<PAGE> 1
===========================================================================
                                   ====

                  U.S. SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, DC 20549
                                     
                             ----------------
                                     
                                FORM 10-QSB
                                     
           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934
                                     
              For the quarterly period ended October 31, 1997
                                     
                         ------------------------
                                     
                      Commission File Number: 0-18108
                                     
                         ------------------------
                                     
                        FINET HOLDINGS CORPORATION
          (Exact name of registrant as specified in its charter)
                                     
                                 DELAWARE
                         (State or jurisdiction of
                      incorporation or organization)
                                     
                            3021 CITRUS CIRCLE
                          WALNUT CREEK, CA 94598
                  (Address of principal executive office)
                                     
                                94-3115180
                   (IRS Employer Identification Number)
                                     
                              (510) 988-6550
           (Registrant's telephone number, including area code)
                                     
                                     
Indicate  by  check mark whether the registrant has (1) filed  all  reports
required to be filed by Section 13 or 15(d) of the Securities 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
filing requirements within the past 90 days.

                               Yes 'X'  No.

The  number of shares outstanding of each of the issuer's classes of common
stock was 29,669,201 shares of common stock, par value $.01, as of December
12, 1997.
===========================================================================
====
<PAGE> 2
                        FINET HOLDINGS CORPORATION
                                     
                                   INDEX

<TABLE>
Item  Description
Page
----  -------------------------------------------------------------------
----
<S>   <C>
<C>
                      PART I - FINANCIAL INFORMATION

1.    Financial Statements

      Unaudited Balance Sheet............................................
3
        October 31, 1997

      Unaudited Statements of Operations
        Three Months Ended October 31, 1997 and 1996.....................
4
        Six Months Ended October 31, 1997 and 1996.......................
5

      Unaudited Statements of Cash Flow
        Six Months Ended October 31, 1997 and 1996.......................
6

      Notes to Unaudited Financial Statements............................
8

2.    Management's Discussion and Analysis of Financial Condition
        and Results of Operations........................................
13


                        PART II - OTHER INFORMATION

1.    Legal Proceedings..................................................
18

2.    Changes in Securities..............................................
18

4.    Submission of Matters to a Vote of Security Holders................
19

5.    Other Information..................................................
19

6.    Exhibits and Reports on Form 8-K...................................
19

      Signatures.........................................................
20
<PAGE> 3
                       PART I. FINANCIAL INFORMATION

                           FINANCIAL STATEMENTS

</TABLE>
<TABLE>
                        FINET HOLDINGS CORPORATION
                        CONSOLIDATED BALANCE SHEET
                                (UNAUDITED)
<CAPTION>
                                                                October 31,
                                                                   1997
                                                               ------------
<S>                                                            <C>
                                  ASSETS
Cash (Note 9)................................................  $ 1,234,658
Accounts receivable from sales of mortgage
  loans and servicing rights.................................   13,191,253
Mortgage loan servicing advances and
  other receivables (Note 5).................................      722,616
Accounts receivable from affiliates (Note 4).................      445,755
Notes receivable.............................................       72,000
Notes receivable - officers..................................       85,000
Mortgages held for sale, net.................................   11,053,979
Mortgage servicing rights....................................      401,335
Furniture, fixtures and equipment, net of
  accumulated depreciation of $1,667,379.....................    1,058,699
Intangible assets.(Note 7)...................................    1,012,241
Other assets.................................................      282,085
                                                               ------------
    Total assets.............................................  $29,559,621
                                                               ============
                   LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Warehouse line of credit (Note 6)............................  $23,095,860
Accounts payable.............................................      937,722
Revolving line of credit (Note 6)............................      250,000
Note payable and capitalized leases (Note 6).................      907,506
Accrued expenses and other liabilities.......................      771,928
Liabilities subject to compromise ...........................      441,678
                                                               ------------
    Total liabilities........................................   26,404,694
                                                               ------------
Commitments and contingencies (Note 8)

Stockholders' equity:
Preferred stock, $.01 par value, (100,000 shares
  authorized, none issued and outstanding)...................            0
Common stock, $.01 par value, (60,000,000 shares authorized,
  29,594,201 shares issued and outstanding) (Note 9).........      360,726
Common stock subscribed (74,999 shares) (Note 9).............          750
Paid in capital..............................................    8,324,494
Less: Stock subscription receivable (74,999 shares) (Note 9).     (224,997)
Accumulated deficit..........................................   (5,306,046)
                                                               ------------
    Total stockholders' equity...............................    3,154,927
                                                               ------------
    Total liabilities and stockholders' equity..............   $29,559,621
                                                               ============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE> 4
<TABLE>
                        FINET HOLDINGS CORPORATION
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                                (UNAUDITED)
<CAPTION>
                                                     THREE MONTHS ENDED
                                                        October 31,
                                                  -------------------------
-
                                                      1997          1996
                                                  ------------  -----------
-
<S>                                               <C>           <C>\
REVENUES
Gain on sale of servicing rights (Note 5).......  $ 1,356,265   $ 1,218,147
Loss on sale of mortgage loans..................     (735,979)
(945,472)
Interest income.................................      390,664       263,377
Loan servicing fees.............................      124,865       168,848
Retail broker fees..............................       53,522         2,064
Marketing leads.................................       26,462          -
Other...........................................       32,013        26,863
                                                  ------------  -----------
-
    Total revenues..............................    1,247,812       733,827

EXPENSES
Compensation and employee benefits..............    1,104,878       639,202
Interest expense................................      380,661       277,335
Office..........................................      361,001       230,912
Marketing.......................................      170,210        46,017
Professional fees...............................      470,080        99,755
Depreciation and amortization...................      119,314        95,455
Occupancy.......................................      101,089        54,074
Insurance.......................................       25,231         6,686
Data processing services........................       21,758        21,230
Loss on disposition of assets...................       39,253          -
Other (Note 5)..................................      254,061         6,855
                                                  ------------  -----------
-
    Total expenses..............................    3,047,536     1,477,521
                                                  ------------  -----------
Loss before income taxes and
  before extraordinary gain.....................   (1,799,724)
(743,694)

Income tax expense..............................         -             -
Extraordinary gain, net of taxes................        2,967
                                                  ------------  -----------
-
NET LOSS........................................  $(1,796,757)  $
(743,694)
                                                  ============
============

NET LOSS PER COMMON SHARE (Note 3)..............  $      (.06)  $
(.09)
                                                  ============
============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING...................................   29,088,049     8,400,000
                                                  ============
============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE> 5
<TABLE>
                        FINET HOLDINGS CORPORATION
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                                (UNAUDITED)
<CAPTION>
                                                      SIX MONTHS ENDED
                                                        October 31,
                                                  -------------------------
-
                                                      1997          1996
                                                  ------------  -----------
-
<S>                                               <C>           <C>
REVENUES
Gain on sale of servicing rights (Note 5).......  $ 2,049,123   $ 1,914,607
Loss on sale of mortgage loans..................     (803,885)
(1,221,273)
Interest income.................................      725,700       588,067
Loan servicing fees.............................      253,323       362,304
Retail broker fees..............................       84,379        19,394
Marketing leads.................................       97,041          -
Other...........................................       65,586        43,700
                                                  ------------  -----------
-
    Total revenues..............................    2,471,267     1,706,799

EXPENSES
Compensation and employee benefits..............    2,110,449     1,291,401
Interest expense................................      712,246       608,454
Office..........................................      668,577       508,853
Marketing.......................................      266,473       105,328
Professional fees...............................      698,229       195,767
Depreciation and amortization...................      232,346       182,752
Occupancy.......................................      192,862       107,751
Insurance.......................................       37,738        15,515
Data processing services........................       49,495        46,138
Loss on disposition of assets...................       39,253          -
Other.(Note 5)..................................      340,190        35,839
                                                  ------------  -----------
-
    Total expenses..............................    5,347,858     3,097,798
                                                  ------------  -----------
Loss before income taxes and
  before extraordinary gain.....................   (2,876,591)
(1,390,999)

Income tax expense..............................         -             -
Extraordinary gain, net of taxes................        2,967
                                                  ------------  -----------
-
NET LOSS........................................  $(2,873,624)
$(1,390,999)
                                                  ============
============

NET LOSS PER COMMON SHARE (Note 3)..............  $      (.10)  $
(.17)
                                                  ============
============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING...................................   28,762,868     8,400,000
                                                  ============
============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE> 6

<TABLE>
                        FINET HOLDINGS CORPORATION
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)
<CAPTION>
                                                         SIX MONTHS ENDED
                                                            October 31,
                                                          1997
1996
                                                     ------------- --------
-----
<S>                                                  <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net loss........................................... $ (2,873,624)
(1,390,999)
 Adjustments to reconcile net loss to net
  cash used in operating activities:
  Depreciation and amortization.....................      232,346
182,752
  Provision for losses on loans and real
   estate owned.....................................       47,989
(20,038)
  Loss on disposition of property, plant and
   equipment........................................       39,253
-
  Gain on sale of puchased mortgage servicing rights      (47,447)
-
  Expense paid through the issue of common stock....      122,598
-
 Changes in operating assets and liabilities:
  (Increase) decrease in receivables from sales
   of mortgage loans and loan servicing rights......   (9,738,054)
1,630,417
  Mortgage loans originated......................... (182,268,737)
(193,419,745)
  Mortgage loans sold...............................  178,435,646
194,486,305
  Decrease (increase) in originating mortgage
   servicing rights, net............................      277,209
(49,539)
  Increase in mortgage loan servicing
   advances and other receivables...................      (78,544)
(214,427)
  Decrease in notes receivable - officers...........       59,350
-
  (Increase) decrease in prepaids and other assets..      (68,671)
55,026
  Decrease in accounts payable, accrued expenses
    and other liabilities...........................      458,628
275,139
                                                     ------------- --------
-----
  Net cash (used) provided by operating activities    (15,402,058)
1,534,891
                                                     ------------- --------
-----
CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchase of mortgage servicing rights..............     (165,445)
(286,263)
 Proceeds of sale of purchased servicing rights.....       75,331
-
 Purchase of furniture, fixtures and equipment......     (117,442)
(30,534)
 Proceeds of sale of furniture, fixtures
  and equipment.....................................          430
-
 Purchase of intangible assets......................     (204,241)
-
 Settlements of liabilities subject to compromise...      (10,544)
-
 Advances to affiliates.............................     (270,755)
-
                                                     ------------- --------
-----Net cash used by investing activities...............     (692,666)
(316,797)
                                                     ------------- --------
-----
<PAGE> 7

CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of common stock.............    3,862,437
-
 Proceeds from exercise of common stock warrants....       22,500
-
 Net increase (decrease) in warehouse borrowings....   12,886,663
(1,302,030)
 Proceeds from advances on note payable and
  line of credit....................................      250,000
1,550,000
 Principal payments on note payable and line of
  credit............................................     (259,514)
(1,933,985)
Proceeds from notes payable to officer.............          -
-
 Cash distributions to former MMI shareholders.....          -
(37,462)
                                                      ------------  -------
-----
  Net cash provided (used) by financing activities     16,726,086
(1,723,477)
                                                      ------------  -------
-----
  Increase (decrease) in cash.......................      631,362
(505,383)

  Cash at beginning of period.......................      603,296
672,687
                                                      ------------- -------
-----
  Cash at end of period.............................  $ 1,234,658   $
167,304
                                                      ============
============

Supplemental cash flow information (Note 10)

The accompanying notes are an integral part of the consolidated financial
statements.

</TABLE>
<PAGE> 8

                        FINET HOLDINGS CORPORATION
           NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.  GENERAL

REPORTING ENTITY

Finet  Holdings  Corporation ("Finet" or the "Company")  acquired  Monument
Mortgage, Inc. ("MMI") on December 31, 1996.  The transaction was accounted
for  as  a  reverse  acquisition whereby MMI is  considered  the  acquiring
corporation  for  accounting and financial statement presentation  purposes
and  MMI's  historical financial statements are deemed to be the historical
financial statements of the reporting entity.

BUSINESS

Finet  is  engaged  in electronic commerce in the residential  real  estate
industry.  It  develops and distributes Internet connectivity  systems  and
services  through the Property Transaction Network (PTN),  a  wholly  owned
subsidiary.  The  PTN's  services include Internet connectivity  using  its
proprietary  iQualify  and  Agent Connector  software,  customized  Realtor
marketing  services and access to a variety of mortgage financing  services
and  providers,  including  PreferenceAmerica Mortgage  Network  (PAMN),  a
mortgage broker conducting business through electronic connections with its
customers; and MMI, a full-service prime and sub-prime mortgage lender  and
leader  in  developing advanced automated loan origination and underwriting
systems.  The Company also owns several inactive corporations.

2.  BASIS OF PRESENTATION

The  accompanying  unaudited consolidated financial  statements  have  been
prepared  in  accordance with generally accepted accounting principles  for
interim  financial  information and the instructions  of  Form  10-QSB  and
Regulation  S-B.  Accordingly, they do not include all the information  and
footnotes required by generally accepted accounting principles for complete
financial  statement  presentation.  In  the  opinion  of  management,  all
adjustments, consisting of normal recurring accruals, considered  necessary
for  a  fair presentation of the results for the interim period  have  been
included.   Operating results for the quarter and six months ended  October
31, 1997 are not necessarily indicative of the results that may be expected
for the fiscal year ending April 30, 1998.

The  consolidated financial statements of the Company include the  accounts
of  all  wholly owned subsidiaries.  All significant intercompany  balances
and transactions have been eliminated in consolidation.

3.  NET LOSS PER COMMON SHARE

Net  loss per common share is computed based on the weighted average number
of  shares  outstanding during the periods.  The effects  of  common  stock
equivalents  have  not  been included because they would  have  been  anti-
dilutive during all periods reported.

4 . PENDING ACQUISITION

On  June  12,  1997,  the Company entered into a preliminary  agreement  to
acquire 100% of the outstanding stock of Real Estate Office Software,  Inc.
("REOS")  for a purchase price of $827,296 in the form of cash, forgiveness
of  advances, and Finet common stock valued at $2.50 per share.  REOS is  a
software  development  and marketing company whose  primary  product  is  a
proprietary Realtor productivity tool called Real Estate Office.

<PAGE> 9

The  structure  of  the transaction was later revised to include  only  the
purchase   of  certain  REOS  assets  and  liabilities  for  a   comparable
consideration. The Company expects to complete the purchase before December
31,  1997.   In  the  interim, the Company and REOS have  combined  certain
business  activities.  Former REOS employees are now employees of  PTN  and
participated  in the development of the Agent Connector.  The  Company  had
advanced  $445,755 to REOS at October 31, 1997 to support  development  and
marketing costs for the Agent Connector.

5.  MORTGAGE LOAN SERVICING

The  Company's  loan  origination and servicing  activity  is  concentrated
largely  within California.  The Company's servicing portfolio is primarily
comprised  of  conventional mortgage loans some of whose  servicing  rights
values are not included in the accompanying balance sheet, and which had an
outstanding principal balance of $136.6 million, representing 1,017  loans,
at  October  31, 1997.  The majority of loans are securitized through  FNMA
and  FHLMC  programs on a nonrecourse basis whereby foreclosure losses  are
generally  the  responsibility of the investor and not  the  Company.    In
connection  with mortgage loan servicing activities, the Company segregates
escrow  and  custodial funds in a separate trust account and excludes  this
balance  of $1.8 million at October 31, 1997 from the accompanying  balance
sheet.  The Company is required to maintain separate accounting records for
its escrow and custodial cash account and the related liabilities.

In  addition to the ongoing sale of servicing rights for mortgages as  they
are originated, the Company sold servicing rights for mortgages, originated
and  retained  in  the  servicing portfolio in  prior  fiscal  years,  with
outstanding principal balances of $44.9 million during the six months ended
October  31,  1997, compared to zero in the same period of the prior  year.
These  sales  of prior fiscal year originations resulted in a net  gain  of
$161,070  for  the six months ended October 31, 1997. Servicing  rights  to
mortgage  loans  with  an unpaid principal balance of approximately  $136.6
million were pledged as collateral to lenders as of October 31, 1997.

The  Company  has issued various representations and warranties  associated
with  whole  loan  and  bulk  servicing sales which  are  standard  in  the
industry.  These representations and warranties may require the Company  to
repurchase  defective  loans as defined per the  applicable  servicing  and
sales  agreements.  The Company established a reserve of  $205,000  in  the
quarter  ended  October  31, 1997 for possible losses  arising  from  these
representations and warranties.

As a routine part of servicing operations, the servicing portfolio contains
a number of loans that are in the process of foreclosure, or that have been
foreclosed upon by the Company (real estate owned).  The dollar  amount  of
loans  in  foreclosure  and  real  estate owned  represented  3.4%  of  the
outstanding servicing portfolio balance as of October 31, 1997.  The losses
(recoveries)  to  the Company arising from the foreclosed  loans  and  real
estate  owned  were $66,166 and ($20,038) for the six months ended  October
31, 1997 and 1996, respectively.

The  Company  carried  fidelity bond coverage of $950,000  and  errors  and
omission coverage of $950,000 as of October 31, 1997.

6.  DEBT

The  following table and comments present summary information regarding the
Company's debt as of October 31, 1997:
<TABLE>
<CAPTION>
                                                    Interest
Facility                                      Balance                  Rate
Expires or Due
--------------------------------  --------------  --------------   --------
-----------
<S>                                <C>            <C>              <C>
REVOLVING/CURRENT
Warehouse line of credit           $ 23,095,860   LIBOR + 2.00;    December
31, 1998
  ($10 million committed, $25                     LIBOR + 2.25
  million uncommitted gestation)                  for sub-prime
Revolving line of credit                250,000   Prime plus       December
31, 1998
  ($1 million committed)                          0.625%
                                   ------------
Total revolving/current debt         23,345,860
                                   ------------
<PAGE> 10

LONG TERM
Note  payable                            604,167   Prime  plus        April
30, 2000
($1 million original note)                        0.625%
Capitalized leases                      303,339                    1999  to
2000
                                   ------------

Total long term debt                    907,506
                                   ------------
Total debt                         $ 24,253,366
                                   ============
</TABLE>

COLLATERAL

The  warehouse line of credit, the revolving line of credit  and  the  note
payable have been with the same lender for eight years. The collateral  for
these  obligations is a combination of mortgages held for sale, receivables
from  sales  of  mortgage  loans, servicing assets,  other  assets  of  the
Company, and Finet's corporate guarantee.  These facilities were granted to
MMI prior to the December 31, 1996 acquisition.

The  collateral  for  the  capitalized  leases  is  the  equipment  thereby
financed.

DEBT COVENANTS

The Borrowing Agreements (Agreements) for the warehouse line of credit, the
revolving  line  of  credit and the note payable contain various  financial
covenants  including  net  worth  computed  in  accordance  with  generally
accepted  accounting  principals, current  ratio  and  tangible  net  worth
leverage  ratio requirements. Should an event of default occur, as  defined
in  the Agreements, outstanding principal and interest on all three of  the
Company's credit facilities technically would be due on demand.

7. PURCHASE OF INTANGIBLE ASSETS

On  May  29,  1997, the Company and NDS Software, Inc. ("NDS"),  a  generic
software development company and operator of a nationwide multiple  listing
of  homes  for  sale Internet site, entered into an agreement  whereby  the
Company  purchased  for $1,010,000, in the form of  $202,000  in  cash  and
202,000 shares of its common stock valued at $4.00 per share, a combination
of   Internet  mortgage  leads,  software  products,  software  development
services, and rights to access certain of NDS' installed customer base  for
marketing purposes.

The  common stock was issued on June 5, 1997.  The agreement terms  require
an  adjustment  to  the  share consideration if the  market  price  of  the
Company's shares is not at or above $4.00 per share on the earlier  of  the
Company's registration of the common shares issued to NDS or June 3,  1998,
to  maintain  a value equal to $808,000 at the time, subject to  a  maximum
additional  shares issuable of 1,414,000 shares.  The assets acquired  will
be  amortized  to  expense of future periods as they are  used  to  produce
revenue.

8. COMMITMENTS AND CONTINGENCIES

LOAN SALE COMMITMENTS

The Company has entered into optional and mandatory forward commitments  to
deliver mortgage loans of $11.5 million as of October 31, 1997.

<PAGE> 11

MORTGAGE LOAN APPLICATIONS IN PROCESS

The   Company  has  open  short-term  commitments  to  fund  mortgage  loan
applications  in  process  subject to credit approval.   Such  commitments,
which  had  interest rates that were committed to the borrower,  amount  to
$19.0  million  as  of October 31, 1997.  Commitments  to  fund  loans  are
agreements  to lend to a customer as long as there is no violation  of  any
condition established in the contract.  Interest rate risk is mitigated  by
the use of forward contracts to sell loans to investors.

GUARANTEES

Subsequent  to fiscal year end April 30, 1997, Finet issued to  Residential
Funding Corporation ("RFC") on behalf of its wholly owned subsidiary,  MMI,
a  corporate guarantee of all MMI's borrowing agreements with RFC (See Note
6).

Under  the  terms  of an agreement with NDS, the Company has  a  contingent
obligation  to  adjust  the share consideration of that  agreement  if  the
market  price of the Company's common shares is not at or above  $4.00  per
share  on the earlier of the Company's registration of NDS' shares or  June
3, 1998 (See Note 8).

The  Common Stock Purchase Agreement for the December 30, 1996  sale  of  6
million common shares under Regulation S of the U.S. Securities Act of 1933
provides  that in the event a registration of the subject shares  does  not
become  effective within 150 days of the final closing (January  15,  1997)
for  any  reason other than matters beyond the control of the Company,  the
purchasers shall be granted common stock purchase warrants in an  aggregate
amount of 500,000 shares at $.50 per share and 500,000 shares at $1.00  per
share.

9. COMMON STOCK AND STOCK SUBSCRIPTION RECEIVABLE

INCREASE IN AUTHORIZED SHARES

In October, 1997 the Company's Board of Directors resolved to amend the
Company's certificate of incorporation to increase the number of common
shares authorized from 40 million to 60 million and obtained the written
consent of a majority of shareholders. This amendment was filed with the
State of Delaware on October 30, 1997.

PRIVATE PLACEMENT

In October, 1997, a total of 466,667 shares of the Company's common stock
were subscribed in a private placement under Regulation D for total
proceeds of $1,400,000 and warrants to purchase 466,667 common shares at an
exercise price of $5.00 per share and expiring in 2002 were issued. Of
these proceeds, $1,175,000 are designated for investment purposes.
Accordingly, these funds have been placed in an account restricted to this
purpose.

Additionally, during the quarter a total of 228,917 shares and warrants
expiring in 2002 to purchase 2,237,494 common shares at exercise prices of
$1.50 to $4.00 per share were issued to fulfill the terms of various
agreements. At October 31, 1997 a total of 9,539,864 warrants were
outstanding.

STOCK SUBSCRIPTION RECEIVABLE

Of the shares subscribed, 74,999 shares were not issued or paid for in
October, 1997. The proceeds of $224,997 for these shares were received in
early November, 1997 and, accordingly are reflected herein as a
subscription receivable as of October 31, 1997.

<PAGE> 12

10.  SUPPLEMENTAL CASH FLOW INFORMATION

The   following   table  presents  supplemental  investing  and   financing
activities for the six month periods ended October 31, 1997 and 1996:

<TABLE>
<CAPTION>
                                                       1997          1996
                                                   -----------   ----------
-
<S>                                                <C>            <C>
Cash paid during the period for:
   Interest on line of credit and other borrowings  $  643,792     $
622,149
   Income taxes                                           -              -

Non-cash financing activities
     Equipment    acquired   by   capital    lease                        -
102,350
     Distributions   (declared)   to   former   MMI   shareholders        -
(260,935)
     Distributions   paid   to   former   MMI   shareholders              -
(37,462)
                                                    -----------    --------
---

  Common stock issued for:
    Expenses                                           122,598           -
    Settlement of liabilities subject to compromise     22,257           -
    Settlement of accrued liabilities                  149,689           -
    Purchase of intangible assets                      808,000           -
</TABLE>

11.  SUBSEQUENT EVENTS

STOCK OPTION PLAN AMENDMENT

On  August 28, 1997, the Company's Board of Directors unanimously  resolved
to  amend the Company's 1989 Stock Option Plan (the "Plan") to increase the
number of shares of common stock subject to the Plan from 500,000 shares to
1,750,000   shares  and  to  provide  for  the  granting   of   immediately
exerciseable  five-year  options to purchase  40,000  shares  upon  initial
appointment of outside (non-employee) directors and, for each of  the  next
four  years of service as a director, the granting of five-year options  to
purchase  25,000  shares, vested at the rate of 6,250 shares  per  quarter.
Option  exercise prices per share are the current market price at the  time
of  grant.  These amendments were approved by shareholders on November  20,
1997.

PURCHASE OF MORTGAGE SERVICING RIGHTS

During November, 1997, the Company signed two letters of intent to purchase
the  rights  to  service approximately 2,600 FHLMC and FNMA mortgage  loans
with  a total principal balance in excess of $318 million for approximately
$2.4 million. These transactions are expected to close on December 31, 1997
and  to  increase  the  Company's net loan servicing income  by  more  than
$50,000 per month.
<PAGE> 13

   ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                         AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Certain  of  the  matters  discussed herein may constitute  forward-looking
statements  within the meaning of the Private Securities Litigation  Reform
Act  of  1995  and  as  such  may  involve  known  and  unknown  risks  and
uncertainties  and  other  factors  that  may  cause  the  actual  results,
performance, or achievements of the Company to be materially different from
any  future  results, performance, or achievements expressed or implied  by
such  forward-looking statements.  The Company undertakes no obligation  to
release  publicly  any  revisions to these  forward-looking  statements  to
reflect  events  or circumstances after the date hereof or to  reflect  the
occurrence of anticipated or unanticipated events.

                           RESULTS OF OPERATIONS

REPORTING ENTITY

The acquisition of MMI by Finet on December 31, 1997 was accounted for as a
reverse acquisition whereby MMI is considered the acquiring corporation for
accounting  and financial statement reporting purposes and MMI's historical
financial  statements are deemed to be the historical financial  statements
of  the reporting entity.  The consolidated financial statements at October
31,   1997  include  the  financial  statements  of  Finet's  wholly  owned
subsidiaries  MMI,  PAMN and PTN.  The Company also owns  several  inactive
corporate  entities.   All material intercompany transactions  and  amounts
have  been  eliminated in consolidation.  All references herein to  a  year
(e.g. 1998) refer to the fiscal year ended April 30 of that year.

BUSINESS

Finet  is  engaged  in electronic commerce in the residential  real  estate
industry.   It develops and distributes Internet connectivity  systems  and
services  through  its  wholly-owned subsidiary, PTN. Through  wholly-owned
subsidiaries  PAMN and MMI, it also offers support services to  independent
Realtors  and  mortgage  brokers, including the  business  of  originating,
selling and servicing wholesale and retail mortgage loans.

The  Company  has  developed and recently introduced  two  unique  software
products: Agent Connector and iQualify.

With  Finet's  iQualify.com Website, consumers can submit a  mortgage  loan
application  directly  to  FannieMae's automated  underwriting  system  and
receive  a  decision in minutes. With the decision comes  instructions  for
closing  and  the  ability  to  connect  to  a  Finet  service  center   or
participating lenders to close the loan.

Agent  Connector is provided to PTN Realtor members. this product  includes
Internet  features  that enable Realtors to maintain a  virtual  electronic
office,  post and edit personal Websites and home listings to the Internet,
exchange  e-mail,  conduct  video home tours,  and  electronically  connect
directly to Finet loan counselors, all from a laptop computer.

During the six months ended October 31, 1997, the Company's primary revenue
source was mortgage financing activities.  The PTN was in a start-up phase.
Therefore,  during  the periods ended October 31, 1997 and  1996,  revenues
were primarily related to the volume of loans originated and sold.  As  the
Company's operations are expanding and its electronic commerce revenues are
increasing,  the  results  of operations for the  six  month  period  ended
October  31,  1997 are not necessarily indicative of results  that  can  be
expected in future periods.

COMPARISON OF QUARTERS ENDED OCTOBER 31, 1997 AND 1996

The Company is currently implementing a business development plan to expand
the scope of its services.  The fiscal year (FY) 1998 periods include costs
related to this plan.  The Company reported a net loss of $1.8 million  for
the quarter ended October 31, 1997, compared to a net loss of $744 thousand
for  the quarter ended October 31, 1996.  The $1.06 million increase in the
FY1998  net loss is largely attributable to start-up costs of its  electric
commerce activities.  Combined PTN and PAMN revenues were $57 thousand  and
expenses    were   $581   thousand,   for   a   loss   of   $524   thousand
<PAGE> 14

from  these activities during the quarter ended October 31, 1997.  Company-
wide  expense  increases were attributable primarily to  $466  thousand  in
compensation and employee benefit expense resulting from staff increases to
implement  the  business  development plan  and  a  related  $130  thousand
increase in office expense, a $370 thousand increase in professional  fees,
and an $247 thousand increase in other expense.

REVENUES

Revenues  for  the  quarter ended October 31, 1997 increased  63%  to  $1.2
million  from  $734 thousand for the quarter ended October 31,  1996.   The
increase  in  revenues was attributable to an increase in the net  gain  on
sale  of mortgage loans, an increase in net income of $99 thousand on  bulk
sales  of  servicing  originated in prior  fiscal  years  and  income  from
telemarketing services.

The  total  gain  or  (loss)  on the sale of  mortgages  is  determined  by
combining  the  Loss on Sale of Mortgage Loans with the  Gain  on  Sale  of
Servicing  Rights, excluding any gains on sales of servicing rights  earned
from  bulk sales of servicing originated in prior fiscal years.  The  total
gain  on sale of mortgages/servicing rights (excluding bulk sales of  prior
year  loan  production) in the second quarter of 1998 was  $548.6  thousand
compared  to  $272.7  thousand in the second fiscal  quarter  of  1997,  an
increase of 101%.

Over  the  same  time periods, total loan volume increased 16%  from  $85.9
million  in  second fiscal quarter 1997 to $99.6 million in second  quarter
1998.   The  margin  earned  on  sales of mortgage  loans/servicing  rights
increased  from 29 basis points in 1997 to 55 basis points  in  1998.   The
increase in the margin was due primarily to a change in the product mix  in
1998.

In  fiscal  1998, the Company started offering mortgage loans to  borrowers
with  credit  ratings  below  the "A" level ("sub-prime  borrowing").   The
margin  on  these  loans was significantly higher than the  margin  on  "A"
quality  loans, thus increasing the overall margin in 1998 as  compared  to
1997.

Loan  servicing fee revenues decreased 26% to $125 thousand in the  quarter
ended  October  31,  1997  from $169 thousand in  the  prior  year's  first
quarter.   The decrease is a result of a 20% decline in 1998 from the  1997
average  outstanding balance of loans serviced for others.   The  portfolio
balance  declined  due  to  several bulk sales  of  servicing  assets  that
occurred between October 31, 1996 and October 31, 1997.

Marketing lead sales revenue increased from zero in 1996 to $26 thousand in
1997.   The  revenue was generated by a Finet telemarketing  activity  that
began operations in October, 1996.

EXPENSES

Compensation  and employee benefits expenses increased 72% to $1.1  million
for  the  quarter ended October 31, 1997 from $639 thousand for the quarter
ended  October  31, 1996.  The increase is due to adding personnel  as  the
Company implemented its growth plan, as well as the impact of consolidating
the  operating  results of Finet, MMI, PTN and PAMN for the  quarter  ended
October 31, 1997.  Prior year results are for MMI only.

Office  expense increased 56% from $230.9 thousand in 1997 to $361 thousand
in 1998, primarily due to the Company's expansion.

Marketing expense increased $124.1 thousand, or 270% in the second  quarter
of 1998 as compared to the second quarter of 1997.  The increase was due to
the   Company's   expenditures  for  marketing  its  technology   services,
particularly the Agent Connector software.

Professional  fees  increased 371% from $99.8  thousand  in  1997  to  $470
thousand  in 1998.  The increase is attributable primarily to the Company's
acquisitions  and  expansion.   Audit and accounting  fees  increased  $131
thousand  due  to the increase in complexity arising from  being  a  single
private  company during most of 1997 and being a public company with  three
subsidiaries in 1998.  Consulting fees increased by $256 thousand in  1998,
primarily due to expenses related to developing new technologies as part of
the Company's business development activities.
<PAGE> 15

Other  expenses increased 3,600% from $7 thousand in 1997 to $254  thousand
in  1998.   The increase is due primarily to a $205 thousand provision  for
estimated losses for repurchase of non-performing mortgage loans  from  the
investors to whom they were sold.

COMPARISON OF YEAR TO DATE PERIODS ENDED OCTOBER 31, 1997 AND 1996

The Company is currently implementing a business development plan to expand
the  scope of its services.  The 1998 periods include costs related to this
plan.   The Company reported a net loss of $2.87 million for the six months
ended October 31, 1997, compared to a net loss of $1.4 million for the  six
months ended October 31, 1996.  The $1.47 million increase in the 1998  net
loss  is largely attributable to PTN and PAMN start-up costs, and the costs
of  operating a publicly-held company.  Combined PTN and PAMN revenues were
$85  thousand and expenses were $1.02 million, for a loss of $934  thousand
from  these activities during the period ended October 31, 1997.  The  most
significant  expense category increases were $819 thousand in  compensation
and  employee  benefit expense resulting from staff increases to  implement
the  business  development  plan and a related $160  thousand  increase  in
office expense, a $502 thousand increase in professional fees, and an  $305
thousand increase in other expense.

REVENUES

Revenues  for  the  six  months ended October 31,  1997  increased  45%  to
$2.47million from $1.7 million for the six months ended October  31,  1996.
The increase in revenues was attributable to an increase in the net gain on
sale  of mortgage loans, an increase in net income of $207 thousand on bulk
sale  of  servicing  originated  in prior  fiscal  years  and  income  from
telemarketing services.

The  total  gain  or  (loss)  on the sale of  mortgages  is  determined  by
combining  the  Loss on Sale of Mortgage Loans with the  Gain  on  Sale  of
Servicing  Rights, excluding any gains on sales of servicing rights  earned
from  bulk sales of servicing originated in prior fiscal years.  The  total
gain  on sale of mortgages/servicing rights (excluding bulk sales of  prior
year  loan  production) in the first six months of 1998 was  $991  thousand
compared  to $673 thousand in the first six months of 1997, an increase  of
47%.

Over  the  same time periods, total loan volume decreased 5.7% from  $193.4
million  in 1997 to $182.3 million in 1998.  The margin earned on sales  of
mortgage loans/servicing rights increased from 35 basis points in  1997  to
54 basis points in 1998.

The increase in the margin was due primarily to a change in the product mix
in  1998.   In fiscal 1998, the Company started offering mortgage loans  to
borrowers  with credit ratings below the "A" level ("sub-prime borrowing").
The  margin on these loans was significantly higher than the margin on  "A"
quality  loans, thus increasing the overall margin in 1998 as  compared  to
1997.

Loan  servicing  fee  revenues decreased 30% to $253 thousand  in  the  six
months ended October 31, 1997 from $362 thousand in the prior year's  first
six  months.   The decrease is a result of a 24% decline in 1998  from  the
1997  average  outstanding  balance of  loans  serviced  for  others.   The
portfolio  balance declined due to several bulk sales of  servicing  assets
that occurred between October 31, 1996 and October 31, 1997.

Marketing lead sales revenue increased from zero in 1996 to $97 thousand in
1997.   The  revenue was generated by a Finet telemarketing  activity  that
began operations in October, 1996.

EXPENSES

Compensation  and employee benefits expenses increased 62% to $2.1  million
for  the  six months ended October 31, 1997 from $1.3 million for the  same
period  in the prior year.  The increase is due to adding personnel as  the
Company implemented its growth plan, as well as the impact of consolidating
the  operating results of Finet, MMI, PTN and PAMN for the six months ended
October 31, 1997.  Prior year results are for MMI only.

<PAGE> 16

Office  expense  increased  31% from $508.9  thousand  in  1997  to  $668.6
thousand in fiscal 1998, primarily due to the Company's expansion.

Marketing  expense  increased from $105 thousand in  fiscal  1997  to  $266
thousand in fiscal 1998, an increase of 153%.  The increase was due to  the
Company's  expenditures for marketing its technology services, particularly
the Agent Connector software.

Professional  fees increased 257% from $195.8 thousand  in  the  first  six
months  of fiscal 1997 to $698.2 thousand in the same period in 1998.   The
increase  is  attributable  primarily to  the  Company's  acquisitions  and
expansion.   Audit and accounting fees increased $161 thousand due  to  the
increase  in complexity arising from being a single private company  during
most  of  1997 and being a public company with three subsidiaries in  1998.
Consulting  fees  increased  by $385 thousand in  1998,  primarily  due  to
expenses  related to developing new technologies as part of  the  Company's
business development activities.

Occupancy  expense increased 79%, from $107.8 thousand in  fiscal  1997  to
$192.9 thousand in fiscal 1998.  The increase is due to the Company's  need
for   additional  facilities  arising  from  its  expansion  and   business
development activities.

Other expenses increased 871% from $35 thousand in 1997 to $340 thousand in
1998,   The  increase  is  due primarily to a $205 thousand  provision  for
estimated losses on repurchase of non-performing loans from investors.  The
remainder  of  the  increase was due to the Company's business  development
expenditures.

           CAPITAL EXPENDITURES, LIQUIDITY AND CAPITAL RESOURCES

The  Company's  normal  cash requirements are to meet  operating  expenses,
including sales and marketing activities, to fund further expansion of  the
Company's  technology  related  business  activities,  to  satisfy  accrued
liabilities and accounts payable, and to satisfy other liabilities as  they
become due.

CASH FLOWS

The Company experienced an increase in cash of $631.4 thousand in the first
six  months  of 1998, compared to a decrease in cash of $505.4 thousand  in
same period in the prior year.

Cash Flow From Operations

Since  MMI is curently the largest business unit in the consolidated group,
the  Company's cash flows are reflective of fluctuations in mortgage  loans
originated  and sold during the period.  While loan originations  decreased
from  $193.4 million to $182.3 million in the first six months of 1997  and
1998,  respectively, the amount of loans and servicing rights in  inventory
increased in fiscal 1998 by approximately $16.3 million.  This increase  in
inventory was largely financed by an increase in warehouse borrowings.  The
inventory  increase was the primary factor that contributed  to  the  $15.4
million  decrease  in cash used by operating activities in  the  first  six
months  of  1998,  compared to $1.5 million of cash provided  by  operating
activities in the first six months of the prior year.

Cash Used for Investing Activities

The Company began to implement its business growth strategy in fiscal 1998.
Consequently,  mortgage  servicing rights were purchased  ($165  thousand),
intangible assets were purchased from NDS ($202,000 in cash and $808,000 in
common  stock issued) and advances of $270,755 were made to REOS to support
the  development  of  Agent  Connector.  Thus,  investing  activities  used
$692,666 in cash in 1998 compared to using $316,797 in 1997.

Cash Provided by Financing Activities

The  Company  experienced  a $16.7 million increase  in  cash  provided  by
financing activities in 1998, compared to cash used by financing activities
of  $1.7  million  in 1997.  Due to the increase in loans in  inventory  in
1998  as  compared to the same period in the prior year, warehouse line  of
credit  borrowings  increased  $12.9  million  in  1998,  compared   to   a
<PAGE> 17

decrease  of $1.3 million in 1997.  The Company also received $3.9  million
in  cash proceeds in 1998 from stock issued from April through October  31,
1997,  compared  to  zero in 1997. Management intends to  use  these  funds
primarily  for investments, including acquisitions of servicing rights  and
the development and marketing of its technology services.

LIQUIDITY AND CAPITAL RESOURCES

The  Company maintains a $35 million warehouse borrowing facility  that  is
capable  of supporting a monthly loan funding volume of up to $100 million,
given current loan sales and settlement turnaround times.  The Company does
not  expect  to  exceed  that  level before January  1998,  at  which  time
additional warehouse lending authority can be obtained.  Funded  loans  are
immediately  sold  to investors in the secondary market with  the  proceeds
used to reduce warehouse balances.  The Company also maintains a $1 million
working capital line of credit at competitive borrowing rates.

The  Company  mitigates its mortgage banking risks through  several  common
industry  practices.   The  first  is to purchase  and  originate  mortgage
servicing  rights  ("PMSRs/OMSRs").  When the volume of  loan  originations
declines  due to the rise in interest rates, PMSRs/OMSRs increase in  value
and provide a predictable source of earnings and cash flow.  The second  is
to offset unfavorable interest rate movements when funding loans by hedging
the interest rate locks.

The  Company's business development activities are focused on  diversifying
and increasing revenues from sources other than mortgage banking, including
the  sale  of  proprietary software, the provision of  Internet-based  real
estate services, and brokering of loans to other mortgage lenders.

The  Company is currently expending cash resources to support its  business
development  activities  in  PTN  and  PAMN,  as  the  revenues  they   are
generating, though increasing, are currently insufficient to cover start-up
and  operating costs.  The Company expects within this business cycle  that
all  business  units  will  generate revenues  sufficient  to  cover  their
respective operating expenses.  Management believes it has sufficient  cash
and  short  term  financing alternatives to finance operations  until  they
reach positive cash flow.

CAPITAL EXPENDITURES

The  Company is in the process of completing the purchase of certain assets
and  liabilities of Real Estate Office Software, Inc. for a purchase  price
of  $827,296.   The  Company  has advanced  $455,755  to  REOS  to  support
development  and  marketing  costs for the Agent  Connector.   The  Company
expects the remainder of the consideration to be a combination of cash used
to  retire  certain  liabilities and the remainder in the  form  of  common
stock.

The  Company  purchased $1,010,000 in intangible assets from  NDS  Software
(NDS) for $202,000 in cash and $808,000 in common stock issued.  The assets
consisted  of software, contract programming services, mortgage  leads  and
marketing access to certain NDS customers.

In  the third quarter of 1997, the Company implemented a Purchased Mortgage
Servicing  Rights ("PMSR") acquisition strategy.  To date, $73  million  of
PMSRs  have  been  purchased, of which $5.4 million have subsequently  been
resold,  for  a  gain  of  $47.4 thousand.  The Company  plans  to  acquire
approximately  $800  million of additional PMSRs in  1998  to  add  to  its
current  servicing portfolio of $193.6 million and, thus far, has committed
to purchased approximately $318 million of servicing rights on December 31,
1997 for approximately $2.4 million. The PMSR's may be acquired directly or
through  an open market auction process.  Prices vary for servicing rights,
however  this strategy represents a planned investment of approximately  $8
million,  which  the  Company plans to finance on  a  secured  basis.   The
Company  has begun discussions to arrange the financing required for  these
planned  investments.   The Company's ability to  acquire  this  additional
servicing  is  dependent  on  the servicing  available  on  the  market,the
Company's  success in pricing and bidding, and the ability to  arrange  the
credit  facilities to do so.  Accordingly, the remaining potential  capital
expenditures are not assured.

<PAGE> 18
                        PART II - OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

The  Company  has continued to seek resolution of all remaining  previously
reported   legal  proceedings,  which  resulted  primarily  from  unsecured
creditor actions and/or judgments instituted in prior years. During the six
month  period ended October 31, 1997, the Company completed the  settlement
of two such unsecured creditor actions.

Item 2. CHANGES IN SECURITIES

Authorized common shares were increased to 60 million from 40 million,
effective October 30, 1997 (See Note 4).

During the quarter ended October 31, 1997, a total of 695,583 shares of the
Company's common stock and 2,704,167 warrants to purchase shares were
issued, as follows:

     A group of ten individuals purchased 300,000 common shares and
     warrants to purchase 300,000 common shares at an exercise price of
     $5.00 per share which expire in 2002 for $900,000 under Regulation D.
     
     An individual agreed to purchase 1,000,000 common shares and warrants
     to purchase 1,000,000 common shares at an exercise price of $5.00 per
     share which expire in 2002 for $3,000,000 under Regulation D. Of these
     shares, 166,667 were purchased for $500,000 and 166,667 warrants were
     issued during the quarter. The remainder of the purchase will be
     completed on December 29, 1997.
     
     159,942 common shares were issued to three individuals as a correcting
     adjustment to fully comply with the terms of a loan agreement entered
     into by the Company in 1996.
     
     33,974 common shares were issued to two individuals: 21,474  shares
     pursuant to the exercise of net exercise options granted as
     consideration for consulting services and 12,500 shares pursuant to
     the exercise of warrants for a consideration of $18,750.
     
     33,000 shares were issued in settlement of a judgement obtained by a
     former employee.
     
     2,000 common shares were issued to an individual as consideration for
     services.
     
     Warrants to purchase 2,000,000 common shares at an exercise price of
     $4.00 per share and expiring in 2002 were granted to an individual as
     consideration for services.
     
     Warrants to purchase a total of 237,500 common shares at an exercise
     price of $1.50 per share and expiring in 2002 were granted to the
     Company's former placement agent and a former debenture holder
     pursuant to the terms of agreements.
     

In May, 1997 the Company applied to have its Common Stock listed on the
Nasdaq SmallCap Market.  In November, 1997 its application was approved.
Accordingly, on November 11, 1997 trading of shares of its Common Stock
under the symbol FNHC commenced on the Nasdaq SmallCap Market.
<PAGE> 19

The following table sets forth the range of high, low and average closing
prices per share of the Common Stock and total number of shares traded
during the period since April 30, 1997.

<TABLE>
<CAPTION>
                         QUARTER      QUARTER     QUARTER     MONTHLY
PERIOD:                  HIGH/ASK     LOW/BID    CLOSE/AVG    AVG VOL
----------------------   ---------   --------    ---------   ---------
<S>                      <C>           <C>       <C>         <C>
First Quarter            $ 6.375     $ 2.188     $ 2.875       454,900
Second Quarter             8.000       2.875       7.250     1,105,900
Third Quarter (thru 12/10) 7.375       4.500       5.6875    3,164,600
</TABLE>

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

During  the  second  quarter,  the Company's Board  of  Directors  resolved
unanimously  to  recommend  to  shareholders  that  the  number  of  shares
authorized of the Company's common stock be increased from 40 million to 60
million.  Subsequently, a majority of shareholders of  record  approved  by
written  consent  a  certificate of amendment  of  the  Company's  restated
certificate  of  incorporation to so increase the number of  common  shares
authorized.   The  amendment  was recorded by the  Secretary  of  State  of
Delaware on October 30, 1997.

On  November  20,  1997,  at  the  Company's  annual  shareholder  meeting,
individuals and proxies representing a total of approximately 61% of shares
outstanding  at  the  record date of October 31, 1997 unanimously  approved
three  items, as described in the proxy statement sent to all shareholders:
a) relection of all seven current directors (Jose Maria Salema Garcao, Jose
Filipe  Guedes,  Jan  Hoeffel, S. Lewis Meyer, James W.  Noack,  L.  Daniel
Rawitch and Stephen J. Sogin), b) reappointment of Reuben E. Price & Co. as
independent auditors for the year ending April 30, 1998, and c) approval of
a  resolution of the Board of Directors to amend the Company's stock option
plan. (See Note 11)

Item 5.  OTHER INFORMATION

During November, 1997, the Company signed two letters of intent to purchase
the  servicing rights for approximately 2,600 FHLMC and FNMA mortgage loans
with a principal balance in excess of $318 million. These transactions  are
expected  to  close on December 31, 1997 and to increase the Company's  net
loan servicing income by more than $50,000 per month.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

EXHIBITS

     EX-27          Financial Data Schedule

REPORTS ON FORM 8-K

No reports on Form 8-K were submitted during the second quarter.


<PAGE> 20

                                 SIGNATURE

In accordance with the requirements of the Securities and Exchange Act, the
Registrant  caused  this  report  to  be  signed  on  its  behalf  by   the
undersigned, thereunto duly authorized.



                                        FINET HOLDINGS CORPORATION



Date: December 15, 1997                 /s/    L. Daniel Rawitch
                                        L. Daniel Rawitch
                                          (CEO   and   Principal  Executive
Officer)



Date December 15, 1997                  /s/    George Winkel
                                        George Winkel
                                          (CFO   and   Principal  Financial
Officer)
</TEXT?