_____________________________________________________________________
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)
September 25, 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 1
<PAGE>
Item 5.OTHER EVENTS.
On September 25, 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 August, 1996 dated
September 25, 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 August, 1996 was $85,591.05.
Page 2
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 August,
1996.
Page 3
<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: October 10, 1996
Page 4
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
19. Trustee's Monthly Servicing Report for the Month of August, 1996.
Page 5
OPTION ONE/CTS
ARM TRUST
SERIES 1996-1
DISTRIBUTION: 25-Sep-96 PAGE # 1
<TABLE>
<CAPTION>
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 62,896,858.14 912,893.52 361,656.93 1,274,550.46 61,983,964.62 742,189.00 62,726,153.62
A-2 172,000,000.00 156,304,557.03 4,188,355.58 755,146.39 4,943,501.97 152,116,201.45 1,526,675.35 153,642,876.80
R N/A N/A N/A 0.00 0.00 N/A N/A N/A
TOTALS 240,000,000.00 219,201,415.17 5,101,249.10 1,116,803.33 6,218,052.43 214,100,166.06 2,268,864.36 216,369,030.42
</TABLE>
<TABLE>
<CAPTION>
ORIGINAL BEGINNING PLANNED ACTUAL ENDING
NOTIONAL NOTIONAL INTEREST TOTAL PAC PAC NOTIONAL
CLASS BALANCE BALANCE DISTRIBUTION DISTRIBUTION REDUCTION REDUCTION BALANCE
<S> <C> <C> <C> <C> <C> <C> <C>
IO 102,661,238.00 96,658,714.00 244,785.49 244,785.49 1,698,279.00 1,698,279.00 94,960,435.00
</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 24,353,666.00 23,925,508.00 23,925,508.00 38,154,703.94 343,544.64 37,811,159.30
GROUP II 72,305,048.00 71,034,927.00 71,034,927.00 82,039,192.84 2,556,770.37 79,482,422.47
</TABLE>
<TABLE>
<CAPTION>
FACTOR INFORMATION PER $1,000 PASS THRU RATES
PRINCIPAL INTEREST END. CERT. INIT PASS CURR PASS
CLASS DISTRIBUTION DISTRIBUTION BALANCE CLASS THRU RATE THRU RATE
<S> <C> <C> <C> <C> <C> <C>
A-1 13.42490474 5.31848433 911.52889144 A-1 6.90000000% 6.90000000%
A-2 24.35090454 4.39038599 884.39652004 A-2 5.79750000% 5.79750000%
TOTALS 21.255204594673 4.6533471893438 892.0840252682
</TABLE>
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>
OPTION ONE/CTS
ARM TRUST
SERIES 1996-1
DISTRIBUTION: 25-Sep-96 PAGE # 2
<TABLE>
<CAPTION>
<S> <C> <C>
PER $1000
SECTION 7.08a (i) CLASS A-1 DISTRIBUTION AMOUNT 1,274,550.46 18.74
CLASS A-2 DISTRIBUTION AMOUNT 4,943,501.97 28.74
CLASS IO DISTRIBUTION AMOUNT 244,785.49 N/A
CLASS R DISTRIBUTION AMOUNT 0.00 N/A
SECTION 7.08a (ii) PRINCIPAL DISTRIBUTION
ALLOCABLE TO PLANNED AMORT. INTEREST 1,698,279.00 7.08
ALLOCABLE TO COMPANION INTEREST 1,256,438.16 5.24
INSTALLMENT PRINCIPAL COLLECTED 118,716.84 0.49
PRINCIPAL PREPAYMENTS 4,479,877.17 18.67
SUBORDINATION INCREASE AMOUNT 502,655.09 2.09
OTHER 0.00 0.00
SECTION 7.08a (iii) CLASS A-1 INTEREST DISTRIBUTION 361,656.93 5.32
CLASS A-2 INTEREST DISTRIBUTION 755,146.39 4.39
CLASS IO INTEREST DISTRIBUTION 244,785.49
SECTION 7.08a (iv) CLASS A-1 BEGINNING CERTIFICATE BALANCE 62,896,858.14 924.95
CLASS A-2 BEGINNING CERTIFICATE BALANCE 156,304,557.03 908.75
CLASS IO BEGINNING NOTIONAL BALANCE 96,658,714.00
CLASS A-1 ENDING CERTIFICATE BALANCE 61,983,964.62 911.53
CLASS A-2 ENDING CERTIFICATE BALANCE 152,116,201.45 884.40
CLASS IO ENDING NOTIONAL BALANCE 94,960,435.00
GROUP I GROUP II
SECTION 7.08a (v) INSURED PAYMENT 0.00
SECTION 7.08a (vii) SUBSTITUTION AMOUNT 0.00 0.00
LOAN PURCHASE PRICE AMOUNT 0.00 0.00
SECTION 7.08a (viii) SUBORDINATION REDUCTION AMOUNT 0.00 0.00
SECTION 7.08a (ix) REALIZED LOSSES 0.00 0.00
SECTION 7.08a (x) CLASS A-1 POOL FACTOR 922.4434355882
CLASS A-2 POOL FACTOR 893.2725395349
</TABLE>
SECTION 7.08 (b)(i) NUMBER AND AGGREGATE PRINCIPAL BALANCES OF DELINQUENT
MORTGAGE LOANS:
CATEGORY COUNT AGG. PRIN. BAL. PERCENTAGE
30-59 DAYS 47 4,388,249.02 2.03%
60-89 DAYS 22 1,680,606.23 0.78%
90 + DAYS 36 2,733,562.78 1.26%
<TABLE>
<CAPTION>
<S> <C>
SECTION 7.08 (b)(ii) NUMBER OF LOANS IN FORECLOSURE 68
AGGREGATE PRINCIPAL BALANCE OF LOANS IN FORCLOSURE 5,596,879.15
NUMBER OF LOANS IN FORECLOSURE THAT WERE COMMENCED
IN THE PRIOR MONTH 26
AGGREGATE PRINCIPAL BALANCE OF LOANS IN FORECLOSURE
THAT WERE COMMENCED IN THE PRIOR MONTH 2,084,125.81
SECTION 7.08 (b)(iii)NUMBER OF LOANS IN BANKRUPTCY 6
AGGREGATE PRINCIPAL BALANCE OF LOANS IN BANKRUPTCY 620,372.63
SECTION 7.08(b)(iv) NUMBER OF REO PROPERTIES 3
AGGREGATE PRINCIPAL BALANCE OF REO PROPERTIES 126,517.63
SECTION 7.08 (b)(v) BOOK VALUE OF REO PROPERTY 0.00
</TABLE>