SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
                                 Form 10-K
(Mark One)

[  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
For the transition period from __________ to __________.

                      Commission File number 33-99340 

                  ContiMortgage Home Equity Loan Trust 1996-4 
                              
           (Exact name of registrant as specified in its charter)
                                                  16-1512507 and
                   New York                       16-1512506        
                   --------                       ----------        
          (State of other jurisdiction of        (I.R.S. Employer
          incorporation or organization)         Identification No.)  
                                
                                  

c/o Manufacturers and Traders
Trust Company
Corporate Trust Department            
One M&T Plaza                                           14240-2599
Buffalo, New York                                       (Zip Code)
-----------------                                       ----------
(Address of principal executive offices)


Registrant's telephone number, including area code: (716)   842-5589  
Securities registered pursuant to Section 12(b) of the Act:

            Title of each class              Name of each exchange on
                                                which registered:
 
                None                                  None
                ----                                  ----
                                    
                                      
 
                                    None
                                    ----
 
                              (Title of class)

      Indicated by check mark whether the registrant (1) has filed all
reports required to be file 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 (Subsection 229.405 of this chapter) 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:    None


<PAGE>


                                    


                CONTIMORTGAGE HOME EQUITY LOAN TRUST 1996-4
                                   INDEX



 
                


PART 1..........................................................            3

              ITEM 1    -   BUSINESS............................            3
              ITEM 2    -   PROPERTIES......................                3
              ITEM 3    -   LEGAL PROCEEDINGS...............                3
              ITEM 4    -   SUBMISSION OF MATTERS TO A VOTE OF SECURITY
                            HOLDERS.............................            3

PART II.............................................                        3

             ITEM 5    -   MARKET FOR REGISTRANT'S COMMON STOCK AND
                           RELATED STOCKHOLDER MATTERS...........           3
             ITEM 6    -   SELECTED FINANCIAL DATA...............           3
             ITEM 7    -   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                           FINANCIAL CONDITION AND RESULTS OF OPERATIONS    4
             ITEM 8    -   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA......4
             ITEM 9    -   CHANGES IN AND DISAGREEMENTS WITH
                           ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
                           DISCLOSURE....................................   4

PART III.................................................................   4
             ITEM 10   -   DIRECTORS AND EXECUTIVE OFFICERS OF THE
                           REGISTRANT....................................   4
             ITEM 11   -   EXECUTIVE COMPENSATION  .....................    4
             ITEM 12   -   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
                           OWNERS AND MANAGEMENT.........................   4
             ITEM 13   -   CERTAIN RELATIONSHIPS AND RELATED
                           TRANSACTIONS..................................   11

PART IV..............................................................       11
             ITEM 14   -   EXHIBITS,FINANCIAL STATEMENT SCHEDULES AND
                           REPORTS ON FORM 8-K..............................11

SIGNATURES    ............................................................  12
INDEX TO EXHIBITS.........................................................  13

                                      -2-

<PAGE>








                                   PART I
ITEM 1 - BUSINESS

      Not Applicable.

ITEM 2 - PROPERTIES

      Not Applicable.

ITEM 3 -  LEGAL PROCEEDINGS

      The Depositor is not aware of any material pending legal proceedings
involving either the ContiMortgage Home Equity Loan Trust 1996-4 (the
"Trust") established pursuant to the Pooling and Servicing Agreement (the
"Agreement") dated November 1, 1996, among Manufacturers and Traders Trust
Company, as trustee (the "Trustee"), ContiSecurities Asset Funding Corp.,
as depositor (the "Depositor") and ContiMortgage Corporation, as servicer
(the "Servicer"), the Trustee, the Depositor or the Servicer which relates
to the Trust.

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 Certificates, Class A-2 Certificates, Class A-3
Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6
Certificates, Class A-7 Certificates, Class A-8 Certificates, Class A-9
Certificates, and Class A-10 Certificate 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 by the Trust from DTC, as of March 10, 1997, there
was 1 holder of the Class A-1 Certificates, 10 holders of the Class A-2
Certificates, 17 holders of the Class A-3 Certificates, 9 holders of the
Class A-4 Certificates, 17 holders of the Class A-5 Certificates, 6
holders of the Class A-6 Certificates, 14 holders of the Class A-7
Certificates,  2 holders of the Class A-8 Certificate, 12 holders of the
Class A-9 Certificates, 4 holders of the Class A-10 Certificates, 5
holders of the Class A-11-IO Certificates, and 5 holders of the A-12-IO
Certificates.


ITEM 6 -   SELECTED FINANCIAL DATA

           Not applicable.


<PAGE>



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 Servicer for the year ended December
31, 1996 was $415,739.64.

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


<PAGE>
<TABLE>
<CAPTION>



                                              Amount Owned
        Name and Address           All Dollar Amounts are in Thousands      
                                       Principal        Percent

Class A-1 Certificates
<S>                                     <C>            <C>
Chase Manhattan Bank                     $96,650        100.00%
Two Chase Manhattan Plaza, 5th
Floor
New York, NY 10081

Class A-2 Certificates

Bank of New York                         $15,700         13.82%
925 Patterson Plank Rd.
Secaucus, NJ  07094

Bankers Trust Co./Investment A/C          51,150          45.03
16 Wall Street, 5th Floor
New York, NY 10005

Chase Manhattan Bank/Chemical             18,000          15.85
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY  10004

Investors Fiduciary Trust                 10,000           8.80
Company/SSB
Global Proxy Unit, A5NW
P.O. Box 1631
Boston, MA  02105-1631


Class A-3 Certificates

Bank of New York                         $13,600          9.99%
925 Patterson Plank Rd.
Secaucus, NJ  07094

Bankers Trust Company                     11,500           8.45
c/o BT Services Tennessee, Inc.
Custody Services
648 Grassmere Park Road
Nashville, TN 37211

Boston Safe Deposit & Trust Co.           12,000           8.82
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA  15259

Chase Manhattan Bank Trust Co.            16,000          11.76
 of California
Two Chase Manhattan Plaza, 5th
Floor
New York, NY  10081
                                         
Citicorp Services, Inc,                    11,500           8.45   
P.O. Box 30576                                                     
Tampa, FL  33630-3576                                              
                                                                   
Daiwa Securities Trust Co.                 16,000          11.76   
One EverTrust Plaza                                                
jersey City, NJ  07302                                             
                                                                   
Investors Fiduciary Trust                  10,000           7.35   
Company/SSB                                                        
Global Proxy Unit, A5NW                                            
P.O. Box 1631                                                      
Boston, MA  02105-1631                                             
                                             
PNC Bank, NA/Pittsburgh                    20,000          14.70 
One PNC Plaza, 9th Floor, 249
5th Avenue
Pittsburgh, PA  15222-7707


Class A-4 Certificates

Bank of New York                          $6,250          9.36%
925 Patterson Plank Rd.
Secaucus, NJ  07094

Bankers Trust Company                      5,000           7.49
c/o BT Services Tennessee, Inc.
Custody Services
648 Grassmere Park Road
Nashville, TN 37211

Boston Safe Deposit & Trust Co.            6,000           8.98
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA  15259

Chase Manhattan Bank                       5,400           8.08
Two Chase Manhattan Plaza, 5th
Floor
New York, NY  10081
                                          
Citicorp Services, Inc,                    8,000          11.98
P.O. Box 30576                                                  
Tampa, FL  33630-3576                                           
                                                                
First National Bank of Boston              4,500           6.74
c/o ADP Proxy Services                                          
51 Mercedes Way                                                 
Edgewood, NY  11717                                             
                                                                
SSB-Custodian                             29,400          44.01
Global Proxy Unit, A5NW                                         
P.O. Box 1631                              
Boston, MA  02105-1631


Class A-5 Certificates

Bank of New York                         $17,310         25.09%
925 Patterson Plank Rd.
Secaucus, NJ  07094

Bankers Trust Company                      3,850           5.58
c/o BT Services Tennessee, Inc.
Custody Services
648 Grassmere Park Road
Nashville, TN 37211

Boston Safe Deposit & Trust Co.            5,370           7.78
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA  15259

Citicorp Services, Inc,                   23,995          34.78
P.O. Box 30576
Tampa, FL  33630-3576

SSB-Custodian                              8,550          12.39
Global Proxy Unit, A5NW
P.O. Box 1631
Boston, MA  02105-1631

Class A-6 Certificates

Bank of New York                         $10,500         25.77%
925 Patterson Plank Road
Secaucus, NJ  07094

Chase Manhattan Bank                       6,400          15.71
Two Chase Manhattan Plaza, 5th
Floor
New York, NY  10081
                                        
Investors Bank & Trust/M.F.                6,500          15.95 
Custody                                                           
89 South Street 6th Floor                                         
Corp. Action Dept.                                                
Boston, MA  02111                                                 
                                          16,200          39.75 
SSB-Custodian                                                     
Global Proxy Unit, A5NW                   
P.O. Box 1631
Boston, MA  02105-1631

Class A-7 Certificates

Bank of New York                         $11,000         19.06%
925 Patterson Plank Road
Secaucus, NJ  07094

Bankers Trust Company                      6,000          10.40  
c/o BT Services Tennessee, Inc.                                    
Custody Services                                                   
648 Grassmere Park Road                                            
Nashville, TN 37211                      
                                          
Chase Manhattan Bank                       18,050          31.28   
Two Chase Manhattan Plaza, 5th                                     
Floor                                                              
New York, NY 10081                                                 
                                               
Comerica Bank                              8,500          14.73                        
411 W. Lafayette Capital                                           
Change-Proxy                                                       
Detroit, MI  48286                            
                                                                   
Corestates Bank, N.A.                      7,380          12.79                         
P.O. Box 7618 F.C. # 1-9-1-21                                      
Philadelphia, PA  19106-7618                   
                                          
SSB-Custodian                              3,000           5.20
Global Proxy Unit, A5NW
P.O. Box 1631
Boston, MA  02105-1631
Class A-8 Certificates

Bankers Trust Company                    $14,100         31.76%
c/o BT Services Tennessee, Inc.
Custody Services
648 Grassmere Park Road
Nashville, TN 37211

Chase Manhattan Bank/Chemical             30,300          68.24
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY  10004

Class A-9 Certificates

Bank of New York                         $11,500         23.00%
925 Patterson Plank Road
Secaucus, NJ  07094

National City Bank                         5,300          10.60
1900 East 9th Street
Cleveland, OH  44114

Northern Trust Company                    16,000          32.00
801 S. Canal C-In
Chicago, IL  60607

SSB-Custodian                             10,425          20.85
Global Proxy Unit, A5NW
P.O. Box 1631
Boston, MA  02105-1631

Class A-10 Certificate

Chase Manhattan Bank                    $217,000         96.44%
Two Chase Manhattan Plaza, 5th
Floor
New York, NY 10081
                                   
Class A-11-IO Certificates           

Chase Manhattan Bank                    310,500 (1)          46.00
Two Chase Manhattan Plaza, 5th
Floor                              
New York, New York 10081
                                     
Chase Manhattan Bank                    236,090 (1)          34.98
Two Chase Manhattan Plaza, 5th
Floor
New York, New York 10081              
SSB-Custodian

Global Proxy Unit, A5NW                  92,500 (1)         13.70%
P.O. Box 1631
Boston, MA 02105-1631
                                   
                                                         
Class A-12-IO Certificates

Chase Manhattan Bank                  $103,500 (2)          46.00%
Two Chase Manhattan Plaza, 5th                                   
Floor                                                            
New York, New York 10081                               
                                                            
Chase Manhattan Bank                   78,731 (2)            34.98             
Two Chase Manhattan Plaza, 5th                                   
Floor                                                            
New York, New York 10081                               
                                                            
SSB-Custodian                          30,800 (2)            13.69        
Global Proxy Unit, A5NW
P.O. Box 1631
Boston, MA 02105-1631

<FN>

   (1)     Represents the "Notional Principal Amount" of the Class A-11-IO
Certificates which is based on the aggregate outstanding Certificate
Pincipal Balance. 

   (2)     Represents the "Notional Principal Amount" of the Class A-12-IO
Certificates which is based on the aggregate outstanding Certificate
Pincipal Balance. 
</FN>

</TABLE>



<PAGE>




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               Statement of Compliance of the
                                 Servicer.

              99.2               Annual Report of Independent
                                 Accountants with respect to
                                 the Servicer's overall
                                 servicing operations.

              99.3               Annual compilation of Monthly
                                 Trustee's Statement.

b)    Reports on Form 8-K.

1  report on Form 8-K has been filed by the Issuer during the period
covered by this report.


                                       Items Reported/Financial
Date of Report on Form 8-K              Statements Filed
January 15, 1997                 Trustee's Monthly Report for
                                 the December Monthly Period.



<PAGE>



                                 SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Depositor has duly caused this Report
to be signed on its behalf by the undersigned, thereunto duly authorized.


                          By:  CONTISECURITIES ASSET FUNDING CORP.,
 AS DEPOSITOR


                               By:   /s/ Jerome M. Perelson
                               Name:Jerome M. Perelson
                               Title:     Vice President

                               By:   /s/ Susan E. O'Donovan
                               Name:Susan E. O'Donovan
                               Title: Vice President & Chief Financial Officer

Date:  March 27, 1997


<PAGE>



                             INDEX TO EXHIBITS
                                 Item 14(C)


          Exhibit No.                      Description
              99.1               Statement of Compliance of the
                                 Servicer.
              99.2               Annual Report of Independent
                                 Accountants with respect to
                                 the Servicer's overall
                                 servicing operations.
              99.3               Annual compilation of Monthly
                                 Trustee's Statement.