UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

FORM 10-Q
(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
	EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998

OR

[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
	EXCHANGE ACT OF 1934

For the transition period from                                      to

Commission file number:	33-28491

THE MORTGAGE BANCFUND OF AMERICA II, L.P. a California Limited Partnership
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

		California						33-0369995
STATE OR OTHER JURISDICTION OF INCORPORATION		IRS EMPLOYER IDENTIFICATION NUMBER

2 Corporate Park, Ste. 106, Irvine, CA  92606
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE) 

(714) 253-2900
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE

N/A
FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST REPORT

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant 
was required to file reports), and (2) has been subject to such filing 
requirements for the past 90 days.

         YES    X								NO_______

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934 
subsequent to the distribution of securities under a plan confirmed by a court.
N/A

         YES    								NO_______

APPLICABLE ONLY CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date.  N/A


MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)

Index to Form 10-Q

March 31, 1998

Part I - Financial Information

Item 1 - Financial Statements

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations

Part II - Other Information

Item 1 - Legal Proceedings

Item 2 - Changes in Securities

Item 3 - Defaults Upon Senior Securities

Item 4 - Submission of Matters to a Vote of Security Holders

Item 5 - Other Information

Item 6 - Exhibits and Reports on Form 8-K

Signatures


MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)

Part I - Financial Information

Item 1 - Financial Statements

  Balance Sheets
  Income Statements
  Statements of Partner's Equity
  Statements of Cash Flow
  Notes to Financial Statements

	See attached exhibit


THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership) 
BALANCE SHEETS 
                                                                        
(Unaudited) 
 
 
ASSETS                                      Dec. 31, 1997 March 31, 1998 
Cash                                           $  174,169        102,848 
Loans receivable (Note 1)                               0              0 
Accounts receivable (Note 2)                       64,980         71,980 
     Total Assets                              $  239,149        174,828
 
LIABILITIES & PARTNER'S EQUITY 
Liabilities 
Due to general partner & affiliates                43,891         43,891
     Total liabilities                             43,891         43,891 
Partner's equity                                  195,258        130,937
    Total liabilities & partner's equity       $  239,149        174,828
 
Book value per limited partner unit
outstanding                                    $     2.74      $    1.84 
 
 
                                               INCOME STATEMENTS 
                                            For the Three Months Ended 
 
                                                  3/31/97        3/31/98
                                                Unaudited      Unaudited  
 
REVENUES: 
Interest: 
Loans                                             $ 4,375      $   5,075 
Other income                                          125          5,060
Total income                                        4,500         10,135
 
COSTS & EXPENSES: 
Costs of loans                                      4,156          4,156 
General & administrative costs                     65,135         70,300 
Total costs & expenses                             69,291         74,456 
NET LOSS                                          (64,791)       (64,321) 
 
Net loss per partnership unit                       (0.91)         (0.90)
outstanding
Partnership units outstanding                      71,307         71,307 
 
THE MORTGAGE BANCFUND OF AMERICA II, L.P. 
(a California Limited Partnership) 
STATEMENTS OF PARTNER'S EQUITY 
                        
(Unaudited) 
 
                                           General       Limited 
                                           Partner       Partner      Total 
Balance, December 31, 1996        $      (173,170) $     706,450 $  533,280 
Allocation of net loss                    (16,901)      (321,121)  (338,022) 
Balance, December 31, 1997               (190,071)       385,329    195,258 
Allocation of net loss                     (3,216)       (61,105)   (64,321) 
Balance, March 31, 1998           $      (193,287) $     324,224 $  130,937
 
 
STATEMENTS OF CASH FLOW 
For the Three Months Ended 
 
CASH FLOWS FROM OPERATING ACTIVITIES:             3/31/97       3/31/98 
Net (loss)                                    $   (64,791)   $  (64,321) 
  
 
Adjustments to reconcile net income to cash 
  provided by operating activities: 
  Decrease (increase) in accrued interest rec.          0             0
  (Decrease) increase in accounts payable               0             0
  (Increase) decrease in accounts receivable       (7,000)       (7,000)
  Increase (decrease) in other liabilities              0             0
  Decrease (increase) in due to general partner         0             0
NET CASH (USED) BY OPERATING ACTIVITIES           (71,791)      (71,321) 
 
CASH FLOW FROM INVESTING ACTIVITIES: 
Net change in loans receivable                     50,000             0
NET CASH PROVIDED IN INVESTING ACTIVITIES          50,000             0
 
CASH FLOWS FROM FINANCING ACTIVITIES 
Increase(Decrease) in notes payable                     0             0 
NET CASH PROVIDED BY FINANCING ACTIVITI                 0             0
 
NET INCREASE(DECREASE) IN CASH                    (21,791)      (71,321)
 
CASH, Beginning of period                          26,124       174,169 
CASH, End of Period                            $    4,333  $    102,848 
 
THE MORTGAGE BANCFUND OF AMERICA II, L.P. 
(a California Limited Partnership) 
NOTES TO THE FINANCIAL STATEMENTS 
(Unaudited) 
 
Note 1 - Loans Receivable 
Loans receivable are carried at the unpaid principal balance net of unearned 
loan fees.  Points and other loan fees are deferred over the life of the loan. 
In management's opinion the book value of these loans is equal to the estimated
net realizable value. 
 
Note 2 - Accounts Receivable 
This account represents funds owed to the Partnership from affiliate 
partnerships, and projects which were acquired through foreclosure. 
 
Accounting Policy 
All adjustments made to the financial statements are of a normal recurring 
nature necessary to present fairly the financial condition of the Partnership.

MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations

Liquidity and Capital Resources:
Liquidity continues to be a serious problem for the Partnership.  Management 
will depend on operations of foreclosed real estate and the ultimate sale of 
that real estate to generate funds necessary to operate.  There are no plans 
to seek additional capital from outside sources, either debt nor equity.

The capital account eroded by nearly 97% of the original $100.00 cost per 
limited Partnership unit to a value of $1.84 per Partnership unit outstanding. 
This is due to losses experienced over the past several years.

Results of Operations:
The Partnership continues to report poor operating results since 
December 31, 1997. As discussed above, book value per Partnership unit 
outstanding is down to $1.84; a 97% decline in value.  Management is operating 
in a liquidation mode to sell all remaining assets and return whatever 
investment remains to the limited partners.


MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)

Part II - Other Information

Item 1 - Legal Proceedings
None

Item 2 - Changes in Securites
None

Item 3 - Defaults Upon senior Securites
None

Item 4 - Submission of Matters to a vote of Security Holders
None

Item 5 - Other Information
None

Item 6 - Exhibits and reports on Form 8-k
None

MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)

Signatures

Pursuant to the requirements 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.

MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
Registrant

Robert Y. Strom, General Partner                            Date