| 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 September 30, 2010 (unaudited) and December 31, 2009                                                        | 3      |
|                        | Consolidated Statements of Income for the three months and nine months ended September 30, 2010 and  September 30, 2009 (unaudited) | 4      |
|                        | Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and September 30, 2009 (unaudited)                         | 5      |
|                        | Notes to Consolidated Financial Statements (unaudited)                                                                                        | 7      |
|                        |                                                                                                                                          |   |
| ITEM 2.                     | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                   | 14     |
| ITEM 3.                     | Quantitative and Qualitative Disclosures about Market Risk                                                                                    | 28     |
| ITEM 4T.                    | Controls and Procedures                                                                                                                       | 29     |
|                        |
| PART II - OTHER INFORMATION |
|                        |                                                                                                                                          |   |
| ITEM 1.                     | Legal Proceedings                                                                                                                             | 29     |
| ITEM 2.                     | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                   | 29     |
| ITEM 3.                     | Defaults Upon Senior Securities                                                                                                               | 30     |
| ITEM 4.                     | Removed and Reserved                                                                                                                          | 30     |
| ITEM 5.                     | Other Information                                                                                                                             | 30     |
| ITEM 6.                     | Exhibits                                                                                                                                      | 31     |
|                        | Signatures                                                                                                                                    | 32     |

----

|                                                                                                                                                                                                                        |   | September 30, 2010 |        |   | December 31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                                                                        |   | (unaudited)             |        |   | (audited)         |   |
| Assets                                                                                                                                                                                                                      |   |                    |        |   |              |   |
| Cash and cash equivalents                                                                                                                                                                                                   |   | $                       | 320,140     |   |              | $      | 338,336 |   |
|                                                                                                                                                                                                                        |   |                    |        |   |              |   |   |   |
|   Mortgage investments:                                                                                                                                                                                           |   |                    |        |   |              |   |   |   |
|   Investment in trust receivable                                                                                                                                                                                  |   |                    | 1,326,363   |   |              |   | 2,023,327 |   |
|   Investment in residential mortgages                                                                                                                                                                             |   |                    | 5,704,356   |   |              |   | 5,005,413 |   |
|   Interim mortgages, affiliates                                                                                                                                                                                   |   |                    | 25,136,214  |   |              |   | 34,249,793 |   |
|   Interim mortgages                                                                                                                                                                                               |   |                    | 248,585     |   |              |   | 294,600 |   |
|   Allowance for loan losses                                                                                                                                                                                       |   |                    | (489,508    | )      |              |   | (222,463 | ) |
| Total mortgage investments                                                                                                                                                                                                  |   |                    | 31,926,010  |   |              |   | 41,350,670 |   |
|                                                                                                                                                                                                                        |   |                    |        |   |              |   |   |   |
| Line of credit receivable, affiliates                                                                                                                                                                                       |   |                    | 69,166,788  |   |              |   | 63,303,613 |   |
| Line of credit receivable                                                                                                                                                                                                   |   |                    | 5,760,359   |   |              |   | 8,202,706 |   |
| Accrued interest receivable, net                                                                                                                                                                                            |   |                    | 200,320     |   |              |   | 320,195 |   |
| Accrued interest receivable, affiliates, net                                                                                                                                                                                |   |                    | 16,663,411  |   |              |   | 9,448,192 |   |
| Recourse obligations, affiliates                                                                                                                                                                                            |   |                    | 18,337,248  |   |              |   | 16,449,734 |   |
| Real estate owned, net                                                                                                                                                                                                      |   |                    | 16,214,993  |   |              |   | 9,426,875 |   |
| Deficiency notes                                                                                                                                                                                                            |   |                    | 7,682,179   |   |              |   | 7,189,311 |   |
| Deficiency note, affiliates                                                                                                                                                                                                 |   |                    | 12,187,419  |   |              |   | 10,315,478 |   |
| Allowance for loan losses – deficiency notes                                                                                                                                                                          |   |                    | (4,745,660  | )      |              |   | (4,314,128 | ) |
| Other assets                                                                                                                                                                                                                |   |                    | 365,232     |   |              |   | 504,617 |   |
| Total assets                                                                                                                                                                                                                |   | $                       | 174,078,439 |   |              | $      | 162,535,599 |   |
|                                                                                                                                                                                                                        |   |                    |        |   |              |   |   |   |
| Liabilities and Shareholders’ Equity                                                                                                                                                                                  |   |                    |        |   |              |   |   |   |
| Liabilities:                                                                                                                                                                                                                |   |                    |        |   |              |   |   |   |
| Dividend payable                                                                                                                                                                                                            |   | $                       | 310,000     |   |              | $      | 310,000 |   |
| Long term debt                                                                                                                                                                                                              |   |                    | 6,346,216   |   |              |   | 3,788,477 |   |
| Accounts payable and accrued liabilities                                                                                                                                                                                    |   |                    | 879,194     |   |              |   | 793,775 |   |
| Accounts payable and accrued liabilities, affiliates                                                                                                                                                                        |   |                    | 7,858,432   |   |              |   | 1,990,108 |   |
| Participation payable, affiliate                                                                                                                                                                                            |   |                    | 57,050,973  |   |              |   | 53,768,482 |   |
| Notes payable                                                                                                                                                                                                               |   |                    | 168,477     |   |              |   | - |   |
| Total liabilities                                                                                                                                                                                                           |   |                    | 72,613,292  |   |              |   | 60,650,842 |   |
|                                                                                                                                                                                                                        |   |                    |        |   |              |   |   |   |
| Commitments and contingencies                                                                                                                                                                                               |   |                    |        |   |              |   |   |   |
|                                                                                                                                                                                                                        |   |                    |        |   |              |   |   |   |
| Shareholders' equity:                                                                                                                                                                                                       |   |                    |        |   |              |   |   |   |
| Shares of beneficial interest; $0.01 par value; 100,000,000 shares authorized; 8,291,242 and 8,264,616 shares issued in 2010 and 2009, respectively; and 6,425,680 and 6,422,883 outstanding in 2010 and 2009, respectively |   |                    | 82,825      |   |              |   | 82,646 |   |
| Additional paid-in capital                                                                                                                                                                                                  |   |                    | 146,682,910 |   |              |   | 146,259,724 |   |
| Cumulative distributions in excess of earnings                                                                                                                                                                              |   |                    | (9,145,632  | )      |              |   | (8,731,773 | ) |
|                                                                                                                                                                                                                        |   |                    | 137,620,103 |   |              |   | 137,610,597 |   |
| Less treasury stock of 1,865,562 and 1,841,733 shares in 2010 and 2009, respectively, at cost                                                                                                                               |   |                    | (36,154,956 | )      |              |   | (35,725,840 | ) |
| Total shareholders' equity                                                                                                                                                                                                  |   |                    | 101,465,147 |   |              |   | 101,884,757 |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                  |   | $                       | 174,078,439 |   |              | $      | 162,535,599 |   |

----

|                                         |   | Three Months Ended September 30, |      | Nine Months Ended September 30, |
|----------------------------------------------|--------|---------------------------------------|-----------|-------------------------------------------|
|                                         |   | 2010                                  |      | 2009                                      |   | 2010 |   | 2009 |
| Revenues:                                    |   |                                  |      |                                      |   |
| Interest income, affiliates                  |   | $                                     | 952,985   |                                      | 1,919,845 | $ | 4,590,716 |   | 5,758,503 |
| Interest income                              |   |                                  | 429,119   |                                      | 366,533 |   | 1,278,603 |   | 1,028,471 |
|                                         |   |                                  | 1,382,104 |                                      | 2,286,378 |   | 5,869,319 |   | 6,786,974 |
| Expenses:                                    |   |                                  |      |                                      |   |   |   |   |   |
| Trust administration fee                     |   |                                  | 289,159   |                                      | 260,296 |   | 844,994 |   | 773,853 |
| Loan servicing fee                           |   |                                  | 7,760     |                                      | 2,970 |   | 18,015 |   | 6,762 |
| General and administrative                   |   |                                  | 348,262   |                                      | 209,434 |   | 1,307,342 |   | 818,652 |
| Provision for loan losses                    |   |                                  | 302,576   |                                      | 670,000 |   | 991,406 |   | 1,742,500 |
| Interest expense                             |   |                                  | 120,219   |                                      | 26,528 |   | 320,962 |   | 27,117 |
|                                         |   |                                  | 1,067,976 |                                      | 1,169,228 |   | 3,482,719 |   | 3,368,884 |
|                                         |   |                                  |      |                                      |   |   |   |   |   |
| Net income                                   |   | $                                     | 314,128   |                                      | 1,117,150 | $ | 2,386,600 |   | 3,418,090 |
|                                         |   |                                  |      |                                      |   |   |   |   |   |
| Net income per share of beneficial interest  |   | $                                     | 0.05      | $                                         | 0.17 | $ | 0.37 | $ | 0.53 |
|                                         |   |                                  |      |                                      |   |   |   |   |   |
| Weighted average shares outstanding          |   |                                  | 6,422,762 |                                      | 6,417,973 |   | 6,421,945 |   | 6,417,206 |
|                                         |   |                                  |      |                                      |   |   |   |   |   |
| Distributions per weighted share outstanding |   | $                                     | 0.15      | $                                         | 0.14 | $ | 0.44 | $ | 0.59 |

----

|                                                                                           |   | Nine Months Ended September 30, |       |
|------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                                                           |   | 2010                            |       |   |   |   |   | 2009 |   |
| Operating Activities                                                                           |   |                            |       |   |   |   |   |   |   |
| Net income                                                                                     |   | $                               | 2,386,600  |   |   |   |   |   | $ | 3,418,090 |   |
| Adjustments to reconcile net income to net cash provided                                       |   |                            |       |   |   |   |   |   |   |   |   |
| by operating activities:                                                                       |   |                            |       |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                                      |   |                            | 991,406    |   |   |   |   |   |   | 1,742,500 |   |
| Depreciation and amortization                                                                  |   |                            | 1,782      |   |   |   |   |   |   | 1,035 |   |
| Changes in assets and liabilities:                                                             |   |                            |       |   |   |   |   |   |   |   |   |
| Accrued interest receivable, net                                                               |   |                            | 19,880     |   |   |   |   |   |   | (162,978 | ) |
|        Accrued interest receivable, affiliates, net         |   |                            | (1,793,578 | ) |   |   |   |   |   |   | (2,735,473 | ) |
| Other assets                                                                                   |   |                            | 137,600    |   |   |   |   |   |   |   | (105,294 | ) |
| Accounts payable and accrued liabilities                                                       |   |                            | (550,384   | ) |   |   |   |   |   |   | 143,045 |   |
|        Accounts payable and accrued liabilities, affiliates |   |                            | 546,681    |   |   |   |   |   |   |   | (338,073 | ) |
| Net cash provided by operating activities                                                      |   |                            | 1,739,987  |   |   |   |   |   |   |   | 1,962,852 |   |
|                                                                                           |   |                            |       |   |   |   |   |   |   |   |   |   |
| Investing Activities                                                                           |   |                            |       |   |   |   |   |   |   |   |   |   |
| Investments in trust receivables                                                               |   |                            | (85,977    | ) |   |   |   |   |   |   | (3,251 | ) |
| Principal receipts on trust receivables                                                        |   |                            | 782,941    |   |   |   |   |   |   |   | 110,622 |   |
| Investments in residential mortgages                                                           |   |                            | (1,162,602 | ) |   |   |   |   |   |   | (100,200 | ) |
| Principal receipts on residential mortgages                                                    |   |                            | 463,658    |   |   |   |   |   |   |   | 41,633 |   |
| Investment in interim mortgages and deficiency notes                                           |   |                            | (2,372,509 | ) |   |   |   |   |   |   | (1,224,788 | ) |
| Principal receipts on interim mortgages and deficiency notes                                   |   |                            | 53,715     |   |   |   |   |   |   |   | 10,011 |   |
| Investments in interim mortgages, affiliates                                                   |   |                            | (548,645   | ) |   |   |   |   |   |   | (310,471 | ) |
| Principal receipts on interim mortgages, affiliates                                            |   |                            | 9,662,225  |   |   |   |   |   |   |   | 1,493,014 |   |
| Investments in recourse obligations, affiliates                                                |   |                            | (1,941,014 | ) |   |   |   |   |   |   | (144,469 | ) |
| Principal receipts from recourse obligations, affiliates                                       |   |                            | 53,501     |   |   |   |   |   |   |   | 213,490 |   |
| Principal receipts from (investments in) lines of credit receivable, affiliates                |   |                            | (2,580,684 | ) |   |   |   |   |   |   | (1,076,586 | ) |
| Principal receipts from (investments in) lines of credit receivable                            |   |                            | 2,442,347  |   |   |   |   |   |   |   | (2,156,448 | ) |
| Investments in real estate owned                                                               |   |                            | (9,859,752 | ) |   |   |   |   |   |   | (7,300 | ) |
| Principal receipts from real estate owned                                                      |   |                            | 3,414,608  |   |   |   |   |   |   |   | 723,516 |   |
| Net cash used in investing activities                                                          |   |                            | (1,678,188 | ) |   |   |   |   |   |   | (2,431,227 | ) |
|                                                                                           |   |                            |       |   |   |   |   |   |   |   |   |   |
| Financing Activities                                                                           |   |                            |       |   |   |   |   |   |   |   |   |   |
| Proceeds from issuance of shares of beneficial interest                                        |   |                            | 423,364    |   |   |   |   |   |   |   | 667,473 |   |
| Net borrowings on line of credit payable                                                       |   |                            | 2,557,739  |   |   |   |   |   |   |   | 3,575,000 |   |
| Proceeds from notes payable                                                                    |   |                            | 168,477    |   |   |   |   |   |   |   | - |   |
| Purchase of treasury stock                                                                     |   |                            | (429,115   | ) |   |   |   |   |   |   | (994,949 | ) |
| Dividends                                                                                      |   |                            | (2,800,460 | ) |   |   |   |   |   |   | (3,446,754 | ) |
| Net cash used in financing activities                                                          |   |                            | (79,995    | ) |   |   |   |   |   |   | (199,230 | ) |
|                                                                                           |   |                            |       |   |   |   |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                      |   |                            | (18,196    | ) |   |   |   |   |   |   | (667,605 | ) |
| Cash and cash equivalents at beginning of period                                               |   |                            | 338,336    |   |   |   |   |   |   |   | 1,944,271 |   |
| Cash and cash equivalents at end of period                                                     |   | $                               | 320,140    |   |   |   |   |   |   | $ | 1,276,666 |   |
|                                                                                           |   |                            |       |   |   |   |   |   |   |   |   |   |

----

|                                                                                            |   | Nine Months Ended September 30, |       |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                                                            |   | 2010                            |       |   |   |   |   | 2009 |   |
| Supplemental Disclosure of Cash Flow Information                                                |   |                            |       |   |   |   |   |   |   |
| Cash paid during the period for interest                                                        |   | $                               | 272,638    |   |   |   |   |   | $ | 18,570 |   |
| Noncash Activity:                                                                               |   |                            |       |   |   |   |   |   |   |   |   |
| Transfers of affiliate and non-affiliate loans to foreclosed properties or recourse obligations |   |                            | 8,073,332  |   |   |   |   |   |   | - |   |
| Line of credit receivable, affiliate                                                            |   |                            | (3,282,492 | ) |   |   |   |   |   |   | (13,222,800 | ) |
| Participation payable, affiliate                                                                |   |                            | 3,282,492  |   |   |   |   |   |   |   | 13,222,800 |   |
| Accrued interest receivable, affiliate                                                          |   |                            | (5,321,645 | ) |   |   |   |   |   |   | 508,378 |   |
| Accounts payable and accrued liabilities, affiliate                                             |   |                            | 5,321,645  |   |   |   |   |   |   |   | (508,378 | ) |

----

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

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

----

----

| Name                      |   | Initial principal amount |       |   | Balance at September 30, 2010 |   |       | Promissory Note principal amount (2) |   |   | Units pledged as security |   |   | Units remaining                           |      |   | Estimated Collateral Value (3)  |   |
|---------------------------|--------|--------------------------|------------|--------|-------------------------------|--------|------------|--------------------------------------|--------|--------|---------------------------|--------|--------|-------------------------------------------|-----------|--------|---------------------------------|--------|
| CRG                       |   | $                        | 2,725,442  |   |                          | $      | 4,424,904  |                                 |   | $      | 4,300,000                 |   |   | 4,984 Class C and 2,710 Class D           |      |   | 2,949 Class C and 2,710 Class D |   |   | $ | 4,934,536 |   |
| RAFC                      |   | $                        | 3,243,369  |   |                          | $      | 8,457,943  |                                 |   | $      | 7,100,000                 |   |   | 9,979 Class C and 6,659 Class D |      |   | 8,493 Class C, 6,658 Class D    |   |   | $ | 13,371,077 |   |
| SCMI                      |   | $                        | 3,295,422  |   |                          | $      | 3,492,531  |                                 |   | $      | 3,488,643                 |   |   | 4,545 Class and 3,000 Class D             |      |   | 3,066 Class C and 3,000 Class D |   |   | $ | 7,116,159 |   |
| RAFC / Wonder(1)          |   | $                        | 1,348,464  |   |                          | $      | 1,961,870  |                                 |   | $      | 1,400,000                 |   |   | 1,657 Class C                             |      |   | 1,238 Class C                   |   |   | $ | 1,238,000 |   |
| WonderIndemnification (1) |   |                     | n/a        |   |                          |   | n/a        |                                 |   |   | n/a                       |   |   | $                                         | 1,134,000 |   |                            |   | n/a |   |   | $ | 704,789 |   |
| Totals                    |   | $                        | 10,612,697 |   |                          | $      | 18,337,248 |                                 |   | $      | 16,288,643                |   |   |                                      |      |   |                            |   |   |   |   | $ | 27,364,561 |   |

----

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

|   | (2) The CRG, RAFC, SCMI and RAFC/Wonder balances at September 30, 2010, exceeded the stated principal amount per their variable Secured Notes by approximately $125,000, $1,358,000, $4,000 and $562,000, 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 originally anticipated and outpaced the minimum principal reductions scheduled for the loans. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) Nominal collateral value does 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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | 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. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Affiliated Company |   | 2010 |      |   | 2009   |   |
|--------------------|--------|------|-----------|--------|--------|--------|
| RAFC               |   | $    | 549,000   |   |   | $      | 95,000 |   |
| UMTHLC             |   | $    | 1,414,000 |   |   | $      | 529,000 |   |
| UDF                |   | $    | 4,778,000 |   |   | $      | 2,125,000 |   |

----

----

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

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

| (i)   | secured line of credit to UMTH Lending Company, L.P. for origination of Interim Loans; |
|-----------------|----------------------------------------------------------------------------------------|

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

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

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

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

| (vi)   | 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”; and, |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | 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, |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Mortgage Category:                                                                                      | September 30, 2010 | December 31, 2009 |
|---------------------------------------------------------------------------------------------------------|--------------------|-------------------|
| First lien secured interim mortgages 12 months or less and residential mortgages and contracts for deed | 22.24%             | 27.35%            |
| Secured interim mortgages and line of credit to UMTHLC                                                  | 14.79%             | 14.89%            |
| Land development loans                                                                                  | 57.60%             | 50.27%            |
| Finished lot loans                                                                                      | 0.00%              | 1.76%             |
| Construction loans                                                                                      | 5.37%              | 5.73%             |

----

| 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                                 |   |         | 9      |   |          |   | 10% - 11          | %                   |   | 11/24/11– 5/1/38 |                   |   |   | n/a         |   |   |                        | n/a    |   |                            | $      | 1,004,451  |                 |   | $ | 992,082 |   |   | $ | 608 |   |
| Original balance $50,000 -  $99,999                  |   |         | 136    |   |          |   | 8.5% - 12.75 | %                   |   | 8/30/11 – 3/1/39 |                   |   |   | n/a         |   |   |                        | n/a    |   |                            |   | 4,118,802  |                 |   |   | 4,068,085 |   |   |   | 15,318 |   |
| Original balance $20,000 -  $49,999                  |   |         | 201    |   |          |   | 9% - 14.5         | %                   |   | 3/1/11 – 5/19/36 |                   |   |   | n/a         |   |   |                        | n/a    |   |                            |   | 2,098,335  |                 |   |   | 2,072,497 |   |   |   | 12,337 |   |
| Original balance under $20,000                                 |   |         | 8      |   |          |   | 9% - 14.5         | %                   |   | 12/1/10 – 9/1/31 |                   |   |   | n/a         |   |   |                        | n/a    |   |                            |   | 57,716     |                 |   |   | 57,006 |   |   |   | 233 |   |
|                                                           |   |         |   |   |          |   |              |                |   |                   |                   |   |   |        |   |   |                        |   |   |                            |   |       |                 |   |   |   |   |   |   |   |   |
| First Lien secured interim mortgages                           |   |         |   |   |          |   |              |                |   |                   |                   |   |   |        |   |   |                        |   |   |                            |   |       |                 |   |   |   |   |   |   |   |   |
| Ready America Funding (4)                                      |   |         | 14     |   |          |   | 14                | %                   |   |                   | n/a                    |   |   |        | n/a    |   |                        |   | n/a    |                            |   |       | 16,596,578           |   |   |   | 16,392,213 |   |   |   | - |   |
|                                                           |   |         |   |   |          |   |              |                |   |                   |                   |   |   |        |   |   |                        |   |   |                            |   |       |                 |   |   |   |   |   |   |   |   |   |
| Secured, subordinate LOC to UMTH Lending Co., L.P. (4), (5)    |   |         | 83     |   |          |   | 12.5% - 13.5      | %                   |   |                   | n/a                    |   |   |        | n/a    |   |                        |   | n/a    |                            |   |       | 15,877,456           |   |   |   | 15,681,947 |   |   |   | - |   |
|                                                           |   |         |   |   |          |   |              |                |   |                   |                   |   |   |        |   |   |                        |   |   |                            |   |       |                 |   |   |   |   |   |   |   |   |   |
| Land Development Loans                                         |   |         |   |   |          |   |              |                |   |                   |                   |   |   |        |   |   |                        |   |   |                            |   |       |                 |   |   |   |   |   |   |   |   |   |
| UDF III Economic Interest Participation                        |   |         | 1      |   |          |   | 14                | %                   |   | 12/31/10               |                   |   |   | n/a         |   |   |                        | n/a    |   |                            |   | 61,828,968 |                 |   |   | 61,828,968 |   |   |   | - |   |
|                                                           |   |         |   |   |          |   |              |                |   |                   |                   |   |   |        |   |   |                        |   |   |                            |   |       |                 |   |   |   |   |   |   |   |   |   |
| Construction Loans                                             |   |         | 2      |   |          |   | 13                | %                   |   | 10/28/11               |                   |   |   | n/a         |   |   |                        | n/a    |   |                            |   | 5,760,359  |                 |   |   | 5,760,359 |   |   |   | - |   |
| Totals                                                         |   |         | 454    |   |          |   |              |                |   |                   |                   |   |   |        |   |   |                        |   |   |                            |   | $          | 107,342,665          |   |   | $ | 106,853,157 |   |   | $ | 28,496 |   |

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

| (2)   | Net of allowance for loan losses on mortgage loans of $489,508 at September 30, 2010. |
|-----------------|---------------------------------------------------------------------------------------|

| (3)   | Principal 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 14 and 83 loans, respectively.  Principal amounts due upon disposition of assets. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Balance at beginning of period                  |   | $      | 112,856,988 |   |
|-------------------------------------------------|--------|--------|-------------|--------|
| Additions during period:                        |   |   |        |   |
| Increase in mortgage loans                      |   |   | 28,471,928  |   |
| Other – increase in UDF III participation |   |   | 3,282,492   |   |
| Deductions during period:                       |   |   |        |   |
| Collections of principal                        |   |   | (37,491,207 | )      |
| Other – decrease in UDF III participation |   |   | -           |   |
| Other (net change in allowance for loan loss)   |   |   | (267,044    | )      |
| Balance at close of period                      |   | $      | 106,853,157 |   |

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|   | · | ceasing the origination of, and 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                    |   | 2010   |       |   | 2009   |   |
|-----------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Shares issued                                                                           |   |   | 26,626     |   |   |   | 36,932 |   |
| Dividend reinvestment proceeds                                                          |   | $      | 423,000    |   |   | $      | 667,000 |   |
| Number of shares returned to treasury                                                   |   |   | 23,829     |   |   |   | 53,092 |   |
| Value of shares repurchased                                                             |   | $      | (429,000   | )      |   | $      | (995,000 | ) |
| Principal receipts:                                                                     |   |   |       |   |   |   |   |   |
| First lien mortgage notes and trust receivables                                         |   | $      | 1,247,000  |   |   | $      | 152,000 |   |
|        Real estate owned                             |   | $      | 3,415,000  |   |   | $      | 724,000 |   |
| Interim loans                                                                           |   | $      | 54,000     |   |   | $      | 10,000 |   |
|        Interim loans, affiliates                     |   | $      | 9,662,000  |   |   | $      | 1,493,000 |   |
|        Lines of credit                               |   | $      | 22,924,000 |   |   | $      | 13,957,000 |   |
|        Lines of credit, affiliates                   |   | $      | 3,613,000  |   |   | $      | 8,874,000 |   |
|        Net borrowings – line of credit payable |   | $      | 2,558,000  |   |   | $      | 3,575,000 |   |

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| 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   |   |                               | 7,688  |   |                   | $      | 19.12  |                                                                  |   |   | 5,462                                            |   |   |   | 2,226 |   |
| February  |   |                               | -      |   |                   |   | -      |                                                                  |   |   | -                                                |   |   |   | - |   |
| March     |   |                               | -      |   |                   |   | -      |                                                                  |   |   | -                                                |   |   |   | - |   |
| April     |   |                               | 8,282  |   |                   | $      | 17.52  |                                                                  |   |   | 4,722                                            |   |   |   | 3,560 |   |
| May       |   |                               | -      |   |                   |   | -      |                                                                  |   |   | -                                                |   |   |   | - |   |
| June      |   |                               | -      |   |                   |   | -      |                                                                  |   |   | -                                                |   |   |   | - |   |
| July      |   |                               | 7,859  |   |                   | $      | 17.44  |                                                                  |   |   | 3,643                                            |   |   |   | 4,216 |   |
| August    |   |                               |   |   |                   |   |   |                                                                  |   |   |                                             |   |   |   |   |   |
| September |   |                               |   |   |                   |   |   |                                                                  |   |   |                                             |   |   |   |   |   |
| Totals    |   |                               | 23,829 |   |                   | $      | 18.01  |                                                                  |   |   | 13,827                                           |   |   |   | 10,002 |   |

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| 3.1 | 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 | Second Amended and Restated Subordination and Intercreditor Agreement entered into as of June 21, 2010, by and between the Company, UDF and a private investor (filed as Exhibit 10.1 to Form 10-Q for the Quarter Ended June 30, 2010 and incorporated herein by reference). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2 | Amended and Restated Variable Amount Promissory Note between the Company and UMTH Lending Company, L.P. dated July 1, 2010 (filed as Exhibit 10.2 to Form 10-Q for the Quarter Ended June 30, 2010 and incorporated herein by reference).                                |

| 10.3 | 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)  |   |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.4 | 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)                                      |   |

|   |                                                                                                                                         |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.5   | Form of Mortgage Servicing Agreement between the Company and South Central Mortgage, Inc. at a later date assigned to Prospect Service Corp. | *      |
|   |                                                                                                                                         |   |

|   |                                                                                                                                                                                                                                                                                 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.6   | 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)                                                              |   |
|   |                                                                                                                                                                                                                                                                                 |   |
| 10.7   | 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)                                                                                                                 |   |
| 10.8   | 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)                                                                                                                |   |
| 10.9   | 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)                                                                                                                 |   |
| 10.10  | 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) |   |
| 10.11  | Guaranty dated December 31, 2005 between the Company and Ready Mortgage Corp. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                                         |   |
| 10.12  | Guaranty dated December 31, 2005 between the Company and WLL, L.P. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                                                    |   |
| 10.13  | Guaranty dated December 31, 2005 between the Company and UMT Holdings, L.P. (incorporated by reference from Form 8-K filed March 31, 2006)                                                                                                                                           |   |
| 10.14  | 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: November 15, 2010 | By          | /s/ Stuart Ducote |
|                    | President             |

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