ITEM 1.	Business.
	The Trust relating to Accredited Mortgage Loan Trust 1996-1 Mortgage Loan Asset-Backed Certificates, Series 1996-1 (the "Certificates"), was established pursuant to a Pooling and Servicing Agreement dated as of September 1, 1996 among Accredited Home Lenders, Inc., as sponsor, (the "Sponsor") and, as master servicer, (the "Master Servicer"), and Bankers Trust Company, as trustee (the "Trustee"). (The Pooling and Servicing Agreement is hereby incorporated herein by reference as Exhibit 4.1 of the Registrant's Current Report on Form 8-K filed with Securities and Exchange Commission on October 16, 1996.)
	The assets of the Trust will include two groups (each, a "Mortgage Loan Group" or "Group", and together , the "Mortgage Loan Pool") of closed-end mortgage loans (the "Mortgage Loans") secured by mortgages or deeds of trust (the "Mortgaged Properties") to be conveyed to the Trust on the Closing Date. The Class A-1 Certificates and the Class B-1 Certificates (the "Group I Certificates") will represent undivided ownership interests in a Group of Mortgage Loans with fixed rates of interest. (Group I") and the Class A-2 Certificates and Class B-2 Certificates (the "Group II certificates") will represent undivided ownership interests in a Group of Mortgage Loans with adjustable rates of interest ("Group II"). All of the Mortgage Loans have remaining terms to maturity of 30 years or less and are secured by Mortgages which may be in first or second lien positions.
	Information with respect to the business of the Trust would not be meaningful because the only "business" of the Trust is the collection on the Mortgage Loans and distribution of payments on the Certificates to Certificateholders. This information is accurately summarized in the Monthly Reports to Certificateholders, which are filed on Form 8-K. There is no additional relevant information to report in response to Item 101 of Regulation S-K.
ITEM 2.
ITEM 2.	Properties.
	The Sponsor owns no property. The Series 1996-1 Certificates, in the aggregate, represent the beneficial ownership in a trust fund consisting primarily of the Mortgage Loans. The Trust will acquire title to real estate only upon default of the mortgagors under the Mortgage Loan. Therefore, this item is inapplicable.
ITEM 3.
ITEM 3.	Legal Proceedings.
	None.
ITEM 4.
ITEM 4.	Submission of Matters to a Vote of 		Security Holders.
	No matters were submitted to a vote of Certificateholders during the fiscal year covered by this report.
PART II
ITEM 5.
ITEM 5.	Market for Registrant's Common Equity 		and Related Stockholder Matters.
	The Series 1996-1 Certificates represent, in the aggregate, the beneficial ownership in a trust fund consisting primarily of the Mortgage Loans. The Certificates are owned by Certificateholders as trust beneficiaries. Strictly speaking, Registrant has no "common equity," but for purposes of this Item only, Registrant's Mortgage Loan Asset-Backed Certificates are treated as "common equity."
(a)	Market Information. There is no established public trading market for Registrant's Certificates. Registrant believes the Certificates are traded primarily in intra-dealer markets and non-centralized inter-dealer markets.
(b)	Holders. The number of registered holders of all classes of Certificates on December 31, 1996 was 6.
(c)	Dividends. Not applicable. The information regarding dividends required by sub-paragraph (c) of Item 201 of Regulation S-K is inapplicable because the Trust does not pay dividends. However, information as to distribution to Certificateholders is provided in the Monthly Reports to Certificateholders for each month of the fiscal year in which a distribution to Certificateholders was made.
ITEM 6.
ITEM 6.	Selected Financial Data.
	Not Applicable. Because of the limited activities of the Trust, the Selected Financial Data required by Item 301 of Regulation S-K does not add relevant information to that provided by the Monthly Reports to Certificateholders, which are filed on a monthly basis on Form 8-K.
ITEM 7.
ITEM 7.	Management's Discussion and Analysis of 		Financial Condition and Results of 		Operations.
	Not Applicable. The information required by Item 303 of Regulation S-K is inapplicable because the Trust does not have management per se, but rather the Trust has a Trustee who causes the preparation of the Monthly Reports to Certificateholders. The information provided by the Monthly Reports to Certificateholders, which are filed on a monthly basis on Form 8-K, does provide the relevant financial information regarding the financial status of the Trust.
ITEM 8.
ITEM 8.	Financial Statements and Supplementary 		Data.
Monthly Report to Certificateholders as to distributions made on November 25, 1996 (to be filed on Form 8-K with the Securities and Exchange Commission).
Monthly Report to Certificateholders as to distributions made on December 26, 1996 (to be filed on Form 8-K with the Securities and Exchange Commission).
Monthly Report to Certificateholders as to distributions made on January 27, 1997 (to be filed on Form 8-K with the Securities and Exchange Commission).
Monthly Report to Certificateholders as to distributions made on February 25, 1997 (to be filed on Form 8-K with the Securities and Exchange Commission).
Annual Statement of Compliance by the Master Servicer is not currently available and will be subsequently filed on Form 8.
Independent Accountant's Report on Servicer's servicing activities is not currently available and will be subsequently filed on Form 8.
ITEM 9.
ITEM 9.	Changes in and Disagreements with 		Accountants on Accounting and Financial 		Disclosure.
	None.
PART III
ITEM 10.
ITEM 10.	Directors and Executive Officers of 		Registrant.
	Not Applicable. The Trust does not have officers or directors. Therefore, the information required by items 401 and 405 of Regulation S-K are inapplicable.
ITEM 11.
ITEM 11.	Executive Compensation. 	 	Not Applicable. The Trust does not have officers or directors to whom compensation needs to be paid. Therefore, the information required by item 402 of regulation S-K is inapplicable.
ITEM 12.
ITEM 12.	Security Ownership of Certain 		Beneficial Owners and Management.
	(a)	Security ownership of certain beneficial owners. Under the Pooling and Servicing Agreement governing the Trust, the holders of the Certificates generally do not have the right to vote and are prohibited from taking part in management of the Trust. For purposes of this Item and Item 13
ITEM 13.	Certain Relationships and Related Transactions.
	(a)	Transactions with management and others. Registrant knows of no transaction or series of transactions during the fiscal year ended December 31, 1996, or any currently proposed transaction or series of transactions, in an amount exceeding $60,000 involving the Registrant in which the Certificateholders identified in Item 12(a) had or will have a direct or indirect material interest. There are no persons of the types described in Item 404(a)(1),(2) and (4) of Regulation S-K, however, the information required by Item 404(a)(3) of Regulation S-K is hereby incorporated by reference in Item 12 herein.
	(b)	Certain business relationships. None.
	(c)	Indebtedness of management. Not Applicable. The Trust does not have management consisting of any officers or directors. Therefore, the information required by item 404 of Regulation S-K is inapplicable.
	(d)	Transactions with promoters. Not Applicable. The Trust does not use promoters. Therefore, the information required by item 404 of Regulation S-K is inapplicable.
PART IV
ITEM 14.
ITEM 14.	Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
	(a)	The following is a list of documents filed as part of this report:
	EXHIBITS
	Monthly Report to Certificateholders as to distributions made on November 25, 1996 (to be filed on Form 8-K with the Securities and Exchange Commission).
	Monthly Report to Certificateholders as to distributions made on December 26, 1996 (to be filed on Form 8-K with the Securities and Exchange Commission).
	Monthly Report to Certificateholders as to distributions made on January 27, 1997 (to be filed on Form 8-K with the Securities and Exchange Commission).
	Monthly Report to Certificateholders as to distributions made on February 25, 1997 (to be filed on Form 8-K with the Securities and Exchange Commission).
	Annual Statement of Compliance by the Master Servicer is not currently available and will be subsequently filed on Form 8.
	Independent Accountant's Report on Servicer's servicing activities is not currently available and will be subsequently filed on Form 8.
	(b)	The following Reports on Form 8-K were filed during the last quarter of the period covered by this Report:
	None
	(c)	The exhibits required to be filed by Registrant pursuant to Item 601 of Regulation S-K are listed above and in the Exhibit Index that immediately follows the signature page hereof.
	(d)	Not Applicable. The Trust does not have any subsidiaries or affiliates. Therefore, no financial statements are filed with respect to subsidiaries or affiliates.
Supplemental information to be furnished with reports filed pursuant to Section 15(d) by registrants which have not registered securities pursuant to Section 12 of the Act.
	No annual report, proxy statement, form of proxy or other soliciting material has been sent to Certificateholders, and the Registrant does not contemplate sending any such materials subsequent to the filing of this report.
	SIGNATURE
	Pursuant to the requirements of Section 13 or 15(d) 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.
				By:	Bankers Trust Company 					not in its individual 					capacity but solely as 					a duly authorized agent 					of the Registrant 					pursuant to the Pooling 					and Servicing Agreement, 					dated as of September 1, 					1996.
				By:	/s/Judy L. Gomez 					Judy L. Gomez 					Assistant Vice President
Date: March 26, 1997
EXHIBIT INDEX
Exhibit	Document
1.1		Monthly Report to Certificateholders as 		to distributions made on November 25, 		1996 (to be filed on Form 8-K with the 		Securities and Exchange Commission).
1.2		Monthly Report to Certificateholders as 		to distributions made on December 26, 		1996 (to be filed on Form 8-K with the 		Securities and Exchange Commission).
1.3		Monthly Report to Certificateholders as 		to distributions made on January 27, 		1997 (to be filed on Form 8-K with the 		Securities and Exchange Commission).
1.4		Monthly Report to Certificateholders as 		to distributions made on February 25, 		1997 (to be filed on Form 8-K with the 		Securities and Exchange Commission).
1.5		Pooling and Servicing Agreement of 		Registrant dated as of March 23, 1994 		(hereby incorporated herein by reference 		as Exhibit 4.1 of Registrant's Current 		Report on Form 8-K filed with Securities 		and Exchange Commission on October 16, 		1996).