Exhibit 23.1


                       Consent of Independent Auditors



The Board of Directors
Merit Securities Corporation


We consent to incorporation  by reference in the  registration  statements (Nos.
33-99316 and Nos. 333-15539) on Form S-3 of Merit Securities  Corporation of our
report dated March 19, 1997,  relating to the balance sheets of Merit Securities
Corporation  as of  December  31, 1996 and 1995 and the  related  statements  of
operations, shareholder's equity and cash flows and for the years ended December
31, 1996,  1995 and for the period from August 19, 1994  (inception) to December
31,  1994,  which  report  appears in the  December  31, 1996 Form 10-K of Merit
Securities Corporation.


                                                         KPMG PEAT MARWICK LLP






Richmond, Virginia
March 31, 1997