<PAGE>

                     SECURITIES AND EXCHANGE COMMISSION

                          Washington, D.C.  20549

                                 Form 10-Q

                 Quarterly Report Under Section 13 or 15(d)
                   of the Securities Exchange Act of 1934

                     For the Quarter Ended May 31, 1999

                        Commission File No. 33-2749

                         FIRST MORTGAGE CORPORATION
                        ----------------------------
           (Exact name of registrant as specified in its charter)


Incorporated under the laws of the State of
          Utah                                            87-03202209
-------------------------------------------         -----------------------
(State or other jurisdiction of                         (I.R.S. Employer
incorporation of organization)                       Identification Number)


         257 East 200 South, Suite 950, Salt Lake City, Utah 84111
         ---------------------------------------------------------
                  (Address of Principal Executive Offices)

                               (801) 363-7663
                              ---------------
             Registrant's telephone number, including area code


                                     N/A
                                   ------
            Former name, former address and former fiscal year,
                        if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

    (1)  Yes    X       No
              -----          -----
    (2)  Yes    X       No
              -----          -----

Indicate the number of shares outstanding of each class of common stock as
of December 1, 1999.


                 51,101,680 Common Stock (Par Value $.001)
                 -----------------------------------------

<PAGE>
                         First Mortgage Corporation
                                 Form 10-Q
                      Three Months Ended May 31, 1999




                                   INDEX

                                                                         Page
                                                                        ------

PART I Financial Information

       ITEM 1  Financial Statements

               Balance Sheets. . . . . . . . . . . . . . . . . . . . . . 3

               Statements of Operations. . . . . . . . . . . . . . . . . 5

               Statements of Cash Flows. . . . . . . . . . . . . . . . . 6

               Notes to Financial Statements . . . . . . . . . . . . . . 7

               Management's Discussion and Analysis of
               the Statement of Income . . . . . . . . . . . . . . . . . 8

PART II        Other Information

       ITEM 1  Legal Proceedings . . . . . . . . . . . . . . . . . . . . 9

       ITEM 2  Changes in Securities . . . . . . . . . . . . . . . . . . 9

       ITEM 3  Defaults upon Senior Securities . . . . . . . . . . . . . 9

       ITEM 4  Submission of Matters to a Vote of Security Holders . . . 9

       ITEM 5  Other Information . . . . . . . . . . . . . . . . . . . . 9

       ITEM 6  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . 9


          SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . .10

<PAGE>
                         First Mortgage Corporation
                               Balance Sheets
                     May 31, 1999 and February 28, 1999
<TABLE>
<CAPTION>


                                                   (Unaudited)
                                                          May    February
                                                     31, 1999    28, 1999
                                                  ------------------------
<S>                                               <C>         <C>
                  Assets

Current Assets
--------------
  Cash in Bank                                    $    62,824  $   48,566
  Cash in Savings                                     100,000     100,000
  Other Receivables                                     3,922       3,922
  Contracts Receivable                                  2,500       2,500
  Notes Receivable                                    666,500     594,000
                                                  ------------------------
         Total Current Assets                         835,746     748,988

Fixed Assets
------------
  Office Equipment                                      1,707       1,818
  Leasehold Improvements                                  295         330
                                                  ------------------------
         Total Fixed Assets                             2,002       2,148

Other Assets
------------
  Investment                                           50,000      50,000
  Certificate of Deposit                              200,000     200,000
  Land                                                 47,968      47,968
                                                  ------------------------
         Total Other Assets                           297,968     297,968
                                                  ------------------------
         Total Assets                              $1,135,716 $ 1,049,104
                                                  ========================
</TABLE>

                           See Accompanying Notes
                                      3



<PAGE>
                         First Mortgage Corporation
                         Balance Sheets -Continued-
                      May 31, 1999 & February 28, 1999
<TABLE>
<CAPTION>
                                                   (Unaudited)
                                                          May    February
                                                     31, 1999    28, 1999
                                                  ------------------------
<S>                                               <C>         <C>
        Liabilities and Stockholders' Equity

Current Liabilities
-------------------
  Accounts Payable                                 $      592  $      592
  Taxes Payable                                       123,375      93,927
                                                  ------------------------
    Total Current Liabilities                         123,967      94,519

Stockholders' Equity
--------------------
  Common Stock, 100,000,000
    Shares Authorized at $0.001 Par Value;
    51,101,680 Shares Issued & Outstanding             51,102      51,102
  Capital in Excess of Par Value                      242,697     242,697
  Retained Earnings                                   717,950     660,786
                                                  ------------------------
    Total Stockholders' Equity                      1,011,749     954,585
                                                  ------------------------
    Total Liabilities &
    Stockholders' Equity                          $ 1,135,716 $ 1,049,104
                                                  ========================
</TABLE>

                           See Accompanying Notes
                                      4


<PAGE>
                         First Mortgage Corporation
                          Statements of Operations
           For the Three Month Periods Ended May 31, 1999 & 1998
<TABLE>
<CAPTION>

                                                   (Unaudited) (Unaudited)
                                                         1999        1998
                                                  ------------------------
<S>                                               <C>         <C>
Revenues
--------
  Mortgage Recovery                               $   130,000 $    94,000
  Interest                                              4,362      21,018
  Bad Debt Recovery                                     8,000         423
                                                  ------------------------
    Total Revenues                                    142,362     115,441

Expenses
--------
  Interest Expense                                        463         -0-
  Commission Expense                                   47,000      48,000
  Office Expense                                          225       2,092
  Rent                                                  2,175       2,175
  Professional Fees                                     1,200          59
  Telephone                                               565       1,068
  Depreciation                                            146         135
  Land Expense                                            866         -0-
  Travel                                                3,110         302
  Taxes                                                   -0-       6,500
                                                   ------------------------
    Total Expenses                                     55,750      60,331
                                                   ------------------------
    Net Profit Before Taxes                            86,612      55,110

    Income Taxes                                       29,448       8,778

    Net Profit After Taxes                        $    57,164 $    46,332
                                                  ========================
    Earnings Per Share                            $     0.001 $     0.001

    Weighted Average Shares Outstanding            51,101,680  51,101,680

</TABLE>

                           See Accompanying Notes
                                      5

<PAGE>
                         First Mortgage Corporation
                          Statements of Cash Flows
           For the Three Months Periods Ended May 31, 1999 & 1998

<TABLE>
<CAPTION>

                                                   (Unaudited) (Unaudited)
                                                         1999        1998
                                                  ------------------------
<S>                                               <C>         <C>
Cash Flows from Operating Activities
------------------------------------
  Net Income                                       $    57,164 $   46,332
  Adjustments to Reconcile Net Income
    to Operating Activities:
    Depreciation                                           146        135
  Changes in Operating Assets & Liabilities:
        Decrease in Other Receivables                      -0-      9,509
    (Decrease) in Accounts Payable                         -0- (      883)
    Increase (Decrease) in Taxes                        29,448 (   33,337)
                                                  ------------------------
    Net Cash Provided by Operating Activities           86,758     21,756

Cash Flows from Investing Activities
------------------------------------
  Increase in Contracts                            (  130,000) ( 212,500)
  Collected on Contracts                               57,500        -0-
                                                 ------------------------
    Net Cash Provided by Investing Activities     (   72,500) (  212,500)

Cash Flows from Financing Activities
------------------------------------
    Net Cash Provided by Financing Activities            -0-         -0-
                                                 ------------------------
    Increase (Decrease) in Cash                       14,258 (   190,744)

    Cash at Beginning of Year                    $   148,566 $   298,335
                                                 ------------------------
    Cash at End of Year                          $   162,824 $   107,591
                                                 ========================
Expense Disclosures
-------------------
  Interest                                       $       -0- $       -0-
  Taxes                                               29,448       8,778

</TABLE>

                           See Accompanying Notes
                                      6

<PAGE>
                         First Mortgage Corporation
                       Notes to Financial Statements


NOTE #1 - Statement Preparation
-------------------------------
The Company has prepared the accompanying financial statements with interim
financial reporting requirement promulgated by the Securities and Exchange
Commission.   The information furnished reflects all adjustments which are,
in the opinion of management, necessary for a fair presentation of
financial position and results of operations.

The consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the
Company's February 28, 1999 10-K report.


                                    7

<PAGE>

                    MANAGEMENT'S DISCUSSION AND ANALYSIS


Liquidity and Capital Resources
-------------------------------
Management believes that proceeds from current revenues from interest and
cash reserves will provide sufficient capital to meet the Company's needs
for the next twelve months.

Management believes that its prime source of funds will be interest earned
from the trust deed notes receivable.

Results of Operations
---------------------

During the three months period ended May 31, 1999 the Company collected
$130,000 from its mortgage recovery loan package purchased from FDIC or the
RTC.  In addition, the Company earned $4,362 in interest from its Trust
Deed Notes.  In 1998, for the three months period ended May 31, 1998, the
Company collected $94,000 from its mortgage recovery program and earned
$21,018 in interest.

                                    8

                        PART II - OTHER INFORMATION
                        ----------------------------

Item 1   Legal Proceedings . . . . . . . . . . . . . . . . . . . . . None

Item 2   Changes in the Rights of the Company's
         Security Holders. . . . . . . . . . . . . . . . . . . . . . None

Item 3   Defaults by the Company on its Senior Securities. . . . . . None

Item 4   Results of Votes of Security Holders. . . . . . . . . . . . None

Item 5   Other Information . . . . . . . . . . . . . . . . . . . . . None

Item 6   Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . None


                                      9

<PAGE>


                                 SIGNATURES




Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


                                 /S/ William S. Greaves
Date: December 5, 1999       By:------------------------------
                             William S. Greaves, President
                             (Principal Executive Officer)
                             (Principal Financial & Accounting Officer)



                                 10