______________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 26, 1996
OPTION ONE/CTS MORTGAGE LOAN TRUST 1996-1
(Exact name of registrant as specified in its charter)
13-3881133 and
NEW YORK 33-96410 13-3881130
(State or Other Jurisdiction (Commission) (I.R.S.Employer
of Incorporation) File Number) Identification No.)
c/o Chemical Bank
Structured Finance Services
450 West 33rd Street
New York, New York
10001-2697
(Address of Principal) (Zip Code)
Registrant's telephone number, including area code (212) 946-3185
NO CHANGE
(Former name or former address, if changed since last report)
______________________________________________________________________
Note: Please see page 5 for Exhibit Index
<PAGE>
Item 5. OTHER EVENTS.
On August 26, 1996 a scheduled distribution was made from the Trust to
holders of the Class A Certificates. The information contained in the
Trustee's Monthly Servicing Report for the month of July, 1996 dated
August 26, 1996 attached hereto as Exhibit 19 is hereby incorporated by
reference.
In addition to the information included in the Trustee's Monthly Report,
the gross servicing compensation paid to the Servicer and Subservicers for the
month of July, 1996 was $93,449.16.
Page 2
<PAGE>
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(a) Not applicable
(b) Not applicable
(c) Exhibits:
19. Trustee's Monthly Servicing Report for the month of July
1996.
<PAGE>
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 hereunto 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
Dated: September 6, 1996
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
19. Trustee's Monthly Servicing Report for the
Month of July, 1996.
5
<TABLE>
<CAPTION>
OPTION ONE/CTS
ARM TRUST
Series 1996-1
Distribution Period: 26-Aug-96
Original Beginning Ending Ending
Certificate Certificate Principal Interest Total Certificate Subordinate Principal
Class Balance Balance Distribution Distribution Distribution Balance Amount Balance
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 68,000,000.00 64,419,764.63 1,522,906.49 370,413.65 1,893,320.13 62,896,858.14 600,998.12 63,497,856.26
A-2 172,000,000.00 160,868,696.05 4,564,139.02 837,947.16 5,402,086.19 156,304,557.03 1,165,211.14 157,469,768.17
R N/A N/A N/A 0.00 0.00 N/A N/A N/A
Total 240,000,000.00 225,288,460.68 6,087,045.51 1,208,360.81 7,295,406.32 219,201,415.17 1,766,209.26 220,967,624.43
Original Beginning Planned Actual Ending
Notional Notional Interest Total Pac Pac Notional
Class Balance Balance Distribution Distribution Reduction Reduction Balance
IO 102,661,238.00 99,565,028.00 252,146.13 252,146.13 2,906,314.00 2,906,314.00 96,658,714.00
</TABLE>
<TABLE>
<CAPTION>
Planned Amortization Interests
Beginning Scheduled Actual Beginning Ending
Pac Ending Ending Companion Companion Companion
Balance Pac Balance Pac Balance Balance Principal Balance
<S> <C> <C> <C> <C> <C> <C>
Group I 25,086,694.00 24,353,666.00 24,353,666.00 38,801,901.58 647,197.64 38,154,703.94
Group II 74,478,334.00 72,305,048.00 72,305,048.00 84,145,907.65 2,106,714.81 82,039,192.84
</TABLE>
FACTOR INFORMATION PER $1,000
Principal Interest End. Cert.
Class Distribution Distribution Balance
A-1 22.39568364 5.44725951 924.95379618
A-2 26.53569200 4.87178583 908.74742457
Total 25.36268963 5.034836709 913.3392299
PASS THRU RATES
Init. Pass Curr Pass
Class Thru Rate Thru Rate
A-1 6.90000000% 6.90000000%
A-2 5.79750000% 5.86000000%
IF THERE ARE ANY QUESTIONS OR PROBLEMS WITH THIS STATEMENT,
PLEASE CONTACT THE ADMINISTRATOR LISTED BELOW:
Eileen Rooney
The Chase Manhattan Bank - ASPG
450 West 33rd Street, 15th Floor
New York, New York 10001
(212) 946-3185
<PAGE>
Page 2
OPTION ONE/CTS
ARM TRUST
Series 1996-1
Distribution Period: 26-Aug-96
SEC. 7.08a (i)
Class A-1 Distribution Amount 1,893,320.13 27.84
Class A-2 Distribution Amount 5,402,086.19 31.41
Class 10 Distribution Amount 252,146.13 N/A
Class R Distribution Amount 0.00 N/A
SEC. 7.08a (ii) Principal Distribution
Allocable To Planned Amort. Interest 2,906,314.00 12.11
Allocable To Companion Interest 2,170,104.13 9.04
Installment Principal Collected 151,411.66 0.63
Principal Prepayments 5,508,814.79 22.95
Subordination Increase Amount 426,819.06 1.78
Other 0.00 0.00
SEC. 7.08a (iii)
Class A-1 Interest Distribution 370,413.65 5.45
Class A-2 Interest Disrtibution 837,947.16 4.87
Class 10 Interest Distribution 282,146.13
SEC. 7.08a (iv)
Class A-1 Beginning Certificate Balance 64,419,764.63 947.35
Class A-2 Beginning Certificate Balance 160,868,696.05 935.28
Class 10 Beginning Notional Balnce 99,565,028.00
Class A-1 Ending Certificate Balance 62,896,858.14 924.95
Class A-2 Ending Certificate Balance 156,304,557.03 908.75
Class 10 Ending Notional Balance 96,658,714.00
SEC. 7.08a (v) Insured Payment 0.00 0.00
SEC. 7.08a (vii) Substitution Amount 0.00 0.00
Loan Purchase Price Amount 0.00 0.00
SEC. 7.08a (viii) Subordination Reduction Amount 0.00 0.00
SEC. 7.08a (ix) Realized Losses 0.00 0.00
SEC. 7.08a (x) Class A-1 Pool Factor 933.7920038235
Class A-2 Pool Factor 915.5219079651
SEC. 7.08b (i)
Number and Aggregate Principal Balances of Delinquent Mortgage Loans:
Category Count Agg. Prin. Bal. Percentage
30-59 DAYS 40 3,067,490.42 1.39%
60-89 DAYS 23 1,768,411.79 0.80%
90 + DAYS 19 1,527,599.75 0.69%
SEC. 7.08b (ii)
Number of Loans in Foreclosure 42
Aggregate Principal Balance of Loans in Foreclosure 3,512,753.34
Number of Loans in Foreclosure that were
Commenced in the Prior Month 17
Aggregate Principal Balance of Loans in Foreclosure
that were Commenced in the Prior Month 1,668,134.58
SEC. 7.08b (iii)
Number of Loans in Bankruptcy 8
Aggregate Principal Balance of Loans in Bankruptcy 852,077.17
SEC. 7.08b (iv)
Number of REO Properties 0
Aggregate Principal Balance of REO Properties 0.00
SEC. 7.08b (v)
Book value of ROE Property 0.00
