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 June 30, 2006


                          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 June 30, 2006, the Registrant had 100,000,000 shares of common stock,
$.001 par value per share, outstanding.

Transitional Small Business Disclosure Format (check one): Yes__    No X


<PAGE>


                                      INDEX
                                      -----

                                                                           Page
                                                                          Number
                                                                          ------

Part I.           Financial Information

         Item I.  Financial Statements

                           Balance Sheets as of June 30, 2006
                             (unaudited) and March 31, 2006                  2

                           Statements of Operations, Three Months
                             Ended June 30, 2006 and 2005 (unaudited)        3

                           Statements of Cash Flows, Three Months
                             Ended June 30, 2006 and 2005 (unaudited)        4

                           Notes to Financial Statements                     5

         Item 2.  Management's Discussion and Analysis of
                             Financial Conditions and Results of
                             Operations                                      6

Part II.  Other Information                                                  8



<PAGE>


                FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                           AND CONSOLIDATED SUBSIDIARY
                                 BALANCE SHEETS

                                     ASSETS

                                                 June 30,       March 31,
                                                   2006           2006
                                               (Unaudited)    (See Note 1)
                                               -----------    -----------

Current Assets
  Cash                                             300,146         84,191
  Mortgage notes receivable, current portion          --           23,086
  Accounts receivable, related party                19,161         19,161
  Accrued interest receivable                         --              807
                                               -----------    -----------
Total current assets                               319,307        127,245

Mortgage notes receivable, net of current
 portion                                              --          102,698
Note receivable                                       --           91,993
                                               -----------    -----------
  Total Assets                                 $   319,307    $   321,936
                                               ===========    ===========



                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Accounts payable, related party                   12,695         12,367
  Accrued liabilities                                5,159           --
  Accrued officer's compensation payable               650            650
  Accrued income taxes payable                         361            361
                                               -----------    -----------
  Total Current Liabilities                         18,865         13,378
                                               -----------    -----------

Stockholders' Equity:
Common Stock, $.001 par value,
     100,000,000 shares authorized
     100,000,000 shares issued and
     outstanding                                   100,000        100,000
Additional paid-in capital                         206,968        206,968
Accumulated deficit                                 (6,526)         1,590
                                               -----------    -----------
Total Stockholders' Equity                         300,442        308,558
                                               -----------    -----------
Total Liabilities and Stockholders' Equity     $   319,307    $   321,936
                                               ===========    ===========




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

                                       2
<PAGE>


                FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                           AND CONSOLIDATED SUBSIDIARY
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                  Three Months Ended
                                               June 30,         June 30,
                                                 2006             2005
                                            -------------    -------------
Revenue
  Interest income                           $       2,933    $       5,002
                                            -------------    -------------
                                                    2,933            5,002

Expenses
   General and administrative                       5,488            2,426
   Loan prepayment discount                         5,561             --
   Officer's compensation                            --                629
   Other                                             --                 60
                                            -------------    -------------
                                                   11,049            3,115
                                            -------------    -------------
Net income (loss) before provision
 for income taxes                                  (8,116)           1,887
                                            -------------    -------------
Provision for income taxes:
  Current                                            --                349
                                            -------------    -------------
                                                     --                349
                                            -------------    -------------
Net Income (Loss)                           $      (8,116)           1,538
                                            -------------    -------------

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

Weighted Average Shares Outstanding           100,000,000      100,000,000
                                            =============    =============










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

                                       3
<PAGE>

               FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                           AND CONSOLIDATED SUBSIDIARY
                           STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                                       Three Months Ended
                                                    June 30,       June 30,
                                                      2006           2005
                                                  -----------    -----------

Cash Flows from Operating Activities:
  Net income (loss)                               $    (8,116)   $     1,538
  Adjustments to reconcile net
   income to net cash provided
    by operating activities:
     Increase in accounts payable and accrued
      Expenses                                          5,487          1,116
     Increase in officer's compensation payable          --              629
     Increase in income taxes payable                    --              349
     (Increase) decrease in accrued interest
      receivable                                          807         (1,001)
                                                  -----------    -----------
Net Cash Provided by (Used in) Operating
 Activities                                            (1,822)         2,631
                                                  -----------    -----------

Cash Flows from Investing Activities
  Collection of mortgage notes receivable             125,784         14,985
  Collection of note receivable                        91,993           --
                                                  -----------    -----------
Net Cash Provided by Investing Activities             217,777         14,985
                                                  -----------    -----------
Cash Flows from Financing Activities
  (Advances) to related parties                          --             --
                                                  -----------    -----------
Net Cash (Used in) Financing Activities                  --             --
                                                  -----------    -----------

Increase in Cash                                      215,955         17,616

Cash, Beginning of Period                              84,191         14,967
                                                  -----------    -----------
Cash, End of Period                               $   300,146    $    32,583
                                                  ===========    ===========
Interest Paid                                     $      --      $      --
                                                  ===========    ===========
Income Taxes Paid                                 $      --      $      --
                                                  ===========    ===========



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

                                       4
<PAGE>

                FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.
                           AND CONSOLIDATED SUBSIDIARY
                          NOTES TO FINANCIAL STATEMENTS
                            June 30, 2006 (Unaudited)


(1)   Unaudited Financial Statements

The balance sheet as of June 30, 2006, the statements of operations and the
statements of cash flows for the three month periods ended June 30, 2006 and
2005, 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 June 30,
2006 and for all periods presented, have been made.

It is suggested that these statements be read in conjunction with the March 31,
2006 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)   Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of
credit risk consist primarily of temporary cash investments. The Company places
its temporary cash investments with financial institutions. As of June 30, 2006,
the Company had a cash concentration of credit risk of approximately $200,000
since it had temporary cash investments in bank accounts in excess of the FDIC
insured amounts.










                                       5
<PAGE>

                                     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. Its wholly-owned subsidiary, Pride
Lending, Inc. was organized on August 22, 2001 under the laws of the state of
Colorado. Pride Lending, Inc. was formerly a wholly-owned subsidiary of Pride,
Inc. (PRIDE). Effective March 31, 2005, the directors of PRIDE agreed to
contribute Pride Lending, Inc. to Federal Mortgage Corporation of Puerto Rico,
Inc. (FEDERAL), a related entity, in exchange for 90,000,000 shares of the
common stock of FEDERAL. The transaction was treated as a reverse acquisition
for accounting purposes, which is a capital transaction and not a business
combination.

Results of Operations

Three months ended June 30, 2006 compared to June 30, 2005

Revenue for the three months ended June 30, 2006 was approximately $3,000 as
compared to revenue of approximately $5,000 for the three months ended June 30,
2005, a decrease of approximately $2,000. This decrease was principally the
result of the reduction in interest income due to principal collections of
mortgage notes receivable, which reduced the Company's investment in mortgage
notes receivable.

Operating expenses were approximately $11,000 during the three months ended June
30, 2006, and approximately $3,000 during the three months ended June 30, 2005,
an increase of approximately $8,000. The increase in operating expenses was
primarily the result of bad debt of $5,561 and increased professional fees.

Net income after provision for income taxes decreased from approximately $1,500
during the three months ended June 30, 2006 to a net loss of approximately
$(8,100) during the three months ended June 30, 2006, a decrease of
approximately $9,600.

Liquidity and Capital Resources

At June 30, 2006, the Company had cash of approximately $300,000. The Company's
current assets were approximately $319,000 at June 30, 2006 and its current
liabilities totaled approximately $19,000, resulting in net working capital of
approximately $300,000, a current ratio of approximately 16.8 to one.

                                       6
<PAGE>

At March 31, 2006, the Company had cash of approximately $84,000. The Company's
current assets were approximately $322,000 at March 31, 2006 and its current
liabilities totaled approximately $13,000, resulting in net working capital of
approximately $309,000, a current ratio of approximately 24.8 to one. Working
capital decreased by approximately $9,000 from March 31, 2006 to June 30, 2006.

The Company's business is not subject to seasonality or any weather seasonality
conditions. The Company knows of no trends, events or uncertainties that have,
or are reasonably likely to have, a material impact on the Company's short-term
or long-term liquidity. At June 30, 2006, the Company had no material
commitments for capital expenditures.













                                       7
<PAGE>


                           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 and Chief Financial Officer     electronically
                pursuant to Section 302
                of the Sarbanes-Oxley Act of 2002

         31.2   Certification of Vice President         Filed herewith
                pursuant to Section 302 of the          electronically
                Sarbanes-Oxley Act of 2002

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

         32.2   Certification of Vice President         Filed herewith
                pursuant to 18 U.S.C.                   electronically
                Section 1350

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





                                       8
<PAGE>


                                   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.




/s/ Peter Porath
--------------------------------
Peter Porath, Vice President

Date:  August 18, 2006


/s/ Michael Schumacher
--------------------------------
Michael Schumacher, Chief Executive Officer, Treasurer,
 and Chief Financial Officer

Date:  August 18, 2006




                                       9