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 September 30, 1999

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, 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

2402 Michelson Drive, Suite 255, Irvine, California  92612-1323
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE)

(949) 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

September 30, 1999

Part I - Financial Information

Item 1 - Consolidated 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 - Consolidated Financial Statements

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

	See attached exhibit


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.  There are
no plans to seek additional capital from outside sources, either debt nor
equity.

The capital account has eroded by over 98% of the original cost of $100.00
per limited Partnership unit to a value of $1.74 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 for September 30,
1999.  As discussed above, book value per Partnership unit outstanding is
down to $1.74; a 98% 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 Securities

None.

Item 3 - Defaults Upon Senior Securities

N/A

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
(a California Limited Partnership)
Registrant


________________________________				_________________________
Robert Y. Strom, General Partner						Date



THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
CONSOLIDATED BALANCE SHEETS

(Unaudited)


ASSETS                                        Dec. 31, 1998 Sept 30,1999
Cash                                           $    6,601        124,296
Other assets (Note 1)                                   0              0
Accounts receivable (Note 2)                      105,500              0
     Total Assets                              $  112,101        124,296

LIABILITIES & PARTNER'S EQUITY
Liabilities
  Due to general partner & affiliates              43,891              0
     Total liabilities                             43,891              0
Partner's equity                                   68,210        124,296
    Total liabilities & partner's equity       $  112,101        124,296

Book value per limited partner unit
outstanding                                    $      .96      $    1.74


                                            CONSOLIDATED INCOME STATEMENTS
                                            For the Nine Months Ended

                                9/30/98    9/30/98      9/30/99    9/30/99
                            Three Months Nine Months Three Months Nine Months

REVENUES:
Interest:
Loans                            17,011     25,051      150,493    150,493
Investments                           0          0            0      5,000
Other income                        475      8,160          255      4,268
Total income                     17,486     33,211      150,748    159,761

COSTS & EXPENSES:
Costs of loans                   15,799     22,772            0          0
Real estate owned expenses            0          0            0          0
General & administrative costs   24,023    138,957       75,775    103,675
Total costs & expenses           39,822    161,729       75,775    103,675
NET LOSS                        (22,336)  (128,518)      74,973     56,086

Net loss per partnership unit     (0.31)     (1.80)       (1.05)     (0.79)
outstanding
Partnership units outstanding    71,307     71,307       71,307     71,307


THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
CONSOLIDATED STATEMENTS OF PARTNER'S EQUITY

(Unaudited)

                                           General       Limited
                                           Partner       Partner      Total
Balance, December 31, 1997        $       (190,071) $    385,329 $  195,258
Allocation of net loss                      (6,352)     (120,696)  (127,048)
Balance, December 31, 1998                (196,423)      264,633     68,210
Allocation of net loss                       2,804        53,282     56,086
Balance, September 30, 1999       $       (193,619) $    317,915 $  124,296


CONSOLIDATED STATEMENTS OF CASH FLOW
For the Nine Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:             9/30/98        9/30/99
Net (loss)                                    $  (128,518)    $   56,086
Loss on Disposal of Assets                              0              0

Adjustments to reconcile net income to cash
  provided by operating activities:
  (Decrease) increase in accounts payable               0              0
  (Increase) decrease in accounts receivable      (44,000)       105,500
  (Increase) decrease in other assets                   0              0
  (Decrease) increase in due to general partner         0        (43,891)
  (Increase) decrease in other liabilities              0              0
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI   (172,518)       117,695

CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loans receivable                          0              0
NET CASH PROVIDED (USED) BY INVESTING ACTIVITI          0              0

CASH FLOWS FROM FINANCING Activities
Increase(Decrease) in notes payable                     0              0
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI          0              0

NET INCREASE(DECREASE) IN CASH                   (172,518)       117,695
CASH, Beginning of period                         174,169          6,601
CASH, End of Period                            $    1,651     $  124,296

THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
NOTES TO THE CONSOLIDATED 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 and on
unsecured loans made to unrelated third parties.

Note 3  - Investments in Partnerships
A prior loan receivable secured by a deed of trust has been converted to an
equity interest in a limited liability company.  The property was disposed of
in the third quarter.  Final accounting will not be completed until the end
of 1999.  The Partnership will conclude in 1999.

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.