<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 30,1998 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) 221-7300

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 November 12, 1998, 1,000 shares of the
registrant's common stock were outstanding.  All
common stock of registrant is held by an affiliate.














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PART I -- FINANCIAL INFORMATION


Item 1.  Financial Statements.


The following statements of the Company are included
herein:

1.  Balance Sheets - September 30,1998 and December
31, 1997.

2.  Statements of Operations - For the quarters
ended September 30,1998 and 1997.

3.  Statements of Operations - For the nine months
ended September 30, 1998 and 1997.

4.  Statements of Stockholder's Equity - For the
nine months ended
September 30, 1998, and September 30, 1997, and for
the three months ended December 31, 1997.


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.
























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


BALANCE SHEETS

UNAUDITED

                                     September
30,1998 and December 31,1997



September 30,      December 31,
Assets                                        1998
1997

Note receivable from parent           $   4,220
$   4,220
Money market investment, at cost      47,866
45,879
Investment securities, at cost           169,605
169,605
Due from parent company                 6,488
8,475


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

















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

                             STATEMENTS OF
OPERATIONS

UNAUDITED

                       For the quarters ended
September 30,1998 and 1997



1998             1997
Income:
     Other interest income                    $  206
$       --
Total income
206                   --

Operating expenses:
     Parent company management fee            --
--
     Other operating expenses                  206
--

Total operating expenses                        206
--

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
30,1998 and 1997



1998             1997
Income:
     Other interest income                     $
1,987               $ --
Total income
1,987                  --

Operating expenses:
     Parent company management fee         --
--
     Other operating expenses
1,987                 --

Total operating expenses
1,987                 --

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, 1998 and
September 30, 1997,
                                   and December 31,
1997



Additional
                                    Common   Paid in
Retained
                                      Stock
Capital    Earnings   Total

Balance, December 31,      $  1,000 $227,179       -
-     228,179
        1996

Net income                             --
--                              --          --

Balance, September 30,     $ 1,000  $227,179      --
$228,179
        1997

Net income                             --
--        --          --

Balance, December 31,
        1997                       $ 1,000  $227,179
--   $228,179

Net income                             --
--        --          --

Balance, September 30,     $ 1,000   $227,179      -
-   $228,179
        1998
















<PAGE> 7

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 30,1998 and 1997. 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.

Year 2000 Readiness Disclosure

      The  Company is aware of the issues associated
with  the  programming  code  in  existing  computer
systems  as  the millennium (year 2000)  approaches.
The  "year  2000 problem" is pervasive and  complex;
virtually every computer operation will be  affected
in  some  way by the rollover of the two-digit  year
value  to 00.  The issue is whether computer systems
will  properly recognize date-sensitive  information
when the year changes to 2000.  Systems that do  not
properly  recognize such information could  generate
erroneous  data,  fail or cause  another  system  to
fail.   "Systems"  include all  hardware,  networks,
system and application software, commercial "off-the-
shelf"   software,  data  and  voice   communication
devices,  and  embedded  technology  such  as  date-
impacted  processors in automated  systems  such  as
elevators,  telephone  systems,  security   systems,
vault  systems,  heating  and  cooling  systems  and
others.





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     The  Company's year 2000 readiness projects are
divided into four phases:
       
Phase  I: comprehensive assessment and inventory  of
Systems    intended   to   determine    year    2000
vulnerability and risk;
       
Phase  II:  date  detection on Systems  intended  to
determine which Systems must be remediated and which
Systems  are  compliant  and require  testing  only;
determination of required resources and  costs;  and
the  development of schedules and high-level testing
plans  for the repair, replacement and/or retirement
of   Systems that are not determined to be year 2000
compliant;
       
Phase III: repair, replacement and/or retirement  of
Systems  that  are not determined to  be  year  2000
compliant;  conduct  testing of individual  Systems;
and  plan the integration testing for those  Systems
that   have  interfaces  with  other  Systems   both
internal and external to the company, such as  those
of customers and suppliers; and
       
Phase  IV: integration testing of applicable Systems
to  validate that interfaces with other Systems  are
year   2000   compliant;  and  the  development   of
contingency   plans,  such  as  plans   to   recover
operations and alternatives to mitigate the  effects
of  counterparties  whose own  failure  to  properly
address year 2000 issues may adversely impact  their
ability to perform certain functions.
     
     The   Company  in  respect  to  the  year  2000
project:  (i) has substantially completed  Phases  I
and   II;   (ii)  anticipates  Phase  III  will   be
substantially  complete by December  31,  1998;  and
(iii)  anticipates  Phase IV will  be  substantially
complete by June 30, 1999.
     
     The  cost  to address the Company's  year  2000
projects  are  included as part  of  the  management
contract with its parent company.
     
     In  the event year 2000 problems arise out of  a
failure  of the efforts described above any resulting
disruptions  could  adversely  affect  the   business
operations.













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                           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.


















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                                          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: November 13, 1998

Robert K. Chapman

Chief Financial Officer

(Principal Accounting and

Financial Officer)