UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

FORM 10-Q
(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
	EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998

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:	33-17643

THE MORTGAGE BANCFUND OF AMERICA, a California Limited Partnership
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

		California						33-0281356
STATE OR OTHER JURISDICTION OF INCORPORATION		IRS EMPLOYER IDENTIFICATION NUMBER

2402 MICHELSON DRIVE, SUITE 255, IRVINE, CALIFORNIA  92612-1323
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE) 

(949) 253-2900
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE

N/A
FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST REPORT

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 reports), and (2) has been subject to such filing 
requirements for the past 90 days.

         YES    X								NO_______

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

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 
subsequent to the distribution of securities under a plan confirmed by a court.
N/A

         YES    								NO_______

APPLICABLE ONLY CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date.  N/A


MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)

Index to Form 10-Q

September 30, 1998

Part I - Financial Information

Item 1 - Consolidated Financial Statements

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations

Part II - Other Information

Item 1 - Legal Proceedings

Item 2 - Changes in Securities

Item 3 - Defaults Upon Senior Securities

Item 4 - Submission of Matters to a Vote of Security Holders

Item 5 - Other Information

Item 6 - Exhibits and Reports on Form 8-K

Signatures


MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)

Part I - Financial Information

Item 1 - Consolidated Financial Statements

  Consolidated Balance Sheets
  Consolidated Income Statements
  Consolidated Statements of Partner's Equity
  Consolidated Statements of Cash Flow
  Notes to Consolidated Financial Statements

	See attached exhibit


MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)

Item 2 - Management's Discussion and Analysis of Financial Condition and 
Results of Operations

Liquidity and Capital Resources:
Liquidity continues to be a serious problem for the Partnership.  Management
will depend upon the operations of foreclosed real estate and the ultimate
sale of that real estate to generate funds necessary to operate.  There are
no plans to seek additional capital from outside sources, either debt nor
equity.

The capital account has eroded by nearly 98% of the original $100.00 cost per 
limited Partnership unit to a value of $2.14 per Partnership unit outstanding.
This is due to losses experienced over the past several years.

Results of Operations:
The Partnership continues to report poor operating results since December 31,
1997.  As discussed above, book value per Partnership unit outstanding is
down to $2.14; a 98% decline in value.  Management is of the opinion losses
will continue as the southern California economy slowly recovers from a
depression.  To date the liquidation or other types of losses on properties
foreclosed on has not resulted in a positive return for the Partnership.
Management is operating at this point in a liquidation mode in which the
assets will continue to be managed and sold as those opportunities arise.

Management will continue to manage and attempt to sell property which has 
been foreclosed on and continue the collection effort on the remaining loan
receivable still on the Partnership books.


MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)

Part II - Other Information

Item 1 - Legal Proceedings

None.

Item 2 - Changes in Securities

None.

Item 3 - Defaults Upon Senior Securities

N/A

Item 4 - Submission of Matters to a Vote of Security Holders

None.

Item 5 - Other Information

None.

Item 6 - Exhibits and Reports on Form 8-K

None.


MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)

Signatures

Pursuant to the requirements 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.

MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
Registrant


________________________________				_________________________
Robert Y. Strom, General Partner						Date 


                                              
THE MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership) 
CONSOLIDATED BALANCE SHEETS 
                                                                        
(Unaudited) 
 
 
ASSETS                                      Dec. 31, 1997   Sept 30,1998 
Cash                                           $  129,033         43,406 
Loans receivable (Note 1)                         118,191         72,223 
Accounts receivable (Note 2)                            0              0 
Other real estate owned (Note 3)                1,872,799      1,828,341 
Other assets                                        9,777        124,208
     Total Assets                              $2,129,800      2,068,178 
 
LIABILITIES & PARTNER'S EQUITY 
Liabilities 
  Accounts payable                                172,368        177,464 
  Notes payable (Note 4)                        1,876,012      1,865,624 
     Total liabilities                          2,048,380      2,043,088 
Minority interest                                (157,380)      (161,233) 
Partner's equity                                  238,800        186,323 
    Total liabilities & partner's equity       $2,129,800      2,068,178
 
Book value per limited partner unit
outstanding                                    $     2.74      $    2.14
 
 
                                            CONSOLIDATED INCOME STATEMENTS 
                                            For the Nine Months Ended 
 
                              9/30/97     9/30/97      9/30/98    9/30/98
                           Three Months Nine Months Three Months Nine Months  
 
REVENUES: 
Interest: 
Loans                             5,498     16,047        4,139     13,533
Investments                           0      1,932            0        143
Total interest                    5,498     17,979        4,139     13,676

Net partnership income (loss)    (6,964)   (26,986)      (2,893)    (2,526)
Other income                        250      2,222        5,124     23,456
Total income                     (1,216)    (6,785)       6,370     34,606
 
COSTS & EXPENSES: 
Costs of loans                    2,609      7,771        2,527      7,801
General & administrative costs   23,280     92,638       30,832     79,282
Total costs & expenses           25,889    100,409       33,359     87,083
NET LOSS                        (27,105)  (107,194)     (26,989)   (52,477)
 
Net loss per partnership unit      (.31)     (1.23)        (.31)      (.60)
outstanding
Partnership units outstanding    87,087     87,087        87,087     87,087

 
THE MORTGAGE BANCFUND OF AMERICA 
(a California Limited Partnership) 
CONSOLIDATED STATEMENTS OF PARTNER'S EQUITY 
                        
(Unaudited) 
 
                                           General       Limited 
                                           Partner       Partner      Total 
Balance, December 31, 1996        $      (322,997) $     671,817   $348,820 
Allocation of net loss                     (5,501)      (104,519)  (110,020) 
Balance, December 31, 1997               (328,498)       567,298    238,800 
Allocation of net loss                     (2,624)       (49,853)   (52,477) 
Balance, September 30, 1998      $       (331,122) $     517,445 $  186,323 
 
 
CONSOLIDATED STATEMENTS OF CASH FLOW 
For the Nine Months Ended 
 
CASH FLOWS FROM OPERATING ACTIVITIES:             9/30/97       9/30/98 
Net (loss)                                    $  (110,020)   $  (52,477) 
  
 
Adjustments to reconcile net income to cash 
  provided by operating activities: 
  (Decrease) increase in accounts payable         (61,861)        5,096
  (Increase) in accounts receivable                (6,237)            0 
  (Decrease) increase in due to general partner         0             0 
  (Decrease) increase in minority interest       (157,380)       (3,853)
  (Increase) decrease in other liabilities              0             0
  Decrease (increase) in other assets              (9,598)     (114,430)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI   (345,096)     (165,664) 
 
CASH FLOW FROM INVESTING ACTIVITIES: 
Net change in loans receivable                     73,377        45,968 
Net change in other real estate owned              59,278        44,459   
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI    132,655        90,427 
 
CASH FLOWS FROM FINANCING Activities 
Increase(Decrease) in notes payable               195,570       (10,390)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI    195,570       (10,390)
 
NET INCREASE(DECREASE) IN CASH                    (16,871)     (85,627)
CASH, Beginning of period                         145,904      129,033
CASH, End of Period                            $  129,033  $    43,406
 
THE MORTGAGE BANCFUND OF AMERICA 
(a California Limited Partnership) 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Unaudited) 
 
Note 1 - Loans Receivable 
Loans receivable are carried at the unpaid principal balance net of unearned 
loan fees.  Points and other loan fees are deferred over the life of the loan. 
In management's opinion the book value of these loans is equal to the
estimated net realizable value. 
 
Note 2 - Accounts Receivable 
This account represents funds owed to the Partnership from affiliate 
partnerships, and projects which were acquired through foreclosure. 
 
Note 3 - Other Real Estate Owned 
All real estate owned by the Partnership, which was acquired through
foreclosure, was disposed of during 1996.  The Account also includes
properties which are owned by the majority-owned limited partnership.

A condensed balance sheet of the majority owned partnership follows: 
 
CONDENSED BALANCE SHEET, unaudited, at September 30, 1998
Assets: 
Cash and other assets                               91,424
Real estate                                      1,828,341 
Total assets                                    $1,919,765 
 
Liabilities and Partner's Equity: 
Accounts payable                                    35,056
Notes payable                                    1,865,624 
Due to affiliates                                 (143,165)
Partner's equity                                   162,250
Total liabilities & partner's equity            $1,919,765
 
Note 4 - Notes Payable 
Account represents debt directly owed to commercial banks by the Partnership.  
Funds borrowed were used to develop property acquired through foreclosure.
Account also represents amounts owed by the majority owned limited 
partnerships on real estate owned.
 
Note 5  - Accounting Policy 
The consolidated financial statements include the accounts of the Partnership
and majority-controlled limited partnerships.  All material intercompany 
transactions, profits, and balances have been eliminated. All adjustments made 
to the financial statements are of a normal recurring nature necessary to 
present fairly the financial condition of the Partnership.