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, 2005


                          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, 2005,  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, 2005
                     (unaudited) and March 31, 2005                          2

                   Statements of Operations, Three Months
                     Ended June 30, 2005 and 2004 (unaudited)                3

                   Statements of Cash Flows, Three Months
                     Ended June 30, 2005 and 2004 (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.

                                 BALANCE SHEETS

                                     ASSETS

                                                     June 30,      March 31,
                                                       2005          2005
                                                   (Unaudited)   (See Note 1)
                                                   -----------   -----------

Current Assets
  Cash                                                  32,583        14,967
  Mortgage notes receivable, current portion            27,148        68,338
  Accrued interest receivable                            3,109         2,108
                                                   -----------   -----------
Total current assets                                    62,840        85,413

Mortgage notes receivable, net of current
 portion                                               145,650       119,445
Note receivable                                        104,242       104,242
                                                   -----------   -----------
  Total Assets                                     $   312,732   $   309,100
                                                   ===========   ===========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Accounts payable                                       3,117         2,132
  Accounts payable, related party                          131          --
  Accrued officer's compensation payable                   629          --
  Accrued income taxes payable                             349          --
                                                   -----------   -----------
  Total Current Liabilities                              4,226         2,132
                                                   -----------   -----------

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
Retained earnings                                        1,538          --
                                                   -----------   -----------
Total Stockholders' Equity                             308,506       306,968
                                                   -----------   -----------
Total Liabilities and Stockholders' Equity         $   312,732   $   309,100
                                                   ===========   ===========







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

                                     2
<PAGE>

                FEDERAL MORTGAGE CORPORATION OF PUERTO RICO, INC.

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                   Three Months Ended
                                                 June 30,       June 30,
                                                   2005           2004
                                               ------------   ------------
Revenue
  Interest income                              $      5,002   $     19,313
                                               ------------   ------------
                                                      5,002         19,313

Expenses
   General and administrative                         2,426         15,898
   Officer's compensation                               629            854
   Other                                                 60           --
                                               ------------   ------------
                                                      3,115         16,752
                                               ------------   ------------
Net income before provision for income taxes          1,887          2,561
                                               ------------   ------------
Provision for income taxes:
  Current                                               349            474
                                               ------------   ------------
                                                        349            474
                                               ------------   ------------
Net Income                                     $      1,538          2,087
                                               ------------   ------------

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.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                       Three Months Ended
                                                     June 30,       June 30,
                                                       2005           2004
                                                   -----------    -----------
Cash Flows from Operating Activities:
  Net income                                       $     1,538    $     2,087
  Adjustments to reconcile net
   income to net cash provided
    by operating activities:
     Increase in accounts payable                          985          3,942
     Increase in accounts payable, related party           131           --
     Increase in officer's compensation payable            629           --
     Increase in income taxes payable                      349           --
     (Increase)in accrued interest receivable           (1,001)          --
                                                   -----------    -----------
Net Cash Provided by Operating Activities                2,631          6,029
                                                   -----------    -----------

Cash Flows from Investing Activities
  Collection of mortgage notes receivable               14,985        240,659
  Collection of note receivable                           --           25,798
                                                   -----------    -----------
Net Cash Provided by Investing Activities               14,985        266,457
                                                   -----------    -----------
Cash Flows from Financing Activities
  (Advances) to related parties                           --         (397,522)
                                                   -----------    -----------
Net Cash (Used in) Financing Activities                   --         (397,522)
                                                   -----------    -----------

Increase (Decrease) in Cash                             17,616       (125,036)

Cash, Beginning of Period                               14,967        130,927
                                                   -----------    -----------
Cash, End of Period                                $    32,583    $     5,891
                                                   ===========    ===========
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.

                          NOTES TO FINANCIAL STATEMENTS
                            June 30, 2005 (Unaudited)


(1)   Unaudited Financial Statements

The balance sheet as of June 30, 2005,  the  statements  of  operations  and the
statements  of cash flows for the three  month  periods  ended June 30, 2005 and
2004,  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,
2005 and for all periods presented, have been made.

It is suggested that these  statements be read in conjunction with the March 31,
2005 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.














                                        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, 2005 compared to June 30, 2004

Revenue for the three  months  ended June 30, 2005 was  approximately  $5,000 as
compared to revenue of approximately $19,000 for the three months ended June 30,
2004, a decrease of  approximately  $14,000.  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  $3,000 during the three months ended June
30, 2005, and approximately $17,000 during the three months ended June 30, 2004,
a decrease of  approximately  $14,000.  The decrease in  operating  expenses was
primarily the result of less investment activity.

Net income after provision for income taxes decreased from approximately  $2,100
during the three months ended June 30, 2005 to  approximately  $1,500 during the
three months ended June 30, 2004, a decrease of approximately $600.

Liquidity and Capital Resources

At June 30, 2005, the Company had cash of approximately  $33,000.  The Company's
current  assets  were  approximately  $63,000 at June 30,  2005 and its  current
liabilities totaled  approximately  $4,000,  resulting in net working capital of
approximately $59,000, a current ratio of approximately 15.7 to one.



                                        6
<PAGE>

At March 31, 2005, the Company had cash of approximately  $15,000. The Company's
current  assets  were  approximately  $85,000 at March 31,  2005 and its current
liabilities totaled  approximately  $2,000,  resulting in net working capital of
approximately  $83,000,  a current ratio of  approximately  42.5 to one. Working
capital decreased by approximately $24,000 from March 31, 2005 to June 30, 2005.

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,  2005,  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 15, 2005


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

Date:  August 15, 2005










                                       9