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 [FEE REQUIRED]
            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 333-08687-01

AMRESCO Residential Securities Corporation Mortgage Loan Trust 1996-4
     (Exact name of registrant as specified in its charter)
                                        
          New York                           33-0725672
 (State of other jurisdiction             (I.R.S. Employer
              of                        Identification No.)
incorporation or organization)     
                                   
  c/o Bankers Trust Company        
      Four Albany Street                       
      New York, New York                        10006
    (Address of principal                     (Zip Code)
      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  1996-4  (the "Trust") established  pursuant  to  the
Pooling  and Servicing Agreement dated August 1, 1996, among  the
Depositor,  AMRESCO  Residential  Mortgage  Corporation  in   its
capacity  as  seller,  Long Beach Mortgage  Company,  Option  One
Mortgage  Corporation,  and  Avanta 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,  and  A-6
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 was 1 holder of
the   Class  A-1  Certificates,  3  holders  of  the  Class   A-2
Certificates, 4 holders of the Class A-3 Certificates, 2  holders
of  the  Class  A-4  Certificates, 2 holders  of  the  Class  A-5
Certificates, and 4 holders of the Class A-6 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 $349,634.

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         Interest
Bankers Trust Company              A-1   9,163,000            100%
C/o BT Services Tennessee Inc.
Pension Trust services
648 Grassmere Park Drive
Nashville, TN  37211
                                                                  
Bank of New York (The)             A-2   1,760,000            7.9%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                                  
Chase Manhattan Bank               A-2   19,740,000          88.1%
Two Chase Manhattan Plaza,
5th Floor
New York, NY  10081
                                                                  
Bank of New York (The)             A-3   6,160,000           35.0%
925 Patterson Plank Rd
Secaucus, NJ  07094
                                                                  
Bankers Trust Company              A-3   3,270,000           18.6%
C/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN  3721
                                                     
Investors Bank & Trust/M.F.        A-3   3,170,000           18.0%
Custody
89 South Street 6th Floor
Corp. Action Dept.
Boston, MA  02111
                                                     
Northern Trust Company             A-3   5,000,000           28.4%
801 S. Canal C-In
Chicago, IL  60607
                                                     
Chase Manhattan Bank/Chemical      A-4   5,000,000           46.9%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY  10004
                                                     
Northern Trust Company             A-4   5,670,000           53.1%
801 S. Canal C-In
Chicago, IL  60607
                                                     
Bank of New York (The)             A-5   3,000,000           22.9%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                     
Prudential Securities Incorporated A-5   10,100,000          77.1%
111 8th Avenue, 4th Floor
New York, NY  10011
                                                     
Bankers Trust Company              A-6   72,146,000          30.3%
C/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN  37211
                                                     
Bear Stearns Securities            A-6   25,000,000          10.5%
Corp./Portal
One Metrotech Center North,
4th Floor
Brooklyn, NY  11201-3862
                                                     
Chase Manhattan Bank               A-6   116,000,000         48.7%
Two Chase Manhattan Plaza, 
5th Floor
New York, NY  10081
                                                     
Marina/Treasury Investments        A-6   25,000,000          10.5%
140 Broadway - Level A
New York, NY  10015
                                                     


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
                             - Option One
             99.1(c)        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. - KPMG Peat Marwick LLP
             99.2(c)        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 1996-4


                    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
                            - Option One
         99.1(c)           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. - KPMG Peat Marwick LLP
         99.2(c)           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.