------------------
                                  UNITED STATES
                       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 fiscal year ended December 31, 2003

[ ]      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  333-90830-04
                                                               ---------------

             ASSET BACKED FUNDING CORPORATION, ABFC 2003-AHL1 Trust
                 ABFC Asset Backed Certificates Series 2003-AHL1
             (Exact name of registrant as specified in its charter)


         New York                                  87-0697726, 87-0697727
 (State or other jurisdiction of               (IRS Employer Identification No.)
     incorporation)

c/o Asset Backed Funding Corporation
214 North Tyron Sreet
Charlotte, North Carolina                                   28255
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code : (704) 386-2400

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. Not Applicable

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2). Yes [ ]  No [X]

                   Documents incorporated by reference: None



<PAGE>

ABFC 2003-AHL1 Trust
ABFC Asset-Backed Certificates, Series 2003-AHL1
-----------------------------------------------------------------------
Introductory Note

This Annual Report on Form 10-K is prepared in reliance on the no-action  letter
dated March 26, 1993 issued by the Securities and Exchange  Commission to Nomura
Asset Securities Corporation.

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 Servicer or the Trustee, as relates 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 Certificates
during the fiscal year covered by this report.

PART II

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

    There  is  currently  no   established   public   trading  market  for  the
certificates issued by the Trust.

     As of December  31, 2003 the total  number of holders  with respect to each
class of certificates is set forth below:

        Class IA     1
        Class IIA    1
        Class M1     3
        Class M2     2
        Class M3     3
        Class M4     2
        Class M5     1
        Class N      1
        Class X      1
        Class R      1

Item 6.  Selected Financial Data

         Omitted.

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

         Omitted.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

         Not applicable.

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.

Item 9A. Controls and Procedures.

         Not Applicable.

                                      -2-
<PAGE>

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

         Omitted.

Item 13. Certain Relationships and Related Transactions

         Omitted.

Item 14. Item 14. Principal Accounting Fees and Services

         Not Applicable.

PART IV

Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a)      Not Applicable

(b)      Monthly distribution date statements were filed as exhibits to Form 8-K
on October 2, 2003,  October 28, 2003 and November 26,  2003.

(c)     4.1      Pooling and Servicing Agreement (filed as an exhibit to
                 Form 8-K on May 22, 2003).

        31.1     Rule 13a-14(a)/15d-14(a) Certification.

        99.1     Annual Independent Public Accountant's Servicing Report
                 concerning servicing activities for the year ended
                 December 31, 2003.

        99.2     Annual Statement as to Compliance under the Pooling and
                 Servicing Agreement for the year ended December 31, 2003.

(d)     Not Applicable

                                      -3-

<PAGE>

ABFC 2003-AHL1 Trust
ABFC Asset Backed Certificates Series 2003-AHL1
-----------------------------------------------------------------------

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.


                  ABFC 2003-AHL1 Trust
                  ABFC Asset Backed Certificates Series 2003-AHL1 (Registrant)


               By:  Asset Backed Funding Corporation, as Depositor

               By:  /s/  George Ellison
                    -----------------------------------------
             Name:  George Ellison
             Title: President

              Date: March 30, 2004
                    -----------------------




                                      -4-


<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

No annual  report is provided to  Certificateholders  other than with respect to
aggregate  principal and interest  distributions.  No proxy  statement,  form of
proxy or other proxy soliciting material has been sent to any Certificateholders
with respect to any annual or other meeting of security holders.

                                      -5-
<PAGE>



                                  Exhibit Index

Exhibit No.

4.1    Pooling and Servicing Agreement (filed as an exhibit to Form 8-K
       on May 22, 2003).

31.1   Rule 13a-14(a)/15d-14(a) Certification.

99.1   Annual Independent  Public  Accountant's Servicing Report concerning
       master servicing  activities for the year ended December 31, 2003.

99.2   Annual Statement as to Compliance under the Pooling and Servicing
       Agreement for the year ended December 31, 2003.


                                      -6-
<PAGE>


                                  EXHIBIT 31.1
                    Rule 13a-14(a)/15d-14(a) Certification
                            ------------------------


                                 CERTIFICATION
                    ABFC 2003-AHL1 Asset-Backed Certificates
                                Series 2003-AHL1


     I, George  Ellison,  certify,  in connection  with that certain Pooling and
Servicing Agreement (the "Pooling and Servicing  Agreement"),  dated as of April
1, 2003, among Asset Backed Funding Corporation, as depositor (the "Depositor"),
Litton Loan Servicing LP, as servicer (the "Servicer"), and JPMorgan Chase Bank,
as trustee (the  "Trustee"),  that I am the senior  officer of the  Depositor in
charge of its securitizations, and that:

     1. I have reviewed this annual report on Form 10-K, and all reports on Form
8-K  containing  distribution  or servicing  reports filed in respect of periods
included in the year  covered by this annual  report,  of Asset  Backed  Funding
Corporation (the "Depositor") relating to the above-referenced trust;

     2. Based on my knowledge,  the  information  in these  reports,  taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a  material  fact  necessary  to make  the  statements  made,  in  light  of the
circumstances  under which such  statements  were made, not misleading as of the
last day of the period covered by this annual report;

     3.  Based  on my  knowledge,  the  distribution  or  servicing  information
required to be provided  to the  Trustee by the  Servicer  under the Pooling and
Servicing Agreement referred to above is included in these reports;

     4. Based on my knowledge and upon the annual compliance statements included
in the report and required to be delivered to the Trustee in accordance with the
terms of the Pooling and  Servicing  Agreement,  and except as  disclosed in the
report,  the  Servicer  has  fulfilled  its  obligations  under the  Pooling and
Servicing Agreement; and

     5. The  reports  disclose  all  significant  deficiencies  relating  to the
Servicer's compliance with the minimum servicing standards based upon the report
provided by an  independent  public  accountant,  after  conducting  a review in
compliance with the Uniform Single  Attestation  Program for Mortgage Bankers or
similar  standard as set forth in the Pooling and Servicing  Agreement,  that is
included in these reports.

     In  giving  the  certifications  above,  I have  reasonably  relied  on the
information provided to me by the following  unaffiliated  parties:  Litton Loan
Servicing LP, as Servicer, and JPMorgan Chase Bank, as Trustee.


                        By:  /s/  George Ellison
                            -----------------------------------------
                      Name: George Ellison
                     Title: President


                      Date:  March 30, 2004
                             -----------------------

                                      -7-

<PAGE>

                                  EXHIBIT 99.1
             Annual Independent Public Accountant's Servicing Report
                            -----------------------


Deloitte & Touche LLP
Suite 2300
333 Clay Street
Houston, Texas  77002-4196
USA
Tel +1 713 982 2000
Fax +1 713 982 2001
www.deloitte.com


INDEPENDENT AUDITORS' REPORT

Partners of Litton Loan Servicing LP

     We have examined  management's  assertion  about Litton Loan Servicing LP's
(the "Company")  compliance with the minimum servicing  standards  identified in
the Mortgage Bankers Association of America's Uniform Single Attestation Program
for Mortgage Bankers as of and for the year ended December 31, 2003, included in
the  accompanying  management  assertion.  Management  is  responsible  for  the
Company's compliance with those minimum servicing standards.  Our responsibility
is  to  express  an  opinion  on  management's  assertion  about  the  Company's
compliance based on our examination.

     Our examination  was made in accordance  with standards  established by the
American  Institute of Certified Pubic  Accountants and,  accordingly,  included
examining, on a test basis, evidence about the Company's compliance with minimum
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 of the Company's compliance with the minimum servicing standards.

     In our opinion,  management's  assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended December
31, 2003 is fairly stated, in all material respects.

/s/ Deloitte & Touche LLP
---------------------------------------------

February 20, 2004


                                      -8-

<page>



LITTON LOAN SERVICING, LP
an affiliate of C-BASS

4828 Loop Central Drive                 Telephone 713.960.9676
Houston, Texas  77081                         Fax 713.966.8830


February 20, 2004

Deloitte & Touche
333 Clay, Suite 2300
Houston, Texas 77002

     As of and for the period ended December 31, 2003,  Litton Loan Servicing LP
(the Company) has complied in all material  respects with the minimum  servicing
standards set forth in the Mortgage  Bankers  Association  of America's  Uniform
Single Attestion Program for Mortgage  Bankers.  As of and for this same period,
Litton  Loan  Servicing  LP had in  effect  a  fidelity  bond in the  amount  of
$20,000,000 and an errors and omissions policy in the amount of $20,000,000.


/s/ Larry B. Litton, Sr.
-----------------------------------------
Larry B. Litton, Sr., President & CEO


/s/ Janice McClure
------------------------------------------
Janice McClure, Senior Vice President

                                      -9-

<PAGE>

                                  EXHIBIT 99.2
                   Servicer's Annual Statement as to Compliance
                            -----------------------



LITTON LOAN SERVICING, LP
an affiliate of C-BASS

4828 Loop Central Drive                 Telephone 713.960.9676
Houston, Texas  77081                         Fax 713.966.8830


February 20, 2004

Diane Wallace
JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, NY  10004-2477

RE:  ABFC 2003-AHL1, ABFC Asset-Backed Certificates

To Whom It May Concern:

     The  undersigned  officer of Litton Loan  Servicing  LP provides the Annual
Statement as to Compliance  as required by the Pooling and  Servicing  Agreement
for the  above  referenced  security  and  certifies  that (i) a  review  of the
activities of the Servicer during such  preceding  fiscal year (or such shorter
period in the case of the first  such  report)  and of  performance  under  this
Agreement  has  been  made  under  my  supervision,  and  (ii) to the best of my
knowledge,  based on such review, the Servicer has fulfilled all its obligations
under this Agreement for 2003.

Sincerely,


/s/ Janice McClure                            /s/  Ann Kelley
-----------------------------------------    --------------------------------
Janice McClure                                  Ann Kelley
Senior Vice President                           Secretary



                                      -10-