EXHIBIT 23.1
 
                        CONSENT OF INDEPENDENT AUDITORS
 
  We consent to the reference to our firm under the caption "Experts" and to
the use of our report dated August 2, 1997, except for Note 10, as to which
the date is November 26, 1997 in the Registration Statement (Form S-1 No. 333-
38651) and related Prospectus of BNC Mortgage, Inc., for the registration of
3,173,196 shares of its common stock.
 
                                          /s/ Ernst & Young LLP
 
Orange County, California
   
February 17, 1998