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, 1996
                               OR
    [ ]    TRANSITION REPORT PURSUANT TO SECTION 13 or 15(D)
           OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE
           REQUIRED]
        For the transition period from     to    .

               Commission File number 33-99346.03

AMRESCO Residential Securities Corporation Mortgage Loan Trust 1996-3
        (Exact name of registrant as specified in its charter)
       New York                               Pending
 (State of other jurisdiction             (I.R.S. Employer
              of                        Identification No.)
incorporation or organization)     
                                   
  c/o Bankers Trust Company        
      Four Albany Street                       10006
      New York, New York                     (Zip Code)
    (Address of principal
      executive offices)

Registrant's telephone number, including area code: (909) 605-7600

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

             None                               None
    (Title of each class)            (Name of each exchange on
                                         which registered)
  Securities registered pursuant to Section 12 (g) of the Act:
                              None
                        (Title of class)

      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 ]

     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
Not Applicable

                             PART I

ITEM 1 - BUSINESS

     Not Applicable.

ITEM 2 - PROPERTIES

     Not Applicable.

ITEM 3 - LEGAL PROCEEDINGS

     AMRESCO Residential Securities Corporation (the "Depositor")
is  not aware of any material pending legal proceedings involving
either  the  AMRESCO Residential Securities Corporation  Mortgage
Loan  Trust  1996-3  (the "Trust") established  pursuant  to  the
Pooling  and  Servicing Agreement dated June 1, 1996,  among  the
Depositor,  AMRESCO  Residential  Mortgage  Corporation  in   its
capacity  as  seller,  Long Beach Mortgage  Company  and  Advanta
Mortgage  Corp.  USA  as  the servicers  (the  "Servicers"),  and
Bankers  Trust  Company, N.A., a national banking association  in
its capacity as trustee.

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, A-2, A-3, A-4, A-5, A-6, A-7, and 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 from the DTC as of March 17, 1997, there were 3  holders
of  the  Class  A-1  Certificates, 11 holders of  the  Class  A-2
Certificates, 4 holders of the Class A-3 Certificates, 14 holders
of  the  Class  A-4  Certificates, 8 holders  of  the  Class  A-5
Certificates, 7 holders of the Class A-6 Certificates, 12 holders
of  the  Class A-7 Certificates, and 2 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.

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
Servicers for the year ended December  31, 1996 was $639,853.

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 Class A 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 Class A Certificates is based upon
information  obtained  from the DTC and represents  ownership  of
beneficial  interest in the Certificates held by  the  DTC.   The
Depositor  is not aware of any Schedules 13D or 13G's filed  with
the   Securities  and  Exchange  Commission  in  respect  of  the
Certificates.

                                               Amount Owned
                                          (All Dollar Amounts Are
                                               in Thousands)
Name and Address                  Class  Principal   Percent

First National Bank of Chicago     A-1   6,000,000            8.5%
One First national Plaza, 
Suite 0417
Chicago, IL  60670
                                                                  
Republic National Bank of New York-A-1   6,000,000            8.5%
Investment Account
One Hanson Place, Lower Level
Brooklyn, NY  11243
                                                                  
Swiss American Securities, Inc.    A-1   58,892,000          83.0%
100 Wall Street
New York, NY  10005
                                                                  
Bankers Trust Company              A-2   7,000,000           25.8%
C/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN  37211
                                                                  
Corestates Bank/Commonwealth of PA A-2   4,435,000           16.4%
Global Proxy, Unit, A5NW
P.O. Box 1631
Boston, MA  02105-1631
                                                                  
Central Fidelity Bank, N.A.        A-2   5,000,000           18.4%
P.O. Box 27602, 5th Floor/Vault
Richmond, VA  23261
                                                                  
Chase Manhattan Bank               A-2   2,750,000           10.1%
Two Chase Manhattan Plaza, 
5th Floor
New York, NY  10081

State Street Bank & Trust Co.-     A-2   2,000,000            7.4%
Fiduciary
108 Myrtle Street
Newport Office Bldg.
N. Quincy, MA  02171
                                                                  
Northern Trust Company             A-2   4,150,000           15.3%
801 S. Canal C-In
Chicago, IL  60607
                                                                  
Bankers Trust Company              A-3   2,000,000            5.9%
C/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN  37211
                                                                  
Citicorp Services, Inc.            A-3   5,000,000           14.6%
P.O. Box 30576
Tampa, FL  33630-3576
                                                                  
Northern Trust Company             A-3   22,000,000          64.4%
801 S. Canal C-In
Chicago, IL  60607
                                                                  
UMB BK, NA                         A-3   5,146,000           15.1%
P.O. Box 419260
Kansas City, MO  64141-6260
                                                                  
Bank One Capital Corporation       A-4   2,150,000           12.6%
C/o ADP Proxy Services
51 Mercedes Way
Englewood, NY  11717
                                                                  
Bank of New York (The)             A-4   2,875,000           16.9%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                                  
Chase Manhattan Bank               A-4   6,049,000           35.5%
Two Chase Manhattan Plaza, 
5th Floor
New York, NY  10081

Wells Fargo Bank,                  A-4   2,875,000           16.9%
National Association
26610 West Agoura Road
Calabasas, CA  91307
                                                                  
Bankers Trust Company              A-5   2,000,000            8.8%
C/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN  37211
                                                                  
Bear Stern Securities Corp./Portal A-5   1,615,000            7.1%
One Metrotech Center North, 
4th Floor
Brooklyn, NY  11201-3862
                                                                  
Chase Manhattan Bank/Chemical      A-5   9,876,000           43.6%
Auto Settle Department
4 New York plaza, 4th Floor
New York, NY  10004
                                                                  
National City Bank                 A-5   4,350,000           19.2%
1900 East 9th Street
Cleveland, Oh  44114
                                                                  
SSB-Custodian Global Proxy Unit,   A-5   1,500,000            6.6%
A5NW
P.O. Box 1631
Boston, MA  02105-1631
                                                                  
UMB Bank, N.A.                     A-5   1,885,000            8.3%
P.O. Box 419260
Kansas City, MO  64141-6260
                                                                  
Boston Safe Deposit & Trust Co.    A-6   15,000,000          55.9%
C/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA  15259
                                                                  
Chase Manhattan Bank               A-6   1,520,000            5.7%
Two Chase Manhattan Plaza, 
5th Floor
New York, NY  10081
                                                                  
Northern Trust Company             A-6   2,000,000            7.4%
801 S. Canal C-In
Chicago, IL  60607
                                                                  
SSB-Custodian Global Proxy Unit,   A-6   4,337,000           16.1%
A5NW
P.O. Box 1631
Boston, MA  02105-1631
                                                                  
First Bank, N.A.                   A-6   2,000,000            7.4%
C/o ICE Proxy Services
71 Executive Blvd.
Farmingdale, NY  11735
                                                                  
Bank of New York (The)             A-7   3,000,000           11.4%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                                  
Bankers Trust Company              A-7   2,525,000            9.6%
C/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN  37211
                                                                  
Boatmen's Trust Company            A-7   4,250,000           16.2%
100 N. Broadway
St. Louis, MO  63102
                                                                  
Chase Manhattan Bank, Trust        A-7   2,955,000           11.3%
Two chase Manhattan Plaza, 5th
Floor
New York, NY  10081

North Trust Company                A-7   1,600,000            6.1%
801 S. Canal C-In
Chicago, IL  60607
                                                                  
Wells Fargo Bank,                  A-7   4,550,000           17.4%
National Association
26610 Wet Agoura Road
Calabasas, CA  91307
                                                                  
Fifth Third Bank (The)             A-7   3,000,000           11.4%
Dept.00850 - Proxy
38 Fountain Square Plaza
Cincinnati, Oh  45263
                                                                  
Chase Manhattan Bank/Chemical      A-8   30,196,000          71.6%
Auto Settle Department
4 New York, NY  10004
                                                                  
Goldman, Sachs & Co.               A-8   12,000,000          28.4%
C/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY  11717


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(a)       Statement of Compliance of the Servicer.
                           - Advanta
             99.1(b)      Statement of Compliance of the Servicer
                           - Long Beach
             99.2(a)      Annual Report of Independent Accountants
                           with respect to the Servicer's overall
                           servicing operations. - Arthur Andersen LLP
             99.2(b)      Annual Report of Independent Accountants
                           with respect to the Servicer's overall
                           servicing operations. - Deloitte & Touche LLP
              99.3        Annual compilation of Monthly Trustee's
                           Statement.

(b)  Reports on Form 8-K.

                Reports on Form 8-K have been filed by the Issuer
during the last quarter of the period covered by this report.

                                   Items Reported/Financial
        Date of Reports on             Statements Filed
             Form 8-K
       October 25, 1996     Trustee's Monthly Report for the
                            October Monthly Period.
       November 25, 1996    Trustee's Monthly Report for the
                            November Monthly Period.
       December 26, 1996    Trustee's Monthly Report for the
                            December Monthly Period.

                           SIGNATURES

      Pursuant to the requirements of Section 13 and 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.

              AMRESCO RESIDENTIAL SECURITIES CORPORATION
              on behalf of AMRESCO Residential Securities Corporation
              Mortgage Loan Trust 1996-3


                    By:  /s/ Ronald B. Kirkland
                    Name:    Ronald B. Kirkland
                    Title:   Vice President and Chief Accounting
                             Officer


Date:  March 26, 1997

                       INDEX TO EXHIBITS
                           Item 14(C)


         Exhibit No.                   Description
           99.1(a)         Statement of Compliance of the Servicer
                            - Advanta
           99.1(b)         Statement of Compliance of the Servicer
                            - Long Beach
           99.2(a)         Annual Report of Independent Accountants
                            with respect to the Servicer's overall
                            servicing operations. - Arthur Andersen LLP
           99.2(b)         Annual Report of Independent Accountants
                            with respect to the Servicer's overall
                            servicing operations. - Deloitte & Touche LLP
           99.3            Annual compilation of Monthly Trustee's
                            Statement.