SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549



                            Form 10-Q



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

         For the quarterly period ended March 31, 2003

     [   ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF
              THE SECURITIES EXCHANGE ACT OF 1934

         For the transition period from _________ to _________


                  Commission file number 000-32409


                       UNITED MORTGAGE TRUST


          (Exact Name of Registrant as Specified in its
                      Governing Instruments)

     (a Maryland trust)        (IRS Employer Identification
                                     Number 75-6496585)



                    5740 Prospect Avenue
                        Suite 1000
                    Dallas, Texas 75206
                      (214) 237-9305



     Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 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 ___

                           5,266,046
Number of shares of Registrant?s shares of beneficial interest
outstanding as of March 31, 2003.

                               (i)
<PAGE>


<Page>
PART I  -- FINANCIAL INFORMATION
<TABLE>
                             UNITED MORTGAGE TRUST
                                BALANCE SHEETS
<CAPTION>
                                            March 31,      December 31,
                                              2003             2002
                                           ----------------------------
                                           (unaudited)      (audited)
ASSETS
<S>                                        <C>              <C>
Cash                                       $   908,933       $  646,570
Investment in residential mortgages
  and contracts for deed                    37,829,257       38,975,771
Interim mortgages                           55,268,229       49,136,321
Accrued interest receivable                  2,163,462        1,917,088
Receivable from affiliate                      110,472          109,594
Equipment, less accumulated depreciation
  of $4,222 and $3,336, respectively            21,635           22,520
Other assets                                   254,998          284,027
                                           -----------       ----------
Total Assets                               $96,556,986      $91,091,891
                                           -----------       ----------
LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Line of credit                           $ 5,000,000      $ 6,245,000
  Dividend payable                             764,540          806,423
  Accounts payable & accrued
    liabilities                                139,774          550,880
                                           -----------       ----------
      Total Liabilities                    $ 5,904,314      $ 7,602,303
                                           -----------       ----------
Commitments and contingencies

Shares of beneficial interest
  redeemable, 1,078,309 shares
  issued and outstanding                    21,566,181       21,566,181

Shareholders' equity:
  Shares of beneficial interest; $.01 par
    Value; 100,000,000 shares authorized;
    4,310,610 and 3,897,229 shares
    issued and 4,187,737 and 3,778,180
      outstanding, respectively                 43,106           38,972
  Additional paid-in capital                72,559,912       65,354,916
  Advisor?s reimbursement                      397,588          397,588
  Cumulative distributions in excess
    of earnings                             (1,513,681)      (1,535,323)
  Retained earnings                               --               --
                                           -----------       ----------
                                            71,486,925       64,256,153
  Less treasury stock, 122,873 and
    shares 119,049 in 2003 and 2002,
    at cost                                 (2,400,434)      (2,332,746)
                                           -----------       ----------
      Total Shareholders' Equity           $69,086,491      $61,923,407
                                           -----------       ----------
Total Liabilities and
     Shareholders? Equity                  $96,556,986      $91,091,891
                                           -----------       ----------
<FN>
See accompanying notes.
</FN>
</Table>

                                -1-



<Page>
<TABLE>
                           UNITED MORTGAGE TRUST
                                STATEMENTS OF INCOME
                                    (unaudited)

<CAPTION>
                                                Three Months Ended
                                                     March 31,
                                                2003          2002
                                             ------------------------
<S>                                         <C>             <C>
Revenues:
  Interest income                           $2,776,386      $1,681,170
  Gain (loss) on sale of notes                 (61,046)            808
                                            ----------      ----------
                                             2,715,340       1,681,978
                                            ----------      ----------
Expense:
  General and administrative                   124,940          53,612
  Interest expense                             102,975          15,135
  Loan servicing fee                            39,270          46,528
  Management fee                               162,919          83,363
                                            ----------      ----------
                                               430,104         198,638
                                            ----------      ----------
Net income                                  $2,285,236      $1,483,340
                                            ==========      ==========
Net income per share of beneficial
  interest                                       $0.46           $0.43
                                            ==========      ==========

Weighted average shares outstanding          4,921,402       3,452,353
                                            ==========      ==========

<FN>
See accompanying notes.
</FN>
</TABLE>

                                 -2-


<Page>
<TABLE>
                         UNITED MORTGAGE TRUST
                        STATEMENTS OF CASH FLOWS
                              (unaudited)
<CAPTION>
                                             For the Three Months Ended
                                                       March 31,
                                                  2003          2002
                                              ------------------------

<S>                                          <C>            <C>
Cash flows from operating activities:
  Net income                                  $ 2,285,236   $1,483,340
  Adjustments to reconcile net income
    to net cash provided by operating
    activities:
      (Gain) Loss on sale of foreclosed
        property                                   61,046         (808)
      Depreciation and amortization                   885       (1,070)
      Net amortization of discount on
        mortgage investments                       (3,696)      (3,887)
      Changes in assets and liabilities:
        Accrued interest receivable              (246,374)    (308,991)
        Other assets                               29,029        9,874
        Accounts payable and accrued
          liabilities                            (411,106)      97,660
          Net cash provided by operating      -----------    ---------
            activities:                         1,715,020    1,276,118
                                              -----------    ---------
Cash flows from investing activities:
  Investment in residential mortgages
    and contracts for deed                       (530,534)  (1,727,862)
  Principal receipts on residential
    mortgages and contracts for deed            1,619,699      492,960
  Investment in interim mortgages             (19,912,117)  (9,312,580)
  Principal receipts on interim mortgages      13,780,209    5,353,288
        Net cash used in investing            -----------   ----------
         activities:                           (5,042,743)  (5,194,194)
                                              -----------   ----------
Cash flows from financing activities:
  Proceeds from issuance of shares of
    beneficial interest                         7,209,130    6,727,035
  Purchase of treasury stock                      (67,688)    (250,000)
  Net borrowings (payments) on
    credit line                                (1,245,000)    (810,000)
  Receivable from affiliate                          (879)      18,823
  Dividends                                    (2,305,477)  (1,674,903)
        Net cash provided by financing        -----------   ----------
          activities:                           3,590,086    4,010,955
                                              -----------   ----------
Net increase in cash                              262,363       92,879

Cash at beginning of period                       646,570       33,569
                                              -----------   ----------
Cash at end of period                         $   908,933   $  126,448
                                              -----------   ----------
Interest paid                                 $   102,975   $   15,135
                                              -----------   ----------
<FN>
See accompanying notes.
</FN>
</TABLE>

                                 -3-


<PAGE>
                            UNITED MORTGAGE TRUST
                       Notes to Financial Statements
                               March 31, 2003

1. Description of Business

The Company

United Mortgage Trust (?the Company?) is a Maryland real estate
investment trust which qualifies as a real estate investment trust (a
?REIT?) under federal income tax laws. The Advisor to the Company is
UMT Advisors, Inc., (the ?Advisor?) a Texas corporation.  The Company
invests exclusively in first lien, fixed rate mortgages secured by
single-family residential property throughout the United States.  Such
loans are originated by others to the Company?s specifications or to
specifications approved by the Company.  Most, if not all, of such
loans are not insured or guaranteed by a federally owned or guaranteed
mortgage agency.

The Company is offering up to 5,000,000 Shares of Beneficial Interest
at $20 per share on a "best efforts" basis.  In addition, the Company
is offering up to 750,000 Shares to investors who want to participate
in its Reinvestment Plan.


2. Basis of Presentation

The accompanying unaudited financial statements were prepared in
accordance with accounting principles generally accepted in the United
States of America for interim financial information and with the
instructions to Form 10-Q of Regulation S-X. They do not include all
information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial
statements. However, except as disclosed herein, there has been no
material change in information disclosed in the notes to the financial
statements for the year ended December 31, 2002 included in the
Company?s 10-KSB filed with the Securities and Exchange Commission. The
interim unaudited financial statements should be read in conjunction
with those financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation, consisting
solely of normal recurring adjustments, were made. Operating results
for the three months ended March 31, 2003 are not necessarily
indicative of the results that may be expected for the year ended
December 31, 2003.

                                  -4-



<Page>
3. Line-of-Credit

The Company has a twelve-month credit facility with a maximum
borrowing limit of $10,000,000, which expires on July 10, 2003. The
line-of-credit is collateralized with the assignment of certain
Residential Mortgages.  Interest on the outstanding balance was
5.25% at March 31, 2003.

4. Related Party Transactions

The Company has an Advisory Agreement with its Advisor, UMT Advisors,
Inc. (?UMTA?) to manage the day-to-day operations of the Company and
generally, the day-to-day expenses associated with running the Company
are born by UMTA. The Company was charged a Trust Management Fee,
calculated monthly, that was $162,919 and $83,363 for the three-month
periods ended March 31, 2003 and 2002, respectively. The fee was
calculated as 1/12th of 1/2 of 1% of the first $50,000,000 of income
producing assets and 1/12th of 1% of income producing assets in excess
of $50,000,000.

Under the terms of the Advisory Agreement the Company paid Acquisition
Fees to the Advisor for providing services related to identifying and
purchasing loans. The fee was calculated as 3% of Net Proceeds (Gross
Proceeds less selling commissions and wholesaling and marketing
allocations). Fees paid during the three-month periods were $204,225
and $198,831, respectively. These fees are capitalized as part of the
acquisition cost of the mortgages.

The Company has a Mortgage Servicing Agreement with Prospect Service
Corp. (formerly South Central Mortgage, Inc.) (?PSC?), an affiliate,
incurring service fees of $39,270 and $46,528 for the three month
periods ended March 31, 2003 and 2002, respectively.


                                    -5-





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

     The following section contains forward-looking statements within
the meaning of Section 27A of the Securities Act, and Section 21E of
the Exchange Act and should be read in conjunction with our Financial
Statements and related notes appearing in this Form 10-Q. Such forward-
looking statements may be identified by the words ?anticipate,?
?believe,? ?estimate,? ?expect? or ?intend? and similar expressions.
Forward looking statements are likely to address such matters as our
business strategy,  future operating  results, future sources of
funding for  mortgage  loans  brokered by us, future  economic
conditions  and pending litigation  involving us each of which are
discussed herein under the caption ?Factors that may Affect Future
Results.?


               RESULTS OF OPERATIONS FOR THE THREE MONTHS
                     ENDED MARCH 31, 2003 AND 2002

     We were formed on July 12, 1996, however our business operations
commenced in March 1997 when the Securities and Exchange Commission
issued an order of registration for our initial public offering of
Shares. A post-effective amendment to our registration dated June 4,
2001 was effective with the Securities and Exchange Commission order
dated March 13, 2003. For more information please refer to the
prospectus dated March 13, 2003, which is also available on our
website www.unitedmortgagetrust.com.

LOANS PURCHASED DURING PERIODS

----------------------------------------------------------------
                                           March 31,
Loan Category                       2003               2002
-------------------------       --------------------------------
Residential Mortgages               8               30
Unpaid principal balance            $465,000        $1,618,000

Contracts for Deed                  1               3
Unpaid principal balance            $66,000         $110,000

Interim Mortgages
Net increase in principal           $6,132,000      $3,965,000
----------------------------------------------------------------

     During the three months ended March 31, 2003 we purchased eight
Residential Mortgages and one Contract for Deed from third parties
with an aggregate unpaid principal balance of approximately $531,000,
at the time of purchase, compared to 30 Residential Mortgages and
three Contracts for Deed with an aggregate unpaid principal balance of
approximately $1,728,000 during the 2002 period. The average
residential mortgage and contract for deed purchased in 2003 had an

                              -6-


<Page>
unpaid principal balance of $59,000 compared to $52,000 in the 2002
period. The average interest rate was 12.00% compared to 13.23% in the
2002 period. The terms remaining were 348 and 351, respectively, and
the investment to value ratio was 80.15% and 78.69%, respectively.

     As of March 31, 2003 our mortgage portfolio in the aggregate
consisted of 588 Residential Mortgages, 199 Contracts for Deed and 878
Interim Mortgages. As of the dates of purchase, the portfolio had an
unpaid principal balance of $91,643,000, and was purchased for a
discounted price of $90,898,000 (99.19% of the unpaid principal
balance). The average loan in the portfolio had a blended interest
rate of 12.92%, a current annual yield of 13.03%, an investment-to-
value ratio of 71.39%, an unpaid principal balance of $55,000, and a
term remaining of 305 months for Residential Mortgages and Contracts
for Deed and less than 12 months for Interim Mortgages.

     By comparison, as of March 31, 2002 our mortgage portfolio in the
aggregate consisted of 620 Residential Mortgages, 258 Contracts for
Deed and 456 Interim Mortgages. As of the dates of purchase, the
portfolio had an unpaid principal balance of $62,243,000, and was
purchased for a discounted price of $61,377,000 (98.61% of the unpaid
principal balance). The average loan in the portfolio had a blended
interest rate of 12.25%, a current annual yield of 12.42%, an
investment-to-value ratio of 74.42%, an unpaid principal balance of
$47,000, and a term remaining of 339 months for Residential Mortgages
and Contracts for Deed and less than 12 months for Interim Mortgages.

----------------------------------------------------------------
                                           March 31,
Balances as of the purchase date    2003               2002
----------------------------------------------------------------
Residential Mortgages               588             620
Unpaid principal balance            $26,964,000     $28,720,000

Contracts for Deed                  199             258
Unpaid principal balance            $9,320,000      $12,026,000

Interim Mortgages                   878             456
Unpaid principal balance            $55,358,000     $21,494,000
----------------------------------------------------------------

     All of the properties that were security for the Residential
Mortgages, Contracts for Deed and Interim Mortgages were located in
the United States. Each of the properties was adequately covered by a
mortgagee?s title insurance policy and hazard insurance.

     During the three-month periods ended March 31, 2003 and 2002 our
investments generated approximately $2,776,000 and $1,681,000 of
interest income, a 65% increase. The rise was attributed to additional
mortgage investments purchased between periods (8% fewer Residential
Mortgages and Contracts for Deed and 157% increase in Interim
Mortgages). We purchase Mortgage Investments using Net Offering
Proceeds derived from the sale of our Shares, loan principal returned
when loans pay off and with our credit facility.


                                  -7-


<Page>
     The mix of our portfolio continued to change during the current
quarter. The blended interest rate on the Interim Mortgage portion of
our portfolio was 13.65% and 13.06%, respectively, compared to 11.82%
and 11.82%, respectively, for Residential Mortgages and Contracts for
Deed.

     The following table illustrates percentage of our portfolio
dedicated to each loan category.
----------------------------------------------------------------
                                           March 31,
Loan Category                       2003               2002
---------------------           --------------------------------
Residential Mortgages                30%                47%
Contracts for Deed                   11%                19%
Interim Mortgages                    59%                34%
----------------------------------------------------------------

     Operating expenses for the three-month periods were approximately
$430,000 and $199,000, a 117% increase. The increase was a result of
increased loans outstanding and related activities. Operating expense
as a percentage of income was 12.05% and 10.91%, respectively, for the
2003 and 2002 three-month periods, respectively.

     Interest expense during the comparable periods was approximately
$103,000 and $15,000, a 580% increase driven by use of our credit
facility which we use to purchase Mortgage Investments in advance of
receiving proceeds from the sale of our shares. The outstanding
balance of our credit facility at the end of each comparable period
was $5,000,000 and zero, respectively.

     We took loan losses during the 2003 period of $61,000 compared to
a slight gain in the 2002 period. The losses were in the Residential
Mortgage and Contracts for Deed categories as we liquidated foreclosed
properties in serious disrepair.

     Net income was approximately $2,285,000 and $1,483,000, a 54%
increase, for the three months ended March 31, 2003 and 2002,
respectively. Earnings per weighted average share were $0.46 and
$0.43, respectively, a 7% increase.

     Our default rate as of March 31, 2003 was 4.06% compared to 5.5%
at the end of the 2002 quarter. Recoursed defaulted loans were 1.51%
and 2.03% and non-recoursed loans were 2.55% and 3.48%, respectively.
During the 2003 quarter, 28 defaulted loans were sold compared to 3
during the 2002 quarter. A slow down in sales of defaulted loans began
during the summer of 2001 and continued through 2002; that slow down
has in part ended as we sold defaulted properties at a discount,
accounting for the loan losses we experienced in the current quarter.

    Distributions to shareholders per share of beneficial interest
during the comparable periods were $0.1533 and $0.1667 per share per
month. In 2002 after restatement of our income statement, dividends
were in excess of earnings which resulted in a return of capital.

                                 -8-
<Page>
               CAPITAL RESOURCES AND LIQUIDITY FOR
          THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002

     We utilize funds made available from the sale of our shares,
funds made available on our bank line of credit and repayment of
principal on our loans to purchase Mortgage Investments.

---------------------------------------------------------------------
                                                  MARCH 31,
                                           2003              2002
                                        ----------------------------
Shares issued                               413,000          386,000
Number of new shareholders                      337              153
Gross offering proceeds                 $ 8,260,000      $ 7,721,000
Share repurchases                                        $  (250,000)
Net offering proceeds (after deduction
  of selling commissions and fees)      $ 7,210,000      $ 6,727,000
Principal receipts from Residential
  Mortgages and Contracts for Deed      $ 1,680,000      $   492,000
Principal receipts from
  Interim Mortgages                     $13,780,000      $ 5,353,000
Net borrowing from credit line          $(1,245,000)     $  (810,000)
---------------------------------------------------------------------

     On June 4, 2001 the Securities and Exchange Commission issued its
order of effectiveness for the sale of an additional 5,750,000 shares
of beneficial interest over and above the original registration of
2,500,000 shares. Of the new shares offered for sale, 750,000 were set
aside for the Dividend Reinvestment Plan. On March 13, 2003 our post-
effective amendment became effective.

     As of March 31, 2003, we had issued an aggregate of 5,388,919
shares of beneficial interest and repurchased into treasury, through
our Share Repurchase Plan, 122,873 shares. Total shares outstanding
were 5,266,046. Gross Offering proceeds were $108,000,000 with net
proceeds after share repurchase were $95,000,000. By comparison at the
end of the 2002-quarter we had issued 3,715,967 shares and repurchased
51,642 shares. Gross Offering Proceeds through the 2002 March quarter
were $74,000,000 with Net Offering Proceeds to us of $65,000,000.

     With Trustee approval and effective July 10, 2002 we extended
and increased our credit facility with the same lender to
$10,000,000. The term of the agreement is 12 months. The line-of-
credit was collateralized with the assignment of certain Residential
Mortgages.  Interest is calculated at the bank?s prime rate plus
0.50%, or 5.25%.  We utilized the credit facility to acquire and
warehouse Mortgage Investments as they become available. The
outstanding balance of the line-of-credit was reduced as new
offering proceeds were received. The outstanding loan balance at
March 31, 2003 was $5,000,000 and zero at 2002-quarter?s end.

Item 3. Quantitative and Qualitative Disclosure About Market Risk.

No change.

                                    -9-

<Page>
Item 4. CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures.

The President, who is also a Trustee, has conducted an evaluation of
the effectiveness of our disclosure controls and procedures pursuant
to Rule 13a-14 under the Securities Exchange Act of 1934 as of a date
(the ?Evaluation Date?) within 90 days prior to the filing date of
this report. Based upon that evaluation, the President/Trustee
concluded that, as of the Evaluation Date, our disclosure controls and
procedures were effective in ensuring that all material information
relating the Company required to be filed in this quarterly report has
been made known to her in a timely manner.

(b) Changes in internal controls.

There have been no significant changes made in our internal controls
or in other factors that could significantly affect internal controls
subsequent to the Evaluation Date.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities and Use of Proceeds.

     We are offering up to 5,000,000 shares of beneficial interest at
$20 per share on a "best efforts" basis.  In addition, we are offering
up to 750,000 Shares to investors who want to participate in our
Reinvestment Plan.  We use net proceeds from the sale of our shares to
purchase first lien, fixed rate mortgages secured by single-family
residential property throughout the United States.

     The following table sets forth information relating to shares of
beneficial interest issued and the use of proceeds of the offering during
the quarter ended March 31, 2003.

Shares issued                               413,381
Gross offering proceeds                  $8,267,620
Net offering proceeds (after deduction
  of selling commissions and fees)       $7,210,000



Item 3. Defaults Upon Senior Debentures.

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None.


                               -10-


Item 6. Exhibits and Reports on Form 8-K.

No reports on Form 8-K have been filed during the quarter.

Exhibit 99.1 Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

     In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, there under duly authorized.


                                        UNITED MORTGAGE TRUST
                                        (Registrant)



Date:  May 15, 2003                    /S/Christine A. Griffin
                                        Christine A. Griffin
                                             President



                                  -11-


<PAGE>
Exhibit 99.1 ? Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I, Christine A. Griffin, certify as Chief Executive Officer and Chief
Financial Officer that:

1. I have reviewed this quarterly report on Form 10-Q of United
Mortgage Trust;

2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made not misleading, in light of the
circumstances under which such statements were made, with respect to
the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;

4. I, as United Mortgage Trust?s (?UMT?) certifying officer, am
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for UMT
and have:

     a. designed such disclosure controls and procedures to ensure that
material information relating to UMT is made known to us during the
period in which this quarterly report is being prepared;

     b. evaluated the effectiveness of UMT?s disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the ?Evalauation Date?);

     c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5. I, UMT?s certifying officer, have disclosed, based on our most
recent evaluation, to UMT?s auditors and our audit committee of our
Board of Trustees (or persons performing the equivalent functions):

     a. that there are no significant deficiencies in the design or
operation of internal controls which could adversely affect UMT?s
ability to record, process, summarize and report financial data and
have identified for UMT?s auditors any material weakness in internal
controls; and

     b. that there is no fraud, whether or not material, that involves
management or other employees who have a significant role in UMT?s
internal controls; and

6. I, UMT?s certifying officer, have indicated in this quarterly report
that there were no significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weakness.


May 15, 2003


/s/ Christine A Griffin
-----------------------
Christine A Griffin
Chief Executive Officer
Chief Financial Officer

                                  -12-