EXHIBIT 16.1
 
                                                                    May 31, 1996
 
Board of Directors
AutoBond Acceptance Corporation
301 Congress Avenue
Austin, Texas 78701
 
Dear Sirs:
 
     Reference   is  made  to  the  Registration  Statement  on  Form  S-1  (the
'Registration Statement'), of AutoBond  Acceptance Corporation (the  'Company').
We  hereby concur with the statements in  the Registration Statement made by the
Company, under the caption 'Change in Accountants,' concerning our status as the
Company's principal accountants.
 
                                          Very truly yours,
 
                                          MANN FRANKFORT STEIN & LIPP