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, 1997 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:	33-28491 THE MORTGAGE BANCFUND OF AMERICA II, L.P., a California Limited Partnership (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) 					California										33-0369995 STATE OR OTHER JURISDICTION OF INCORPORATION				 	IRS EMPLOYER IDENTIFICATION NUMBER 2 Corporate Park, Ste. 106, Irvine, CA 92714 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 II, L.P. (a California Limited Partnership) Index to Form 10-Q March 31, 1997 Part I - Financial Information Item 1 - 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 II, L.P. (a California Limited Partnership) Part I - Financial Information Item 1 - Financial Statements Balance Sheets Income Statements Statements of Partner's Equity Statements of Cash Flow Notes to Financial Statements 	See attached exhibit MORTGAGE BANCFUND OF AMERICA II, L.P. (a California Limited Partnership) Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources: Liquidity for the Partnership remains a pressing concern for management. All cash needed for operations is being generated through operations of foreclosed properties and from the sale of those properties. Management has no plans to seek additional sources of capital from outside sources either in the form of debt or equity. However, management is confident cash being generated internally is sufficient to operate the Partnership in the near future. The capital accounts decreased since the year end December 31, 1996 by $.91 to $6.57 per limited partnership unit outstanding, an overall decline in book value of almost 100% since inception of the Partnership. Results of Operations: There are no substantial changes in any of the accounts since December 31, 1996. Operations are very limited as management is seeking to market the foreclosed real estate and to collect the remaining loans on the Partnership books. Management will continue to strive to effectively sell foreclosed properties although the sagging California economy remains a formidable obstacle to that goal. Management has no plans to seek additional investments other than those necessary to ulitmately liquidate real estat quired through foreclosure. MORTGAGE BANCFUND OF AMERICA II, L.P. (a California Limited Partnership) Part II - Other Information Item 1 - Legal Proceedings None. Item 2 - Changes in Securities None. Item 3 - Defaults Upon Senior Securities N/A 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 II, L.P. (a California Limited Partnership) 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 thereunto duly authorized. MORTGAGE BANCFUND OF AMERICA II, L.P. (a California Limited Partnership) Registrant ________________________________									_________________________ Robert Y. Strom, General Partner													Date "THE MORTGAGE BANCFUND OF AMERICA II, L.P."												 (a California Limited Partnership)												 BALANCE SHEETS												 (Unaudited)												 												 ASSETS								 	"Dec. 31, 1996"		"Mar 31, 1997"						 Cash										 	"$26,124 "		"$4,333 "						 Loans receivable (Note 1)					"552,018"		"502,018"						 Accounts receivable (Note 2)			"18,979"		"25,979"						 Total Assets								 	"597,121"	"532,330"						 												 LIABILITIES & PARTNER'S EQUITY												 Liabilities												 Due to general partner & affiliates			 	"63,841"		"63,841"						 Total liabilities							 	"63,841"		"63,841"						 Partner's equity								 	"533,280"		"468,489"						 Total liabilities & partner's equity			"$597,121 "		"$532,330 "						 Book value per limited partner unit outstanding			$7.48 		$6.57 						 												 INCOME STATEMENTS												 Unaudited for the Three Months Ended												 												3/31/96		3/31/97						 												 REVENUES:												 Interest:												 Loans							 			 	"5,750"		"4,375"						 Other income								 	 	100	 	125						 Total income		 						 	"5,850"		"4,500"						 												 COSTS & EXPENSES:							 Cost of loans								 	"5,485"		"4,156"	 Real estate owned expenses						0			0	 General & administrative costs				330	 	"65,135"	 Total costs & expenses						 	"5,815"		"69,291"	 NET INCOME (LOSS)						 	$35 		"($64,791)"	 Net Income (loss) per							 partnership unit outstanding		$0.00 		($0.91)	 Partnership units outstanding			"71,307"		"71,307"	 "THE MORTGAGE BANCFUND OF AMERICA II, L.P."							 (a California Limited Partnership)							 STATEMENTS OF PARTNER'S EQUITY							 (Unaudited)							 				General	Limited 		 				Partner	Partner	Total	 "Balance, December 31, 1995"				"($169,656)"	"$773,214 "	"$603,558 "						 Allocation of net loss					 	"-3,514"			"-66,764" 	"-70,278"						 "Balance, December 31, 1996"				"($173,170)"	"$706,450 "	"$533,280 "						 Allocation of net loss					 	"-3,240"			"-61,551" 	 "-64,791"						 "Balance, March 31, 1997"				 	"($176,409)"	"$644,898 "	"$468,489 "						 STATEMENTS OF CASH FLOW												 Unaudited For the Three Months Ended												 												 CASH FLOWS FROM OPERATING ACTIVITIES:			"Mar. 31, 1996"		"Mar. 31, 1997"						 Net income (loss)											 	$35 		 	"($64,791)"						 Loss on Disposal of Assets									 	0						 Adjustments to reconcile net income to cash												 provided by operating activities:												 Decrease(increase) in accrued interest receivable				0				 	0					 (Decrease) increase in accounts payable				 	"-5,080"				 	0					 (Increase) decrease in accounts receivable					 	25			 	"-7,000"					 Increase(decrease) in other liabilities						 "5,081"				 	0					 (Decrease) increase in due to general partner & affiliate		0					0					 NET CASH (USED) BY OPERATING ACTIVITIES			 	61				"-71,791"				 												 CASH FLOW FROM INVESTING ACTIVITIES:												 Net change in loans receivable								 	0				 "50,000"				 NET CASH PROVIDED IN INVESTING ACTIVITIES		 	0			 	"50,000"				 												 CASH FLOWS FROM FINANCING ACTIVITIES:												 Increase(Decrease) in notes payable						 	0			 		0					 NET CASH PROVIDED BY FINANCING ACTIVITIES			 0				 	0						 												 NET INCREASE(DECREASE) IN CASH					 	61				"-21,791"				 "CASH, Beginning of period"								 	167				"26,124"				 "CASH, End of Period"										 	$228 			"$4,333 "				 "THE MORTGAGE BANCFUND OF AMERICA II, L.P."												 (a California Limited Partnership)												 NOTES TO 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.												 												 Accounting Policy												 All adjustments made to the financial statements are of a normal recurring nature necessary to present fairly						 the financial condition of the Partnership.