SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    FORM 10-K

[X]      Annual  report  pursuant  to  Section  13 or  15(d)  of the  Securities
         Exchange Act of 1934 for the period from August 15, 1996  (Commencement
         of Operations) to December 31, 1996

[  ]     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 34-020552

                       Saxon Asset Securities Trust 1996-1
             Mortgage Loan Asset Backed Certificates, Series 1996-1

             (Exact name of registrant as specified in its charter)

         Virginia                         52-1785164
(State or other jurisdiction of    I.R.S.  Employer
incorporation or organization)      Identification No.)

                    4880 Cox Road, Glen Allen, Virginia 23060

               (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code : (804) 967-7400

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.  [X]

Documents incorporated by reference:  None

              Page 1 of 5                          This report consists of 15
                                                consecutively numbered pages.


<PAGE>



SAXON ASSET SECURITIES TRUST 1996-1


TABLE OF
CONTENTS
                                                                Page
PART I
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
Item  5. Market for Registrant's Common Equity 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................3

Item  9. Changes in and Disagreements with Accountants
                 on Accounting and Financial Disclosure.............3

PART III
Item 10. Directors and Executive Officers of the Registrant.........3

Item 11. Executive Compensation.....................................4

Item 12. Security Ownership of Certain Beneficial Owners
                    and Management...................................4

Item 13. Certain Relationships and Related Transactions..............4

PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports
                         on Form 8-K..................................4

SIGNATURE.............................................................5

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...... ...........................................6

INDEX TO EXHIBITS........... ..........................................7


<PAGE>



This Annual Report on Form 10-K is filed in accordance with a letter dated March
13, 1997 sent to the Office of Chief Counsel,  Division of Corporate  Finance of
the Securities and Exchange  Commission (the  "Commission")  requesting that the
Commission  enter an order pursuant to Section 12(h) of the Securities  Exchange
Act of 1934 (the  "Exchange  Act"),  granting  exemption  for the Trust from the
reporting  requirements  of Section 13 and 15(d), or issue a no action letter to
like effect.  Accordingly,  responses to certain Items have been omitted from or
modified in this Annual Report on Form 10-K.



PART I


Item 1.  Business

Omitted.

Item 2.  Properties

Omitted.

Item 3.  Legal Proceedings

The  Registrant is not aware of any material legal  proceeding  with respect to,
the Company, the Master Servicer or the Trustee, as related to the Trust..

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

No  matter  was  submitted  to a vote  or  consent  of  Holders  of the  Offered
Certificates during the fiscal year covered by this report.


PART II


Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

The Trust does not issue stock.

As of  January  2,  1997,  the  number  of  holders  of each  Class  of  Offered
Certificates was as follow:

         Class A-1     1
         Class A-2     6
         Class A-3     9


Item 6.  Selected Financial Data

Omitted.

Item 7.  Management's Discussion and Analysis of Financial condition and
         Results of Operations

Omitted.

Item 8.  Financial Statements and Supplementary Data

Omitted.

Item 9.  Changes in and Disagreements with Accountants on Accounting and 
         Financial Disclosure

There was no change of  accountants  or  disagreement  with  accountants  on any
matter of accounting principles or practices or financial disclosure.


PART III


Item 10. Directors and Executive Officers of the Registrant

Omitted.

Item 11. Executive Compensation

Omitted.

Item 12. Security Ownership of Certain Beneficial Owners and Management

The following  entities own more than 5% of the specified Class of Certificates.
These  positions  are held  through the  Depository  Trust  Company.  The Master
Servicer  has not been  advised that any such DTC  participants  are  beneficial
owners.


Class A-1     LBI Lehman Government Securities Inc.

Class A-2     Bank of New York
              Bankers Trust Company
              United States National Bank of Oregon

Class A-3     Bankers Trust Company
              Chase Manhattan Bank/Chemical
              French American Banking Corp.
              Boston Safe Deposit & Trust Co.
              First National Bank of Chicago
              Republic National Bank of New York - Investment Account

Item 13. Certain Relationships and Related Transactions

No reportable transactions have occurred.



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:

         Omitted.

    (2)  Financial Statement Schedules:

        Omitted.

    (3)  Exhibits:

   Annual Master Servicer Statement of Compliance, filed as Exhibit 99.1 hereto.

   Annual  Servicer  Statement of  Compliance,  filed as Exhibit 99.2 hereto.

   Annual Compilation of Selected Financial Information, filed as Exhibit 99.3 
       hereto.

   Annual  Statement of  Independent  Accountants  for each Servicer,
        filed as Exhibit 99.4 hereto.

(b) Reports on Form 8-K: The  following  Current  Reports on Form 8-K were 
    filed by the  Registrant  during the last quarter of 1996.

      Current  Reports on Form 8-K, dated  September 25, 1996,  October 25, 1996
      and  November  25,  1996 were filed for the  purpose of filing the Monthly
      Statement  sent to the Holders of the Offered  Certificates  for  payments
      made on the same dates.  The items  reported in such  Current  Report were
      Item 5 (Other Events).

(c)      Exhibits to this report are listed in Item (14)(a)(3) above.


<PAGE>


SIGNATURE

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.

                                       Saxon Asset Securities Trust 1996-1
                                       Mortgage Loan Asset Backed Certificates
                                       1996-1


Date:  March 25, 1997                  By:      /s/ Brad Adams
                                                --------------
                                                Brad Adams
                                                VicePresident


<PAGE>


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.

The  registrant  has not sent an annual report or proxy material to its security
holders.  The registrant  will not be sending an annual report or proxy material
to its security holders subsequent to the filing of this form.


<PAGE>


INDEX TO EXHIBITS


Exhibit
Number                     Description of Exhibits                     Page


     99.1             Annual Statement of Compliance                     8

     99.2             Annual Servicing Reports                          10

     99.3             Annual Compilation of Selected Financial
                          Information                                   12

     99.4             Annual Statement of Independent Accountants' for Each
                          Servicer                                      14




<PAGE>


                                  EXHIBIT 99.1

                         ANNUAL STATEMENT OF COMPLIANCE


<PAGE>





                         ANNUAL STATEMENT OF COMPLIANCE

I, Nelda  Roberts,  hereby  certify that I am a Vice President of Texas Commerce
Bank National  Association,  ("the Master  Servicer") acting as Master Servicer,
pursuant to a Trust Agreement  ("Agreement")  with Saxon Asset  Securities Trust
1996-1,  and further  certify to the best of my knowledge and after due inquiry,
the following:

         I        have reviewed the  activities of the Master  Servicer,  during
                  the  preceding  calendar  year and the  performance  under the
                  Agreement. To the best of my knowledge,  based on such review,
                  Texas  Commerce  Bank, as Master  Servicer,  has performed and
                  fulfilled its duties,  responsibilities  and obligations under
                  the Agreement in all material  respects  during the applicable
                  period.

         I        have  conducted  an  examination  of the  activities  of  each
                  Servicer   during  the   preceding   calendar   year  and  the
                  performance  of such  Servicer  under  the  related  Servicing
                  Agreement.

         I        have  examined  each  Servicer's  Fidelity Bond and Errors and
                  Omissions Policy and each such bond or policy is in effect and
                  conforms  to  the   requirements  of  the  related   Servicing
                  Agreement.

         I        have  received  from  each  Servicer  such  Servicer's  annual
                  audited financial  statements and such other information as is
                  required by the Guide and to the best of my  knowledge,  based
                  on such examination, each Servicer has performed and fulfilled
                  its  duties,   responsibilities   and  obligations  under  its
                  Servicing  Agreement in all material respects  throughout such
                  year.



/s/ Nelda C. Roberts
Nelda C. Roberts
Title:  Vice President and Trust Officer

Date:  March 25, 1997



<PAGE>



                                  EXHIBIT 99.2


                            ANNUAL SERVICING REPORTS



<PAGE>



                            CERTIFICATE OF COMPLIANCE

                               Saxon 96-1 and 96-2

The undersigned, an officer of Meritech Mortgage Services, Inc. (The 
Participant) hereby certifies as follows:

  (1) A  review  of the  activities  of the  Participant  during  the
  preceding  year  with  respect  to performance under this Agreement
  has been made under such Officer's supervision: and

  (2) To the best of such Officer's  knowledge  based on such review,
  there is not default by the  Participant  in  fulfillment of any of
  its  obligations  under  this  Agreement,  or if  there is any such
  default and the such Officer,  specifying each such default and the
  nature and status thereof.

In witness whereof the  undersigned has executed this  Certificate of compliance
this 3rd day of March, 1997.

Meritech Mortgage Services, Inc.

/s/Lynnette Anderson
Lynnette Anderson
Vice President


<PAGE>


                                  EXHIBIT 99.3

              ANNUAL COMPILATION OF SELECTED FINANCIAL INFORMATION



<PAGE>


============================
Saxon Asset Securities
Trust 1996-1
============================
Annual Compilation of Selected
Financial Information


(1)   1996 annual distribution with respect to the
holder's Certificates
       based on original principal
amount of $1,000
<TABLE>
<S>     <C>    <C>    <C>    <C>    <C>    <C>

                                           Principal         Interest          Total           original
    Total                   Class A-1       1,662,556.32     1,309,836.85     2,972,393.17         43000000
                            Class A-2               0.00       322,400.00       322,400.00          9600000
                            Class A-3      33,562,374.95     3,652,363.54    37,214,738.49        181489000

    Per $1,000              Class A-1            38.6641          30.4613          69.1254
                            Class A-2             0.0000          33.5833          33.5833
                            Class A-3           184.9279          20.1244         205.0523

                                                             Group I          Group II
(2)  Prepayments                                             1,110,158.26    31,929,331.60
      Subordination                                            380,362.90     1,066,731.37
increase amount

(3)  Distributions less than the                                -                -
Required Distribution Amount

(4)  Insured Payment                                            -                -

(5)  Certificate principal Balance @
12/31/96:

                            Class A-1      41,337,443.68
                            Class A-2       9,600,000.00
                            Class A-3     147,926,625.05

                                                             Group I          Group II
     Schedule Principal Balance of                          51,317,806.58   148,993,356.42
each Group @ 12/31/96

                                                             Group I          Group II
(6)  Subordinated Amount @                                     380,362.90     1,066,731.37
12/31/96

      Subordination                                             -                -
Deficit @ 12/31/96

(7)  Substitution                                               -                -
Shortfalls

(8)  Weighted Average Net Rate of                                   9.31%            7.65%
Mortgage Loans

(9) Largest mortgage loan                                      679,561.40     1,168,017.63
balance

(10) Servicing Fees                                             66,049.77       300,843.98
      Master Servicing Fees                                      9,830.32        38,870.34
      Premium Amount                                            26,098.16        85,908.70

(11) Index value for Variable Rate                                  5.44%
Certificates @ 12/31/96

(12) Pass-through rates for Variable                                5.78%
Rate Certificates


</TABLE>



















 .

<PAGE>




                                  EXHIBIT 99.4

ANNUAL STATEMENT OF INDEPENDENT ACCOUNTANTS FOR EACH SERVICER


<PAGE>


DELOITTE & TOUCHE LLP
Suite 500
Eighth & Main Building
707 East Main Street
Richmond, Virginia  23219
Telephone:  (804) 697-1500
Facsimile:  (804) 697-1825

INDEPENDENT ACCOUNTANTS" REPORT

To the Board of Directors
Meritech Mortgage Services, Inc.
Fort Worth, Texas

We have examined management's  assertion about Meritech Mortgage Services,  Inc.
("Meritech"),  compliance with servicing standards identified in the Appendix as
of December  31, 1996 and for the period  from May 14, 1996  (acquisition  date)
through December 31, 1996,  included in the accompanying  management  assertion.
Such standards were  established by Meritech's  management based on the Mortgage
Bankers Association of America's Uniform Single Attestation Program for Mortgage
Bankers (USAP).  Management is responsible for Meritech's  compliance with these
servicing standards. Our responsibility is to express an opinion on management's
assertion about the entity's compliance based on our examination.

Our  examination  was  made in  accordance  with  standards  established  by the
American  Institute of Certified Public  Accountants and,  accordingly  included
examining,  on a test  basis,  evidence  about  Meritech's  compliance  with the
servicing  standards  and  performing  such other  procedures  as we  considered
necessary  in the  circumstances.  We believe  that our  examination  provides a
reasonable  basis for our  opinion.  Our  examination  does not  provide a legal
determination  on  Meritech's  compliance  with the  servicing  standards or its
servicing agreements.

In  our  opinion,   management's  assertion  that  Meritech  complied  with  its
established  servicing  standards  identified in the Appendix as of December 31,
1996 and for the period from may 14, 1996  (acquisition  date) through  December
31, 1996, is fairly stated, in all material respects.

Deloitte & Touche LLP

May 14, 1997




file=f:finrpt\secrpt\issuers\saxon\96-110k