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 33-99346

AMRESCO Residential Securities Corporation Mortgage Loan Trust 1996-1
     (Exact name of registrant as specified in its charter)
          New York                       33-0697613
 (State of other jurisdiction      
              of                          (I.R.S. Employer
incorporation or organization)            Identification No.)
                                   
 c/o Bankers Trust Company of California               
   3 Park Plaza, 16th Floor                    
      Irvine, California                       92714
    (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  1996-1  (the "Trust") established  pursuant  to  the
Pooling and Servicing Agreement dated January 1, 1996, among  the
Depositor,  AMRESCO  Residential  Mortgage  Corporation  in   its
capacity  as seller, Long Beach Mortgage Company and  Option  One
Mortgage  Corporation  as the servicers  (the  "Servicers"),  and
Bankers  Trust  Company of California, 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 were 5  holders
of  the  Class  A-1  Certificates, 5 holders  of  the  Class  A-2
Certificates, 8 holders of the Class A-3 Certificates,  1  holder
of  the  Class  A-4  Certificates, 15 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 $1,234,997.

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
Bankers Trust Company              A-1   33,000,000          53.0%
C/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN  37211
                                                                  
Chase Manhattan/Chemical          A-1    23,239,000          37.3%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY 10004

Bank of New York (The)             A-2   17,683,000          36.3%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                     
Citicorp Services, Inc.            A-2   5,000,000           10.3%
P.O. Box 30576
Tampa, FL  33630-3576
                                                     
Fleet Bank of Massachusetts, N.A.  A-2   24,300,000          49.9%
C/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY  11717
                                                                  
Bank of New York (The)             A-3   16,000,000          77.5%
925 Patterson Plank Rd.
Secaucus, NJ  -7094
                                                                  
Morgan, Keegan, Inc.               A-3   1,925,000            9.6%
50 North Front Street
Memphis, TN  38103
                                                                  
Chase Manhattan Bank/Chemical      A-4   24,091,000           100%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY 10004
                                                                  
Amalgamated Bank of NY Pension &   A-5   975,000              5.1%
Trust Accounts (The)
11-15 Union Square West
New York, NY  10003

Bank of New York (The)             A-5   2,225,000           11.6%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                                  
Boatmen's Trust Company            A-5   1,800,000            9.4%
100 N. Broadway
St. Louis, MO  63102
                                                                  
Chase Manhattan Bank, Trust        A-5   1,150,000            6.0%
Two Chase Manhattan Plaza,
5th Floor
New York, NY  10081
                                                                  
Norwest Bank Minnesota National    A-5   1,000,000            5.2%
Association
733 Marquette Avenue
Minneapolis, MN  55479-0056
                                                                  
Northern Trust Company             A-5   1,216,000            6.3%
801 S. Canal C-In
Chicago, IL  60607
                                                                  
Wells Fargo Bank, National         A-5   2,600,000           13.5%
Association
26610 West Agoura Road
Calabasas, CA  91307
                                                                  
Fifth Third Bank (The)             A-5   5,000,000           26.0%
Dept.00850 - Proxy
38 Fountain Square Plaza
Cincinnati, OH  45263
                                                                  
Bank of New York (The)             A-6   10,000,000           9.9%
925 Patterson Plank Rd.
Secaucus, NJ  07094
                                                                  
Chase Manhattan Bank/Chemical      A-6   63,592,000          63.2%
Auto Settle Department
4 New York Plaza, 4th Floor
New York, NY  10004

First National Bank of Chicago     A-6   7,000,000            7.0%
One First National Plaza,
Suite 0417
Chicago, IL  60670
                                                                  
Republic National Bank of New York-A-6   20,000,000          19.9%
Investment Account
One Hanson Place, Lower Level
Brooklyn, NY  11243
                                                                  

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. - Option One
         99.1(b)               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.-KPMG Peat Marwick LLP
         99.2(b)               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 1996-1


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