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 March 31, 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

2 Corporate Park, Ste. 106, Irvine, CA  92606
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE) 

(714) 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

March 31, 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


THE MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership) 
CONSOLIDATED BALANCE SHEETS 
                                                                        
(Unaudited) 
 
 
ASSETS                                      Dec. 31, 1997 March 31, 1998 
Cash                                           $  129,033         56,596 
Loans receivable (Note 1)                         118,191        102,386 
Accounts receivable (Note 2)                            0          2,272 
Other real estate owned (Note 3)                1,872,799      1,857,980
Other assets                                        9,777        127,174
     Total Assets                              $2,129,800      2,146,408
 
LIABILITIES & PARTNER'S EQUITY 
Liabilities 
  Accounts payable                                172,368        168,790 
  Notes payable (Note 4)                        1,876,012      1,873,092
     Total liabilities                          2,048,380      2,041,882 
Minority interest                                (157,380)      (133,492)
Partner's equity                                  238,800        238,018
    Total liabilities & partner's equity       $2,129,800      2,146,408
 
Book value per limited partner unit
outstanding                                    $     2.74      $    2.73 
 
 
                                            CONSOLIDATED INCOME STATEMENTS 
                                            For the Three Months Ended 
 
                                                  3/31/97        3/31/98
                                                Unaudited      Unaudited  
 
REVENUES: 
Interest: 
Loans                                             $ 5,466      $   2,142 
Investments                                             0            355
Total interest                                      5,466          2,497
 
Net partnership income (loss)                     (11,026)        15,663
Other income                                          250             75 
Total income                                       (5,310)        18,235 
 
COSTS & EXPENSES: 
Costs of loans                                      2,552            879 
General & administrative costs                     41,940         18,138 
Total costs & expenses                             44,492         19,017 
NET LOSS                                          (49,802)          (782) 
 
Net loss per partnership unit                       (0.57)         (0.00)
outstanding
Partnership units outstanding                      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                        (39)          (743)      (782) 
Balance, March 31, 1998           $      (328,537) $     566,555 $  238,018
 
 
CONSOLIDATED STATEMENTS OF CASH FLOW 
For the Three Months Ended 
 
CASH FLOWS FROM OPERATING ACTIVITIES:             3/31/97       3/31/98 
Net (loss)                                    $  (49,802)    $    (782) 
  
 
Adjustments to reconcile net income to cash 
  provided by operating activities: 
  (Decrease) increase in accounts payable        (174,025)       (3,580) 
  (Increase) in accounts receivable                (6,237)       (2,272) 
  (Decrease) increase in due to general partne    142,409             0 
  (Decrease) increase in minority interest       (148,394)       23,888 
  (Increase) decrease in other liabilities             
  Decrease (increase) in other assets                  47      (117,396)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI   (236,002)     (100,142) 
 
CASH FLOW FROM INVESTING ACTIVITIES: 
Net change in loans receivable                     25,170        15,805 
Net change in other real estate owned              14,820        14,820   
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI     39,990        30,625 
 
CASH FLOWS FROM FINANCING Activities 
Increase(Decrease) in notes payable               207,534        (2,920) 
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI    207,534        (2,920) 
 
NET INCREASE(DECREASE) IN CASH                     11,522       (72,437)
 
CASH, Beginning of period                         145,904       129,033 
CASH, End of Period                            $  157,426  $     56,596 
 
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 
This account represents properties 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 March 31, 1998 
Assets: 
Cash and other assets                              106,510 
Real estate                                      1,857,980 
Total assets                                    $1,964,490 
 
Liabilities and Partner's Equity: 
Accounts payable                                    26,383 
Notes payable                                    1,873,092 
Due to affiliates                                 (143,165)
Partner's equity                                   208,180
Total liabilities & partner's equity            $1,964,490 
 
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 partnership
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.

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 on 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 eroded by nearly 97% of the original $100.00 cost per 
limited Partnership unit to a value of $2.73 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 $2.73; a 97% 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 of 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 Securites
None

Item 3 - Defaults Upon senior Securites
None

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 requirments 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