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

Annual Report pursuant to Section 13 or 15 (d)              
of the Securities Exchange Act of 1934

For the fiscal year ended   		December 31, 1998

Commission file number     	 33-17643

THE MORTGAGE BANCFUND OF America, a California Limited Partnership
(exact name of registrant as specified in its charter)

California								33-0281356 
(State or other jurisdiction of            					I.R.S. Employer    
Incorporation or organization )              					Identification No.

2402 MICHELSON, SUITE 255, IRVINE, CA  92612-1323              
(address of principal executive office)

(714) 253-2900
(registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last 
report.)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class:	N/A

Name of Each Exchange on Which Registered:	N/A

Securities registered pursuant to Section 12(g) of the Act:

Title of Class:	N/A

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 reports), and (2) has been subject to such filing 
requirements for the past 90 days.

         YES    X								NO_______
Partnership units outstanding: 87,087


The Mortgage Bancfund of America 
(a California Limited Partnership)

Index to Form 10-K 
        
December 31, 1998

Part I

Item 1 - Business
Item 2 - Properties
Item 3 - Legal Proceedings
Item 4 - Submission of matters to a vote of security holders (partners)

Part II

Item 5 - Market for the registrant's Partnership units and related security 
         holder matters
Item 6 - Selected financial data
Item 7 - Management's discussion and analysis of financial condition and 
         results of operations
Item 8 - Financial statements and supplementary data
Item 9 - Disagreements with accountants on accounting and financial disclosure

Part III

Item 10 - Directors and executive officers of the registrant
Item 11 - Executive compensation
Item 12 - Security ownership of certain beneficial owners and management
Item 13 - Certain relationships and related transactions

Part IV

Item - 14 Exhibits, financial statement schedules and reports on Form 8-K

Signatures


PART 1

Item 1: Business

General
THE MORTGAGE BANCFUND OF AMERICA, is a California Limited Partnership
(the "Partnership") of which the general partners are Robert Y. Strom and the 
Mortgage BancFund Corporation (the Corporation), a California Corporation 
wholly owned by Mr. Strom. The  Partnership was organized to make first and 
second trust deed commercial real estate loans in the southern California area.
The Partnership currently manages one operational real estate projects which
was acquired through foreclosure.

Consolidated Operations

The attached financial statements are reported on a consolidated basis with 
partnership interests which own real estate acquired through foreclosure.

State of the Economy

The southern California economy continues to be the most important factor 
which affects the operations of the Partnership. Throughout 1994 and 1995 
large industries announced large employee layoffs, plant closings and 
relocation efforts to other states. All of this has depressed real estate 
values in the local area. Management is of the opinion that the economy has 
stopped this decline, however, the effects will be felt for at least the 
next several years in lower rental rates and property values in general.
Rents and values have rebounded, but are still substantially below those of
the late 1980s and early 1990's.

Employees

The Partnership does not directly employ personnel. The Corporate general 
partner handles all the business affairs of the partnership with its 
remaining full-time staff of one employee.

Item 2: Properties:

The Partnership does not own any real property other than foreclosed 
properties acquired during the normal course of business which was
disposed of during 1996.  No other real property is owned by the
Partnership.

Item 3: Legal Proceedings

At December 31, 1998 the Partnership was not involved in any adverse legal 
proceedings.

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

No matters have been submitted to a vote of the Partnership.


Part II

Item 5: Market for the Registrant's Partnership Units and Related Security 
Holder Matters

a) There is no established trading market for these securities and no known 
sales of the securities have taken 
place during fiscal  1998.
b) At December 31, 1998 there were 87,087 limited partnership units outstanding
which had been sold in prior years to approximately 650 limited partners.
c) No distributions were paid in fiscal 1998.

Item 6:          Selected Financial Data

                                   1996         1997       1998

Total Income               $    183,851  $    27,203  $  243,652

Net Income(Loss)               (848,570)    (110,020)    121,624

Net Income(loss) per LP Unit      (9.74)       (1.26)       1.40

Distributions per LP Unit            -0-          -0-         -0-

Total Assets                  2,263,491    2,129,800   1,563,654

Total Liabilities          $  1,194,671  $ 2,048,380  $1,368,578


Item 7: Management's Discussion and Analysis of Financial Condition  and 
Results of Operations

General Overview:
The Partnership's management continues to primarily manage foreclosed 
properties and collect the balance of the loans receivable on the Partnership 
books. The Partnership concluded a development of single family housing
addition acquired through foreclosure.  Projections were not realized due to 
mismanagement of the budget by the development partner in the joint venture.

Liquidity and Capital Resources:
Liquidity continues to be a serious problem for the Partnership. Management 
will depend upon the operations of foreclosed real estate and the ultimate 
sale of that real estate to generate funds necessary to operate. There are no 
plans to seek additional capital from outside sources, either debt nor equity.

The capital account has eroded by nearly 96% of the original $100.00 cost to a 
value of $4.14 per Partnership unit outstanding. This due to losses experienced 
over the past several years.

Results of Operations:
During 1998, the majority owned partnership sold 35% of its primary asset,
a commercial property.  A gain of approximately $200,000 resulted.  Due to
this, book value per Partnership unit outstanding is up to $4.14; a 52%
increase in value from 1997.  Management is of the opinion losses will 
continue as the southern California economy slowly recovers from a 
depression.  To date the liquidation or other types of losses on properties
foreclosed on has not resulted in a positive return for the Partnership.
Management is operating at this point in a liquidation mode in which the
assets will continue to be managed and sold as those opportunities arise.

Management will continue to manage and attempt to sell property which has been 
foreclosed on and continue the collection effort on the remaining loan 
receivable still on the Partnership books.

Item 8: Financial Statements and Supplementary Data

Information required by this item is included under Item 14: Exhibits, 
financial statement schedules and reports on Form 8-K and is incorporated herein
by reference.

Item 9: Disagreements with Accountants on Accounting and Financial Disclosure


None.


Part III

Item 10: Directors and Executive Officers of the Registrant.

The Partnership is managed by the general partner, Robert Y. Strom and by the 
corporate general partner, Mortgage BancFund Corp.   Mr. Strom is the  
managing officer for the corporation.  Sharon Wilhelm is Vice President and 
Manager of Investor Services.

Item 11: Executive Compensation

The Partnership has no salary compensation. However, the Partnership can pay 
certain fees to management described as follows (it should be noted that 
other than reimbursement for out of pocket expenses to operate the Partnership,
no other fees are being collected by the general partners):

(a)       Loan Origination and Commitment Fee - As compensation for originating
mortgage investments the general partners receive  a loan origination and 
commitment fee not to exceed 2 1/2% of   the maximum amount of the 
Partnership's investment commitment, to be paid by the borrower.

With regard to those portions of loans sold to participants banks, pension 
funds, etc.), loan origination and commitment fees retained by the Partnership 
will be shared equally between the general partners and the Partnership.

(b)   Mortgage Servicing Fee - The Partnership pays the general partners a 
quarterly servicing fee of 1/4 of 1% per annum of  the maximum amount of the 
Partnership's investment commitment   in mortgage loans. Due to the depressed 
condition of the loan  portfolio, the general partners have been waiving 
collection   and accrual of this fee to the benefit of the Partnership since 
fiscal 1992 through fiscal 1994.

(c)   Loan Extension Fee - The general partner can collect an amount  equal 
to 1% of the Partnership' s investment in loans for  extensions of up to six 
months and up to a maximum of 2 1/2%  for extensions beyond six months. Loan 
extension fees on  loans sold to participants will be shared equally with the 
Partnership.

(d)   Other Fees - The Partnership agreement provides for other fees such as 
property management, rent up, leasing and releasing fees, and real estate 
brokerage commissions.

(e)  Cash from Operations - The general partners can receive 5% of the cash 
from operations until all limited partners have received, for the particular 
quarter, a return on their contributions equal to the weighted average prime 
rate of interest at Security Pacific National Bank for the applicable period 
and, thereafter, 10% of cash from operations. For fiscal 1997 the general 
partner's have not received any cash under this provision.

(f)  Income and Losses Income and loss will be credited or charged to the 
partners in relation to their respective Partnership interest, both for limited
partners and the general partners.

(g) Operating Expenses - The general partners will be reimbursed by the 
Partnership, without limitation, for all out-of-pocket general and 
administrative expenses of the Partnership, accounting and audit fees, legal 
fees and expenses, postage and preparation of reports to limited partners.

Item 12: Security ownership of Certain Beneficial Owners and Management

The general partners are to own a combined total of 1% of the Partnership 
including a 1% portion of income and losses.


Item 13: Certain Relationships and Related Transactions

The Partnership does not make mortgage investments with any of the general 
partners or affiliates of the general partners. Other related transactions are
referred to in Item 11 above.


Part IV

Item: 14:  Exhibits, Financial Statement Schedules and Reports on Form 8-K

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

	1.	Unaudited financial statements
		a.  Balance Sheets
		b.  Income Statements
		c.  Statements of Partner's Equity
		d.  Statements of Cash Flows
	2.	Financial statement schedules:
		None.

(b)  Reports on Form 8-K

	None



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.

The Mortgage BancFund of America 
(a California Limited Partnership)

______________________________
Robert Y./Strom
General Partner 
Date:____________

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.

By:	Mortgage BancFund Corporation,
	a California Corporation
	General Partner of the Registrant

	By:____________________________
		Robert Y. Strom, President
	Date:___________________________

By:	_______________________________
	Robert Y. Strom, General Partner,
	Chief Executive Officer, Chief Financial 
	Officer and Chief Accounting Officer of 
	Registrant, and President and Director of
	Mortgage BancFund Corporation

	Date:___________________________

THE MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
CONSOLIDATED BALANCE SHEETS
(Unaudited)

ASSETS                             Dec 31, 1997         Dec 31, 1998
Cash                                    129,033              204,047
Loans receivable (Note 1)               118,191               58,118
Accounts receivable (Note 2)                  0                    0
Other real estate owned (Note 3)      1,872,799            1,178,780
Other assets                              9,777              122,709
   Total Assets                       2,129,800            1,563,654

LIABILITIES & PARTNER'S EQUITY
Liabilities           
 Accounts payable                       172,368              160,829
 Notes payable (Note 4)               1,876,012            1,207,751
   Total liabilities                  2,048,380            1,368,580
Minority interest                      (157,380)            (165,350)
Partner's equity                        238,800              360,424            
Total liabilities & partner's equity   2,129,800            1,563,654
Book value per limited partner
unit outstanding                           2.72                 4.14


CONSOLIDATED INCOME STATEMENTS
For the Twelve Months Ended

                             12/31/95   12/31/96   12/31/97   12/31/98
                            Unaudited  Unaudited  Unaudited  Unaudited
REVENUES:
Interest
Loans                          31,296     26,737     16,553     13,898
Investments                    (6,533)         0     10,650      1,305
Total Interest                 24,763     26,737     27,203     15,203
Recovery of previous losses         0          0          0          0
Other Income                  123,178    157,114          0    228,449
Total Income                  147,941    183,851     27,203    243,652

COSTS & EXPENSES:
Cost of loans                 551,179          0      9,500      8,621
General & admin. costs        136,835    222,253    127,723    113,407
Interest Expense               59,389    (69,269)         0          0
Loss on Disposal of Assets          0    879,437          0          0
Total costs & expenses        747,403  1,032,421    137,223    122,028
Net Loss                     (599,462)  (848,570)  (110,020)   121,624
Net loss per partnership
unit outstanding                (6.88)     (9.74)     (1.26)      1.40
Partnership units outstanding  87,087     87,087     87,087     87,087


THE MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
CONSOLIDATED STATEMENTS OF PARTNER'S EQUITY
(Unaudited)

                                         General     Limited
                                         Partner     Partner       Total

Balance December 31, 1996               (322,997)    671,817     348,820
Allocation of net loss                    (5,501)   (104,519)   (110,020)
Balance, December 31, 1997              (328,498)    567,298     238,800
Allocation of net loss                     6,081     115,543     121,624
Balance, December 31, 1998              (322,417)    682,841     360,424

CONSOLIDATED STATEMENTS OF CASH FLOW
For the Twelve Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:       Dec. 31, 1997   Dec. 31,1998
Net (loss)                                       (110,020)       121,624
Gain on Disposal of real estate owned                   0       (288,172)
Adjustments to reconcile net income to cash
provided by operating activities:
   (Decrease) increase in accounts payable        (61,861)       (11,541)
   (Increase) in accounts receivable               (6,237)             0
   (Decrease) increase in due to general partner        0              0
   (Increase) Decrease in other assets             (9,598)             0
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (187,716)      (178,089)

CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loan receivable                      73,377         60,073
Decrease in minority interest                    (157,380)        (7,970)
Proceeds from Disposal of real estate owned             0        201,000
Net change in other real estate owned              59,278              0
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES  (24,725)       253,103

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (Decrease) in notes payable            195,570              0
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES  195,570              0

NET INCREASE (DECREASE) IN CASH                   (16,871)        75,014
Cash, Beginning of period                         145,904        129,033
Cash, End of period                               129,033        204,047


MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1 - Loans Receivable
Loans receivable are carried at the unpaid principal balance net of unearned 
loan fees.  Points and other loan fees are deferred over the life of the loan.  
In management's opinion the book value of these loans is  equal to 
the estimated net realizable value.

Note 2 - Accounts Receivable
This account represents funds owed to the Partnership from affiliate 
partnerships, and projects which were acquired through foreclosure.

Note 3 - Other Real Estate Owned
All real estate owned by the Partnership, which was acquired through fore-
closure was disposed of during 1996. The account also included properties
which are owned by the majority-owned limited partnership, 35% of which was 
sold during 1998.

A condensed balance sheet of the majority owned partnership follows:
CONDENSED BALANCE SHEET, unaudited, at December 31, 1998
                                                
Assets:                                     DEC 31,1997  DEC 31, 1998
Cash and other assets                            58,638        65,253
Real estate, net of depreciation              1,872,797     1,178,780
Total assets                                  1,931,453     1,244,033

Liabilities and Partner's Equity:
Accounts payable                                 41,925        30,385
Notes payable                                 1,864,047     1,195,786
Due to affiliates                              (143,165)     (143,165)
Partner's equity                                168,628       161,027
Total liabilities & partners equity           1,931,435     1,244,033

Note 4 - Notes Payable
Account represents debt directly owed to commercial banks by the partnership.  
Funds borrowed were used to develop property acquired through foreclosure. 
Account also represents amounts owed by majority owned limited partnerships on 
real estate owned.

Accounting Policy
The consolidated financial statements include the accounts of the partnership 
and majority-controlled limited partnerships.  All material intercompany 
transactions, profits and balances have been eliminated.  All adjustments made
to the financial statements are of normal recurring nature necessary to present 
fairly the financial condition of the partnership.

Supplemental Disclosure of Cash Flows
                                           
Proceeds from disposal of real estate owned      Dec. 31, 1998
Change in Note Payable                              668,261
Change in other real estate owned                  (581,089)
  Proceeds from sale of real estate                 201,000
  Net gain on disposal of real estate               288,172