U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                 FORM 10-QSB



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



               For the quarterly period ended September 30, 2004


                       Commission File Number: 34884


                Federal Mortgage Corporation of Puerto Rico, Inc.
        ----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


         Delaware                                    02-0703753
----------------------------              ---------------------------------
(State of other jurisdiction of           (IRS Employer Identification No.)
 incorporation or organization)


                 444 Park Forest Way, Wellington, FL  33414
          ----------------------------------------------------------
          (Address of principal executive offices including zip code)


                              (561) 798-4294
                        --------------------------
                        (Issuer's telephone number)



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the preceding 12 months (or for such
shorter period that the Registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

                            Yes [X]     No [ ]

As of September 30, 2004, the Registrant had 10,000,000 shares of common
stock, $.001 par value per share, outstanding.

Transitional Small Business Disclosure Format (check one):  Yes [ ]  No [X]









                                     INDEX



                                                                Page
                                                               Number
                                                               ------

Part I.  Financial Information

     Item I.  Financial Statements

              Balance Sheets as of September 30, 2004
              (unaudited) and March 31, 2004                      2

              Statements of Operations, Three Months
              Ended September 30, 2004 and 2003 (Unaudited)       3

              Statements of Operations, Six Months
              Ended September 30, 2004 and 2003 (unaudited)       4

              Statements of Cash Flows, Six Months
              Ended September 30, 2004 and 2003 (unaudited)       5

              Notes to Financial Statements                       6

     Item 2.  Management's Discussion and Analysis of
              Financial Conditions and Results of
              Operations                                          7

Part II.  Other Information                                       8



























                                      2


               FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                        (A Development Stage Company)
                                BALANCE SHEETS

                                   ASSETS

                                                September 30,     March 31,
                                                    2004            2004
                                                -------------   -----------
                                                 (Unaudited)    (See Note 1)

Current Assets
  Cash                                                8,423          20,640
                                                -----------      ----------
  Total Assets                                  $     8,423      $   20,640
                                                ===========      ==========



                     LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Current Liabilities:
  Accounts payable and accrued liabilities              548           1,314
                                                -----------      ----------
  Total Current Liabilities                             548           1,314
                                                -----------      ----------

Stockholders' (Deficit):
Common Stock, $.001 par value,
     100,000,000 shares authorized
     10,000,000 shares issued and
     outstanding                                     10,000          10,000
Additional paid-in capital                          522,500         522,500
Accumulated (deficit)                              (502,500)       (502,500)
Accumulated (deficit) during development stage      (22,125)        (10,674)
                                                -----------      ----------
Total Stockholders' (Deficit)                         7,875          19,326
                                                -----------      ----------
Total Liabilities and Stockholders' (Deficit)   $     8,423      $   20,640
                                                ===========      ==========
















The accompanying notes are an integral part of the financial statements.

                                     3


                 FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)

                                              Three Months Ended
                                         September 30,   September 30,
                                             2004            2003
                                         -------------   -------------

Revenues                                 $         -     $         -
                                         -----------     -----------

Operating Expenses
   Accounting and auditing                     1,530               -
   Other                                           -             389
                                         -----------     -----------

Total Operating Expenses                       1,530             389
                                         -----------     -----------

Net (Loss)                               $    (1,530)           (389)
                                         -----------     -----------

Per Share                                $       nil     $       nil
                                         ===========     ===========

Weighted Average Number of Shares
 Outstanding                              10,000,000      10,000,000
                                         ===========     ===========

























The accompanying notes are an integral part of the financial statements.

                                    4




                 FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)

                                                             For the Period
                                                           From July 15, 2003
                                                            (date of charter
                                   Six Months Ended         renewal) through
                              September 30, September 30,     September 30,
                                    2004           2003            2004
                              ------------   -----------    ----------------

Revenues                      $          -   $         -    $              -
                              ------------   -----------    ----------------

Operating Expenses
   Accounting and auditing           6,110             -              13,490
   Professional fees                 5,128             -               7,128
   Other                               213           389               1,507
                              ------------   -----------    ----------------
Total Operating Expenses            11,451           389              22,125
                              ------------   -----------    ----------------

Net (Loss)                    $    (11,451)         (389)            (22,125)
                              ------------   -----------    ----------------

Per Share                     $        nil   $       nil    $            nil
                              ============   ===========    ================

Weighted Average Number of
 Shares Outstanding             10,000,000    10,000,000          10,000,000
                              ============   ===========    ================




















The accompanying notes are an integral part of the financial statements.

                                     5





                 FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                         (A Development Stage Company)
                           STATEMENTS OF CASH FLOWS
                                  (Unaudited)

                                                              For the Period
                                                            From July 15, 2003
                                                             (date of charter
                                    Six Months Ended         renewal) through
                               September 30, September 30,     September 30,
                                   2004          2003              2004
                               ------------  -------------  -----------------

Cash Flows from Operating
 Activities:
  Net (loss)                       $  (11,451)  $      (389)   $    (22,125)
  Adjustment to reconcile net
   (loss) to net cash provided
    by operating activities:
     Increase (decrease) in
      Accounts payable                   (766)          389             548
                                   ----------    ----------     -----------
Net Cash (Used in) Operating
 Activities                           (12,217)            -         (21,577)
                                   ----------    ----------     -----------

Cash Flows from Investing
 Activities                                 -             -               -
                                   ----------    ----------     -----------
Cash Flows from Financing
 Activities
   Stock issued                             -         5,000          30,000
                                   ----------    ----------     -----------
Net Cash Provided by Investing
 Activities                                 -         5,000          30,000
                                   ----------    ----------     -----------

Increase (Decrease) in Cash           (12,217)        5,000           8,423

Cash, Beginning of Period              20,640             -               -
                                   ----------    ----------     -----------
Cash, End of Period                $    8,423    $    5,000     $     8,423
                                   ==========    ==========     ===========
Interest Paid                      $        -    $        -     $         -
                                   ==========    ==========     ===========
Income Taxes Paid                  $        -    $        -     $         -
                                   ==========    ==========     ===========









The accompanying notes are an integral part of the financial statements.

                                     6



               FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS
                        September 30, 2004 (Unaudited)

(1)   Unaudited Financial Statements

The balance sheet as of September 30, 2004, the statements of operations and
the statements of cash flows for the six month periods ended September 30,
2004 and 2003, have been prepared by Federal Mortgage Corporation of Puerto
Rico, Inc. (Company) without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission.  Certain information and footnote
disclosures, normally included in the financial statements prepared in
accordance with accounting principles generally accepted in the United States
of America, have been condensed or omitted as allowed by such rules and
regulations, and the Company believes that the disclosures are adequate to
make the information presented not misleading.  In the opinion of management,
all adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and changes in
financial position at September 30, 2004 and for all periods presented, have
been made.

It is suggested that these statements be read in conjunction with the March
31, 2004 audited financial statements and the accompanying notes included in
the Company's Annual Report on Form 10-KSB, filed with the Securities and
Exchange Commission.

(2)   Basis of Presentation - Going Concern

The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles in the United States of America,
which contemplates continuation of the Company as a going concern.  However,
the Company has limited working capital and no active business operations,
which raises substantial doubt about its ability to continue as a going
concern.

In view of these matters, realization of certain of the assets in the
accompanying balance sheet is dependent upon continued operations of the
Company, which in turn is dependent upon the Company's ability to meet its
financial requirements, raise additional capital, and the success of its
future operations.  The Company is a 90% owned subsidiary of Pride Equities,
Inc.

Management has opted to resume the filing of Securities and Exchange
Commission (SEC) reporting documentation and then to seek a business
combination.  Management believes that this plan provides an opportunity for
the Company to continue as a going concern.










                                     7




                                    ITEM 2
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                     CONDITION AND RESULTS OF OPERATIONS

Certain statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations which are not historical facts are
forward-looking statements such as statements relating to future operating
results, existing and expected competition, financing and refinancing sources
and availability and plans for future development or expansion activities and
capital expenditures.  Such forward-looking statements involve a number of
risks and uncertainties that may significantly affect our liquidity and
results in the future and, accordingly, actual results may differ materially
from those expressed in any forward-looking statements.  Such risks and
uncertainties include, but are not limited to, those related to effects of
competition, leverage and debt service financing and refinancing efforts,
general economic conditions, changes in laws and regulations, and risks
related to merger and acquisition activities.  The following discussion and
analysis should be read in conjunction with the financial statements and notes
thereto appearing elsewhere in this report.

Overview

The Company was incorporated on January 5, 1970 under the laws of the State of
Delaware as Modulated Building Systems, Inc. On April 17, 1972, the Company
amended its name to Federal Mortgage Corporation of Puerto Rico, Inc.  On July
15, 2003, the Company's charter was renewed retroactively back to February 24,
1976, the date of expiration of the charter. The Company is a 90% owned
company of Pride Equities, Inc.  Management's plan is to start a new business
or seek a business combination.  The Company is not limited to any operation
or geographic area in seeking out opportunities.

Results of Operations

The Company generated no revenues during the quarter ended September 30, 2004,
and management does not anticipate any revenues until following the conclusion
of a merger or acquisition, if any, as contemplated by the Company's business
plan.

The Company has no capital.  The Company anticipates operational costs will be
limited until such time as significant evaluation work is undertaken regarding
prospective mergers or acquisitions.

At September 30, 2004, the Company had no material commitments for capital
expenditures.

                                    ITEM 3
                            CONTROLS AND PROCEDURES

     As of September 30, 2004, under the supervision and with the
participation of the Company's Chief Executive Officer and the Principal
Financial Officer, management has evaluated the effectiveness of the design
and operation of the Company's disclosure controls and procedures.  Based on
that evaluation, the Chief Executive Officer and Principal Financial Officer
concluded that the Company's disclosure controls and procedures were effective
as of September 30, 2004.  There were no significant changes in internal
control over financial reporting that occurred during the fiscal quarter
covered by this report that have materially affected, or are reasonably likely
to affect, the Company's internal control over financial reporting.


                                     8


                         PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         None.

Item 3.  Defaults upon Senior Securities

         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

         (a)  Exhibits.

         31.1   Certification of Chief Executive      Filed herewith
                Officer pursuant to Section 302 of    electronically
                the Sarbanes-Oxley Act of 2002

         31. 2  Certification of Chief Financial      Filed herewith
                Officer pursuant to Section 302 of    electronically
                the Sarbanes-Oxley Act of 2002

         32.1   Certification of Chief Executive      Filed herewith
                Officer pursuant to 18 U.S.C.         electronically
                Section 1350

         32.2   Certification of Chief Financial      Filed herewith
                Officer pursuant to 18 U.S.C.         electronically
                Section 1350

         (b)  Reports on Form 8-K.  None.














                                   9


                                SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this quarterly report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                    FEDERAL MORTGAGE CORPORATION OF
                                    PUERTO RICO, INC.



                                    By: /s/ Peter Porath
                                        Peter Porath, President,
                                        Chief Executive Officer

Date:  November 12, 2004




                                    By: /s/ Michael Schumacher
                                        Michael Schumacher, Treasurer,
                                        Secretary and Chief Financial Officer

Date:  November 12, 2004
























                                    10