UNITED STATES
               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: 333-11447


               METROPOLITAN ASSET FUNDING, INC.
     (Exact name of registrant as specified in its charter)

            Delaware                            91-1734050
(State of other jurisdiction of                 (I.R.S. employer
incorporation or organization)             identification number)

     929 West Sprague Avenue
     Spokane, WA  99210                                                  99210
(Address of principal executive offices)               (Zip Code)

Registrant's telephone number, including area code:   (509)  838-
3111
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.  [ ]

Aggregate market value of voting stock held by non-affiliates  of
the Registrant as of December 31, 1996: Not Applicable.
Number  of shares of common stock outstanding as of December  31,
1996: Not Applicable.

              DOCUMENTS INCORPORATED BY REFERENCE

                              NONE
                             PART I


ITEM 2.   PROPERTIES

      The Registrant owns no properties.  The Registrant acted as
the  depositor  under  a  Pooling and  Security  Agreement,  (the
"Pooling  Agreement") dated as of November 1, 1996,  pursuant  to
which  the  certificates (the "Certificates") were  issued.   The
Certificates, in the aggregate, represent the beneficial interest
in a trust fund (the "Trust") consisting primarily of fixed-rate,
first  lien,  single  family mortgage loans, commercial  mortgage
loans  and  land  sale  contracts  (collectively,  the  "Mortgage
Loans").   The Trust will acquire title to real estate only  upon
the default of mortgagors under the Mortgage Loans.

       The  Mortgage  Loans  are  serviced  by  MetWest  Mortgage
Services, Inc. (the "Master Servicer") or an entity or individual
with  which  the  Master Servicer has entered  into  a  servicing
agreement.   The  Master  Servicer  is  required  to  deliver   a
certificate  of  an authorized officer (an "Annual  Statement  of
Compliance") stating that (a) a review of the activities  of  the
Master  Servicer during the preceding calendar year  and  of  its
performance under the Pooling Agreement has been made  under  the
supervision  of  the  authorized  officer  executing  the  Annual
Statement  of  Compliance and (b) to the best of  such  officer's
knowledge,  based  on the above review, the Master  Servicer  has
fulfilled   all  its  obligations  under  the  Pooling  Agreement
throughout  such  year, or, if there has been a  default  in  the
fulfillment of any such obligation, specifying each such  default
known to such officer and the nature and the status thereof.

      The  Annual  Statement of Compliance will be  filed  as  an
Exhibit hereto.

ITEM 3.   LEGAL PROCEEDINGS

      No material legal proceedings to which the Registrant is  a
party  or to which the Trust is subject, is pending and  no  such
material   proceedings  are  known  by  the  Registrant   to   be
contemplated.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF CERTIFICATEHOLDERS

      There  were  no meetings of Certificateholders  during  the
period  covered by this report and no matters were  submitted  to
Certificateholders for vote.
                            PART II


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

      During the 1996 calendar year,  there were no disagreements
or   reportable  conditions  between  the  Registrant   and   its
accountants on accounting or financial disclosure.

                            PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Executive Officers and Directors

      The executive officers, directors and significant employees
of the Registrant are as follows:
<TABLE>
<CAPTION>

  Name and Age            Position            Period of Service
<S>               <C>                       <C>
Tom Turner (46)   Director, President       August 23, 1996 to
                                            Present
Greg Gordon (43)  Director, Secretary and   August 23, 1996 to
                  Treasurer                 Present
Philip Sandifur   Director and Vice         August 23, 1996 to
(25)              President                 Present
Maurice J.        Director                  November 22, 1996 to
Nollette (28)                               Present
</TABLE>
      The directors hold office until the next annual meeting  of
shareholders  and until their successors have been  duly  elected
and  qualified.   The  officers  are  elected  by  the  Board  of
Directors  at  its  annual  meeting  immediately  following   the
shareholders' annual meeting and hold office until they resign or
are  removed from office.  There are no family relationships that
exist   between  any  director,  executive  officer,  significant
employee  or  person  nominated or chosen by  the  Registrant  to
become  a director or executive officer.  The Registrant has  not
established  an executive committee of the Board of Directors  or
any  committee  that  would serve similar functions  such  as  an
audit, incentive compensation or nominating committee.

Biographical   Information   on  Officers   and   Directors   and
Significant Employees

      Tom  Turner.   Mr. Turner was elected President  of  Summit
Securities,  Inc.  ("Summit"),  a  company  affiliated  with  the
Registrant,   on  October  31,  1995.   Prior  to  servicing   as
President, Mr. Turner had served as Secretary/Treasurer of Summit
since  September 28, 1994.  Mr. Turner has been  an  employee  of
Metropolitan  Mortgage  & Securities Co., Inc.  ("Metropolitan"),
also  an  affiliate of the Registrant, since 1985, as a financial
analyst.   From  1983-1985, Mr. Turner  was  employed  by  Olsten
Temporary Services.  Prior to 1983, Mr. Turner was self-employed,
principally doing business in the real estate industry.

      Greg Gordon.  Mr. Gordon was elected Secretary/Treasurer of
Summit  on  October 31, 1995.  Mr. Gordon joined Metropolitan  in
April  of  1989 and started that company's demography department.
From 1985 to 1989, Mr. Gordon was employed as the Northeastern US
division,   Market  Analyst  for  Mortgage  Guarantee   Insurance
Corporation.   From 1984 to 1985, he was employed  as  a  limited
partnership underwriter with Reliance Insurance Company.

      Philip  Sandifur.   Mr. Sandifur is  the  son  of  C.  Paul
Sandifur,  Jr.  who  is the sole shareholder of  National  Summit
Corp.,  the parent company of the Registrant and Summit  and  the
controlling shareholder of Metropolitan.  Mr. Sandifur  graduated
in  1993  from Santa Clara University receiving a BA in Business.
From  1992  to  1993  Mr.  Sandifur was  attending  college.  Mr.
Sandifur  joined  Summit  Trade Services,  Inc.,  a  wholly-owned
subsidiary  of National Summit Corp. in  1995 and is  principally
active as the President.

      Maurice  J.  Nollette. Since March 1994, Mr.  Nollette  has
owned  and  operated "Mojo Monroe Espresso Co.", an espresso  and
sandwich shop located in downtown Spokane, Washington.  Prior  to
that  time,  Mr.  Nollette was involve in  sales,  serving  as  a
technical sales advisor from July 1993 to February 15,  1994  for
Noble Beauty Supply and as a salesman for Continental Baking from
January 1990 to July 1993.

ITEM 11.  EXECUTIVE COMPENSATION

      The officers of the Registrant receive no compensation  for
acting  in such role.  The directors of the corporation who  also
serve  as  employees  of Metropolitan, Summit  or  any  of  their
affiliated companies receive a director's fee of $100 per meeting
attended.   Those  directors include Messrs. Turner,  Gordon  and
Sandifur.   Mr. Nollette receives compensation in the  amount  of
$100 per month.

ITEM 12.  SECURITY  OWNERSHIP  OF CERTAIN BENEFICIAL  OWNERS  AND
          MANAGEMENT

       Under   the   Pooling  Agreement,  the  Certificateholders
generally  do not have the right to vote and are prohibited  from
taking  part  in management of the Trust.  For purposes  of  this
Item  12 and Item 13, however, the Certificateholders are treated
as the owners of "voting securities."

      As of December 31, 1996, the following are the only persons
known to the Registrant to be the beneficial owners of more  than
5%  of  any  class  of voting securities.  As  reflected  in  the
following   table,   the  Class  A-1  Certificates,   Class   A-2
Certificates,  Class  A-3 Certificates, Class  A-4  Certificates,
Class  B-1 Certificates and Class B-2 Certificates (collectively,
the "Offered Certificates") are registered in the name of Cede  &
Co.  as nominee for The Depository Trust Company.  The Registrant
is  not  presently aware of any additional beneficial  owners  of
more than 5% of any class of voting securities.
<TABLE>
<CAPTION>
                                           Amount and
                                           Nature of      Percent
   Title of      Name and Address of       Beneficial       age
    Class          Beneficial Owner        Ownership         of
                                                           Class
<S>            <S>                                   <C>       <C>
Series 1996-A, Cede & Co. as nominee                   $   100.00%
Class A1       for the Depository          42,460,468.00
               Trust Company
               7 Hanover Square, 22nd
               Fl.
               New York, NY 10004
Series 1996-A, Cede & Co. as nominee       24,513,122.00    100.00
Class A2       for the Depository
               Trust Company
               7 Hanover Square, 22nd
               Fl.
               New York, NY 10004
Series 1996-A, Cede & Co. as nominee        9,241,971.00    100.00
Class A3       for the Depository
               Trust Company
               7 Hanover Square, 22nd
               Fl.
               New York, NY 10004
Series 1996-A, Cede & Co. as nominee       25,796,061.00    100.00
Class A4       for the Depository
               Trust Company
               7 Hanover Square, 22nd
               Fl.
               New York, NY 10004
Series 1996-A, Cede & Co. as nominee        6,969,738.00    100.00
Class B1       for the Depository
               Trust Company
               7 Hanover Square, 22nd
               Fl.
               New York, NY 10004
Series 1996-A, Cede & Co. as nominee        4,401,282.51    100.00
Class B2       for the Depository
               Trust Company
               7 Hanover Square, 22nd
               Fl.
               New York, NY 10004
Series 1996-A, Metropolitan Mortgage          162,944.34      6.43
Class R        929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Old Standard Life              209,490.67      8.27
Class R        Insurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Western United Life          2,146,536.68     84.69
Class R        Assurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Metropolitan Mortgage          244,415.00      6.43
Class B3       929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Old Standard Life              314,234.00      8.27
Class B3       Insurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Western United Life          3,219,803.00     84.69
Class B3       Assurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Metropolitan Mortgage          264,783.00      6.43
Class B4       929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Old Standard Life              340,420.00      8.27
Class B4       Insurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Western United Life          3,488,120.00     84.69
Class B4       Assurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Metropolitan Mortgage          183,311.00      6.43
Class B5       929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Old Standard Life              235,676.00      8.27
Class B5       Insurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
Series 1996-A, Western United Life          2,414,852.00     84.69
Class B5       Assurance Company
               929 West Sprague Avenue
               P.O. Box 2162
               Spokane, WA  99210
</TABLE>
ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

      The  Registrant  knows  of  no  transaction  or  series  of
transactions during the fiscal year ended December 31,  1996,  or
proposed  transaction  or series of transactions,  in  an  amount
exceeding  $60,000 involving the Registrant in which any  officer
or director identified in Item 10 above had or will have a direct
or indirect interest.

      The  Registrant  knows  of  no  transaction  or  series  of
transactions during the fiscal year ended December 31,  1996,  or
proposed  transaction  or series of transactions,  in  an  amount
exceeding   $60,000  involving  the  Registrant  in   which   the
Certificateholders identified in Item 12 above had or will have a
direct  or  indirect  interest, other than the  issuance  of  the
Certificates.
                            PART IV

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

      (a)   The following documents are filed as a part  of  this
Report.

                     1.   Monthly Statement to Certificateholders
               as to the Payment Date of 12/20/96.

                     2.   Monthly Statement to Certificateholders
               as to the Payment Date of 1/21/97.

                     3.   Monthly Statement to Certificateholders
               as to the Payment Date of 2/20/97.

                     4.   Monthly Statement to Certificateholders
               as to the Payment Date of 3/20/97.

                     5.    Annual Statement of Compliance by  the
               Master  Servicer  is not currently  available  and
               will be filed by amendment.

                      6.    Annual  Accountant's  report  is  not
               required  by the Pooling Agreement to be submitted
               for the fiscal year ending December 31, 1996.

      (b)   No Current Reports of Form 8-K were filed during  the
last quarter of the period covered by this Report.

     (c)       Exhibit No.    Description

                99.1     Monthly  Statement to Certificateholders
                as to the Payment Date of 12/20/96.

                99.2     Monthly  Statement to Certificateholders
                as to the Payment Date of 1/21/97.

                99.3     Monthly  Statement to Certificateholders
                as to the Payment Date of 2/20/97.

                99.4     Monthly  Statement to Certificateholders
                as to the Payment Date of 3/20/97.

                99.5     Annual  Statement of Compliance  by  the
                Master Servicer.*
_______________
*To be filed by amendment.

     (d)  Financial Statement Schedule: Not Applicable.
                           SIGNATURES

      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 behalf  by  the  undersigned,
thereunto duly authorized.


METROPOLITAN ASSET FUNDING, INC.,
                              (a Delaware corporation)


Date: March 31, 1997                            By /s/ Tom Turner

Tom Turner, Director and
                                   President

      Pursuant to the requirements of the Securities Exchange Act
of  1934,  this  report has been signed below  by  the  following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

Date: March 31, 1997                            By /s/ Tom Turner

Tom Turner, Director and
                                   President
                                   (Principal Executive Officer)



Date: March 31, 1997                           By /s/ Greg Gordon

Greg Gordon, Secretary,

Treasurer and Director

(Principal Financial and

Accounting Officer)


Date: March 31, 1997                       By /s/ Philip Sandifur

Philip Sandifur, Vice
                                   President and Director


Date: March 31, 1997                   By /s/ Maurice J. Nollette

Maurice J. Nollette, Director

      SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED
PURSUANT  TO SECTION 15(D) OF THE ACT BY REGISTRANTS  WHICH  HAVE
NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT.

      No  annual report, proxy statement, form of proxy or  other
soliciting material has been sent to Certificateholders, and  the
Registrant  does  not  contemplate  sending  any  such  materials
subsequent to the filing of this Report.
                       INDEX TO EXHIBITS


Exhibit No.    Description

          99.1 Monthly Statement to Certificateholders as to  the
          Payment Date of 12/20/96.

          99.2 Monthly Statement to Certificateholders as to  the
          Payment Date of 1/21/97.

          99.3 Monthly Statement to Certificateholders as to  the
          Payment Date of 2/20/97.

          99.4  Annual  Statement  of Compliance  by  the  Master
          Servicer.*

_______________
*To be filed by amendment.