----

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| Maryland                                                       | 75-6493585                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

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|                        |                                                                                                                               | Page   |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM 1.                     | Financial Statements                                                                                                               |   |
|                        |                                                                                                                               |   |
|                        | Consolidated Balance Sheets as of June 30, 2009 (unaudited) and December 31, 2008                                                  | 3      |
|                        | Consolidated Statements of Income for the three months and six months ended June 30, 2009 and  June 30, 2008 (unaudited) | 4      |
|                        | Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and June 30, 2008 (unaudited)                         | 5      |
|                        | Notes to Consolidated Financial Statements (unaudited)                                                                             | 6      |
|                        |                                                                                                                               |   |
| ITEM 2.                     | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                        | 14     |
| ITEM 3.                     | Quantitative and Qualitative Disclosures about Market Risk                                                                         | 24     |
| ITEM 4.                     | Controls and Procedures                                                                                                            | 25     |
|                        |
| PART II - OTHER INFORMATION |
|                        |                                                                                                                               |   |
| ITEM 1.                     | Legal Proceedings                                                                                                                  | 25     |
| ITEM 2.                     | Unregistered Sales of Equity Securities and Use of Proceeds                                                                        | 25     |
| ITEM 3.                     | Defaults Upon Senior Securities                                                                                                    | 26     |
| ITEM 4.                     | Submission of Matters to a Vote of Security Holders                                                                                | 26     |
| ITEM 5.                     | Other Information                                                                                                                  | 26     |
| ITEM 6.                     | Exhibits                                                                                                                           | 27     |
|                        | Signatures                                                                                                                         | 28     |

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|                                                                                                                                                                                                                        |   | June 30 , 2009 |   | December 31, 2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|-------------------|--------|
|                                                                                                                                                                                                                        |   | (unaudited)    |   | (audited)         |   |
| Assets                                                                                                                                                                                                                      |   |           |   |              |   |
| Cash and cash equivalents                                                                                                                                                                                                   | $      | 40,938         | $      | 1,944,271         |   |
|                                                                                                                                                                                                                        |   |           |   |              |   |
|   Mortgage investments:                                                                                                                                                                                           |   |           |   |              |   |
|   Investment in trust receivable                                                                                                                                                                                  |   | 5,487,700      |   | 5,336,550         |   |
|   Interim mortgages, affiliates                                                                                                                                                                                   |   | 41,897,001     |   | 41,574,804        |   |
|   Interim mortgages                                                                                                                                                                                               |   | 348,600        |   | 348,600           |   |
|   Allowance for loan losses                                                                                                                                                                                       |   | (811,701       | )      | (696,718          | )      |
| Total mortgage investments                                                                                                                                                                                                  |   | 46,921,600     |   | 46,563,236        |   |
|                                                                                                                                                                                                                        |   |           |   |              |   |
| Line of credit receivable, affiliate                                                                                                                                                                                        |   | 52,868,893     |   | 47,889,473        |   |
| Line of credit receivable, non-affiliate                                                                                                                                                                                    |   | 7,172,258      |   | 4,677,860         |   |
| Accrued interest receivable                                                                                                                                                                                                 |   | 729,453        |   | 471,290           |   |
| Accrued interest receivable, affiliate                                                                                                                                                                                      |   | 11,179,984     |   | 8,309,503         |   |
| Recourse obligations, affiliates                                                                                                                                                                                            |   | 16,491,762     |   | 16,578,484        |   |
| Residential mortgages and contracts for deed foreclosed                                                                                                                                                                     |   | 408,705        |   | 781,153           |   |
| Interim mortgages foreclosed                                                                                                                                                                                                |   | 5,258,875      |   | 5,877,554         |   |
| Deficiency notes                                                                                                                                                                                                            |   | 7,166,661      |   | 6,980,510         |   |
| Deficiency note, affiliate                                                                                                                                                                                                  |   | 6,532,089      |   | 5,332,105         |   |
| Allowance for loan losses – deficiency notes                                                                                                                                                                          |   | (4,053,066     | )      | (3,131,155        | )      |
| Other assets                                                                                                                                                                                                                |   | 168,499        |   | 342,202           |   |
| Total assets                                                                                                                                                                                                                | $      | 150,886,651    | $      | 142,616,486       |   |
|                                                                                                                                                                                                                        |   |           |   |              |   |
| Liabilities and Shareholders’ Equity                                                                                                                                                                                  |   |           |   |              |   |
| Liabilities:                                                                                                                                                                                                                |   |           |   |              |   |
| Dividend payable                                                                                                                                                                                                            | $      | 310,000        | $      | 646,853           |   |
| Accounts payable and accrued liabilities                                                                                                                                                                                    |   | 3,406,291      |   | 887,428           |   |
| Participation payable, affiliate                                                                                                                                                                                            |   | 44,957,146     |   | 38,321,843        |   |
| Total liabilities                                                                                                                                                                                                           |   | 48,673,437     |   | 39,856,124        |   |
|                                                                                                                                                                                                                        |   |           |   |              |   |
| Commitments and contingencies                                                                                                                                                                                               |   |           |   |              |   |
|                                                                                                                                                                                                                        |   |           |   |              |   |
| Shareholders' equity:                                                                                                                                                                                                       |   |           |   |              |   |
| Shares of beneficial interest; $0.01 par value; 100,000,000 shares authorized; 8,245,906 and 8,218,591 shares issued in 2009 and 2008, respectively; and 6,418,725 and 6,436,569 outstanding in 2009 and 2008, respectively |   | 82,425         |   | 82,186            |   |
| Additional paid-in capital                                                                                                                                                                                                  |   | 145,962,185    |   | 145,444,733       |   |
| Advisor's reimbursement                                                                                                                                                                                                     |   | 397,588        |   | 397,588           |   |
| Cumulative distributions in excess of earnings                                                                                                                                                                              |   | (8,766,630     | )      | (8,551,085        | )      |
|                                                                                                                                                                                                                        |   | 137,675,568    |   | 137,373,422       |   |
| Less treasury stock of 1,827,181 and 1,782,022 shares in 2009 and 2008, respectively, at cost                                                                                                                               |   | (35,462,354    | )      | (34,613,060       | )      |
| Total shareholders' equity                                                                                                                                                                                                  |   | 102,213,214    |   | 102,760,362       |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                  | $      | 150,886,651    | $      | 142,616,486       |   |

----

|                                         |   | Three Months Ended June 30, |      |                   Six Months Ended June 30, |
|----------------------------------------------|--------|-----------------------------|-----------|----------------------------------------------------------------------------------------------------------------------------------|
|                                         |   | 2009                        |      | 2008                                                                                                                             |   | 2009 |   | 2008 |
| Revenues:                                    |   |                        |      |                                                                                                                             |   |
| Interest income, affiliates                  |   | $                           | 1,943,688 | $                                                                                                                                | 2,367,690 | $ | 3,838,658 | $ | 4,874,383 |
| Interest income, non-affiliates              |   |                        | 418,919   |                                                                                                                             | 672,046 |   | 661,938 |   | 1,349,212 |
|                                         |   |                        | 2,362,607 |                                                                                                                             | 3,039,736 |   | 4,500,596 |   | 6,223,595 |
| Expenses:                                    |   |                        |      |                                                                                                                             |   |   |   |   |   |
| Trust administration fee                     |   |                        | 256,311   |                                                                                                                             | 272,479 |   | 513,557 |   | 545,458 |
| Loan servicing fee                           |   |                        | 1,633     |                                                                                                                             | 1,519 |   | 3,792 |   | 2,732 |
| General and administrative                   |   |                        | 309,783   |                                                                                                                             | 326,114 |   | 609,218 |   | 560,432 |
| Provision for loan losses                    |   |                        | 670,000   |                                                                                                                             | 1,255,000 |   | 1,072,500 |   | 1,510,000 |
| Interest expense                             |   |                        | 113       |                                                                                                                             | - |   | 541 |   | - |
|                                         |   |                        | 1,237,840 |                                                                                                                             | 1,855,112 |   | 2,199,608 |   | 2,618,622 |
|                                         |   |                        |      |                                                                                                                             |   |   |   |   |   |
| Net income                                   |   | $                           | 1,124,767 | $                                                                                                                                | 1,184,624 | $ | 2,300,988 | $ | 3,604,973 |
|                                         |   |                        |      |                                                                                                                             |   |   |   |   |   |
| Net income per share of beneficial interest  |   | $                           | 0.18      | $                                                                                                                                | 0.18 | $ | 0.36 | $ | 0.55 |
|                                         |   |                        |      |                                                                                                                             |   |   |   |   |   |
| Weighted average shares outstanding          |   |                        | 6,416,625 |                                                                                                                             | 6,562,940 |   | 6,416,822 |   | 6,585,428 |
|                                         |   |                        |      |                                                                                                                             |   |   |   |   |   |
| Distributions per weighted share outstanding |   | $                           | 0.09      | $                                                                                                                                | 0.37 | $ | 0.39 | $ | 0.75 |

----

|                                                                                            |   | Six Months Ended June 30, |   |
|-------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                            |   | 2009                      |   | 2008 |   |
| Operating Activities                                                                            |   |                      |   |   |   |
| Net income                                                                                      | $      | 2,300,988                 | $      | 3,604,973 |   |
| Adjustments to reconcile net income to net cash provided                                        |   |                      |   |   |   |
| by operating activities:                                                                        |   |                      |   |   |   |
| Provision for loan losses                                                                       |   | 1,072,500                 |   | 1,510,000 |   |
| Depreciation and amortization                                                                   |   | 690                       |   | 690 |   |
| Changes in assets and liabilities:                                                              |   |                      |   |   |   |
| Accrued interest receivable                                                                     |   | (2,114,016                | )      | (1,284,937 | ) |
| Other assets                                                                                    |   | 173,014                   |   | 73,613 |   |
| Accounts payable and accrued liabilities                                                        |   | (475,676                  | )      | 62,249 |   |
| Net cash provided by operating activities                                                       |   | 957,500                   |   | 3,966,588 |   |
|                                                                                            |   |                      |   |   |   |
| Investing Activities                                                                            |   |                      |   |   |   |
| Investment in trust receivable                                                                  |   | (65,451                   | )      | (116 | ) |
| Principal receipts on trust receivable                                                          |   | 85,702                    |   | 7,902 |   |
| Investment in interim mortgages                                                                 |   | (1,220,787                | )      | (679,328 | ) |
| Principal receipts on interim mortgages                                                         |   | 683,011                   |   | 1,636,863 |   |
| Investments in interim mortgages, affiliates                                                    |   | (215,221                  | )      | (3,930,824 | ) |
| Principal receipts on interim mortgages, affiliates                                             |   | 1,058,248                 |   | 495,587 |   |
| Principal receipts on residential mortgages and contracts for deed                              |   | 362,014                   |   | 429,184 |   |
| Principal receipts on line of credit receivable, affiliate, net                                 |   | 1,577,888                 |   | 3,414,517 |   |
| Investments in line of credit receivable, non-affiliate, net                                    |   | (2,368,275                | )      | - |   |
| Principal receipts from recourse obligations                                                    |   | 90,238                    |   | 26,398 |   |
| Net cash provided by investing activities                                                       |   | (12,633                   | )      | 1,400,183 |   |
|                                                                                            |   |                      |   |   |   |
| Financing Activities                                                                            |   |                      |   |   |   |
| Proceeds from issuance of shares of beneficial interest                                         |   | 517,692                   |   | 1,233,878 |   |
| Purchase of treasury stock                                                                      |   | (849,295                  | )      | (3,191,265 | ) |
| Dividends                                                                                       |   | (2,516,597                | )      | (4,923,418 | ) |
| Net cash used in financing activities                                                           |   | (2,848,200                | )      | (6,880,805 | ) |
|                                                                                            |   |                      |   |   |   |
| Net decrease in cash and cash equivalents                                                       |   | (1,903,333                | )      | (1,514,034 | ) |
| Cash and cash equivalents at beginning of period                                                |   | 1,944,271                 |   | 1,597,883 |   |
| Cash and cash equivalents at end of period                                                      | $      | 40,938                    | $      | 83,849 |   |
|                                                                                            |   |                      |   |   |   |
| Supplemental Disclosure of Cash Flow Information                                                |   |                      |   |   |   |
| Transfers of affiliate and non-affiliate loans to foreclosed properties or recourse obligations | $      | -                         | $      | 3,283,780 |   |
| Participation receivable, affiliate                                                             |   | (6,635,303                | )      |   |   |
| Participation payable, affiliate                                                                |   | 6,635,303                 |   |   |   |
| Participation accrued interest receivable, affiliate                                            |   | (2,579,631                | )      |   |   |
| Participation accrued interest payable, affiliate                                               |   | 2,579,631                 |   |   |   |

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| 2. | Basis of Presentation |
|----|-----------------------|

| 3. | Impact of Recently Issued Accounting Standards |
|----|------------------------------------------------|

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----

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| Name                      | Initial principal amount | Balance at June 30, 2009 | Promissory Note principle amount (2) |   | Units pledged as security                                                     | C Units distributed  in 2009 | Units remaining                           | Nominal Collateral Value (3) |
|---------------------------|--------------------------|--------------------------|--------------------------------------|--------|-------------------------------------------------------------------------------|----------------------------------------|-------------------------------------------|------------------------------|
| CRG                       | $2,725,442               |   $4,501,877   | $4,300,000                           |   | 4,984 Class C and 2,710 Class D                                               | 136                                    | 3,616 Class C and 2,710 Class D           | $3,616,000                   |
| RAFC                      | $3,243,369               |   $6,543,861   | $7,100,000                           |   | 11,165Class C and  6,659 Class D and 1,066 Class EIA | 199                                    | 9,331 Class C, 6,659 Class Dand 1,066 EIA | $9,331,000 1,066,000    |
| SCMI                      | $3,295,422               |   $3,485,326   | $3,488,643                           |   | 4,545 Class and 3,000 Class D                                                 | 106                                    | 2,971 Class C and 3,000 Class D           | $2,971,000                   |
| RAF / Wonder(1)           | $1,348,464               |   $1,960,698   | $1,400,000                           |   |  1,657 Class C                                                           | -                                      | 1,657 Class C                             | $1,657,000                   |
| WonderIndemnification (1) | n/a                      | n/a                      | n/a                                  |   |  $1,134,000                                                              | -                                      | n/a                                       | $912,000                     |
| Totals                    | $10,612,697              | $16,491,762              | $16,288,643                          |   |                                                                          |                                   |                                      | $19,553,000                  |

|   | (1) Wonder is collateralized by an indemnification agreement from RMC in the amount of $1,134,000, which includes the pledge of 3,870 C Units. 2,213 of the pledged C Units also cross-collateralize the RAFC obligation. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) The CRG and Wonder balances at June 30, 2009 exceeded the stated principal amount per their variable Secured Notes by approximately $202,000 and $561,000, respectively. Per the terms of the Secured Notes, the unpaid principal balance may be greater or less than the initial principal amount of the note and is not considered an event of default. The rapid rate of liquidation of the remaining portfolio of propertiescaused a more rapid increase in the Unpaid Principal Balance (“UPB”) than we originally anticipated and outpaced the minimum principal reductions scheduled for the loans. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) Nominal collateral value does not reflect pledge of D units of limited partnership interest of UMTH held by WLL, Ltd., RAFC and KLA, Ltd. UMTH D units represent equity interests in UMT Holdings, LP. Pledge of the UMTH D units entitles the beneficiary to a pro-rata share of UMTH partnership D unit cash distributions. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| -   | UMT Holdings. This guaranty is limited to a maximum of $10,582,336 due under all of the Secured Notes and is unsecured. |
|---------------|-------------------------------------------------------------------------------------------------------------------------|

| -   | WLL, Ltd., an affiliate of CRG. This guaranty is of all amounts due under Secured Note from CRG is non-recourse and is secured by an assignment of 2,492 Class C Units and 1,355 Class D units of limited partnership interest of UMT Holdings held by WLL, Ltd. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | RMC. This guaranty is non-recourse, is limited to 50% of all amounts due under the Secured Note from RAFC and is secured by an assignment of 3,870 Class C units of limited partnership interest of UMT Holdings |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Wonder. Wonder Funding obligations are evidenced by a note from RAFC (“RAFC Wonder Note”) and are secured by a pledge of a certain Indemnification Agreement given by UMTH to RAFC and assigned to UMT in the amount of $1,134,000, which amount is included in the UMTH limited guarantee referenced above. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Affiliated Company | 2009     | 2008       |
|--------------------|----------|------------|
| CRG                | --       | --         |
| RAFC               | $107,000 | $151,000   |
| UMTHLC             | $993,000 | $2,331,000 |
| UDF                | --       | --         |

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----

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|   | ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------|-----------------------------------------------------------------------------------------------------|

|   | Cautionary Statement Regarding Forward-Looking Statements |
|--------|-----------------------------------------------------------|

|                  | (i)            first lien secured interim mortgage loans with initial terms of 12 months or less for the acquisition and renovation of single-family homes, which we refer to as               “Interim  Loans”; |
|--------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | lines of credit and secured loans for the acquisition and development of single-family home lots, referred to as “Land Development Loans”; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | lines of credit and loans secured by entitled and developed single-family lots, referred to as “Finished Lot Loans”; and, |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | lines of credit and loans secured by completed model homes, referred to as “Model Home Loans”; and, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (vi) | loans provided to entities that have recently filed for bankruptcy protection under Chapter 11 of the U.S. bankruptcy code, secured by a priority lien over pre-bankruptcy secured creditors, referred to as “Debtor in Possession Loans” and, |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | lines of credit and loans, with terms of 18 months or less, secured by single family lots and homes constructed thereon, referred to as “Construction Loans,, |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | first lien secured mortgage loans with terms of 12 to 360 months for the acquisition of single-family homes, referred to as “Residential Mortgages”, and, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | discounted cash flows secured by assessments levied on real property. |
|--------|------|-----------------------------------------------------------------------|

| Asset Category:                                                                                         | June 30 , 2009 | December 31, 2008 |
|---------------------------------------------------------------------------------------------------------|----------------|-------------------|
| Land development loans                                                                                  | 42.48%         | 47.13%            |
| First lien secured interim mortgages 12 months or less and residential mortgages and contracts for deed | 27.40%         | 29.12%            |
| Secured LOC to UMTH Lending Co., L.P.                                                                   | 23.22%         | 18.23%            |
| Construction loans                                                                                      | 5.06%          | 2.93%             |
| Finished lot loans                                                                                      | 1.84%          | 2.60%             |

----

| Description                                                    | No. of Loans | Interest Rate            | Final Maturity Date              | Periodic Payment Terms | Prior Liens | Face amount of Mortgage (1)                  | Carrying amount of Mortgage (2)              | Past Due Amounts (3)                        |
|----------------------------------------------------------------|--------------|--------------------------|----------------------------------|------------------------|-------------|----------------------------------------------|----------------------------------------------|---------------------------------------------|
| Single family residential 1st mortgages and interim loans (5): |         |                     |                             |                   |        |                                         |                                         |                                        |
| Original balance > $100,000                                 | 3            | 10.0% - 11.0%            | 10/1/11 – 5/1/38           | n/a                    | n/a         | $      331,843 | $      326,906 | $      12,666 |
| Original balance $50,000 -  $99,999                  | 112          | 8.5% -  12.75% | 6/1/06  – 3/1/39 | n/a                    | n/a         | 2,469,756                                    | 2,433,014                                    | 86,123                                      |
| Original balance $20,000 -  $49,999                  | 227          | 9.0% - 14.5%             | 6/14/03– 5/19/36           | n/a                    | n/a         | 2,848,482                                    | 2,806,105                                    | 103,902                                     |
| Original balance under $20,000                                 | 16           | 9.0% - 14.5%             | 12/1/10 – 9/1/31           | n/a                    | n/a         | 186,218                                      | 183,448                                      | 7,108                                       |
|                                                           |         |                     |                             |                   |        |                                         |                                         |                                        |
| First Lien secured interim mortgages                           |         |                     |                             |                   |        |                                         |                                         |                                        |
| Ready America Funding (4)                                      | 18           | 14.0%                    | 2/23/03 – 2/6/37           | n/a                    | n/a         | 18,380,370                                   | 18,106,929                                   | 1,581,373                                   |
| Howe Note Consolidation (5)                                    | 1            | 6.0%                     | n/a                              | n/a                    | n/a         | 5,317,195                                    | 5,238,092                                    | 410,548                                     |
|                                                           |         |                     |                             |                   |        |                                         |                                         |                                        |
| Secured, subordinate LOC to UMTH Lending Co., L.P. (4), (5)    | 172          | 12.5% - 13.5%            | n/a                              | n/a                    | n/a         | 25,027,658                                   | 24,655,327                                   | 3,832,089                                   |
|                                                           |         |                     |                             |                   |        |                                         |                                         |                                        |
| Land Development Loans                                         |         |                     |                             |                   |        |                                         |                                         |                                        |
| UDF III Economic Interest Participation                        | 1            | 14.0%                    | 12/31/09                         | n/a                    | n/a         | 44,957,146                                   | 44,957,146                                   | -                                           |
| UDF III Bear Creek Participation                               | 1            | 12.0%                    | 12/31/09                         | n/a                    | n/a         | 821,239                                      | 821,239                                      | -                                           |
|                                                           |         |                     |                             |                   |        |                                         |                                         |                                        |
| Finished Lot Loans                                             | 2            | 12.0 – 12.5%       | 8/31/09 – 3/3/10           | n/a                    | n/a         | 1,987,730                                    | 1,987,730                                    | -                                           |
|                                                           |         |                     |                             |                   |        |                                         |                                         |                                        |
| Construction Loans                                             | 2            | 13.0%                    | 10/28/09                         | n/a                    | n/a         | 5,446,815                                    | 5,446,815                                    | -                                           |
| Totals                                                         | 555          |                     |                             |                   |        | $107,774,452                                 | $106,962,751                                 | $6,033,809                                  |

| (1)   | Current book value of loans. |
|-----------------|------------------------------|

| (2)   | Net of allowance for loan losses on mortgage loans of $811,701 at June 30, 2009. |
|-----------------|----------------------------------------------------------------------------------|

| (3)   | Amounts greater than thirty (30) days past due. |
|-----------------|-------------------------------------------------|

| (4)   | Lines of credit with Ready America Funding and UMTH Lending Co., L.P. are collateralized by 18 and 172 loans, respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (5)   | No specific maturity date as UMT has first lien collateral position in these loans funded by the originator. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| Balance at beginning of period  | $ 95,999,414 |
|---------------------------------|--------------|
| Additions during period:        |         |
| New mortgage loans              | 20,308,316   |
| Other (describe)                | 6,635,303    |
|                            |         |
| Deductions during period:       |         |
| Collections of principal        | (17,066,140) |
| Other decreases in principal    | (1,930,313)  |
| Foreclosures                    |  -      |
| Other (net change of Allowance) | 3,016,171    |
| Balance at close of period      | $106,962,751 |

----

----

----

----

----

----

|   | · | reducing our investment in interim loans dependent on sub-prime and Alt-A mortgage products for repayment of our loan. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | accepting a secured note from UMTHLC for shortfalls from foreclosed properties to enable UMTHLC to efficiently manage past due and foreclosed accounts throughout the duration of the credit crisis. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increasing loss reserves for certain deficiency loans where full collection of the indebtedness is not assured. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | re-evaluating collateral value on specific loans deemed to be affected by current mortgage and housing environments and reserving for unsecured deficiencies. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                              | 2009        |   | 2008        |   |
|---------------------------------------------------|-------------|--------|-------------|--------|
| Shares issued                                     | 27,315      |   | 61,694      |   |
| Dividend reinvestment proceeds                    | $546,000    |   | $1,234,000  |   |
| Number of shares returned to treasury             | 45,159      |   | 164,189     |   |
| Value of shares repurchased                       | $(849,295   | )      | $(3,191,000 | )      |
| Principal receipts (payments):                    |        |   |        |   |
| Residential mortgages and contracts for deed      | $362,000    |   | $429,000    |   |
| Interim loans                                     | $1,741,000  |   | $2,133,000  |   |
| Investments in line of credit, non-affiliate      | $(2,368,000 | )      | -           |   |
| Payments received under line of credit, affiliate | $1,578,000  |   | $3,415,000  |   |

----

----

----

| Month    | Total number of shares repurchased | Average Purchase Price | Total number of shares purchased as part of a publicly announced plan | Total number of shares purchased outside of plan |
|----------|------------------------------------|------------------------|-----------------------------------------------------------------------|--------------------------------------------------|
| January  | 26,069                             | $19.18                 | 19,986                                                                | 6,083                                            |
| February | 6,069                              | $16.48                 | -                                                                     | 6,069                                            |
| March    | 4,168                              | $20.00                 | 4,168                                                                 | -                                                |
| April    | 6,355                              | $19.66                 | 5,748                                                                 | 607                                              |
| May      | 1,173                              | $17.05                 | -                                                                     | 1,173                                            |
| June     | 1,326                              | $15.84                 | -                                                                     | 1,326                                            |
| Totals   | 45,160                             | $18.04                 | 29,902                                                                | 15,258                                           |

|                | For       | Against | Withheld |
|---------------------|-----------|---------|----------|
| Christine Griffin   | 3,980,779 | -       | 57,265   |
| Roger C. Wadsworth  | 3,977,801 | -       | 60,243   |
| Phillip K. Marshall | 3,978,050 | -       | 59,994   |
| Michele A. Cadwell  | 3,978,050 | -       | 59,994   |
| Charles M. Gillis   | 3,978,050 | -       | 59,994   |

|                                                                                                  | For       | Against | Abstain |
|-------------------------------------------------------------------------------------------------------|-----------|---------|---------|
| Ratification of Whitley Penn LLP as the Company’s independent registered public accounting firm | 3,911,849 | 40,409  | 85,786  |

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| 3.1 | Form of Second Amended Restated Declaration of Trust                                                                                                                                                          | *  |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|
| 3.2 | Bylaws of the Company                                                                                                                                                                                         | *  |
| 4.1 | Form of certificate representing the shares                                                                                                                                                                   | *  |
| 4.2 | Dividend Reinvestment Plan (incorporated by reference from the prospectus to the Company's Registration Statement on Form S-3POS (File no, 333-136107), that became effective October 16, 2006))              | ** |
| 4.3 | Description of Share Repurchase Program (incorporated by reference from the prospectus to the Company's Registration Statement on Form S-3POS (File no, 333-136107), that became effective October 16, 2006)) | ** |

| 10.1 | Economic Interest Participation Agreement and Purchase Option between United Mortgage Trust and UDF III dated September 19, 2008 (filed as Exhibit 10.1 to Form 10-Q for the Quarter Ended September 30, 2008 and incorporated herein by reference)  |   |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.2 | Participation Agreement between United Mortgage Trust and UDF III dated September 30, 2008 (filed as Exhibit 10.2 t o Form 10-Q for the Quarter Ended September 30, 2008 and incorporated here in by reference)                                      |   |

| 10.3   | Advisory Agreement dated August 14, 2006 between the Company and UMTH General Services, L.P. (incorporated by reference from Form 8-K filed August 16, 2006) |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.4   | Form of Mortgage Servicing Agreement between the Company and South Central Mortgage, Inc. at a later date assigned to Prospect Service Corp.                 | *      |
|   |                                                                                                                                                         |   |

|   |                                                                                                                                                                                                                                                                                 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.5   | Second Amended Secured Line of Credit Promissory Note and Security Agreement between the Company and United Development Funding, L.P. dated June 20, 2006 (incorporated by reference from Form 8-K filed June 21, 2006)                                                              |   |
|   |                                                                                                                                                                                                                                                                                 |   |
| 10.6   | Secured Variable Amount Promissory Note dated December 31, 2005 issued by Capital Reserve Group, Inc. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                 |   |
| 10.7   | Secured Variable Amount Promissory Note dated December 31, 2005 issued by South Central Mortgage, Inc. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                |   |
| 10.8   | Secured Variable Amount Promissory Note dated December 31, 2005 issued by Ready America Funding Corp. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                 |   |
| 10.9   | Form of Assignment of Limited Partnership Interest as Collateral Dated December 31, 2005 between the Company and Capital Reserve Group, Inc., South Central Mortgage, Inc., Ready America Funding Corp. and WLL, L.P. (incorporated by reference from Form 8-K filed March 31, 2006) |   |
| 10.10  | Guaranty dated December 31, 2005 between the Company and Ready Mortgage Corp. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                                         |   |
| 10.11  | Guaranty dated December 31, 2005 between the Company and WLL, L.P. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                                                    |   |
| 10.12  | Guaranty dated December 31, 2005 between the Company and UMT Holdings, L.P. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                                           |   |
| 10.13  | Intercreditor and Subordination Agreement dated December 31, 2005 between the Company and UMT Holdings, L.P. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                          |   |
| 31.1   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                   |   |
| 31.2   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                   |   |

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|                  |                                                                      |                          |
|-----------------------|---------------------------------------------------------------------------|-------------------------------|
|                  | UNITED MORTGAGE TRUST                                                     |
|             |                                                                 |                     |
| Date: August 14, 2009 | By                                                              | /s/ Christine A. Griffin |
|                  | President,  Chief Executive Officer and Chief Financial Officer |

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