UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K Annual Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the fiscal year ended 		December 31, 1996 Commission file number 	 33-2-8491 The Mortgage BancFund of America II, L.P., a California Limited Partnership (exact name of registrant as specified in its charter) California								33-036995 (State or other jurisdiction of 					I.R.S. Employer Incorporation or organization ) 					Identification No. 2 Corporate Park. Suite 106, Irvine, CA. 92714 (address of principal executive office) (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.) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class:	N/A Name of Each Exchange on Which Registered:	N/A Securities registered pursuant to Section 12(g) of the Act: Title of Class:	N/A 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_______ Partnership units outstanding: 	71,307 The Mortgage BancFund of America II, L.P. (a California Limited Partnership) Index to Form 10-K December 31, 1996 Part I Item 1 - Business Item 2 - Properties Item 3 - Legal Proceedings Item 4 - Submission of matters to a vote of security holders (partners) Part II Item 5 - Market for the registrant's Partnership units and related security holder matters Item 6 - Selected financial data Item 7 - Management's discussion and analysis of financial condition and results of operations Item 8 - Financial statements and supplementary data Item 9 - Disagreements with accountants on accounting and financial disclosure Part III Item 10 - Directors and executive officers of the registrant Item 11 - Executive compensation Item 12 - Security ownership of certain beneficial owners and management Item 13 - Certain relationships and related transactions Part IV Item - 14 Exhibits, financial statement schedules and reports on Form 8-K Signatures PART 1 Item 1: Business General THE MORTGAGE BANCFUND OF AMERICA II, L.P., is a California Limited Partnership (the "Partnership") of which the general partners are Robert Y. Strom and the Mortgage BancFund Corporation (the Corporation), a California Corporation wholly owned by Mr. Strom. The Partnership was organized to make first and second trust deed commercial real estate loans in the southern California area.. State of the Economy The southern California economy continues to be the most important factor which affects the operations of the Partnership. Throughout 1994 and 1995 large industries announced large employee layoffs, plant closings and relocation efforts to other states. All of this has depressed real estate values in the local area. Management is of the opinion that the economy could continue to decline for at least the next two to five years adversely affecting rental rates and property values in general. Employees The Partnership does not directly employ personnel. The Corporate general partner handles all the business affairs of the partnership with its remaining full-time staff of one employee.. Item 2: Properties: The Partnership does not own any real property other than foreclosed properties acquired during the normal course of business which was disp