SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                    FORM 10-K/A

                   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:  333-24453

                        MELLON RESIDENTIAL FUNDING CORPORATION
          (as depositor under the Pooling and Servicing Agreement, dated
          as of June 30, 1998, which forms Mellon Residential Funding
          Corporation Home Equity Installment Loan Trust 1998-1 Mortgage
          Pass-Through Certificates, Series MHELT 1998-1.

            MELLON BANK HOME EQUITY INSTALLMENT LOAN TRUST 1998-1
            (Exact name of Registrant as specified in its Charter)

           DELAWARE                                    23-2889067
           (State or other jurisdiction                (I.R.S. Employer
           incorporation or organization)              Identification Number)

           ONE MELLON BANK CENTER, ROOM 410
           PITTSBURGH, PENNSYLVANIA                    15258
           (Address of principal executive offices)    (Zip Code)

            Registrant's telephone number, including area code:
                               (412) 236-6559

          Securities registered pursuant to Section 12(b) of the Act:
                               NOT APPLICABLE.

          Securities registered pursuant to Section 12(g) of the Act:
                               NOT APPLICABLE.

     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 the Registrant's knowledge, in definitive proxy
     or information statements incorporated by reference in Part III of the
     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, 1998:  NOT APPLICABLE.

     Number of shares of common stock outstanding as of December 31, 1998:
     NOT APPLICABLE.


     ITEM 8.  Financial Statements and Supplementary Data.

     Annual Statement of Compliance

     Independent Accountant's Report


     PART IV

     ITEM 14.  Exhibits, Financial Statement Schedules, and Reports on Form
     8-K.

     (a)  The following is a list of documents filed as part of this report:

     EXHIBITS


     Annual Statement of Compliance

     Independent Accountant's Report



                                     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.

                             By:  Bankers Trust Company of California, N.A.
                                  not in its individual capacity but solely
                                  as a duly authorized agent of the
                                  Registrant pursuant to the Pooling and
                                  Servicing Agreement, dated as of June 30,
                                  1998.


                                  By:  /s/Judy L. Gomez
                                  Judy L. Gomez
                                  Assistant Vice President

     Date:  July 12, 1999


     EXHIBIT INDEX

     Exhibit Document

1.1     Annual Statement of Compliance

1.2     Independent Accountant's Report




Alliance
MORTGAGE COMPANY


Michael C. Koster
Executive Vice President
Loan Administration

Annual Statement of Compliance

I certify that:

(I)     A review of the activities of the Master Servicing during the period
        from January 1, 1998 through December 31, 1998 and the Pooling
        Servicing Agreement (the "Agreement") has been made under my
        supervision; and

(II)     To the best of my knowledge, based on such review, the Master Servicer
         has fulfilled all of its obligations under this Agreement throughout
         such year, or, if there has been a default in the fulfillment of any
         obligation, such default is listed below:  NONE




/s/  Michael C. Koster
Michael C. Koster
Executive Vice President
Alliance Mortgage Company
April 23, 1999






















Post Office Box 2109 Jacksonville, FL  32232-0001 904-281-6299

Mellon Bank                                          Loan Servicing Division
                                                     P.O. Box 149
                                                     Pittsburgh, PA  15230-0149


OFFICER'S CERTIFICATE

MELLON BANK, N.A.

MELLON HOME EQUITY LOAN TRUST 1998-1

     The undersigned, Patrick Ryan, a Vice President of Mellon Bank, N.A.,
pursuant to Section 3.17 of the Pooling and Servicing Agreement, dated as of
June 30, 1998, by and among Mellon Residential Funding Corporation, as
Depositor (the "Depositor"), Mellon Bank, N.A., as Seller and Mater Servicer,
and Bankers Trust Company of California, N.A., as Trustee (the "Trustee") (the
"Agreement"), does hereby certify as follows:

     1.     The undersigned is an officer of Mellon Bank, N.A. who is duly
authorized to execute and deliver this Officer's Certificate to the Depositor
and Trustee pursuant to the Agreement.

     2.     A review of the activities of Mellon Bank, N.A. during the year
ended December 31, 1998, with regard to its performance under the Agreement has
been conducted under the supervision of the undersigned.

     3.     To the best knowledge of the undersigned, Mellon Bank, N.A. has
fulfilled its obligations under the Agreement throughout such year, and is not
in default in the performance, observance or fulfillment of or compliance with
any of the terms, provisions covenants and conditions of the Agreement.

            IN WITNESS WHEREOF, the undersigned has executed this Officer's
Certificate this 21st day of April, 1999.



MELLON BANK, N.A. as Master Servicer


By: /s/ Patrick Ryan
    Name:  Patrick Ryan
    Title:  Vice President




KPMG
700 Louisiana
Houston, TX 77002
713 319 2000
Fax 713 319 2041


				Independent Auditors' Report


The Board of Directors
Mellon Mortgage Company:


We have examined management's assertion about Mellon Mortgage Company's
(the Company) compliance with the minimum servicing standards set forth
in the Mortgage Bankers Association of America's (MBA) Uniform Single
Attestation Program for Mortgage Bankers, as of and for the year ended
December 31, 1998, included in the accompanying Management Assertion
(Residential Mortgage Loan Servicing).  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 Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Company's
compliance with the 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 on the Company's
compliance with the minimum servicing standards.

In our opinion, management's assertion that Mellon Mortgage Company has
complied in all material respects with the aforementioned minimum
servicing standards, except minimum servicing standard I.1. related to
ensuring that all custodial and clearing accounts are reconciled on a
monthly basis and reconciling items are cleared in a timely manner in the
Denver Servicing Center, as of and for the year ended December 31, 1998,
is fairly stated, in all material respects.


KPMG LLP


January 22, 1999




Mellon Mortgage
1900 St. James Place
Suite 400
Houston, TX 77066


January 22, 1999



						MANAGEMENT ASSERTION
				(RESIDENTIAL MORTGAGE LOAN SERVICING)


As of the and for the year ended December 31, 1998, Mellon Mortgage
Company has complied in all material respects with the minimum servicing
standards set forth in the Mortgage Bankers Association of America's (MBA)
Uniform Single Attestation Program for Mortgage Bankers, except for
minimum servicing standard I.1. related to ensuring that all custodial and
clearing accounts are reconciled on a monthly basis and that reconciling
items are cleared in a timely manner in the Denver Servicing Center.  As
of and for this same period, Mellon Mortgage Company had in effect a
fidelity bond in the amount of $300,000,000 and errors and omission policy
on the amount of $35,000,000 and did not receive a notice from its insurer
(Aetna) that the insurer has taken or intends to take action to cancel,
reduce, not renew, or restrictively modify the fidelity or mortgagee's E&O
policies for any reason.



Sincerely,


/s/Paul Holmes		/s/Michael L. Kula			/s/Steven G. Froseth
Paul Holmes		Michael L. Kula			Steven G. Froseth
President & CEO	Chief Operating Officer		Chief Financial Officer