----

----

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

----

|                             |                                                                                                           |           Page |
|----------------------------------|----------------------------------------------------------------------------------------------------------------|------------------------------------|
| ITEM      1.                     | Financial      Statements                                                                                      |                               |
|                             |                                                                                                           |                               |
|                             | Consolidated      Balance Sheets as of March 31, 2008 (unaudited) and December 31,      2007                   | 3                                  |
|                             | Consolidated      Statements of Income for the three months ended March 31, 2008 and 2007      (unaudited)     | 4                                  |
|                             | Consolidated      Statements of Cash Flows for the three months ended March 31, 2008 and      2007 (unaudited) | 5                                  |
|                             | Notes      to Consolidated Financial Statements (unaudited)                                                    | 6                                  |
|                             |                                                                                                           |                               |
| ITEM      2.                     | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations          | 11                                 |
| ITEM      3.                     | Quantitative      and Qualitative Disclosures about Market Risk                                                | 21                                 |
| ITEM      4.                     | Controls      and Procedures                                                                                   | 21                                 |
|                             |                                                                                                           |                               |
| PART      II - OTHER INFORMATION |
|                             |                                                                                                           |                               |
| ITEM      1.                     | Legal      Proceedings                                                                                         | 23                                 |
| ITEM      1A.                    | Risk      Factors                                                                                              | 23                                 |
| ITEM      2.                     | Unregistered      Sales of Equity Securities and Use of Proceeds                                               | 23                                 |
| ITEM      3.                     | Defaults      Upon Senior Securities                                                                           | 23                                 |
| ITEM      4.                     | Submission      of Matters to a Vote of Security Holders                                                       | 23                                 |
| ITEM      5.                     | Other      Information                                                                                         | 23                                 |
| ITEM      6.                     | Exhibits                                                                                                       | 24                                 |

----

|                                                                                                                                                                                                    |   | March      31, 2008 |         |   | December      31, 2007 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------------|--------|------------------------|
|                                                                                                                                                                                                    |   |                | (unaudited)  |   |                   |   | (audited) |
| Assets                                                                                                                                                                                                  |   |                |         |   |                   |   |   |
| Cash      and cash equivalents                                                                                                                                                                          |   | $                   | 102,138      |   |                   | $ | 1,597,883 |
|                                                                                                                                                                                                    |   |                |         |   |                   |   |   |
|   Mortgage      investments:                                                                                                                                                                  |   |                |         |   |                   |   |   |
|   Investment      in trust receivable                                                                                                                                                         |   |                | 5,810,203    |   |                   |   | 5,428,453 |
|   Interim      mortgages, affiliates                                                                                                                                                          |   |                | 43,838,982   |   |                   |   | 41,641,334 |
|   Interim      mortgages                                                                                                                                                                      |   |                | 11,004,911   |   |                   |   | 12,251,098 |
|   Allowance      for loan losses                                                                                                                                                              |   |                | (2,419,263)  |   |                   |   | (2,343,163) |
| Total      mortgage investments                                                                                                                                                                         |   |                | 58,234,833   |   |                   |   | 56,977,722 |
|                                                                                                                                                                                                    |   |                |         |   |                   |   |   |
| Line      of credit receivable, affiliate                                                                                                                                                               |   |                | 21,904,948   |   |                   |   | 25,083,216 |
| Accrued      interest receivable                                                                                                                                                                        |   |                | 1,134,893    |   |                   |   | 715,806 |
| Accrued      interest receivable, affiliate                                                                                                                                                             |   |                | 5,735,657    |   |                   |   | 4,822,377 |
| Recourse      obligations, affiliates                                                                                                                                                                   |   |                | 16,484,828   |   |                   |   | 16,035,790 |
| Residential      mortgages and contracts for deed foreclosed                                                                                                                                            |   |                | 252,689      |   |                   |   | 274,064 |
| Interim      mortgages foreclosed                                                                                                                                                                       |   |                | 602,396      |   |                   |   | 234,155 |
| Deficiency      note                                                                                                                                                                                    |   |                | 1,725,754    |   |                   |   | 1,725,754 |
| Deficiency      note, affiliate                                                                                                                                                                         |   |                | 2,230,558    |   |                   |   | 1,848,355 |
| Other      assets                                                                                                                                                                                       |   |                | 126,783      |   |                   |   | 364,574 |
| Total      assets                                                                                                                                                                                       |   | $                   | 108,535,477  |   |                   | $ | 109,679,696 |
|                                                                                                                                                                                                    |   |                |         |   |                   |   |   |
| Liabilities      and Shareholders’ Equity                                                                                                                                                         |   |                |         |   |                   |   |   |
| Liabilities:                                                                                                                                                                                            |   |                |         |   |                   |   |   |
| Dividend      payable                                                                                                                                                                                   |   | $                   | 820,935      |   |                   | $ | 827,670 |
| Accounts      payable and accrued liabilities                                                                                                                                                           |   |                | 30,538       |   |                   |   | 50,815 |
| Total      liabilities                                                                                                                                                                                  |   |                | 851,473      |   |                   |   | 878,485 |
|                                                                                                                                                                                                    |   |                |         |   |                   |   |   |
| Commitments      and contingencies                                                                                                                                                                      |   |                | --           |   |                   |   | -- |
|                                                                                                                                                                                                    |   |                |         |   |                   |   |   |
| Shareholders'      equity:                                                                                                                                                                              |   |                |         |   |                   |   |   |
| Shares      of beneficial interest; $.01 par value; 100,000,000 shares authorized;      8,141,691 and 8,110,684 shares issued, respectively; and 6,594,457 and      6,649,916 outstanding, respectively |   |                | 81,417       |   |                   |   | 81,107 |
| Additional      paid-in capital                                                                                                                                                                         |   |                | 143,907,490  |   |                   |   | 143,287,664 |
| Advisor's      reimbursement                                                                                                                                                                            |   |                | 397,588      |   |                   |   | 397,588 |
| Cumulative      distributions in excess of earnings                                                                                                                                                     |   |                | (6,579,629)  |   |                   |   | (6,530,813) |
|                                                                                                                                                                                                    |   |                | 137,806,866  |   |                   |   | 137,235,546 |
| Less      treasury stock of 1,547,234 and 1,460,768 shares, respectively, at      cost                                                                                                                  |   |                | (30,122,862) |   |                   |   | (28,434,335) |
| Total      shareholders' equity                                                                                                                                                                         |   |                | 107,684,004  |   |                   |   | 108,801,211 |
| Total      liabilities and shareholders' equity                                                                                                                                                         |   | $                   | 108,535,477  |   |                   | $ | 109,679,696 |

----

|                                              |   | Three      Months Ended March 31, |      |
|---------------------------------------------------|--------|-----------------------------------|-----------|
|                                              |   | 2008                              |      |   | 2007 |   |
| Revenues:                                         |   |                              |      |   |   |   |
| Interest      income derived from affiliates      |   | $                                 | 2,506,694 |   |   | $ | 3,752,865 |   |
| Interest      income                              |   |                              | 677,167   |   |   |   | 762,478 |   |
|                                              |   |                              | 3,183,861 |   |   |   | 4,515,343 |   |
| Expenses:                                         |   |                              |      |   |   |   |   |   |
| Trust      administration fee                     |   |                              | 272,979   |   |   |   | 182,451 |   |
| Loan      servicing fee                           |   |                              | 1,213     |   |   |   | 2,925 |   |
| General      and administrative                   |   |                              | 234,316   |   |   |   | 202,438 |   |
| Provision      for loan losses                    |   |                              | 255,000   |   |   |   | 207,311 |   |
| Interest      expense                             |   |                              | --        |   |   |   | 409,994 |   |
|                                              |   |                              | 763,508   |   |   |   | 1,005,119 |   |
|                                              |   |                              |      |   |   |   |   |   |
| Net      income                                   |   | $                                 | 2,420,353 |   |   | $ | 3,510,224 |   |
|                                              |   |                              |      |   |   |   |   |   |
| Net      income per share of beneficial interest  |   | $                                 | 0.37      |   |   | $ | 0.51 |   |
|                                              |   |                              |      |   |   |   |   |   |
| Weighted      average shares outstanding          |   |                              | 6,597,822 |   |   |   | 6,891,364 |   |
|                                              |   |                              |      |   |   |   |   |   |
| Distributions      per weighted share outstanding |   | $                                 | 0.37      |   |   | $ | 0.36 |   |

----

|                                                                                                                  |   | Three      Months Ended March 31, |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|
|                                                                                                                  |   | 2008                              |   |   | 2007 |   |
| Operating      Activities                                                                                             |   |                              |   |   |   |   |
| Net      income                                                                                                       |   | $                                 | 2,420,353 |   |   | $ | 3,510,224 |   |
| Adjustments      to reconcile net income to net cash provided                                                         |   |                              |   |   |   |   |   |   |
| by      operating activities:                                                                                         |   |                              |   |   |   |   |   |   |
| Provision for loan      losses                                                                                        |   |                              | 255,000 |   |   |   | 207,311 |   |
| Depreciation and      amortization                                                                                    |   |                              | 345 |   |   |   | 934 |   |
| Changes      in assets and liabilities:                                                                               |   |                              |   |   |   |   |   |   |
| Accrued interest      receivable                                                                                      |   |                              | (1,258,742 | ) |   |   | (866,695 | ) |
| Other    assets                                                                                                       |   |                              | 27,222 |   |   |   | 70,088 |   |
| Accounts payable and accrued      liabilities                                                                         |   |                              | (27,011 | )  |   |   | 113,595 |   |
| Net      cash provided by operating activities                                                                        |   |                              | 1,417,167 |   |   |   | 3,035,457 |   |
|                                                                                                                  |   |                              |   |   |   |   |   |   |
| Investing      Activities                                                                                             |   |                              |   |   |   |   |   |   |
| Investment      in trust receivable                                                                                   |   |                              | (116 | )  |   |   | -- |   |
| Principal      receipts on trust receivable                                                                           |   |                              | 3,331 |   |   |   | -- |   |
| Investment      in interim mortgages                                                                                  |   |                              | (291,148 | ) |   |   | (2,165,040 | ) |
| Principal      receipts on interim mortgages                                                                          |   |                              | 824,300 |   |   |   | 3,267,902 |   |
| Investments      in interim mortgages, affiliates                                                                     |   |                              | (3,355,417 | ) |   |   | (21,056,369 | ) |
| Principal      receipts on interim mortgages, affiliates                                                              |   |                              | 114,566 |   |   |   | 17,149,813 |   |
| Investments      in residential mortgages and contracts for deed,      foreclosed                                     |   |                              | -- |   |   |   | (563,422 | )  |
| Principal      receipts on residential mortgages and contracts for    deed                                            |   |                              | 98,984 |   |   |   | 2,507 |   |
| Line of credit      receivable, affiliate, net                                                              |   |                              | 3,178,268 |   |   |   | (1,050,000 | ) |
| Receivable      from affiliate                                                                                        |   |                              | -- |   |   |   | 94,250 |   |
| Principal      receipts on recourse obligations                                                                       |   |                              | 51,880 |   |   |   | 238,703 |   |
| Net      cash provided by (used in) investing activities                                                              |   |                              | 624,648 |   |   |   | (4,081,656) |   |
|                                                                                                                  |   |                              |   |   |   |   |   |   |
| Financing      Activities                                                                                             |   |                              |   |   |   |   |   |   |
| Proceeds      from issuance of shares of beneficial interest                                                          |   |                              | 620,136 |   |   |   | 620,982 |   |
| Net      borrowings on line of credit                                                                       |   |                              | -- |   |   |   | 245,981 |   |
| Purchase      of treasury stock                                                                                       |   |                              | (1,688,527 | ) |   |   | (935,288 | ) |
| Dividends                                                                                                             |   |                              | (2,469,169 | ) |   |   | (2,441,511 | ) |
| Net      cash used in financing activities                                                                            |   |                              | (3,537,560 | ) |   |   | (2,509,836 | )  |
| Net decrease      in cash and cash equivalents                                                                   |   |                              | (1,495,745 | ) |   |   | (3,556,035 | ) |
| Cash      and cash equivalents at beginning of period                                                                 |   |                              | 1,597,883 |   |   |   | 3,661,724 |   |
| Cash      and cash equivalents at end of period                                                                       |   | $                                 | 102,138 |   |   | $ | 105,689 |   |
| Supplemental      Disclosure of Cash Flow Information                                                                 |   |                              |   |   |   |   |   |   |
| Cash      paid during the period for interest                                                                         |   | $                                 | -- |   |   | $ |  409,994 |   |
| Transfers      of affiliate and non-affiliate loans to foreclosed properties or recourse      obligations, affiliates |   | $                                 |  2,380,159 |   |   | $ |  884,124 |   |

----

|   | 1.      Nature of Business |
|--------|----------------------------|

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

| 3. | Impact      of Recently Issued AccountingStandards |
|----|----------------------------------------------------|

----

----

| Name                           | Initial      principal amount | Balance      at March 31, 2008 | Promissory      Note principal amount (2) |   | Units      pledged as security                                    | Units      distributed during 2007 | C      Units remaining           | Nominal      Collateral Value (3) |
|--------------------------------|-------------------------------|--------------------------------|-------------------------------------------|--------|-------------------------------------------------------------------|------------------------------------|----------------------------------|-----------------------------------|
| CRG                            | $2,725,442                    | $4,486,652                     | $4,300,000                                |   |  4,984      Class C                                          | 616                                | 3,957      Class C               | $3,957,000                        |
| RAFC                           | $3,243,369                    | $6,569,847                     | $7,100,000                                |   |  6,739       Class C  & All EIA | 444                                | 5,394      Class C & all EIA | $5,394,000                        |
| SCMI                           | $3,295,422                    | $3,485,326                     | $3,448,643                                |   |  4,000      Class C                                          | 907                                | 2,690      Class C               | $2,690,000                        |
| RAF      / Wonder(1)           | $1,348,464                    | $1,943,003                     | $1,400,000                                |   |  3,870      Class C                                          | -                                  | 3,870      Class C               | $3,870,000                        |
| WonderIndemnification      (1) | n/a                           | n/a                            | n/a                                       |   |  $1,134,000                                                  | $115,000                           | n/a                              | $1,019,000                        |
| EIA      Units                 | n/a                           | n/a                            | n/a                                       |   |   n/a                                                   | n/a                                | n/a                              | $1,066,000                        |
| Totals                         | $10,612,697                   | $16,484,828                    | $16,248,643                               |   |                                                              |                               |                             | $17,996,000                       |

| (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) | The      CRG, Wonder, and SCMI balances at March 31, 2008 exceeded the stated      principal amount per their variable Secured Notes by approximately      $187,000, $543,000, and $36,000, 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 properties caused a more rapid increase in the      Unpaid Principal Balance (“UPB”) than the Company originally anticipated      and out paced 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. andRAFC. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| -   | WLL,      Ltd., an affiliate of CRG. This guaranty is of all amounts due under the      Secured Note from CRG is non-recourse and is secured by an assignment of      2,492 Class C Units and 732 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. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

|   | Cautionary Statement      Regarding Forward-LookingStatements |
|--------|---------------------------------------------------------------|

----

----

----

----

|   | · | reducing      our investment in interim loans dependent on sub-prime and Alt-A mortgage      products for repayment of our loan.   We funded 84% fewer      loans in the three-months ended March 31, 2008, compared to the same      period in 2007.  Interim loan payoffs as a percentage of loans      originated during the three-month periods in 2008 and 2007 were 25% and      92%, respectively. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | accepting      a secured note 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 non-recourse interim and construction loans where full      collection of the indebtedness is notassured. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|                                                                       | 2008             | 2007                 |
|----------------------------------------------------------------------------|------------------|----------------------|
| Interim      Mortgages                                                     |             |                 |
| Interims      funded with affiliates                                       | $      3,355,000 | $      21,056,000    |
| Interims      funded with others                                           | $      291,000   | $      2,165,000     |
|                                                                       |             |                 |
| Number      of loans funded with affiliates                                | 44               | 274                  |
| Number      of loans funded with others                                    | --               | 5                    |
| Total      number funded                                                   | 44               | 279                  |
|                                                                       |             |                 |
| Affiliate      interims paid off                                           | $      115,000   | $      17,150,000    |
| Other      interims paid off                                               | $      824,000   | $      4,123,000     |
|                                                                       |             |                 |
| Number      of affiliated interims paid off                                | 3                | 205                  |
| Number      of other interims paid off                                     | 9                | 37                   |
| Total      number paid off                                                 | 12               | 242                  |
|                                                                       |             |                 |
| Average      interim mortgage loan funded during year                      | $83,000          |  $      75,000  |
| Remaining      term in months: less than                                   | 12      months   | 12      months       |
| Yield      on investments                                                  | 13.49%           | 12.98%               |
| Investment-to-value      ratio                                             | 60.79%           | 52.19%               |
|                                                                       |             |                 |
| Line      of Credit, Affiliate                                             |             |                 |
|  Draws      funded                                                    | --               | $      1,750,000     |
|  Paid      down                                                       | $      4,750,000 | $      700,000       |
| Term      remaining                                                        | 33      months   | 3      years         |
| Yield      on investments                                                  | 13.79%           | 13.91%               |
|                                                                       |             |                 |
| Lot      Banking Transactions (1)                                          |             |                 |
| Draws      funded                                                          | $      1,862,000 |  --             |
| Paid      down                                                             | $      291,000   |  --             |
| Original      terms                                                        | 2      years     |  --             |
| Yield      on investments                                                  | 12.61%           |  --             |
|                                                                       |             |                 |
| Residential      Mortgages and Contracts for Deed                          |             |                 |
| UPB      of new loans acquired                                             | $      610,000   |  $      563,000 |
| Number      purchased from other sources                                   | --               | 11                   |
|                                                                       |             |                 |
| Number      reclassified/refinanced/carried back when selling REO      (2) | 7                | --                   |
| Aggregate      principal balance                                           | $      610,000   | $      563,000       |
| Average      principal balance                                             | $      87,000    | $      51,000        |
| Remaining      term in months                                              | 227              | 245                  |
| Current      yield                                                         | 11.75%           | 11.70%               |
| Investment-to-value                                                        | 69.83%           | 86.36%               |

----

|                                                          |              |
|---------------------------------------------------------------|-------------------|
|                                                          | 2008              | 2007 |
| Interim      Mortgages                                        |              |   |
| Affiliates      unpaid principal balance                      | $      43,839,000 | $      68,790,000 |
| Unpaid      principal balance others                          | $      11,005,000 | $      16,227,000 |
| Total                                                         | $      54,844,000 | $      85,017,000 |
|                                                          |              |   |
| Interim      mortgages, foreclosed                            | $      870,000    | $      771,000 |
|                                                          |              |   |
| Number      of affiliate interim loans                        | 261               | 922 |
| Number      of unaffiliated interim loans                     | 151               | 205 |
|                                                          | 412               | 1,127 |
|                                                          |              |   |
| Average      unpaid principal balance (2)                     | $64,000           | $75,000 |
| Remaining      term in months: less than                      | 12                | 12 |
| Yield      on investments                                     | 13.49%            | 13.60% |
|                                                          |              |   |
| Line      of Credit Receivable, Affiliate                     | $18,347,000       | $      34,106,000 |
| Term      remaining in months                                 | 21                | 39 |
| Yield      on investment                                      | 13.79%            | 14.00% |
|                                                          |              |   |
| Lot      Banking Transactions (1)                             | $3,558,000        | -- |
| Typical      terms, in months                                 | 24                | -- |
| Yield      on investment                                      | 12.61%            | -- |
|                                                          |              |   |
| Recourse      Obligations, Affiliates                         |              |   |
| Recourse      obligations                                     | $16,485,000       | $      12,621,000 |
| Yield      on investment                                      | 6.06%             | 10.00% |
|                                                          |              |   |
| Residential      mortgages and contracts for deed, foreclosed | $      1,235,000  | $      250,000 |
|                                                          |              |   |
| Investment      in Trust Receivable                           |              |   |
| Loans      owned outright                                     | 69                | 68 |
| Rental      properties                                        | 6                 | 1 |
| Unpaid      principal balance loans/properties owned outright | $2,765,000        | $      2,507,000 |
| Securitized      loans B piece balance                        | $3,045,000        | $      3,511,000 |
| Term      remaining in months                                 | 227               | 360 |
| Yield      on investments                                     | 11.75%            | 13.37% |

----

| Asset      Category:                                             | 2008   | 2007   |
|------------------------------------------------------------------|--------|--------|
| Interim      mortgages with affiliates                           | 45.91% | 49.93% |
| Interim      mortgages with others                               | 11.53% | 11.78% |
| UDF      lines of credit                                         | 19.21% | 24.76% |
| Recourse      obligations with affiliates                        | 17.26% | 9.16%  |
| Trust      receivables – loans owned outright              | 2.90%  | 1.82%  |
| Trust      receivables – securitized “B” piece | 3.19%  | 2.55%  |

----

----

|                                              | 2008               | 2007              |
|---------------------------------------------------|--------------------|-------------------|
| Shares      issued                                | 31,007             | 31,049            |
| Dividend      reinvestment proceeds               | $      620,000     | $      621,000    |
| Number      of shares returned to treasury        | 86,466             | 50,576            |
| Value      of shares repurchased                  | $      (1,689,000) | $      (935,000)  |
| Principal      receipts:                          |               |              |
| Residential mortgages and      contracts for deed | $      99,000      | $      31,000     |
| Interim    loans                                  | $939,000           | $      21,273,000 |
| Net borrowings – line of      credit   | --                 | $246,000          |
| Payments under line of credit,      affiliate     | $      3,178,000   | $1,750,000        |

----

----

----

| 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  | 30,516                                  | $19.36                      | 24,989                                                                          | 5,526                                                 |
| February | 40,756                                  | $19.62                      | 36,331                                                                          | 4,426                                                 |
| March    | 15,194                                  | $19.62                      | 13,558                                                                          | 1,636                                                 |
| Totals   | 86,466                                  | $19.53                      | 74,878                                                                          | 11,588                                                |

----

----

|                    |                                       |                               |
|-------------------------|--------------------------------------------|------------------------------------|
|                    | UNITED      MORTGAGE TRUST                 |
|               |                                  |                          |
| Date:      May 15, 2008 | By                               | /s/ Christine      A. Griffin |
|                    | President      and Chief Executive Officer |