLDER MATTERS
  
There was one registered holder of the Certificate representing 
an equity interest in the Trust as of December 31, 1997.  To the 
Registrant's knowledge, as of that date, there was no principal 
market in which the Certificates representing an equity interest 
in the Trust were traded.

  
ITEM 6.         SELECTED FINANCIAL DATA
  
Not applicable.
  
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF A FINANCIAL 
   CONDITION AND RESULTS OF OPERATIONS.
  
Not applicable.
  
ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTARY  DATA
  
Not applicable.
  
ITEM 9.        CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON        
               ACCOUNTING AND FINANCIAL DISCLOSURE
  
None.
  
PART III
  
The information required by Items 10, 11, 12 and 13 is not 
applicable as the trust fund does not have directors or 
officers and Certificateholders have no right to vote (except 
with respect to required consents to certain amendments to the 
Pooling and Servicing Agreement and upon certain events of 
default) or control the Trust Fund.
  
PART IV
 
ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS 
    ON FORM 8-K
  
(a)     
1.  Servicer's Annual Statement of Compliance for the period 
ended 12/31/98.
2.  Servicer's Independent Accountant's Report on Servicer's 
servicing activities.

(b)  All current Reports on Form 8-K for the Trust have been 
filed as of 12/31/98. 
  
Pursuant to the requirements of Section 13 or 15(d) of the 
Securities Exchange Act of 1934, the Registrant has duly caused 
this report to be signed on its by the undersigned thereunto 
duly authorized.
   
LASALLE NATIONAL BANK, IN
ITS CAPACITY AS TRUSTEE UNDER 
THE POOLING AND SERVICING
AGREEMENT ON BEHALF OF American 
Southwest Financial Securities Corporation 
REGISTRANT      
              
By: /s/ Russell Goldenberg
Name:  Russell Goldenberg
Title: Senior Vice President
Dated: March 30, 1999
  
EXHIBIT INDEX
  
  
Exhibit No.     Description
  
99.1  Servicer's Annual Statement of Compliance
99.2   Servicer's Independent Accountants' Report on 
Servicer's servicing activities


GREYSTONE

OFFICER'S CERTIFICATE

Pursuant to Article 111, Section 3.18 of the Pooling and 
Servicing Agreement dated December 1, 1996, 1, Jacqueline 
Garland, Vice President of Greystone Servicing Corporation,
Inc., Master Servicer of the aforementioned Pooling and 
Servicing Agreement, attest that (a) a review of the 
activities of the Master Servicer under this agreement has 
been made under my supervision, (b) to the best of my 
knowledge, based on the review, the Master Servicer has 
fulfilled all its obligations under this Agreement in all 
material respects throughout the year,(c) a review of the 
activities of each Sub- Servicer during the immediately 
preceding year and its performance under the related 
SubServicing Agreement has been made and, (d) to the best 
of my knowledge, based on such review, each Sub- Servicer 
has performed and fulfilled its duties, responsibilities 
and obligations under the related Sub- Servicing Agreement 
in all material respects throughout such year.

Jacqueline Garland
Vice President of Greystone Servicing Corporation, Inc


	Gross Collins, P.C.


To the Board of Directors of
INDEPENDENT AUDITORS' REPORT

Greystone Servicing Corporation, Inc. & Subsidiary

We have audited the accompanying consolidated balance sheets of

GREYSTONE SERVICING CORPORATION, INC. & SUBSIDIARY

as of December 31, 1998 and 1997, and the related 
consolidated statements of income, comprehensive income, 
stockholder's equity, and cash flows for the years then 
ended. These financial statements are the responsibility
of the Company's management. Our responsibility is 
to express an opinion on these financial statements 
based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards and Government Auditing Standards, issued by the Comptroller 
General of the United States. Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether the financial 
statements are free of material misstatement. An audit includes examinin-, 
on a test basis, evidence supporting the amounts and disclosures in the 
financial statements. An audit also includes assessin the accountina princi

In our opinion, the consolidated financial statements referred to above 
present fairly, in all material respects, the consolidated financial position
 of Greystone Servicing Corporation, Inc. & Subsidiary as of December 31, 
1998 and 1997, and the results of its operations and its cash flows for the 
years then ended in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards and the Consolidated Audit 
Guide for Audits of HUD ProLyrams issued by the U.S. Department of Housing 
and Urban Development, we have also issued a report dated February 26,1999, 
on our consideration of Greystone Servicing Corporation, Inc. & Subsidiary's 
internal control and a report dated February 26, 1999, on its compliance with 
specific requirements applicable to major HUD programs.

Our audits were conducted for the purpose of expressing an opinion on the 
basic financial statements taken as a whole. The supporting information 
included on pages 19 through 25 is presented for the purposes of additional 
analysis and is not a required part of the basic financial statements. Such 
information has been subjected to the auditing procedures applied in the 
audits of the basic financial statements and, in our opinion, is fairly 
stated in all material respects in relation to the basic financial st

Atlanta, Georgia

February 26, 1999

Federal Identification 58-1367012


2625 Cumberland Parkway, Suite 400, Atlanta, Georgia 30339, USA. 
Telephone: + 1770 433 1711. Fax: + 1 770 432 3473.