<PAGE> 1
                                    UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.
20549
                                        FORM 10-Q

               Quarterly Report Pursuant to Section
13 or 15(d) of
                         the Securities Exchange Act
of 1934

For the quarter ended September 30, 1996 Commission
file number 0-11281

                    NORWEST CONVENTIONAL 1, INC.
                 (Exact name of registrant as
specified in its charter)

Delaware                                     41-
1462646
(State or other jurisdiction of              (I.R.S.
Employer Identification No.)
incorporation or organization)


405 S.W. Fifth Street, Des Moines, Iowa
50328
(Address of principal executive offices)
(Zip code)


Registrant's telephone number, including area code
(515) 237-6000

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN
GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND
IS  THEREFORE  FILING  THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT.

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
 .

On October 30, 1996, 1,000 shares of the
registrant's common stock were outstanding.  All
common stock of registrant is held by an affiliate.














<PAGE> 2


PART I -- FINANCIAL INFORMATION


Item 1.  Financial Statements.


The following statements of the Company are included
herein:

1.  Balance Sheets - September 30, 1996 and December
31, 1995.

2.  Statements of Operations - For the quarters
ended September 30, 1996 and 1995.

3.  Statements of Operations - For the nine months
ended September 30, 1996 and 1995.

4.  Statements of Stockholder's Equity - For the
nine months ended
September 30, 1996, and September 30, 1995, and for
the three months ended December 31, 1995.

5.  Statements of Cash Flows - For the nine months
ended September 30, 1996, and 1995.

The financial information for the interim periods is
unaudited.  In the opinion of management, all
adjustments necessary for a fair presentation of the
results of operations have been included.  The
results of operations for an interim period are not
necessarily indicative of the results that may be
expected for a full year or any other interim
period.






















<PAGE> 3

                          NORWEST MORTGAGE
CONVENTIONAL 1, INC.
                          (a wholly-owned subsidiary
of Norwest Mortgage, Inc.)


BALANCE SHEETS

UNAUDITED

                                     September 30,
1996 and December 31,1995



September 30,        December 31,
Assets                                        1996
1995

Note receivable from parent           $   4,220
$   4,220
Money market investment, at cost      41,353
41,353
Investment securities, at cost           169,605
169,605
Due from parent company                13,018
13,018
Other assets
(17)               (17)

Total assets
$228,179       $228,179

Stockholder's Equity

Common stock, $1 par value:
1,000 shares authorized, issued
and outstanding                            $
1,000       $   1,000

Additional paid-in capital                 227,179
227,179

Total stockholder's equity              $228,179
$228,179

















<PAGE> 4

                       NORWEST MORTGAGE CONVENTIONAL
1, INC.
                      (a wholly-owned subsidiary of
Norwest Mortgage, Inc.)

                             STATEMENTS OF
OPERATIONS

UNAUDITED

                       For the quarters ended
September 30, 1996 and 1995



1996             1995
Income:
     Other interest income                    $   --
$(3,882)
Total income
--               (3,882)

Operating expenses:
     Parent company management fee        171
512
     Other operating expenses                  (171)
(4,394)

Total operating expenses                          --
(3,882)

Net income before income taxes                --
--

Provision for income taxes                       --
--

Net income                                         $
--                  $ --























<PAGE> 5
                          
                    NORWEST MORTGAGE CONVENTIONAL 1,
                        INC.
                       (a wholly-owned subsidiary of
Norwest Mortgage, Inc.)

                             STATEMENTS OF
OPERATIONS

UNAUDITED

                For the nine months ended September
30, 1996 and 1995



1996             1995
Income:
     Other interest income                     $ --
$(2,565)
Total income
--                 (2,565

Operating expenses:
     Parent company management fee      1,195
1,591
     Other operating expanses                (1,195)
(4,156)

Total operating expenses                         --
(2,565)

Net income before income taxes               --
--

Provision for income taxes                      --
--

Net income                                        $
--                  $ --























<PAGE> 6


                 NORWEST MORTGAGE CONVENTIONAL 1,
INC.
                (a wholly-owned subsidiary of
Norwest Mortgage, Inc.)

                  STATEMENTS OF STOCKHOLDER'S EQUITY
                                        UNAUDITED

For the nine months ended September 30, 1996 and
September 30, 1995,
                                   and December 31,
1995



Additional
                                    Common   Paid in
Retained
                                      Stock
Capital    Earnings   Total

Balance, December 31,      $  1,000 $239,187       -
-     240,187
        1994

Net income                             --
--                              --          --

Return of capital to
      parent company                 --
(12,008)      --     (12,008)

Balance, September 30,      $ 1,000  $227,179
--   $228,179
        1995

Net income                             --
--        --          --

Balance, December 31,
        1995                        $ 1,000
$227,179       --   $228,179

Net income                             --
--         --          --

Balance, September 30,       $ 1,000  $227,179
--   $228,179
        1996















<PAGE> 7

                NORWEST MORTGAGE CONVENTIONAL 1,
INC.
                (a wholly-owned subsidiary of
Norwest Mortgage, Inc.)

                        STATEMENTS OF CASH FLOWS
                                        UNAUDITED

      For the nine months ended September 30, 1996
and 1995


1996         1995
Cash flows from operating activities:
     Net income                                  $
--       $     --
     Adjustments to reconcile net
     earnings to net cash provided by
     operating activities:
          Decrease in other assets
--             62
          Decrease (increase) in
          due from Parent Company                  -
-        (3,868)
     Net cash from (used for) operating
     activities
--        (3,806)

Cash flows from financing activities:
     Return of capital to parent company          --
(12,008)

     Net cash used for financing activities        -
-      (12,008)

Decrease in cash and cash equivalents            --
(15,814)

Cash and cash equivalents beginning
     of year
41,353       57,167

Cash and cash equivalents at                  41,353
41,353
September 30, 1996

















<PAGE> 8

Item 2.  Management's Discussion and Analysis of
Financial Condition and
            Results of Operations.


The following narrative by management of the
Company's results of operations is provided in
accordance with General Instruction (H)(2)(a) of
Form 10-Q.

Norwest Mortgage Conventional 1, Inc. (the
Company), a wholly-owned subsidiary of Norwest
Mortgage, Inc. (the parent company) which is a
wholly-owned subsidiary of Norwest Nova, Inc., was
incorporated on October 20, 1983, under the laws of
the State of Delaware.  The Company was organized
to issue and sell one series of obligations,
consisting of four classes, collateralized by fully
modified, pass-through, mortgage-backed
certificates guaranteed as to principal and
interest by the Government National Mortgage
Association, and does not intend to engage in any
other business activities except activities
incidental and necessary to the foregoing.

The Company had no net income for the quarter and
nine months ended September 30, 1996 and 1995. The
management contract is structured so that all
available income of the Company shall be paid to the
parent company as compensation for management
services, reimbursement for certain expenses, and as
additional purchase price of the pass-through
certificates purchased from the parent company.  As
a result of the terms of the management contract, it
is anticipated that the Company will have no net
income for a number of subsequent years.





















<PAGE> 9

                           PART II -- OTHER
INFORMATION


Item 1.  Legal Proceedings.

            None.

Item 2.  Changes in Securities.

            Omitted pursuant to General Instruction
(H)(2)(b) of Form
            10-Q.

Item 3.  Defaults Upon Senior Securities.

            Omitted pursuant to General Instruction
(H)(2)(b) of Form
            10-Q.

Item 4.  Submission of Matters to a Vote of Security
Holders.

            Omitted pursuant to General Instruction
(H)(2)(b) of Form 10-Q.

Item 5.  Other Information.

            Omitted pursuant to General Instruction
(H)(2)(b) of Form 10-Q.

Item 6.  Exhibits and Reports on Form 8-K.

            (a)   None.

            (b)   None.


















<PAGE> 10

                                          SIGNATURES


Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant had duly caused
this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Norwest Mortgage Conventional 1, Inc.



Dated:  October 30, 1996

Alta J. Jones

Senior Vice President and

Chief Financial Officer

(Principal Accounting and

Financial Officer)