UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549
                           Form 10-K

    [X]     ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF
                 THE SECURITIES EXCHANGE ACT OF 1934
       For the fiscal year ended December 31, 1996
                               OR
    [ ]    TRANSITION REPORT PURSUANT TO SECTION 13 or 15(D)
           OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE
           REQUIRED]
       For the transition period from        to

               Commission File number 333-08687-01
                                
AMRESCO Residential Securities Corporation Mortgage Loan Trust 1996-5
     (Exact name of registrant as specified in its charter)
          New York                          133-925-682
 (State of other jurisdiction      
              of                          (I.R.S. Employer
incorporation or organization)          Identification No.)
                                   
c/o The Chase Manhattan Bank-      
             ASPG                  
  450 West 33rd Street, 10th                   10001
            Floor                            (Zip Code)
      New York, New York
    (Address of principal executive offices)

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

Securities registered pursuant to Section 12(b) of the Act:
             None                               None
    (Title of each class)        (Name of each exchange on which registered)
  Securities registered pursuant to Section 12 (g) of the Act:
                              None
                        (Title of class)
      Indicate by check mark whether the registrant (1) has filed
all  reports required to be filed by Section 13 or 15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.  Yes   X   No   .

      Indicate  by check mark if disclosure of delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K.  [ X ]

     State the aggregate market value of the voting stock held by
non-affiliates of registrant.  The aggregate market  value  shall
be  computed  by reference to the price at which  the  stock  was
sold,  or the average bid and asked prices of such stock,  as  of
specified  date within 60 days prior to the date of filing:   Not
Applicable

               Documents Incorporated by Reference
The Form 8-K dated December 18, 1996 is incorporated by reference
in  Part  IV.

                                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  1996-5  (the "Trust") established  pursuant  to  the
Pooling and Servicing Agreement dated December 1, 1996, among the
Depositor,  AMRESCO  Residential  Mortgage  Corporation  in   its
capacity  as  seller, Advanta Mortgage Corp. USA and  Option  One
Mortgage Corporation as the servicers (the "Servicers"), and  The
Chase  Manhattan  Bank, a New York banking  corporation,  in  its
capacity as trustee.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      No  matter  has been submitted to a vote of the holders  of
beneficial  interests in the Trust through  the  solicitation  of
proxies or otherwise.

                            PART II

ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED
         STOCKHOLDER MATTERS

      To  the  best  knowledge  of the  Depositor,  there  is  no
established public trading market for any beneficial interests in
the Trust.

      All of the Class A-1, A-2, A-3, A-4, A-5, A-6, A-7, and A-8
Certificates issued by the Trust are held by the Depository Trust
Company  ("DTC") which in turn maintains records  of  holders  of
beneficial  interests in such Certificates.  Based on information
obtained from the DTC as of March 17, 1997, there was 1 holder of
the   Class  A-1  Certificates,  12  holders  of  the  Class  A-2
Certificates, 2 holders of the Class A-3 Certificates,  1  holder
of  the  Class  A-4  Certificates, 2 holders  of  the  Class  A-5
Certificates, 6 holders of the Class A-6 Certificates, 5  holders
of  the  Class A-7 Certificates, and 6 holders of the  Class  A-8
Certificates.

ITEM 6 - SELECTED FINANCIAL DATA

     Not applicable.

ITEM  7  -  MANAGEMENT'S  DISCUSSION AND  ANALYSIS  OF  FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

     Not applicable.

ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

      In  addition  to  the information included  in  the  Annual
Compilation of Monthly Trustee's Statements attached  as  Exhibit
99.3  hereto,  the  gross  servicing  compensation  paid  to  the
Servicers for the year ended December  31, 1996 was $231,777.

ITEM  9  -  CHANGES  IN  AND DISAGREEMENTS  WITH  ACCOUNTANTS  ON
ACCOUNTING AND FINANCIAL DISCLOSURE

      There  were  no changes of accountants or disagreements  on
accounting  or financial disclosures between the Issuer  and  its
accountants.

                            PART III

ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     Not applicable.

ITEM 11 - EXECUTIVE COMPENSATION

     Not applicable.

ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT

      The following table sets forth (i) the name and address  of
each  entity  owning  more than 5% of the  outstanding  principal
amount  of each Class of Class A Certificates of the Trust;  (ii)
the  principal amount of the Class of Certificates owned by  each
and  (iii) the percent that the principal amount of the Class  of
Certificates  owned by such entity represents of the  outstanding
principal  amount of such Class of Certificates.  The information
set forth in the table for the Class A Certificates is based upon
information  obtained  from the DTC and represents  ownership  of
beneficial  interest in the Certificates held by  the  DTC.   The
Depositor  is not aware of any Schedules 13D or 13G's filed  with
the   Securities  and  Exchange  Commission  in  respect  of  the
Certificates.
                                               Amount Owned        
                                          (All Dollar Amounts Are
                                               in Thousands)
         Name and Address         Class   Principal     Percent
                                                     
Chase Manhattan Bank/Chemical      A-1    42,200,000        100.0%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY 10081
                                                                  
Bankers Trust Company              A-2     2,925,000         10.1%
c/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN 37211
                                                                  
Northern Trust Company             A-2     8,200,000         28.3%
801 S. Canal C-In
Chicago, IL 60607
                                                                  
PCN National Association           A-2     5,250,000         18.1%
1835 Market Street
11 Penn Center, 15th Floor
Philadelphia, PA 19103
                                                                  
First Bank, N.A.                   A-2     7,750,000         26.7%
c/o ICE Proxy Services
71 Executive Blvd.
Farmingdale, NY 11735
                                                                  
Chase Manhattan Bank/Chemical      A-3    10,000,000         60.6%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY 10004
                                                                  
UMB Bank, N.A.                     A-3     6,500,000         39.4%
P.O. Box 419260
Kansas City, MO 64141
                                                                  
Chase Manhattan Bank/Chemical      A-4    17,000,000          100%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY 10004

                                               Amount Owned
                                          (All Dollar Amounts Are
                                               in Thousands)
         Name and Address         Class   Principal     Percent
                                                                  
Bank of New York (The)             A-5    13,000,000         86.7%
925 Patterson Plank Rd.
Secaucus, NJ 07094
                                                                  
Chase Manhattan Bank/Chemical      A-5     2,000,000         13.3%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY 10004
                                                                  
Bank of New York (The)             A-6     1,000,000          6.3%
925 Patterson Plank Rd.
Secaucus, NJ 07094
                                                                  
Bankers Trust Company              A-6     2,355,000         14.8%
C/O BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Road
Nashville, TN 37211
                                                                  
Investors Bank & Trust/            A-6     2,395,000         15.1%
M. F. Custody
89 South Street, 6th Floor
Corp. Action Department
Boston, MA 02111
                                                                  
Northern Trust Company             A-6     7,000,000         44.0%
801 S. Canal C-In
Chicago, IL 60607
                                                                  
Prudential Securities Incorporated A-6     2,900,000         18.2%
111 8th Avenue, 4th Floor
New York, NY 10011
                                                                  
Bank of New York(The)              A-7     3,000,000         20.8%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                                  
Boatmen's Trust Company            A-7     1,600,000         11.1%
100 N. Broadway
St. Louis, MO  63102

                                               Amount Owned
                                          (All Dollar Amounts Are
                                               in Thousands)
         Name and Address         Class   Principal     Percent
                                                                  
Chase Manhattan Bank               A-7     5,000,000         34.7%
Two Chase Manhattan Plaza, 
5th Floor
New York, NY 10081
                                                                  
North Trust Company                A-7     1,700,000         21.5%
801 S. Canal C-In
Chicago, IL 60607
                                                     
Wachovia Bank North Carolina       A-7     3,100,000         11.9%
100 N. Main Street, NC 37121
Winston-Salem, NC 27150
                                                     
Chase Manhattan Bank               A-8   494,500,000         89.9%
Two Chase Manhattan Plaza, 
5th Floor
New York, NY 10081


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
             99.2(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
              99.3          Annual compilation of Monthly Trustee's
                             Statement filed as an exhibit to the Form 8-K
                             dated December 18, 1996 is incorporated herein
                             by reference.

(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
       December 18, 1996    Trustee's Monthly Report for the
                            December 1996 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 1996-5


                    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
               99.2(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
                 99.3            Annual compilation of Monthly
                                 Trustee's Statement filed as
                                 an exhibit to the Form 8-K
                                 dated December 18, 1996 is
                                 incorporated herein by
                                 reference.