SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
                                 Form 10-K
(Mark One)

[  X       ]    ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF
           THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
                                     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 number 33-99340-01 
 
                     IMC Home Equity Loan Trust 1996-2 
           (Exact name of registrant as specified in its charter)
                          
              New York                                13-3888491
              --------                                ----------
     (State of other jurisdiction of                (I.R.S. Employer
     incorporation or organization)                  Identification No.)

c/o Chemical Bank
450 West 33rd Street 15th Floor
New York,NY                                                 10001
-----------                                                 -----
(Address of principal executive offices)                  (Zip Code) 
                                                


Registrant's telephone number, including area code: (212)    946-3185    
Securities registered pursuant to Section 12(b) of the Act:

            Title of each class      Name of each exchange on
                                     which registered:
 
               None                                       None
               ----                                       ----
                                      
                                      
                                      None
                                      ----
                                 (Title of class)

      Indicated by check mark whether the registrant (1) has filed all
reports required to be file 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 (subsection 229.405 of this chapter) 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. [X ]

      State the aggregate market value of the voting stock held by
non-affiliates of registrant.  The aggregate market value shall be
computed by reference to the price at which the stock was sold, or the
average bid and asked prices of such stock, as of specified date within 60
days prior to the date of filing:

                               Not Applicable
Documents Incorporated by Reference:
                                    None

<PAGE>
                      

                       IMC HOME EQUITY LOAN TRUST 1996-2
                                   INDEX



 
                                                                         Page
                 

PART 1..........................................................            3

              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.............................................                        3

             ITEM 5    -   MARKET FOR REGISTRANT'S COMMON STOCK AND
                           RELATED STOCKHOLDER MATTERS...........           3
             ITEM 6    -   SELECTED FINANCIAL DATA...............           3
             ITEM 7    -   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                           FINANCIAL CONDITION AND RESULTS OF OPERATIONS    3
             ITEM 8    -   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA......4
             ITEM 9    -   CHANGES IN AND DISAGREEMENTS WITH
                           ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
                           DISCLOSURE....................................   4

PART III.................................................................   4
             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..................................   8

PART IV..............................................................       8
             ITEM 14    -  EXHIBITS,FINANCIAL STATEMENT SCHEDULES AND
                           REPORTS ON FORM 8-K..............................8

SIGNATURES    ............................................................ 10
INDEX TO EXHIBITS......................................................... 11

                                      -2-

<PAGE>

                                     PART I

ITEM 1 - BUSINESS

      Not Applicable.

ITEM 2 - PROPERTIES

      Not Applicable.

ITEM 3 - LEGAL PROCEEDINGS
      The Depositor is not aware of any material pending legal proceedings
involving either the  IMC Home Equity Loan Trust 1996-2   (the "Trust")
established pursuant to the Pooling and Servicing Agreement (the
"Agreement") dated  April 1, 1997, among Chemical Bank, as trustee (the
"Trustee") ContiSecurities Asset Funding Corp., as depositor (the
"Depositor") and Industry Mortgage Company, as servicer (the "Servicer"),
the Trustee, the Depositor or the Servicer which relates to the Trust.

ITEM 4 -       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      No matter has been submitted to a vote of the holders of beneficial
interests in the Trust through the solicitation of proxies or otherwise.

                                  PART II

ITEM 5 -   MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER
           MATTERS

      To the best knowledge of the Depositor, there is no established
public trading market for any beneficial interests in the Trust.

      All of the Class A-1 Certificates, Class A-2 Certificates, Class A-3
Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6
Certificates, Class A-7 Certificates, and Class A-8 Certificates issued by
the Trust are held by the Depository Trust Company ("DTC") which in turn
maintains records of holders of beneficial interests in such
Certificates.  Based on information obtained by the Trust from DTC, as of
March 10, 1997, there were 8 holders of the Class A-1 Certificates, 1
holder of the Class A-2 Certificates, 3 holders of the Class A-3
Certificates, 2 holders of the Class A-4 Certificates, 7 holders of the
Class A-5 Certificates, 1 holder of the Class A-6 Certificates, 3 holders
of the Class A-7 Certificates, and 4 holders of the Class A-8 Certificates.


ITEM 6 -   SELECTED FINANCIAL DATA

           Not applicable.

ITEM 7 -   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS

           Not applicable.


<PAGE>




ITEM 8 -   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

      In addition to the information included in the Annual Compilation of
Monthly Trustee's Statements attached as Exhibit 99.3 hereto, the gross
servicing compensation paid to the Servicer for the year ended December
31, 1996 was $708,588.14.

ITEM 9 -   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
           ACCOUNTING      AND FINANCIAL DISCLOSURE

      There were no changes of accountants or disagreements on accounting
or financial disclosures between the Issuer and its accountants.

                                  PART III

ITEM 10 -  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

           Not applicable.

ITEM 11 -  EXECUTIVE COMPENSATION

           Not applicable.

ITEM 12 -  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

      The following table sets forth (i) the name and address of each
entity owning more than 5% of the outstanding principal amount of each
Class of Certificates of the Trust; (ii) the principal amount of the Class
of Certificates owned by each and (iii) the percent that the principal
amount of the Class of Certificates owned by such entity represents of the
outstanding principal amount of such Class of Certificates.  The
information set forth in the table for the Certificates is based upon
information obtained by the Trust from DTC and represents ownership of
beneficial interest in the Certificates held by DTC.  The Depositor is not
aware of any Schedules 13D or 13G filed with the Securities and Exchange
Commission in respect of the Certificates.












<PAGE>


                                           Amount Owned
       Name and Address          All Dollar Amounts Are in Thousands
                                     Principal        Percent
Class A-1 Certificates

Chase Manhattan Bank, N.A.             $11,250         18.02%
Two Chase Manhattan Plaza, 5th
Floor
New York, NY 10081
                                        38,942          62.37
Chase Manhattam Bank/Chemical
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY  10004
                                         
First Bank, NA                           5,100           8.17
c/o ICE Proxy Services
71 Executive Blvd.
Farmingdale, NY  11735

Class A-2 Certificates

PNC Bank, NA/Pittsburgh                $28,489        100.00%
One PNC Plaza, 9th Floor,  249
5th Avenue
Pittsburgh, PA 15222-7707


Class A-3 Certificates
                                       
PNC Bank, NA/Pittsburgh                $21,511         80.78% 
One PNC Plaza, 9th Floor,  249
5th Avenue
Pittsburgh, PA 15222-7707                

Prudential Sercurities                   4,119          15.47
Incorporated
111 8th Avenue, 4th Floor
New York, NY  10011

                                        
Class A-4 Certificates

Brown Brothers Harriman & Co.             $700          6.52%
63 Wall Street, 8th Floor                                      
New York, NY  10005                                            
                                                               
Nomura International Trust              10,030          93.48
Company Inc.                                                   
10 Exchange Place                                              
Jersey City, NJ  07302                                         
                                                               
                                                               
                                                               
                                                               
Class A-5 Certificates                                         
                                         
Bank of New York                          $3,450         13.92% 
925 Patterson Plank Rd.                                         
Secaucus, NJ  07094                                             
                                                                
Bankers Trust Company                      7,000          28.24 
c/o BT Services Tennessee, Inc.                                 
Custody Services                                                
648 Grassmere Park Road                    
Nashville, TN 37211                                             
                                                                
Boston Safe Deposit & Trust Co.            2,000           8.07 
c/o Mellon Bank N.A.                                            
Three Mellon Bank Center                                        
Room 153-3015                           
Pittsburgh, PA  15259                   
                                        
Chase Manhattan Bank                       5,700          23.00  
Two Chase Manhattan Plaza, 5th                                  
Floor                                                           
New York, NY 10081                                              
                                             
Citicorp Services, Inc.                   5,000          20.17 
P.O. Box 30576                                                  
Tampa, FL  33630-3576                                           
                                                                
Class A-6 Certificates                  
                                                                
Boston Safe Deposit & Trust Co.        $15,882        100.00%  
c/o Mellon Bank N.A.                    
Three Mellon Bank Center
Room 153-3015                         
Pittsburgh, PA  15259

Class A-7 Certificates
                                      
Bear Stearns Securities                $10,041         62.60%     
Corp./Portal                                                        
One Metrotech Center North,                                         
4th Floor                                                           
Brooklyn, NY   11201-3862                    
                                                                    
Citicorp Services, Inc.                  5,000          31.17  
P.O. Box 30576                                                      
Tampa, FL  33630-3576                           
                                                                    
Norwest Bank Minnesota                   1,000           6.23   
National Assoc.                          
733 Marquette Avenue                    
Minneapolis, MN  55479-0056


                                        

Class A-8 Certificates

Bear Stearns Securities                 $7,000         46.67%   
Corp./Portal                                                    
One Metrotech Center North,                                     
4th Floor                                                       
Brooklyn, NY   11201-3862                  
                                                                
Corestates Bank/Commonwealth of PA      1,500          10.00         
Global Proxy Unit, A5NW                                         
P.O. Box 1631                            
Boston, MA  02105-1631                                          
                                        
Investors Fiduciary Trust               3,500          23.33   
Company/SSB
Global Proxy Unit,  A5NW
P.O. Box 1631
Boston, MA  02105-1631

First Bank, N.A.                        3,000          20.00   
c/o ICE Proxy Services
71 Executive Blvd.
Farmingdale, NY  11735





<PAGE>



ITEM 13 -  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


      [None]

                                  PART IV


ITEM 14 -  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K


(a)   The following documents are filed as part of this report:

      1.   Financial Statements:

           Not applicable.

      2.   Financial Statement Schedules:

           Not applicable.

      3.   Exhibits:


          Exhibit No.                      Description

              99.1               Statement of Compliance of the
                                 Servicer.

              99.2               Annual Report of Independent
                                 Accountants with respect to
                                 the Servicer's overall
                                 servicing operations.

              99.3               Annual compilation of Monthly
                                 Trustee's Statement.



<PAGE>



(b)   Reports on Form 8-K.

      9 reports on Form 8-K have been filed by the Issuer during the
period covered by this report.


                                         Items Reported/Financial
Date of Reports on Form 8-K               Statements Filed
May 25, 1996                       Trustee's  Monthly  Report  or
                                   the JuneMonthly Period.

June 25, 1996                      Trustee's  Monthly  Report  or
                                   the May Monthly Period.

July 25, 1996                      Trustee's  Monthly  Report  or
                                   the JuneMonthly Period.

August 25, 1996                    Trustee's  Monthly  Report  or
                                   the JulyMonthly Period.

September 25, 1996                 Trustee's Monthly Report for
                                   the August Monthly  Period

October 25, 1996                   Trustee's Monthly Report for
                                   the September Monthly Period.

November 25, 1996                  Trustee's Monthly Report for
                                   the October  Monthly Period.

December 25, 1996                  Trustee's Monthly Report for
                                   the November Monthly Period.

January 25, 1997                   Trustee's Monthly Report for
                                   the December Monthly Period.





<PAGE>


                                 SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Depositor has duly caused this Report
to be signed on its behalf by the undersigned, thereunto duly authorized.


                          By:  CONTISECURITIES ASSET FUNDING CORP.,
                               AS DEPOSITOR


                               By:   /s/ Jerome M. Perelson
                               Name:Jerome M. Perelson
                               Title: Vice President

                               By:   /s/ Susan E. O'Donovan 
                               Name:Susan E. O'Donovan
                               Title:Vice President & Chief Financial Officer

 

Date:  March 27, 1997






























<PAGE>



                             INDEX TO EXHIBITS
                                 Item 14(C)


          Exhibit No.                      Description
              99.1               Statement of Compliance of the
                                 Servicer.
              99.2               Annual Report of Independent
                                 Accountants with respect to
                                 the Servicer's overall
                                 servicing operations.
              99.3               Annual compilation of Monthly
                                 Trustee's Statement.