______________________________________________________________________________
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)
May 28, 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 May 28, 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 April, 1996 dated May 28,
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 April, 1996 was $95,315.78.
<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 April
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: June 10, 1996
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION PAGE NO.
19. Trustee's Monthly Servicing Report for the ____6____
Month of April, 1996.
<TABLE>
<CAPTION>
OPTION ONE/CTS
ARM TRUST
SERIES 1996-1
DISTRIBUTION: 28-MAY-96 PAGE # 1
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ORIGINAL BEGINNING ENDING ENDING
CERTIFICATE CERTIFICATE PRINCIPAL INTEREST TOTAL CERTIFICATE SUBORDINATE PRINCIPAL
CLASS BALANCE BALANCE DISTRIBUTION DISTRIBUTION DISTRIBUTION BALANCE AMOUNT BALANCE
A-1 68,000,000.00 67,398,682.25 1,100,210.75 387,542.42 1,487,753.18 66,298,471.49 167,479.03 66,465,950.52
A-2 172,000,000.00 170,484,136.10 3,280,197.02 915,783.95 4,195,980.97 167,203,939.08 210,362.04 167,414,301.12
R N/A N/A N/A 0.00 0.00 N/A N/A N/A
TOTALS 240,000,000.00 237,882,818.35 4,380,407.78 130,3326.37 5,683,734.15 233,502,410.57 377,841.07 233,880,251.64
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
ORIGINAL BEGINNING PLANNED ACTUAL ENDING
NOTIONAL NOTIONAL INTEREST TOTAL PAC PAC NOTIONAL
CLASS BALANCE BALANCE DISTRIBUTION DISTRIBUTION REDUCTION REDUCTION BALANCE
IO 102,661,238.00 101,799,709.00 257,807.45 257,807.45 1,032,480.00 1,032,480.00 100,767,229.00
</TABLE>
<TABLE>
<CAPTION>
PLANNED AMORTIZATION INTERESTS
<S> <C> <C> <C> <C> <C> <C>
BEGINNING SCHEDULED ACTUAL BEGINNING ENDING
PAC ENDING ENDING COMPANION COMPANION COMPANION
BALANCE PAC BALANCE PAC BALANCE BALANCE PRINCIPAL BALANCE
GROUP I 25,653,021.00 25,390,830.00 25,390,830.00 41,765,828.79 690,708.27 41,075,120.52
GROUP II 76,146,688.00 75,376,399.00 75,376,399.00 94,339,254.58 2,301,352.46 92,037,902.12
</TABLE>
<TABLE>
<CAPTION>
FACTOR INFORMATION PER $1,000 PASS THRU RATES
<S> <C> <C> <C> <C> <C> <C>
PRINCIPAL INTEREST END. CERT. INIT PASS CURR PASS
CLASS DISTRIBUTION DISTRIBUTION BALANCE CLASS THRU RATE THRU RATE
A-1 16.17956993 5.69915328 974.97752192 A-1 6.90000000% 6.90000000%
A-2 19.07091293 5.32432530 972.11592487 A-2 5.79750000% 5.86000000%
TOTALS 18.25169908 5.430526558 972.9267107
</TABLE>
IF THERE ARE ANY QUESTIONS OR PROBLEMS WITH THIS STATEMENT, PLEASE CONTACT THE
ADMINISTRATOR LISTED BELOW:
EILEEN ROONEY
CHEMICAL BANK - STRUCTURED FINANCE SERVICES
450 WEST 33RD STREET, 15TH FLOOR
NEW YORK, NEW YORK 10001
(212) 946-3185
(C) COPYRIGHT 1996, CHEMICAL BANKING CORPORATION
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTION: 28-May-96 PAGE # 2
PER $1000
<S> <C> <C> <C>
SECTION 7.08a (i) CLASS A-1 DISTRIBUTION AMOUNT 1,487,753.18 21.88
CLASS A-2 DISTRIBUTION AMOUNT 4,195,980.97 24.40
CLASS IO DISTRIBUTION AMOUNT 257,807.45 N/A
CLASS R DISTRIBUTION AMOUNT 0 N/A
SECTION 7.08a (ii) PRINCIPAL DISTRIBUTION
ALLOCABLE TO PLANNED AMORT.INTEREST 1,032,480.00 4.30
ALLOCABLE TO COMPANION INTEREST 1,790,919.02 7.46
INSTALLMENT PRINCIPAL COLLECTED 146,730.55 .61
<PAGE>
PRINCIPAL PREPAYMENTS 3,877,810.18 16.16
SUBORDINATION INCREASE AMOUNT 355,867.05 1.48
OTHER 0 0
SECTION 7.08a (iii) CLASS A-1 INTEREST DISTRIBUTION 387,542.42 5.70
CLASS A-2 INTEREST DISTRIBUTION 915,783.95 5.32
CLASS IO INTEREST DISTRIBUTION 257,807.45
SECTION 7.08a (iv) CLASS A-1 BEGINNING CERTIFICATE BALANCE 67,398,682.25 991.16
CLASS A-2 BEGINNING CERTIFICATE BALANCE 170,484,136.10 991.19
CLASS IO BEGINNING NOTIONAL BALANCE 101,799,709.00
CLASS A-1 ENDING CERTIFICATE BALANCE 66,298,471.49 974.98
CLASS A-2 ENDING CERTIFICATE BALANCE 167,203,939.08 972.12
CLASS IO ENDING NOTIONAL BALANCE 100,767,229.00
GROUP I GROUP II
SECTION 7.08a (v) INSURED PAYMENT 0 0
SECTION 7.08a (vii) SUBSTITUTION AMOUNT 0 0
LOAN PURCHASE PRICE AMOUNT
SECTION 7.08a (viii) SUBORDINATION REDUCTION AMOUNT 0 0
SECTION 7.08a (ix) REALIZED LOSSES 0 0
SECTION 7.08a (x) CLASS A-1 POOL FACTOR 977.4404488235
CLASS A-2 POOL FACTOR 973.3389600000
</TABLE>
<TABLE>
<CAPTION>
SECTION 7.08 (b)(i) NUMBER AND AGGREGATE PRINCIPAL BALANCES OF DELINQUENT
MORTGAGE LOANS:
<S> <C> <C> <C>
CATEGORY COUNT AGG. PRIN. BAL. PERCENTAGE
30-59 DAYS 159 11938683.68 5.10%
60-89 DAYS 0 0 0
90 + DAYS 0 0 0
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SECTION 7.08 (b)(ii) NUMBER OF LOANS IN FORECLOSURE 0
AGGREGATE PRINCIPAL BALANCE OF LOANS IN FORCLOSURE 0
NUMBER OF LOANS IN FORECLOSURE THAT WERE COMMENCED
IN THE PRIOR MONTH 0
AGGREGATE PRINCIPAL BALANCE OF LOANS IN FORECLOSURE
THAT WERE COMMENCED IN THE PRIOR MONTH 0
SECTION 7.08(b)(iii) NUMBER OF LOANS IN BANKRUPTCY 0
AGGREGATE PRINCIPAL BALANCE OF LOANS IN BANKRUPTCY 0
SECTION 7.08(b)(iv) NUMBER OF REO PROPERTIES 0
AGGREGATE PRINCIPAL BALANCE OF REO PROPERTIES 0
SECTION 7.08 (b)(v) BOOK VALUE OF REO PROPERTY 0
</TABLE>
(C) COPYRIGHT 1996, CHEMICAL BANKING CORPORATION
