AMRESCO Residential Securities Corporation
                              Mortgage Loan Trust
                                 Series 1996-1
                        Statement to Certificateholders
                            Distributions in Dollars

                                        
                            PRIOR                                                                          CURRENT
          ORIGINAL        PRINCIPAL                                                REALIZED  DEFERRRED    PRINCIPAL
CLASS    FACE VALUE        BALANCE        INTEREST       PRINCIPAL      TOTAL       LOSSES   INTEREST      BALANCE
                                                                                
A-1      62,239,000.00    30,889,022.25    157,662.72   3,685,897.35 3,843,560.07  .00       .00         27,203,124.90
A-2      48,683,000.00    48,683,000.00    246,457.69       .00        246,457.69  .00       .00         48,683,000.00
A-3      20,123,000.00    20,123,000.00    107,741.90       .00        107,741.90  .00       .00         20,123,000.00
A-4      24,091,000.00    24,091,000.00    136,013.77       .00        136,013.77  .00       .00         24,091,000.00
A-5      19,216,000.00    19,216,000.00    112,894.00       .00        112,894.00  .00       .00         19,216,000.00
A-6     100,592,000.00    65,843,108.07    353,970.79   4,042,115.90 4,396,086.69  .00       .00         61,800,992.17
B-10         .00             .00           657,816.08       .00        657,816.08  .00       .00                  0.00
R            .00             .00             .00            .00          .00       .00       .00                  0.00
TOTALS  274,944,000.00   208,845,130.32  1,772,556,95   7,728,013.25 9,500,570.20  .00       .00        201,117,117.07


FACTOR INFORMATION PER $1000 OF ORIGINAL FACE                                                 PASS-THROUGH
                                                                                                    RATES

                      PRIOR                                                 CURRENT                        
                    PRINCIPAL                                              PRINCIPAL                       
CLASS    CUSIP       BALANCE      INTEREST     PRINCIPAL       TOTAL        BALANCE       CURRENT        NEXT
                                                                                         
 A-1   03215PAA7     496.296892     2.533182     59.221667    61.754849     437.075225    6.125000%     6.125000%
 A-2   03215PAB5   1,000.000000     5.062500      0.000000     5.062500   1,000.000000    6.075000%     6.075000%
 A-3   03215PAC3   1,000.000000     5.354167      0.000000     5.354167   1,000.000000    6.425000%     6.425000%
 A-4   03215PAD1   1,000.000000     5.645833      0.000000     5.645833   1,000.000000    6.775000%     6.775000%
 A-5   03215PAE9   1,000.000000     5.875000      0.000000     5.875000   1,000.000000    7.050000%     7.050000%
 A-6   03215PAF6     654.556109     3.518876     40.183274    43.702150     614.372835    6.047970%     5.817500%
 B-IO                  0.000000     2.392546      0.000000     2.392546       0.000000    0.000000%     0.000000%
  R                    0.000000     0.000000      0.000000     0.000000       0.000000    0.000000%     0.000000%
                                                                                                     

DEPOSITOR:         AMRESCO Residential Securities Corporation   ADMINISTRATOR:               Timothy Lewis
SERVICERS:         Long Beach Mortgage/Option One Mortgage                               Bankers Trust Company
LEAD UNDERWRITER:  Prudential Securities Incorporated                                         3 Park Plaza
RECORD DATE:       December 31, 1996                                                        Irvine, CA 92714
DISTRIBUTION DATE: January 27, 1997                             FACTOR INFORMATION:          (800) 735-7777


                                        
                   AMRESCO Residential Securities Corporation
                               Mortgage Loan Trust
                                  Series 1996-1

                         Statement To Certificateholders
                                        
                                        
Distribution Date:  January 27, 1997                                Group 1         Group 2          Totals
                                                                                                 
SERVICER ADVANCES:                                                                               
       INTEREST                                                      682,588.23      227,297.09      909,885.32
       PRINCIPAL                                                      40,227.03       10,312.78       50,539.81
                                                                                                               
ACCRUED SERVICING FEE FOR THE CURRENT PERIOD:                         61,217.59       28,377.69       89,595.28
PLUS ADDITIONAL SERVICING COMPENSATION:                                    0.00            0.00            0.00
TOTAL SERVICING FEES DUE MASTER SERVICER:                             61,217.59       28,377.69       89,595.28
                                                                                                               
  LESS: AMOUNTS TO COVER INTEREST SHORTFALLS:                          4,559.42        6,190.18       10,749.60
  LESS: DELINQUENT SERVICE FEES:                                      32,636.52       10,292.96       42,929.48
                                                                                                               
COLLECTED SERVICING FEES FOR CURRENT PERIOD:                          24,021.65       11,894.55       35,916.20
                                                                       0.087369        0.043262        0.130631
                                                                                                 
BEGINNING NUMBER OF LOANS:                                                1,674             722           2,396
ENDING NUMBER OF LOANS:                                                   1,628             686           2,314
                                                                                                 
BEGINNING PRINCIPAL BALANCE OF POOL:                             146,922,211.48   68,106,444.71  215,028,656.19
ENDING PRINCIPAL BALANCE OF POOL:                                143,236,314.13   64,064,328.81  207,300,642.94
   GROUP FACTOR:                                                     82.153526%      63.686832%      75.397204%
                                                                                                               
LARGEST LOAN BALANCE:                                                477,781.36      396,462.13                
                                                                                                               
WEIGHTED AVERAGE TERM TO MATURITY:                                       334.63          341.41                
CURRENT WEIGHTED AVERAGE MORTGAGE RATE:                              10.855023%      11.312192%      10.999823%
NEXT WEIGHTED AVERAGE MORTGAGE RATE:                                 10.836819%      11.323973%      10.987369%
                                                                                                               
PRINCIPAL PREPAYMENTS:                                                                                         
   NUMBER OF LOANS (IF PAID IN FULL):                                        46              36              82
   PRINCIPAL BALANCE:                                              3,607,007.76    3,889,736.29    7,496,744.05
   AMOUNT PER $1000 CERTIFICATE:                                      57.954141       79.899273       27.266440
                                                                                                               
PREPAYMENT INTEREST SHORTFALL AMOUNT INCLUDED IN DISTRIBUTION:         4,559.42        6,190.18       10,749.60
NONCOVERED PREPAYMENT INTEREST SHORTFALL FOR THIS DISTRIBUTION:            0.00            0.00            0.00
                                                                                                               
AVAILABLE FUNDS:                                                   4,953,716.43    4,573,183.39    9,526,899.82
                                                                                                               
INSURED PAYAMENT:                                                          0.00            0.00            0.00
                                                                                                               
REMAINING PRE-FUNDING AMOUNT AVAILABLE (GROUP 1 ONLY)                      0.00                            0.00
                                                                                                               



                  AMRESCO Residential Securities Corporation
                           Mortgage Loan Trust
                            Series 1996-1


                      Statement To Certificateholders


Distribution Date:       January 27, 1997

                                                               GROUP 1              GROUP 2               TOTALS
                                                                                                     
CLASS A PRINCIPAL DISTRIBUTION BREAKDOWN:                                                          
  SCHEDULED PRINCIPAL:                                             78,889.59             28,278.53           107,168.12
  PRINCIPAL PREPAYMENTS:                                        3,587,043.00          3,852,701.65         7,439,744.65
  CURTAILMENTS:                                                    19,964.76             37,034.64            56,999.40
  REPURCHASES:                                                          0.00                  0.00                 0.00
  LIQUIDATION PROCEEDS:                                                 0.00             41,838.92            41,838.92
  SUBORDINATION INCREASE AMOUNT:                                        0.00             82,262.16            82,262.16
PRE-FUNDED AMOUNTS DISTRIBUTED AS PREPAYMENTS:                          0.00                  0.00                 0.00
                                                                                                                       
                                                                3,685,897.35          4,042,115.90         7,728,013.25
                                                                                                   

DELINQUENT AND                                                                                LOANS          LOANS
FORECLOSURE LOAN              30 TO 59        60 TO 89          90             91+              IN             IN
INFORMATION                     DAYS            DAYS           DAYS            DAYS         BANKRUPTCY    FORECLOSURE
                                                                                                     
  GROUP 1 (Fixed Rate)                                                                                     
PRINCIPAL BALANCE            6,272,187.67    2,471,885.65    2,539,298.41   9,055,077.39    3,414,289.80   6,961,347.04
NUMBER OF LOANS                        60              34              27             96              41             70
                                    4.38%           1.73%           1.77%          6.32%           2.38%          4.86%
  GROUP 2 (Adjustable Rate)                                                                                
PRINCIPAL BALANCE            2,644,299.18    1,268,952.70      224,840.78   4,136,667.63    1,477,348.08   2,876,286.76
NUMBER OF LOANS                        35              13               3             38              15             26
                                    4.13%           1.98%           0.35%          6.46%           2.31%          4.49%
  TOTAL                                                                                                    
PRINCIPAL BALANCE            8,916,486.85    3,740,838.35    2,764,139.19  13,191,745.02    4,891,637.88   9,837,633.80
NUMBER OF LOANS                        95              47              30            134              56             96
                                    4.30%           1.80%           1.33%          6.36%           2.36%          4.75%
                                                                                                         
*Delinquencies are inclusive of Foreclosures, Bankruptcies and REO Property

                                                                  GROUP 1             GROUP 2             TOTALS
                                                                                                
REO PROPERTY INFORMATION:                                                                            
  BOOK VALUE OF REAL ESTATE ACQUIRED THROUGH FORECLOSURE:          1,635,145.49          711,602.43      2,346,747.92
  AGGREGATE PRINCIPAL BALANCE OF REO LOANS:                        1,657,674.96          679,675.07      2,337,350.03
  NUMBER OF REO LOANS:                                                       16                   7                23
                                                                                                     
NEW REO PROPERTIES:      TOTAL NUMBER:                 4
                                            DATE OF                                             SCH. PRIN.
     GROUP          LOAN NUMBER           ACQUISITION               BOOK VALUE                   BALANCE
              1             1865195                12/31/96                  122,118.17                 121,772.17
              1             1706670                12/18/95                   71,928.94                  71,740.92
              2             9162157                                          134,385.45                 132,776.11
              2             9186834                                           37,471.12                  31,358.79
                                                                                        

                                        

                   AMRESCO Residential Securities Corporation
                               Mortgage Loan Trust
                                  Series 1996-1
                                        
                         Statement To Certificateholders


Distribution Date:       January 27, 1997

LIQUIDATED LOANS:   TOTAL NUMBER:                         2  
                                          DATE OF        
   GROUP            LOAN NUMBER            SALE                BALANCE
        2             9168956            01/13/97            52,856.63
        2             9182973            12/18/96            71,244.45

                                                             GROUP 1      GROUP 2        TOTALS
                                                                               
SUBORDINATION AMOUNTS:                                                                
  SUBORDINATED AMOUNT after all payments and transfers     3,920,189.23 2,263,336.64  6,183,525.87
   REQUIRED SUBORDINATION AMOUNT:                          3,920,189.23 2,263,336.64  6,183,525.87
   EXCESS SUBORDINATION AMOUNT:                                    0.00         0.00          0.00
   SUBORDINATION DEFICIT:                                          0.00         0.00          0.00
                                                                                                  
UNREIMBURSED MONTHLY ADVANCES:                                     0.00       320.30        320.30
                                                                                                  
CUMULATIVE LOSS PERCENTAGE:                                   0.071144%    0.000000%              
90+ DELINQUENCY PERCENTAGE:                                   7.011294%    7.018114%              
                                                                                                  
INSURER PREMIUM AMOUNT:                                       17,875.25     8,230.39     26,105.64
TRUSTEE FEE AMOUNT:                                              153.04        70.94        223.98
                                                                                                  
REALIZED LOSS INFORMATION:                                                            

                                                             GROUP 1      GROUP 2        TOTAL
                                                                     
                    PRIOR REALIZED LOSSES:                   123,955.03    33,986.84    157,941.87
                      PLUS: CURRENT REALIZED LOSSES                0.00    82,262.16     82,262.16
                    CUMULATIVE REALIZED LOSSES:              123,955.03         0.00    240,204.03
                                                                                                  
           COPYRIGHT 1996 BANKERS TRUST COMPANY