UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C.  20549
                                 FORM 10-Q


[X] 	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001

                                    OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934


      For the transition period from ________________ to ________________


                        Commission File Nos.:  33-67202


                     FUND AMERICA INVESTORS CORPORATION II
                    ---------------------------------------
             (Exact name of registrant as specified in its charter)


        Delaware                                               84-1218906
     --------------                                         ----------------
(State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                          identification number)



    6400 S. Fiddler's Green Circle, Suite 1200B, Englewood, Colorado 80111
                    (Address of principal executive offices)


      Registrant's telephone number including area code: (303) 290-6025



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 the number of shares outstanding of each of the issuer's classes of
common stock as of August 14, 2001- 349,000 shares.








                     FUND AMERICA INVESTORS CORPORATION II
                             FORM 10-Q FOR THE
                      SIX MONTHS ENDED JUNE 30, 2001


                                  INDEX



PART I.  FINANCIAL INFORMATION                                 PAGE NO.
------------------------------                                 --------


Item 1.     Financial Statements                                  3

Item 2.     Management's Discussion and
            Analysis of Financial Condition
            and Results of Operations                             6


PART II.  OTHER INFORMATION
---------------------------

Item 1.     Legal Proceedings                                     9

Item 2.     Changes in Securities                                 9

Item 3.     Defaults upon Senior Securities                       9

Item 4.     Submission of Matters to a Vote
            of Security Holders                                   9

Item 5.     Other Information                                     9

Item 6.     Exhibits and Reports                                  9

            SIGNATURES                                           10
















                                  Page 2





                          PART I.  FINANCIAL INFORMATION
                          ------------------------------


Item 1.  Financial Statements
-----------------------------

                       FUND AMERICA INVESTORS CORPORATION II
                                  Balance Sheets
                                   (Unaudited)


                                                   June 30,        December 31,
                                                     2001              2000
                                                 -----------       -----------

Assets
    Cash and cash equivalents                    $       603       $       797
    Deferred offering costs, net                     256,361           256,361
    Prepaid expenses                                       -               195
                                                 -----------       -----------
  Total assets                                   $   256,964       $   257,353
                                                 ===========       ===========



Liabilities - accounts payable                   $    14,727       $       145


Commitments and Contingencies                              -                 -


Shareholder's equity
    Common stock, par value $.01 per share;
      1,000,000 shares authorized; 349,000
      shares issued and outstanding                    3,490             3,490
    Additional paid-in capital                       453,010           450,510
    Shareholder distributions                     (1,874,798)       (1,849,798)
    Retained earnings                              1,660,535         1,653,006
                                                  ----------        ----------
  Total shareholder's equity                         242,237           257,208
                                                  ----------        ----------

  Total liabilities and shareholder's equity      $  256,964        $  257,353
                                                  ==========        ==========




See notes to financial statements



                                     Page 3

                        FUND AMERICA INVESTORS CORPORATION II
                               Statements of Operations
                                     (Unaudited)



                                  Three months ended          Six months ended
                                       June 30,                   June 30,
                                ----------------------      --------------------
                                  2001          2000           2001        2000
                                --------      --------      --------    --------

Revenue
  Other bond income             $      -      $      -      $ 30,000    $ 18,000
  Interest                             1           207             8         667
  Issuance fees                        -        18,000             -      76,253
                                --------      --------      --------    --------
Total revenue                          1        18,207        30,008      94,920
                                --------      --------      --------    --------


Expenses
  General and administrative         923           915        10,480       9,768
  Management fees                  6,000         6,000        12,000      12,000
  Deferred offereing costs             -         5,000             -       6,358
                                --------      --------      --------    --------
Total expenses                     6,923        11,915        22,480      28,126
                                --------      --------      --------    --------


Net income                     ($  6,922)     $  6,292      $  7,528    $ 66,794
                                ========      ========      ========    ========



See notes to financial statements
















                                   Page 4




                     FUND AMERICA INVESTORS CORPORATION II
                           Statements of Cash Flows
                                  (Unaudited)


                                                        Six months ended
                                                            June 30,
                                                    ------------------------
                                                       2001          2000
                                                    ----------    ----------

Net cash flows from operating activities:
   Net income                                       $    7,528    $   66,794
Adjustments to reconcile net income to
 net cash from operating activities:
   Amortization of deferred offering costs                   -         1,253
   Changes in operating assets and liabilities:
      Accounts payable                                  14,583             -
      Prepaid expenses                                     195        (1,813)
                                                    ----------    ----------
Net cash provided by operating activities:              22,306        66,234


Cash flows used in financing activities:
   Capital contributions                                 2,500             -
   Shareholder distributions                           (25,000)      (70,000)
                                                    ----------    ----------
Net cash used in financing activities:                 (22,500)      (70,000)
                                                    ----------    ----------


Net increase in cash and cash equivalents                 (194)       (3,766)

Cash and cash equivalents at beginning of year             797        15,513
                                                    ----------    ----------

Cash and cash equivalents at end of year            $      603    $   11,747
                                                    ==========    ==========



See notes to financial statements










                                          Page 5




                            FUND AMERICA INVESTORS CORPORATION II
                                NOTES TO FINANCIAL STATEMENTS
                                        (Unaudited)
                          Three months ended June 30, 2001 and 2000

1.  Basis of Presentation
    ---------------------

Organization
------------

     Fund America Investors Corporation II (the "Company") was incorporated in
the State of Delaware on December 14, 1992 as a limited purpose finance
corporation. The Company was established to engage in the issuance and
administration of Collateralized Mortgage Obligations (the "Bonds") and Asset-
Backed Certificates (the "Certificates", and together with the Bonds, the
"Securities").  The Securities are issued in one or more series, from time to
time, by the Company in accordance with the provisions in the prospectus and
series-related prospectus supplement of the Company's latest effective
registration statement.

     The Securities of each series can be issued directly by the Company, but
typically the Company forms a separate trust to act as the issuer solely for the
purpose of issuing a series of Securities.  A series of Securities that consist
of Bonds will be issued pursuant to an indenture and will represent indebtedness
of the trust or issuer.  A series of Securities that consist of Certificates
will represent beneficial ownership in the related trust or issuer.  The sole
source of payments to Bondholders or Certificateholders within each series of
Securities is produced from the related trust property.  The trust property is
generally comprised of mortgage loans and/or mortgage-related assets as
described in each of the series' related prospectus supplements.

     The Company may not, either directly or indirectly through a beneficially
owned trust, engage in any business or investment activity other than to; (1)
issue and sell Bonds; (2) purchase, own, hold, pledge or sell mortgage loans or
other mortgage-related assets; (3) invest and maintain cash balances on an
interim basis in high quality short-term securities; and (4) engage in other
activities which are necessary or convenient to accomplish the foregoing and are
incidental thereto.

     On January 1, 2001, the Company had a total of $561 million registered and
unissued Securities on its Registration Statement No. 333-33823.  No Securities
were issued during the first or second quarter of 2001.  From inception to date,
the Company has issued nineteen series of Securities, which aggregate $2.4
billion in original issued principal.  The Company does not have any further
obligations in connection with the issuance of these Securities.  Under
accounting principles generally accepted in the United States of America, these
issuances are considered to be a direct sale of the collateral.

     The Company's fifth Registration Statement on Form S-3 was filed on
September 30, 1998 with the Securities and Exchange Commission.  The purpose of
this filing was to register an additional amount of Securities and to merge the
Company's Effective Registration Statement No. 333-33823, thereby increasing the


                                Page 6

total amount of Securities that can be issued by the Company.  As of June 30,
2001, this Registration Statement was not effective and was subject to
completion or amendment.  The Company intends to file one or more further
amendments to complete this Registration Statement and to bring it effective.


2.   Unaudited Financial Statements
     ------------------------------

     In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly the financial
position of the Company at June 30, 2001, and the results of its operations and
cash flows for the periods ended June 30, 2001 and 2000.



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

Liquidity and Capital Resources
-------------------------------

     The Company expects to fund ongoing operations from its cash balances,
revenues derived from the issuance of Securities, and if necessary, from loans
or capital contributions from its sole shareholder. The current cash position
will not adequately fund overhead costs over the next twelve months without
additional revenues generated during this period.  Capital funding will be
provided by the sole shareholder to cover operating costs as needed or until the
Company generates sufficient revenue.  The funding source for any additional
capital costs relating to the registration of securities will be determined when
the funding is required and will depend on the cash position at that time.


Results of Operations
---------------------

     The Company operates on relatively fixed general and administrative costs
which have not substantially changed from comparable periods in prior years.
Typically, periodical fluctuations in net income are directly related to
activity from the issuance of Securities.  Under normal circumstances, periods
reporting net income are the direct result of issuance fees earned by the
Company, and periods reporting a net loss, no issuance fees were earned.  For
the three-months ended June 30, 2001, the Company reported net loss of $6,922
and a net income of $6,292 for the three months ended June 30, 2000. The
difference in the two reporting periods was a result of call option fees
received in the amount of $18,000 when the bonds in Fund America Investors
Corporation II, Series 1993-H were called by the servicer in 2000.  The
remaining income and expense items for June 30, 2001 are comparable to the
three-months ended June 30, 2000, except for deferred offering costs of $5,000,
paid in 2000 on the issuance of Fund America Investors Corporation II, Series
2000-1.


                                Page 7

     The six-month period ended June 30, 2001 reported net income of $7,528 as
compared to the six-months ended June 30, 2000, which reported a net income of
$66,794.  The income reported on June 30, 2001 was the result of call option
income received in the amount of $30,000 when the call rights to Fund America
Investors Corporation II 1993-E were sold, as compared to the same six months in
2000 where net issuance fees of $70,000 were earned as well as call option
income of $18,000.  Other items that affected the results between periods were a
decrease in interest earned for the six months ended June 30, 2001 and an
increase in general and administrative costs for 2001.


Forward Looking Statements
--------------------------

     The statements contained in this Item 2 that are not historical facts,
including, but not limited to, statements that can be identified by the use of
forward-looking terminology such as "may," "will," "expect," "anticipate,"
"estimate" or "continue" or the negative thereof or other variations thereon or
comparable terminology, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, and involve a number of risks
and uncertainties.  The actual results of the future events described in such
forward-looking statements could differ materially from those stated in such
forward-looking statements.






























                                           Page 8



                                PART II. OTHER INFORMATION
                                --------------------------



Item 1.   Legal Proceedings

          None.

Item 2.   Changes in Securities

          None.

Item 3.   Defaults Upon Senior Securities

          None.

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

          None.

Item 5.   Other Information

          None.

Item 6.   Exhibits and Reports on Form 8-K

          A.    Exhibits

                None

          B.    Form 8-K

                None




















                                      Page 9



                                    SIGNATURES
                                    ----------


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



                                    FUND AMERICA INVESTORS CORPORATION II
                                    -------------------------------------
                                    (Registrant)




Date:     August 14, 2001            By:    /s/ Helen M. Dickens
      ---------------------             ---------------------------------
                                          Helen M. Dickens
                                          Vice President and Secretary
                                          (Duly authorized and
                                           Principal Financial Officer)






























                                             Page 10