<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)


   X     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-------  EXCHANGE ACT OF 1934



For the quarterly period ended June 30, 2000


                                       OR


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


                         Commission File Number 0-23972


                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


       Massachusetts                                           13-6972380
-------------------------------                             -------------------
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)


625 Madison Avenue, New York, New York                                 10022
---------------------------------------                              ----------
(Address of principal executive offices)                             (Zip Code)


Registrant's telephone number, including area code (212)421-5333


     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. Yes X No ____


<PAGE>

                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                                 Balance Sheets
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                     ============= ============
                                                        JUNE 30,   DECEMBER 31,
                                                         2000         1999
                                                     ------------ -------------
<S>                                                 <C>            <C>
ASSETS
Investments in mortgage loans                        $ 28,129,116  $ 28,893,482
Investments in GNMA certificates-
   available for sale                                   5,815,540     9,464,437
Commercial mortgage-backed security-
   related investment                                  34,992,519    34,347,403
Deposit with broker as collateral for
   security sold short                                 35,029,680    37,733,101
Cash and cash equivalents                               7,146,420     3,802,298
Accrued interest receivable                               697,907     1,180,115
Deferred loan costs                                        89,641             0
Other assets                                              266,424       144,605
                                                      -----------   -----------
Total assets                                         $112,167,247  $115,565,441
                                                      ===========   ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
   Repurchase facility payable                       $ 19,624,000  $ 19,127,000
   Accrued interest payable                               847,515       407,952
   Accounts payable and accrued expenses                  197,782       122,397
   Due to Advisor and affiliates                          335,895       433,265
   Distributions payable                                1,391,503     1,391,503
   Government security sold short                      34,242,461    36,991,959
                                                     ------------  ------------
Total liabilities                                      56,639,156    58,474,076
                                                     ------------  ------------

Commitments and contingencies

Shareholders' equity:
   Shares of beneficial interest; $.10 par value;
     12,500,000 shares authorized; 4,213,826 issued
     and 3,838,630 outstanding                            421,383       421,383
   Treasury shares of beneficial interest;
     375,196 shares                                       (37,520)      (37,520)
   Additional paid-in capital                          68,840,500    68,840,500
   Distributions in excess of net income              (13,546,743)  (11,878,059)
   Accumulated other comprehensive loss                  (149,529)     (254,939)
                                                      ------------  -----------
Total shareholders' equity                             55,528,091    57,091,365
                                                     ------------  ------------
Total liabilities and shareholders' equity           $112,167,247  $115,565,441
                                                      ===========   ===========
</TABLE>




                 See accompanying notes to financial statements

                                        2
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                              Statements of Income
                                   (Unaudited)

<TABLE>
<CAPTION>

                                      ====================     =================
                                       THREE MONTHS ENDED       SIX MONTHS ENDED
                                              JUNE 30,               JUNE 30,
                                      --------------------     -----------------
                                       2000          1999       2000        1999
                                      --------------------     -----------------
<S>                          <C>          <C>           <C>         <C>
Revenues:
  Interest income:
   Mortgage loans            $ 356,405    $ 470,627     $ 847,805   $ 1,018,992
   GNMA certificates           118,630      196,898       238,261       396,544
   Note receivable                   0       26,860             0        26,860
   Commercial mortgage-
    backed security-
    related investment         956,530            0     1,907,192             0
   Temporary investments       674,520      262,386     1,221,624       358,914
   Other income                      0      200,190             0       200,190
                             ----------  -----------   -----------   ----------

   Total revenues            2,106,085    1,156,961     4,214,882     2,001,500
                            -----------  -----------   -----------   ----------

Expenses:
  Interest                     903,614            0     1,812,721             0
  General and
   administrative              271,101      298,729       603,321       436,263
  Amortization                  40,450            0        54,101             0
  Organization costs                 0      348,413             0       348,413
                            -----------  -----------  ------------  -----------

   Total expenses            1,215,165      647,142     2,470,143       784,676
                            -----------  -----------  ------------  -----------
Other gain (loss):

  Net gain (loss) on
   repayments of GNMA
   certificates                     89         (331)       58,363          (417)

  Net loss on commercial
   mortgage-backed
   security-related invest-
   ment and government
   securities sold
   short                      (253,735)           0      (710,777)            0

  Gain (loss) on repay-
   ment of
   mortgage loans               (6,166)           0        21,999     3,273,202
                            -----------  -----------  ------------  -----------

  Total other gain (loss)     (259,812)        (331)     (630,415)    3,272,785
                            -----------  -----------  ------------  -----------

  Net income                 $ 631,108    $ 509,488    $1,114,324    $4,489,609
                            ===========  ===========  ============  ===========

  Net income per share
   (basic and diluted)       $     .16    $     .13    $      .29    $     1.17
                            -----------  -----------  ------------  -----------

  Weighted average
   shares outstanding
   (basic and diluted)       3,838,630    3,841,699     3,838,630     3,845,287
                           ============  ===========  ============  ===========
</TABLE>




                 See accompanying notes to financial statements

                                       3
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                  Statement of Changes in Shareholders' Equity
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                   TREASURY SHARES OF
                                             SHARES OF BENEFICIAL                  BENEFICIAL INTEREST               ADDITIONAL
                                             --------------------                  -------------------                PAID-IN
                                             SHARES        AMOUNT                  SHARES       AMOUNT                CAPITAL
                                             -------      -------                  -------     -------              -----------
<S>                                          <C>           <C>                     <C>        <C>                   <C>
Balance at January 1, 2000                   4,213,826     $421,383                (375,196)  $(37,520)             $68,840,500

Comprehensive income:
Net income                                           0            0                       0          0                        0
Other comprehensive income:
  Net unrealized gain on first Mortgage
   bonds
  Net unrealized holding gain Arising
   during the period
  Less: reclassification adjustment for
   gains included in net income
Other comprehensive income
Comprehensive income
Distributions                                        0            0                       0          0                        0
                                             ---------     --------               ---------       -----              ----------

Balance at June 30, 2000                     4,213,826     $421,383                (375,196)  $(37,520)             $68,840,500
                                             =========     =========               =========  =========             ===========



<CAPTION>
                                                                                            ACCUMULATED
                                             DISTRIBUTIONS                                     OTHER
                                             IN EXCESS                COMPREHENSIVE         COMPREHENSIVE
                                             OF NET INCOME                INCOME            INCOME (LOSS)                 TOTAL
                                             --------------           --------------        --------------            ---------
<S>                                           <C>                        <C>                 <C>                    <C>
 Balance at January 1, 2000                   $(11,878,059)                                  $(254,939)             $57,091,365
 Comprehensive income:
 Net income                                      1,114,324                $1,114,324                 0                1,114,324
                                                                         ----------
 Other comprehensive income:
   Net unrealized gain on first mortgage
    bonds
   Net unrealized holding gain arising
    during the period                                                        163,773
   Less: reclassification adjustment for
     gains included in net income                                            (58,363)
                                                                             ---------
 Other comprehensive income                                                  105,410           105,410                  105,410
                                                                             ---------
 Comprehensive income                                                     $1,219,734
                                                                          ============
 Distributions                                  (2,783,008)                                          0               (2,783,008)
                                                -----------                                  ---------               -----------

Balance at June 30, 2000                      $(13,546,743)                                  $(149,529)             $55,528,091
                                              =============                                  ===========            ===========
</TABLE>




 See accompanying notes to financial statements.

<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                            Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                     ===================
                                                                      SIX MONTHS ENDED
                                                                            JUNE 30,
                                                                     -------------------
                                                                      2000        1999
                                                                     --------  ---------
<S>                                                                 <C>          <C>
Cash flows from operating activities:
   Net income                                                       $1,114,324   $4,489,609
                                                                     ---------    ---------
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Gain on commercial mortgage-backed
       security-related investment                                    (297,576)           0
     Loss on government securities sold short                        1,008,353            0
     Gain on repayment of mortgage loans                               (21,999)  (3,273,202)
     Amortization expense-loan premium and
       origination costs                                               103,837      194,370
     Accretion of GNMA discount                                        (11,240)     (11,652)
     Accretion of discount on commercial
       mortgage-backed security-related investment                    (299,903)           0
     Amortization of deferred costs relating to
       the CMBS-related investment                                       5,502            0
     Amortization                                                       54,101            0
     Accretion on deferred income                                       (3,858)           0
     (Gain) loss on repayment of GNMA certificates                     (58,363)         417
   Changes in operating assets and liabilities:
   Deposit with broker as collateral for security
     sold short                                                      2,703,421            0
   Accrued interest receivable                                         482,208      386,126
   Other assets                                                        (86,126)      (9,281)
   Due to Advisor and affiliates                                       (97,370)  (1,472,063)
   Accounts payable and accrued expenses                                75,385       25,761
   Accrued interest payable                                            439,563            0
   Deferred costs relating to the CMBS-related
     investment                                                        (53,139)           0
   Purchase of government security                                 (37,299,201)           0
   Government security sold short                                   33,541,350            0
                                                                   ------------- ----------
Total adjustments                                                      184,945   (4,159,524)
                                                                   ------------- ----------

   Net cash provided by operating activities                         1,299,269      330,085
                                                                    ------------ ----------

Cash flows from investing activities:
   Increase in investment in mortgage loans                         (9,302,732)    (829,204)
   Proceeds from repayments of mortgage loans                       10,040,284   20,752,045
   Increase in note receivable                                               0   (1,900,000)
   Principal repayments of GNMA Certificates                         3,823,910      278,455
   Costs relating to repayment of mortgage loan                        (51,166)           0
   Increase in other assets                                            (35,693)           0
                                                                   ------------- ----------

   Net cash provided by investing activities                         4,474,603   18,301,296
                                                                   -----------   ----------




                 See accompanying notes to financial statements

                                       -5-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                            Statements of Cash Flows
                                   (Unaudited)
                                   (continued)

<CAPTION>

                                                                     ===================
                                                                      SIX MONTHS ENDED
                                                                            JUNE 30,
                                                                     -------------------
                                                                      2000        1999
                                                                     ---------   -------
<S>                                                               <C>           <C>
Cash flows from financing activities:
   Proceeds from repurchase facility payable                         1,594,000            0
   Repayments of repurchase facility payable                        (1,097,000)           0
   Distribution paid to shareholders                                (2,783,008)  (2,775,826)
   Proceeds from issuance of shares of beneficial
     interest                                                                0      633,937
   Purchase of treasury shares                                               0     (633,948)
   Increase in deferred loan costs                                    (143,742)           0
                                                                    -----------  ----------

   Net cash used in financing
     activities                                                     (2,429,750)  (2,775,837)
                                                                    -----------  ----------

Net increase in cash and cash
   equivalents                                                       3,344,122   15,855,544

Cash and cash equivalents at the beginning
   of the period                                                     3,802,298    2,953,125
                                                                    -----------  ----------

Cash and cash equivalents at the end of the
   period                                                         $  7,146,420  $18,808,669
                                                                    ===========  ==========

Supplemental information:
Interest paid                                                     $  1,373,158  $         0
                                                                    ===========  ==========
</TABLE>




                 See accompanying notes to financial statements

                                      -6-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

Note 1 - General

American Mortgage Acceptance Company (formerly American Mortgage Investors
Trust) (the "Company") was formed on June 11, 1991 as a Massachusetts business
trust for the primary purpose of investing in government-insured mortgages and
guaranteed mortgage-backed certificates. The Company elected to be treated as a
real estate investment trust ("REIT") under the Internal Revenue Code of 1986,
as amended.

On April 6, 1999, the Company received the necessary consent from its
shareholders to approve proposals (the "Proposals") to, among other things,
restructure the Company from a closed-ended, finite-life REIT to a publicly
traded, open-ended, infinite-life operating REIT. In addition to restructuring
the Company, the Proposals, among other matters, permit the Company to modify
its investment objectives, to incur a specified amount of indebtedness and to
list the Company's shares on a national exchange.

As a result of the adoption of the Proposals, the Company was liable for the
transaction expenses. Such expenses amounted to approximately $348,000 for the
six months ended June 30, 1999 and are classified as organization costs in the
accompanying statements of income.

Effective April 26, 1999, upon authorization by the Board of Trustees, the
Company's name was changed from American Mortgage Investors Trust to American
Mortgage Acceptance Company. The Company's shares of beneficial interest (the
"Shares") commenced trading on the American Stock Exchange on July 1, 1999 under
the symbol "AMC".

The Company's new business plan as a publicly traded REIT focuses on three types
of mortgage products: 1) origination of participating FHA insured multifamily
mortgages, 2) origination of construction and permanent mortgage financing for
affordable multifamily housing pursuant to a new venture with Federal National
Mortgage Association ("Fannie Mae"), and 3) acquisition of subordinated
interests in commercial mortgage-backed securities.

As of June 30, 2000 the Company's mortgage investments consisted of four
mortgage loans originated by or on behalf of the Company, three GNMA
mortgage-backed securities and pass-through certificates and one commercial
mortgage-backed security ("CMBS")-related investment.

The current composition of the Company's investment portfolio reflects the
recent change in the Company's business plan and is not comparable to its
investment portfolio prior to April 1999. Furthermore, the Company is still in
the process of implementing its new business plan and, therefore, the current
portfolio should not be considered indicative of the composition of the
portfolio that might be expected in the future.

The Company is governed by a board of trustees comprised of two independent
trustees and one trustee who is affiliated with Related Capital Company
("Related"), a nationwide, fully integrated real estate financial services firm.
The Company has engaged Related AMI Associates, Inc. (the "Advisor"), an
affiliate of Related, to manage its day-to-day affairs.

The accompanying financial statements have been prepared without audit. In the
opinion of management, the financial statements contain all adjustments
(consisting of only normal recurring adjustments) necessary to present fairly
the financial position of the Company as of June 30, 2000 and the results of its
operations for the three and six months ended June 30, 2000 and 1999 and its
cash flows for the six





                                       -7-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

months ended June 30, 2000 and 1999. However, the operating results for the
interim periods may not be indicative of the results for the full year.

Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles ("GAAP") have been condensed or omitted. It is suggested that these
financial statements should be read in conjunction with the financial statements
and notes thereto included in the Company's Form 10-K for the year ended
December 31, 1999.

The preparation of financial statements in conformity with GAAP requires the
Advisor to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements as well as the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.

In December of 1999, the staff of the Securities and Exchange Commission issued
Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial
Statements." This bulletin summarizes certain of the staff's views in applying
generally accepted accounting principles to revenue recognition in financial
statements. The Company's management believes that the guidance expressed in the
bulletin does not affect the Company's current revenue recognition policies.

Certain prior year amounts have been reclassified to conform to current year
presentation.


                                      -8-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

Note 2 - Investments in Mortgage Loans

Information relating to investments in mortgage loans as of June 30, 2000 and
December 31, 1999 is as follows:

<TABLE>
<CAPTION>

                         DATE OF
                         INVEST-   INTEREST             AMOUNTS ADVANCED
                         MENT/     RATE ON    ----------------------------------------
                         FINAL     FHA        FHA                                              OUT-
                         MATU      INSURED    INSURED                          TOTAL           STANDING
               DESCRIP   -RITY     MORTGAGE   MORTGAGE         ADDITIONAL      AMOUNTS         LOAN
PROPERTY       -TION     DATE      LOAN       LOANS            LOANS(B)        ADVANCED        BALANCED
--------      --------  -------   ---------   ---------       -----------     ----------      ---------
<S>            <C>       <C>       <C>        <C>              <C>             <C>             <C>
Town &         330       4/94      7.375%     $ 9,348,000      $1,039,000      $10,387,000     $         0
Country        Apt.      5/29      9.167%
Apts.          Units               (A)(C)
Urbana, IL
(G)

Columbiana     204       4/94      (E)          9,106,099         563,000        9,669,099       9,551,082
Lakes Apts.    Apt.      11/35
Columbia,      Units     (D)(K)
SC

Stony Brook    125       12/95     7.75%-       8,500,000         763,909        9,263,909       9,158,232
Village IL     Apt.      6/37      9.128%
Apts.          Units     (D)(K)    (A)(F)
East Haven
CT

Hollows        184       4/00      (H)            937,044       1,549,200        2,486,244       2,486,244
Apts.          Apt.      1/42
Greenville,    Units     (D)(K)
NC

Elmhurst       313       6/00      (I)          4,636,258       2,874,000        7,510,258       7,510,258
Village Apts.  Apt.      1/42
Oveido, FL     Units     (D)(K)

                                             -------------------------------------------------------------
Total                                         $32,527,401      $6,789,109      $39,316,510     $28,705,816
                                             =============================================================

<CAPTION>
                                 ACCUM-
                                 ULATED
                                 AMOR-
                                 TIZATION                                               INTEREST
                                ADDITIONAL                                              EARNED BY          2000
                                LOANS AND           BALANCE AT        BALANCE AT          THE            ACCRETION     NET
               ORIGINATION      ORIGINATION          JUNE              DECEMBER         COMPANY         (AMOR-       INTEREST
PROPERTY       COST/FEES        COSTS/FEES          30, 2000           31, 1999(J)       FOR 2000        TIZATION)     EARNED
--------       -----------     ------------        ------------       -----------      ----------      -----------   --------
<S>             <C>              <C>             <C>                  <C>               <C>             <C>          <C>
Town &          $      0         $      0         $         0         $9,936,476        $168,642         $(14,470)   $154,172
Country
Apts.
Urbana, IL
(G)

Columbiana       537,558          453,583           9,635,057          9,705,686         384,378          (44,872)    339,506
Lakes Apts.
Columbia,
SC

Stony Brook      413,492          384,255           9,187,469          9,251,320         378,964          (44,495)    334,469
Village IL
Apts.
East Haven
CT

Hollows         (197,829)          (3,529)          2,291,944                  0          11,810            3,529      15,339
Apts.
Greenville,
NC

Elmhurst        (495,940)            (328)          7,014,646                  0           3,991              328       4,319
Village Apts.
Oveido, FL
                -------------------------------------------------------------------------------------------------------------
Total           $257,281         $833,981         $28,129,116        $28,893,482        $947,785         $(99,980)   $847,805
                =============================================================================================================
</TABLE>


<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

The operations of Town & Country had not been able to support the payment of
Additional Interest for the period July 1, 1997 through December 31, 1999 which
amounted to $411,911. Accordingly, the accrued interest income that was doubtful
of collection was fully reserved and excluded from interest income from mortgage
loans in previous quarters. On January 21, 2000, the general partner of Town &
Country Estates, Ltd. (the "Town & Country Obligor"), the owner of Town &
Country Apartments, in exchange for the waiving of the prepayment penalty and
future Additional Interest and also because the obligation was secured by its
partnership interest in the obligor, repaid the additional loan and Additional
Interest due through January 21, 2000 in the amounts of $1,039,000 and $421,273,
respectively. As a result, the Additional Interest which had been fully reserved
was deemed to be fully collectible and recorded as interest income in the fourth
quarter of 1999. On March 31, 2000, the Town & Country Obligor fully repaid the
outstanding balance of the FHA insured mortgage loan and accrued Base Interest
in the amounts of $8,934,581 and $53,049, respectively. The Town & Country
Obligor has no further obligations to the Company. The repayment of the FHA
insured mortgage loan and the additional loan resulted in a gain on the
repayment (including a $45,000 loan termination fee due from the Company to the
loan servicing agent and unamortized origination costs) in the amount of
$21,999.

(A) The minimum interest rate shown represents base interest, which is fully
insured by HUD ("Base Interest"). The additional interest rate represents
interest which is not contingent upon cash flow and is secured by partnership
interests in the partnerships which own the Developments ("Additional
Interest").

(B) Additional loans are non-interest bearing.

(C) In addition to the interest rate, the Company was entitled to 30% of the
cash flow remaining after payment of Base Interest and Additional Interest.

(D) The Originated Mortgages have terms of 40 years, subject to mandatory
prepayment at any time after 15 years for the Elmhurst loan and 10 years for the
remaining loans, and upon one year's notice.

(E) The interest rates for Columbiana are 7.9%-8.678% during the permanent loan
period and was 7.4% during the construction period. In addition to the interest
rate during the permanent loan period, the Company is entitled to 25% of the
cash flow remaining after payment of 8.678% interest. The operations of
Columbiana had not been able to support the payment of Additional Interest for
the period October 1, 1997 through June 30, 1998 which amounted to $48,760.
Accordingly, the accrued interest income that was deemed doubtful of collection
was fully reserved and reversed from interest income from mortgage loans in the
fourth quarter of 1998. As a result of the final advance and conversion of the
construction loan to a permanent loan during the second quarter of 1999,
Columbiana was able to repay construction period advances from the developer as
well as Additional Interest due to the Company through the second quarter. As a
result, the Additional Interest which had been fully reserved was recorded as
interest income in the second quarter of 1999.

(F) In addition to the interest rate, the Company is entitled to 40% of the cash
flow remaining after payment of Base and Additional Interest.

(G) On January 21, 2000 and March 31, 2000 the additional loan and the FHA
insured mortgage loan, respectively, due to the Company were fully repaid (see
above).

(H) The interest rates for Hollows Apartments are 9.6083% per annum during the
permanent loan period and 7.875% during the construction period. The Note rate
of 7.875% is fully insured by HUD, and secured by a first mortgage deed of
trust. Payments in excess of the Note rate, up to a rate of


                                      -10-
<PAGE>
                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

9.6083% are secured by a second mortgage deed of trust and are guaranteed until
August 2004 by an entity related to the general partner of the partnership which
owns Hollows Apartments. The principal balance of the Additional Loan is secured
by a third mortgage deed of trust. In addition to the interest rate during the
permanent loan period, the Company is entitled to 50% of cash flow, if any,
remaining after the payment of debt service and 25% of the sale or refinancing
proceeds. The total loan is comprised of the mortgage loan of $8,946,100 and the
additional loan of $1,549,200. As of June 30, 2000, $937,044 of the mortgage
loan and the full amount of the additional loan had been funded. Both loans
mature in January, 2042 and have 5-year lockouts against prepayment, as well as
a prepayment penalty structure during the second 5-year period of the loans.

(I) The interest rates for Elmhurst Village are 9.3232% per annum during the
permanent loan period and 8% during the construction period. The Note rate of 8%
is fully insured by HUD, and secured by a first mortgage deed of trust. Payments
in excess of the Note rate, up to a rate of 9.3232% are secured by a second
mortgage deed of trust and are guaranteed until December 2004 by an entity
related to the general partner of the partnership which owns the Elmhurst
Village Apartments. The principal balance of the Additional Loan is secured by a
third mortgage deed of trust. In addition to the interest rate during the
permanent loan period, the Company is entitled to 50% of cash flow, if any,
remaining after the payment of debt service and 25% of the sale or refinancing
proceeds. The total loan is comprised of the mortgage loan of $21,748,200 and
the additional loan of $2,874,000. As of June 30, 2000, $4,636,258 of the
mortgage loan and the full amount of the additional loan had been funded. Both
loans mature in January, 2042 and have 5-year lockouts against prepayment, as
well as a prepayment penalty structure during the second 5-year period of the
loans.

(J) Aggregate cost for federal income tax purposes is $29,766,598.

(K) In order for the Company to exercise an acceleration option it must
terminate the mortgage insurance contract with FHA not later than the
accelerated payment date and, in certain circumstances, must terminate the
mortgage insurance contract upon the exercise of the acceleration option. Since
the exercise of such option would be at the Company's discretion, it is intended
to be exercised only where the value of the underlying property has increased by
an amount which would justify accelerating payment in full and assuming the
risks of foreclosure if the mortgagor failed to make the accelerated payment.


                                      -11-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

Note 3 - Investments in GNMA Certificates-Available for Sale

Information relating to investments in GNMA certificates as of June 30, 2000 and
December 31, 1999 is as follows:

<TABLE>
<CAPTION>

                                                                                                                          ACCUM-
                                                                  ORIGINAL                                               ULATED
                                      DATE PUR-                   PURCHASE                                               AMORTI-
                                     CHASED/FINAL    STATED         PRICE         PRINCIPAL AT       DISCOUNT AT        ZATION AT
                      CERTIFICATE      PAYMENT      INTEREST      INCLUDING          JUNE               JUNE              JUNE
SELLER                  NUMBER           DATE         RATE         DISCOUNT        30, 2000           30, 2000          30, 2000
-------               -----------    ------------   ---------    -----------      ------------      ------------       ---------
<S>                    <C>             <C>            <C>        <C>              <C>                <C>                 <C>
GNMA CERTIFICATES

Bear Stearns            0355540        7/27/94        7.125%     $ 2,407,102      $2,529,868         $(234,012)          $117,046
                                       3/15/29

Malone Mortgage         0382486        7/28/94        8.500%       2,197,130       2,132,826            (7,998)             4,176
                                       8/15/29

Goldman Sachs           0328502        7/29/94        8.250%       3,928,615               0                 0                  0
                                       7/15/29(A)

SunCoast Capital        G22412         6/23/97        7.000%       1,981,566       1,275,248            (8,369)             5,579
Group, Ltd.                            4/20/27

                                                                 ----------------------------------------------------------------
Total                                                            $10,514,413      $5,937,942         $(250,379)          $126,801
                                                                 ================================================================


<CAPTION>

                                           UNREAL-                                          INTEREST
                      LOAN ORIGINA-         IZED                                             EARNED
                       TION COST AT        LOSS AT         BALANCE AT        BALANCE AT      BY THE                          NET
                           JUNE             JUNE             JUNE            DECEMBER        COMPANY         2000          INTEREST
                         30, 2000         30, 2000        30, 2000           31, 1999        FOR 2000      ACCRETION        EARNED
                      --------------    -----------       ------------      ------------   ------------   -----------      --------
<S>                     <C>              <C>              <C>                <C>             <C>           <C>             <C>
GNMA CERTIFICATES

Bear Stearns            $78,268          $(60,122)        $2,431,048         $2,431,778      $ 90,294      $ 9,913         $100,207

Malone Mortgage          72,437           (49,954)         2,151,487          2,168,686        90,676          353           91,029

Goldman Sachs                 0                 0                  0          3,565,054             0           13               13

SunCoast Capital              0           (39,453)         1,233,005          1,298,919        46,051          961           47,012
Group, Ltd.
                       ------------------------------------------------------------------------------------------------------------
Total                  $150,705         $(149,529)        $5,815,540         $9,464,437      $227,021      $11,240         $238,261
                       ============================================================================================================
</TABLE>

(A) On January 18, 2000, the Company received the final repayment amounting
    to $3,551,736. In addition, a prepayment penalty in the amount of
    $177,587 was received on February 8, 2000.

<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

The amortized cost, unrealized gain and fair value for the investment in GNMA
Certificates at June 30, 2000 and December 31, 1999 were as follows:

<TABLE>
<CAPTION>
                                   JUNE 30,        DECEMBER 31,
                                     2000              1999
                                  ----------       ------------
<S>                               <C>              <C>
Amortized cost                    $5,965,069       $9,719,376
Gross unrealized loss               (149,529)        (254,939)
                                  ----------       ----------
Fair Value                        $5,815,540       $9,464,437
                                   =========        =========
</TABLE>

Note 4 - Commercial Mortgage-Backed Security-Related Investment and Short Sale

On September 30, 1999, the Company acquired from ARCap Investors, L.L.C.
("ARCap") a "BB+" rated subordinated commercial mortgage-backed security
("CMBS") from a Chase Manhattan Bank-First Union Nation Bank Commercial Mortgage
Trust (the "Chase-First Union Trust"). The CMBS investment, which was purchased
for $35,622,358, has a face amount of $50,399,711 and an annual coupon rate of
6.4%. In connection with this acquisition, the Company entered into an agreement
(the "Agreement") with ARCap. ARCap acquired from the Chase-First Union Trust
all of the commercial mortgage backed securities that are subordinate to the
CMBS investment (the "Subordinate Bonds") acquired by the Company. Under the
Agreement, the Company has the right to acquire a portion of the Subordinate
Bonds from ARCap and to exchange a portion or all of the CMBS investment and
Subordinate Bonds for a preferred equity interest in ARCap. Furthermore, the
Company has the right to participate on the same terms with ARCap in any
subsequent resecuritization by ARCap of the Chase-First Union Trust bond
issuance. In connection with such resecuritization, ARCap has the right to cause
the Company to choose between three alternative options: (i) to sell the CMBS
investment to ARCap; (ii) to participate with ARCap in the resecuritization; or
(iii) to exchange the CMBS investment for a preferred equity position in ARCap,
all based on the then fair value of the CMBS investment.

Because the Company is required to return the CMBS to ARCap upon request by
ARCap, this transaction has been accounted for as a secured loan from the
Company to ARCap under SFAS No. 125, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishment of Liabilities". This loan can be
contractually settled in such a way that the Company would not recover its
recorded investment, so, under SFAS 125, the Company measures its investment in
the loan like an investment in a debt security. The Company has elected to
utilize the "trading" classification for this investment, and measures the value
of the investment as the estimated value of the CMBS collateralizing the loan.
Deferred costs relating to the CMBS-related investment are included in the basis
of such investment and are being amortized as a reduction to interest income
from the CMBS-related investment over 7.25 years, which is the estimated term to
maturity of the CMBS-related investment.


                                      -13-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

As of June 30, 2000 the 205 mortgage loans underlying the CMBS were secured by
217 properties of the types and in the states identified below:

PROPERTY TYPE           PERCENTAGE (1)
-------------           --------------
Multifamily                38%
Retail                     29
Office                     17
Hospitality                6
Health Care                4
Industrial                 4
Other                      2

STATE                   PERCENTAGE (1)
-----                   --------------
CA                         20%
NY                         12
FL                         6
PA                         6
Others (2)                 56

(1) Based on a percentage of the total unpaid principal balance of the
underlying loans.

(2) No other state comprises more than 5% of the total.

As of June 30, 2000, there are no unpaid principal balances of loans that are
underlying the CMBS investment which are more than 60 days delinquent.

As of June 30, 2000 the CMBS-related investment had an estimated fair value of
$34,992,519 and an amortized cost of $36,113,959, resulting in an unrealized
loss of $1,121,440 at that date which is included in "net unrealized losses on
commercial mortgage-backed security-related investment and government security
sold short" in the statements of income. The fair value of the Company's
CMBS-related investment is generally estimated by management based on market
prices provided by certain dealers who make a market in these financial
instruments. The market for CMBS periodically suffers from a lack of liquidity.
Accordingly, the fair value reported may not necessarily be indicative of the
amount the Company could realize in a current liquidation of this investment.

At June 30, 2000, the un-leveraged, un-hedged, weighted average yield to
maturity of the Company's CMBS-related investment was approximately 11%.

The yield to maturity on the Company's CMBS-related investment depends on, among
other things, the rate and timing of principal payments, the pass-through rate
and interest rate fluctuations. The subordinated CMBS interest provides credit
support to the more senior interests of the related commercial securitization.
Cash flow from the mortgages underlying the CMBS interest generally is allocated
first to the senior interests, with the most senior interest having a priority
entitlement to cash flow. Remaining cash flow is allocated generally among the
other CMBS interests in order of their relative seniority. To the extent that
there are defaults and unrecoverable losses on the underlying mortgages,
resulting in reduced cash flows, the most subordinate CMBS interest will bear
this loss first. To the extent there are losses in excess of the most
subordinated interest's stated entitlement to principal and interest, then the
remaining CMBS interests will bear such losses in order of their relative
subordination. There is, therefore no assurance that the yield to maturity
discussed above will be achieved.


                                      -14-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

The Company enters into contracts to sell securities that it does not own at the
time of sale ("short sales"). The Company utilizes these contracts as a means of
mitigating the potential financial statement impact of changes in the fair value
of its CMBS-related investment due to changes in interest rates. The broker
which lends the securities to the Company retains the proceeds from the sale
until the Company replaces the borrowed security. On September 30, 1999, the
Company entered into a Short Sale involving the sale of a U.S. Treasury Note
with a face amount of $39,327,000 and an annual coupon rate of 5.625% borrowed
from Bear Stearns & Co., Inc. ("Bear Stearns") for net proceeds of $39,028,841
(which included accrued interest of $835,565). On March 16, 2000, the Company
replaced the borrowed security by purchasing such security through Bear Stearns
for $37,299,201 resulting in a realized gain of $894,075 and entered into an
additional Short Sale contract involving the sale of a U.S. Treasury Note with a
face amount of $34,512,000 and an annual coupon rate of 6.0% borrowed from Bear
Stearns for net proceeds of $33,717,703 (which included accrued interest of
$176,353). As of June 30, 2000, the U.S. Treasury Note involved in the March 16,
2000 Short Sale had an estimated fair value of $34,242,461, resulting in an
unrealized loss of $701,111 at that date. Both the realized and unrealized gains
are included in "net unrealized loss on commercial mortgage-backed
security-related investment and government security sold short" in the
statements of income. The Company earned $950,730 on Short Sale proceeds held by
Bear Stearns ($35,029,680 at June 30, 2000) and incurred interest of $517,679
and $1,071,159 on its Short Sale contracts during the three and six months ended
June 30, 2000.

NOTE 5 - Repurchase Facilities

On September 30, 1999, the Company entered into a repurchase facility (the "Bear
Stearns Repurchase Facility") with Bear Stearns, whereby Bear Stearns advanced
$19,568,000 (55% of the purchase price) in cash towards the purchase of a
CMBS-related investment (see Note 4). The Bear Stearns Repurchase Facility had a
variable interest rate based on the one-month LIBOR rate plus 1.5% (8.14% at
June 30, 2000), which was adjusted on the first day of each month, and
terminated on March 17, 2000. The Bear Stearns Repurchase Facility has been
renewed through August 16, 2000. The Bear Stearns Repurchase Facility is
collateralized by the Company's CMBS-related investment and contains
restrictions based on the then current market value of such investment as
calculated by Bear Stearns. A decline in the market value of the CMBS could
result in cash flow from such investment being diverted to reduce the
outstanding borrowing, the requirement to post additional collateral, or the
sale of such investment.

Effective February 15, 2000, the Company entered into a $60 million FHA
repurchase facility (the "Nomura Repurchase Facility") with Nomura Asset Capital
Corporation. This agreement enables the Company to borrow up to 90% with a
qualified hedge or 80% without a qualified hedge of the fair market value of FHA
loans owned by the Company. The Nomura Repurchase Facility has a term of 364
days and bears interest at LIBOR plus 1.25%. As of June 30, 2000 , no amounts
were outstanding under The Nomura Repurchase Facility. Deferred costs of $89,461
relating to the Nomura Repurchase Facility are being amortized using the
straight-line method over 364 days, which is the term of the facility.

NOTE 6 - Related Party Transactions

Prior to the adoption of the Proposals, the Company had an agreement with the
Advisor pursuant to which the Advisor received compensation consisting primarily
of (i) asset management fees calculated as .625% of total assets invested by the
Company; (ii) a subordinated incentive fee based on the economic gain on the
sale of Mortgage Investments; (iii) reimbursement of certain administrative and


                                      -15-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

other costs incurred by the Advisor on behalf of the Company; and (iv) certain
other fees. In addition, with respect to Mortgage Loans acquired by the Company,
the Advisor was entitled to receive loan placement fees paid by borrowers equal
to up to 1.5% of the principal amount of each mortgage loan.

As a result of the adoption of the Proposals, the Board of Trustees amended the
Advisory Agreement between the Company and the Advisor to, among other matters,
reflect the Proposals and change the Advisory Agreement's fee structure to (a)
eliminate the acquisition and disposition fees currently payable to the Advisor;
(b) modify the annual asset management fee payable to the Advisor as set forth
below; and (c) include an annual incentive fee payable to the Advisor as also
set forth below. The modified annual asset management fee is calculated as
follows: (i) .355% for investments in Mortgage Loans; (ii) .355% for certain
investment grade investments; (iii) .750% for certain non-investment grade
investments; (iv) 1.000% for unrated investments; and (v) .625% for investments
held prior to the adoption of the Proposals. The annual incentive fee is
calculated as follows: subject to a minimum annual distribution being made to
shareholders from cash available for distribution of approximately $1.45 per
Share, the Advisor will be entitled to receive incentive compensation for each
fiscal year in an amount equal to the product of (A) 25% of the dollar amount by
which (1)(a) Funds From Operations of the Company (before the incentive fee) per
Share (based on the weighted average number of Shares outstanding) plus (b)
gains (or minus losses) from debt restructuring and sales of property per Share
(based on the weighted average number of Shares outstanding), exceed (2) an
amount equal to (a) the weighted average of the price per Share of the initial
offering (i.e. $20 per Share) and the prices per Share of any secondary
offerings by the Company multiplied by (b) the ten-year U.S. Treasury rate plus
two percent per annum multiplied by (B) the weighted average number of Shares
outstanding during such fiscal year. For any period less than a fiscal year
during which the amended Advisory Agreement is in effect, the incentive fee will
be prorated according to the proportion which such period bears to a full fiscal
year, taking into account, however, the Company's cash available for
distribution for the entire fiscal year. There was no incentive management fee
accrued for the six months ended June 30, 2000.

In addition, the Advisory Agreement's fee structure was also changed so that
with respect to the first $100 million of new Mortgage Loans acquired by the
Company, the Advisor will receive origination points (fees) paid by borrowers
equal to up to 1% of the principal amount of each Mortgage Loan, and the Company
will receive origination points paid by the borrowers in excess of 1%. After the
first $100 million of additional Mortgage Loans is acquired, the Company will
retain 100% of the origination points paid by borrowers. During the three months
ended June 30, 2000, the Advisor and the Company each received origination
points of $52,477 and $123,111 on the Hollows and Elmhurst loans. These fees are
being amortized through the mandatory prepayment dates of each loan. (See Note
2)


                                      -16-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

The costs incurred to related parties for the three and six months ended June
30, 2000 and 1999 were as follows:

<TABLE>
<CAPTION>
                              THREE MONTHS ENDED      SIX MONTHS ENDED
                                   JUNE 30,               JUNE 30,
                            ---------------------   --------------------
                               2000        1999       2000        1999
                            ---------------------   --------------------
<S>                         <C>         <C>         <C>         <C>
Expense reimburse-
  ment                      $  73,327   $  45,105   $188,973    $ 76,493
Asset management fees         108,158      63,349    230,102     142,103
Incentive management
  fee                               0      99,661           0     99,661
                            ---------    --------   ---------   --------
                             $181,485    $208,115   $419,075    $318,257
                            =========    ========   ========    ========
</TABLE>

Note 7 - Earnings Per Share

Basic net income per share in the amount $.16 and $.13 and $.29 and $1.17 for
the three and six months ended June 30, 2000 and 1999, respectively, equals net
income for the periods ($631,108 and $509,488 and $1,114,324 and $4,489,609,
respectively), divided by the weighted average number of shares outstanding for
the periods (3,838,630 and 3,841,699 and 3,838,630 and 3,845,287, respectively).

Because the Company had no dilutive securities outstanding at June 30, 2000 or
1999, diluted net income per share is the same as basic net income per share.

Note 8 - Commitments and Contingencies

The Company has completed a loan venture with Fannie Mae which has agreed to
fully fund the origination of $250 million of Delegated Underwriter and Servicer
loans for apartment properties that qualify for low income housing tax credits
under Section 42 of the Internal Revenue Code. Under the transaction, the
Company will originate and contract for individual loans of up to $6 million
dollars each over a two-year period and will work with American Property
Financing, which will underwrite and service the loans for Fannie Mae. Each
property in the transaction will benefit from 9% low income housing tax credits
for no less than 90% of its units. The Company will guaranty a first loss
position of up to 10% of the pool of $250 million and will receive guaranty and
other fees. In June, 2000 two loans totaling $3,465,000 were originated under
the loan venture.


                                      -17-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

Note 9 - Subsequent Event

On August 3, 2000, the Company acquired a 100% participation interest in an FHA
insured first mortgage loan and an additional loan secured by the Reserve at
Autumn Creek, a 212 unit apartment project located in Texas. The mortgage loan,
in the amount of $16,538,700 is insured by the FHA and bears interest at 9.202%
during the permanent loan period and 8% during the construction period. The
additional loan, in the amount of $1,987,000 has a minimum term of 10 years plus
the construction period, is non interest bearing and is not insured.

As of August 11, 2000, $2,816,472 of the FHA insured first mortgage loan and the
full amount of the additional loan have been funded. The Company is entitled to
50% of cash flow, if any, remaining after the payment of debt service, and 25%
of the sale or refinancing proceeds.

On July 28, 2000 and August 2, 2000, the Company received $2,045,000 and
$6,755,739, respectively, under the Nomura Master Repurchase Facility.

On July 31, 2000 the Company funded a $6,000,000 loan to a partnership whose
partners are affiliates of the Company, in connection with the acquisition of
Rancho Verde, a 700 unit multifamily property, located in San Jose, CA, that
qualifies for low income housing tax credits under Section 42 of the Internal
Revenue Code. The loan bears interest at the rate of 11% per annum and matures
September 30, 2000. Additionally, the Company has committed to fund a
rehabilitation loan in connection with this property. The Company expects to
fund the rehabilitation loan in August 2001 in the amount of $4,500,000 bearing
interest at 11% per annum. The maturity of this loan will be August 1, 2002
which may be extended for four three-month periods with the payment of 1%
extension fee.


                                      -18-
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations.

LIQUIDITY AND CAPITAL RESOURCES

American Mortgage Acceptance Company (formerly American Mortgage Investors
Trust) (the "Company") was formed on June 11, 1991 as a Massachusetts business
trust for the primary purpose of investing in government-insured mortgages and
guaranteed mortgage-backed certificates. The Company elected to be treated as a
real estate investment trust ("REIT") under the Internal Revenue Code of 1986,
as amended (the "Code").

On April 6, 1999, the Company received the necessary consent from its
shareholders to approve proposals (the "Proposals") to, among other things,
restructure the Company from a closed-ended, finite-life REIT to a publicly
traded, open-ended, infinite-life operating REIT. In addition to restructuring
the Company, the Proposals, among other matters, permit the Company to modify
its investment objectives, to incur a specified amount of indebtedness and to
list the Company's shares on a national exchange.

Effective April 26, 1999, upon authorization by the Board of Trustees, the
Company's name was changed from American Mortgage Investors Trust to American
Mortgage Acceptance Company. The Company's shares of beneficial interest (the
"Shares") commenced trading on the American Stock Exchange on July 1, 1999 under
the symbol "AMC".

The Company's new business plan as a publicly traded REIT focuses on three types
of mortgage products: 1) origination of participating FHA insured multifamily
mortgages, 2) origination of construction and permanent mortgage financing for
affordable multifamily housing pursuant to a new venture with Federal National
Mortgage Association ("Fannie Mae"), and 3) acquisition of subordinated
interests in commercial mortgage-backed securities.

As of June 30, 2000, the Company's mortgage investments consisted of four
mortgage loans originated by or on behalf of the Company, three GNMA
mortgage-backed securities and pass-through certificates and one commercial
mortgage-backed security ("CMBS")-related investment.

The current composition of the Company's investment portfolio reflects the
recent change in the Company's business plan and is not comparable to its
investment portfolio prior to April 1999. Furthermore, the Company is still in
the process of implementing its new business plan and, therefore, the current
portfolio should not be considered indicative of the composition of the
portfolio that might be expected in the future.

During the six months ended June 30, 2000, cash and cash equivalents increased
approximately $3,344,000 primarily due to cash provided by operating activities
($1,299,000), principal repayments of mortgage loans and GNMA Certificates
($13,864,000) and proceeds from a repurchase facility payable ($1,594,000) which
exceeded an increase in investment in mortgage loans ($9,303,000), distributions
paid to shareholders ($2,783,000), repayments of the repurchase facility payable
($1,097,000), and an increase in deferred costs ($144,000). Included in the
adjustments to reconcile the net income to cash provided by operating activities
is a gain on repayment of mortgage loans ($22,000), a gain on repayments of GNMA
certificates ($58,000), a gain on commercial mortgage-backed, security-related
investment ($298,000), a loss on government securities sold short ($1,008,000)
and net accretion ($148,000).

Net unrealized losses on GNMA investments included in shareholders' equity
pursuant to Statement of Financial Accounting Standards No. 115 aggregated
$149,529 at June 30, 2000. This represents a decrease of $105,410 in the
unrealized loss for the six months ended June 30, 2000, of which a decrease of
$109,073 is attributable to the repayments of GNMA investments (which resulted
in a net realized gain of $(58,363) and an increase of $(3,663) is attributable
to an increase in market prices for


                                      -19-
<PAGE>

GNMA investments held at both June 30, 2000 and December 31, 1999. On January
18, 2000, one of the Company's GNMA certificates in the original amount of
$3,928,615 (including the discount), with an amortized cost basis of $3,671,107
at December 31, 1999, was repaid in the amount of $3,551,736 along with a
prepayment penalty of $177,587 which was received in February 2000. This
repayment (including the prepayment penalty) resulted in a realized gain in the
amount of $58,202.

The yield on the GNMA Certificates will depend, in part, upon the rate and
timing of principal prepayments on the underlying mortgages in the asset pool.
Generally, as market interest rates decrease, mortgage prepayment rates increase
and the market value of interest rate sensitive obligations like the GNMA
Certificates increases. As market interest rates increase, mortgage prepayment
rates tend to decrease and the market value of interest rate sensitive
obligations like the GNMAs tends to decrease. The effect of prepayments on yield
is greater the earlier a prepayment of principal is received.

The operations of Town & Country had not been able to support the payment of
Additional Interest on the mortgage loan for the period July 1, 1997 through
December 31, 1999 which amounted to $411,911. Accordingly, the accrued interest
income that was doubtful of collection was fully reserved and excluded from
interest income from mortgage loans in previous quarters. On January 21, 2000,
the general partner of Town & Country Estates, Ltd. (the "Town & Country
Obligor"), the owner of Town & Country Apartments, in exchange for the waiving
of the prepayment penalty and future Additional Interest and also because the
obligation was secured by its partnership interest in the obligor, repaid the
additional loan and Additional Interest due through January 21, 2000 in the
amounts of $1,039,000 and $421,273, respectively. As a result, the Additional
Interest which had been fully reserved was deemed to be fully collectible and
recorded as interest income in the fourth quarter of 1999. On March 31, 2000,
the Town & Country Obligor fully repaid the outstanding balance of the FHA
insured mortgage loan and accrued Base Interest in the amounts of $8,934,581 and
$53,049, respectively. The Town & Country Obligor has no further obligations to
the Company. The repayment of the FHA insured mortgage loan and the additional
loan resulted in a gain on the repayment (including a $45,000 loan termination
fee due from the Company to the loan servicing agent and unamortized origination
costs) in the amount of $21,999.

The yield on the mortgage loans will depend, in part, on when, and if, the
Company disposes of the mortgage loans prior to maturity or the obligor fully
repays the outstanding debt. The mortgage loans have fixed interest rates, the
base amount of which is insured by HUD, resulting in a minimal amount of
interest rate risk. The effects of prepayment on yield is greater the earlier a
prepayment of principal is received. Due to the uncertainty of future economic
and other factors that affect interest rates and mortgage prepayments, it is not
possible to predict the effects of future events upon the yield to maturity or
the market value of the mortgage loans upon any sale or other disposition or
whether the Company, if it chose to, would be able to reinvest proceeds from
prepayments at favorable rates relative to the current mortgage loan rates. As
described below, two mortgage loans were repaid and the Company is still in the
process of reinvesting the proceeds of such repaid mortgage loans.

On September 30, 1999, the Company acquired from ARCap Investors, L.L.C.
("ARCap") a "BB+" rated subordinated commercial mortgage-backed security
("CMBS") from a Chase Manhattan Bank-First Union Nation Bank Commercial Mortgage
Trust (the "Chase-First Union Trust"). The CMBS investment, which was purchased
for $35,622,358, has a face amount of $50,399,711 and an annual coupon rate of
6.4%. The Company purchased the CMBS investment using cash and debt provided
through a repurchase facility. In connection with this acquisition, the Company
entered into an agreement (the "Agreement") with ARCap. ARCap acquired from the
Chase-First Union Trust all of the commercial mortgage backed securities that
are subordinate to the CMBS investment (the "Subordinate Bonds") acquired by the
Company. Under the Agreement, the Company has the right to acquire a portion of
the Subordinate Bonds from ARCap and to exchange a portion or all of the CMBS
investment and Subordinate Bonds for a preferred equity interest in ARCap.
Furthermore, the Company has the right to participate on the same terms with
ARCap in any subsequent resecuritization by ARCap of the Chase-First Union Trust
bond issuance. In connection with such resecuritization, ARCap has the


                                      -20-
<PAGE>

right to cause the Company to choose between three alternative options: (i) to
sell the CMBS investment to ARCap; (ii) to participate with ARCap in the
resecuritization; or (iii) to exchange the CMBS investment for a preferred
equity position in ARCap, all based on the then fair value of the CMBS
investment. As of June 30, 2000 the CMBS-related investment had an estimated
fair value of $34,992,519 and an amortized cost of $36,113,959, resulting in an
unrealized loss of $1,121,440 at that date which is included in "net unrealized
losses on commercial mortgage-backed security-related investment and government
security sold short" in the statements of income. The fair value of the
Company's CMBS-related investment is generally estimated by management based on
market prices provided by certain dealers who make a market in these financial
instruments. The market for CMBS periodically suffers from a lack of liquidity.
Accordingly, the fair value reported may not necessarily be indicative of the
amount the Company could realize in a current liquidation of this investment.

The yield to maturity on the Company's CMBS-related investment depends on, among
other things, the rate and timing of principal payments, the pass-through rate
and interest rate fluctuations. The subordinated CMBS interest provides credit
support to the more senior interests of the related commercial securitization.
Cash flow from the mortgages underlying the CMBS interest generally is allocated
first to the senior interests, with the most senior interest having a priority
entitlement to cash flow. Remaining cash flow is allocated generally among the
other CMBS interests in order of their relative seniority. To the extent that
there are defaults and unrecoverable losses on the underlying mortgages,
resulting in reduced cash flows, the most subordinate CMBS interest will bear
this loss first. To the extent there are losses in excess of the most
subordinated interest's stated entitlement to principal and interest, then the
remaining CMBS interests will bear such losses in order of their relative
subordination. There is, therefore no assurance that the yield to maturity
discussed above will be achieved.

The Company enters into contracts to sell securities that it does not own at the
time of sale ("short sales"). The Company utilizes these contracts as a means of
mitigating the potential financial statement impact of changes in the fair value
of its CMBS-related investment due to changes in interest rates. The broker
which lends the securities to the Company retains the proceeds from the sale
until the Company replaces the borrowed security. On September 30, 1999, the
Company entered into a Short Sale involving the sale of a U.S. Treasury Note
with a face amount of $39,327,000 and an annual coupon rate of 5.625% borrowed
from Bear Stearns & Co., Inc. ("Bear Stearns") for net proceeds of $39,028,841
(which included accrued interest of $835,565). On March 16, 2000, the Company
replaced the borrowed security by purchasing such security through Bear Stearns
for $37,299,201 resulting in a realized gain of $894,075 and entered into an
additional Short Sale contract involving the sale of a U.S. Treasury Note with a
face amount of $34,512,000 and an annual coupon rate of 6.0% borrowed from Bear
Stearns for net proceeds of $33,717,703 (which included accrued interest of
$176,353). As of June 30, 2000, the U.S. Treasury Note involved in the March 16,
2000 Short Sale had an estimated fair value of $34,242,461, resulting in an
unrealized loss of $701,111 at that date which is included in "net unrealized
loss on commercial mortgage-backed security-related investment and government
security sold short" in the statements of income. The Company earned $950,730 on
Short Sale proceeds held by Bear Stearns ($35,029,680 at June 30, 2000) and
incurred interest of $517,679 and $1,071,159 on its Short Sale contracts during
the three and six months ended June 30, 2000.

On September 30, 1999, the Company entered into a repurchase facility (the "Bear
Stearns Repurchase Facility") with Bear Stearns, whereby Bear Stearns advanced
$19,568,000 (55% of the purchase price) in cash towards the purchase of a
CMBS-related investment (see above). The Bear Stearns Repurchase Facility had a
variable interest rate based on the one-month LIBOR rate plus 1.5% (8.14% of
June 30, 2000), which was adjusted on the first day of each month, and
terminated on March 17, 2000. The Bear Stearns Repurchase Facility has been
renewed through August 16, 2000. The Bear Stearns Repurchase Facility is
collateralized by the Company's CMBS-related investment and contains
restrictions based on the then current market value of such investment as
calculated by Bear Stearns. A decline in the market value of the CMBS could
result in cash flow from such investment being diverted to reduce the
outstanding borrowing, the requirement to post additional collateral, or the
sale of


                                      -21-
<PAGE>

such investment. The outstanding balance of the Bear Stearns Repurchase Facility
(based on 55% of the market of the CMBS at June 15, 2000) was $19,624,000 at
June 30, 2000. The Repurchase Facility currently represents the Company's sole
source of liquidity needed to finance its long-term CMBS-related investment. If
the lender fails to renew the Repurchase Facility, the Company will be required
to seek new financing or may have to liquidate the CMBS or other investments.

Effective February 15, 2000, the Company entered into a $60 million FHA
repurchase facility (the "Nomura Repurchase Facility") with Nomura Asset Capital
Corporation. This agreement enables the Company to borrow up to 90% with a
qualified hedge or 80% without a qualified hedge of the fair market value of FHA
loans owned by the Company. The Nomura Master Repurchase Facility has a term of
364 days and bears interest at LIBOR plus 1.25%. On July 28, 2000 and August 2,
2000, the Company received $2,045,060 and $6,755,739, respectively under the
Nomura Repurchase Facility.

In order to qualify as a REIT under the Code, the Company must, among other
things, distribute at least 95% of its taxable income. The Company believes that
it is in compliance with the REIT-related provisions of the Code.

The Company expects that cash generated from the Company's investments will meet
its needs for short-term liquidity, and will be sufficient to pay all of the
Company's expenses and to make distributions to its shareholders in amounts
sufficient to retain the Company's REIT status in the foreseeable future.

During the six months ended June 30, 2000, the Company acquired two mortgage
loans as follows:

On April 18, 2000, the Company acquired a 100% participation interest in an
FHA-insured first mortgage loan and an additional loan, secured by Hollows
Apartments, a multifamily market-rate housing apartment complex located in North
Carolina. The interest rates for Hollows Apartments are 9.6083% per annum during
the permanent loan period and 7.875% during the construction period. The Note
rate of 7.875% is fully insured by HUD, and secured by a first mortgage deed of
trust. Payments in excess of the Note rate, up to a rate of 9.6083% are secured
by a second mortgage deed of trust and are guaranteed until August 2004 by an
entity related to the general partner of the partnership which owns Hollows
Apartments. The principal balance of the Additional Loan is secured by a
non-interest bearing third mortgage deed of trust. In addition to the interest
rate during the permanent loan period, the Company is entitled to 50% of cash
flow, if any, remaining after the payment of debt service and 25% of the sale or
refinancing proceeds. The total loan is comprised of the mortgage loan of
$8,946,100 and the additional loan of $1,549,200. As of June 30, 2000, $937,044
of the mortgage loan and the full amount of the additional loan had been funded.
Both loans mature in January, 2042 and have 5-year lockouts against prepayment,
as well as a prepayment penalty structure during the second 5-year period of the
loans.

On June 28, 2000 the Company acquired a 100% participation interest in an
FHA-insured first mortgage loan and an additional loan, secured by Elmhurst
Village Apartments, a multifamily market-rate housing apartment complex located
in Florida. The interest rates for Elmhurst Village are 9.3232% per annum during
the permanent loan period and 8% during the construction period. The Note rate
of 8% is fully insured by HUD, and secured by a first mortgage deed of trust.
Payments in excess of the Note rate, up to a rate of 9.3232% are secured by a
second mortgage deed of trust and are guaranteed until December 2004 by an
entity related to the general partner of the partnership which owns the Elmhurst
Village Apartments. The principal balance of the Additional Loan is secured by a
non-interest bearing third mortgage deed of trust. In addition to the interest
rate during the permanent loan period, the Company is entitled to 50% of cash
flow, if any, remaining after the payment of debt service and 25% of the sale or
refinancing proceeds. The total loan is comprised of the mortgage loan of
$21,748,200 and the additional loan of $2,874,000. As of June 30, 2000,
$4,636,258 of the mortgage loan and the full amount of the additional loan had
been funded. Both loans mature in January,


                                      -22-
<PAGE>

2042 and have 5-year lockouts against prepayment, as well as a prepayment
penalty structure during the second 5-year period of the loans.

The Company completed a loan venture with Fannie Mae which has agreed to fully
fund the origination of $250 million of Delegated Underwriter and Servicer loans
for apartment properties that qualify for low income housing tax credits under
Section 42 of the Internal Revenue Code. Under the transaction, the Company will
originate and contract for individual loans of up to $6 million dollars each
over a two-year period and will work with American Property Financing, which
will underwrite and service the loans for Fannie Mae. Each property in the
transaction will benefit from 9% low income housing tax credits for no less than
90% of its units. The Company will guaranty a first loss position of up to 10%
of the pool of $250 million and will receive guaranty and other fees. Two loans
totaling $3,465,000 were originated under the loan venture in June, 2000.

Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way.

RESULTS OF OPERATIONS

The net income for the three and six months ended June 30, 2000 and 1999 was
$631,108 and $1,114,324 and $509,488 and $4,489,609, respectively. The total of
the annual operating expenses of the Company may not exceed the greater of (i)
2% of the Average Invested Assets of the Company or (ii) 25% of the Company's
net income, unless such excess is approved by the Independent Trustees. On an
annualized basis, there was no such excess for the six months ended June 30,
2000 and 1999.

Interest income from mortgage loans decreased approximately $114,000 and
$171,000 for the three and six months ended June 30, 2000 as compared to 1999
primarily due to the repayment of the Cove and Oxford mortgage loans on March 1,
1999, the repayment of the Town and Country mortgage loan on March 31, 2000 and
the waiving of additional interest in 2000 with respect to Town & Country which
was partially offset by an increase due to the reversal of Additional Interest
in 1999 relating to Town and Country.

Interest income from GNMA certificates decreased approximately $78,000 and
$158,000 for the three and six months ended June 30, 2000 as compared to 1999
primarily due to the repayment, in full, of one of the GNMA certificates on
January 18, 2000.

Interest income from commercial mortgage-backed security-related investment in
the amount of approximately $957,000 and $1,907,000 was recorded for the three
and six months ended June 30, 2000; such investment was made on September 30,
1999.

Interest income from temporary investments increased approximately $412,000 and
$863,000 for the three and six months ended June 30, 2000 as compared to 1999
primarily due to interest on Short Sale proceeds held by Bear Stearns in 2000 as
collateral for securities sold short.

Interest expense in the amount of approximately $904,000 and $1,813,000 was
recorded for the three and six months ended June 30, 2000 relating to interest
on the Bear Stearns Repurchase Facility entered into on September 30, 1999 and
interest on a government securities sold short on September 30, 1999 and March
16, 2000.

General and administrative expenses decreased approximately $28,000 and
increased approximately $167,000 for the three and six months ended June 30,
2000 as compared to 1999. The decrease for the three months ended June 30, 2000
as compared to 1999 was primarily due to an incentive fee payable to the Advisor
being recorded in 1999. The increase for the six months ended June 30, 2000 as
compared to 1999 was primarily due to an increase in asset management fees
payable to the Advisor due to the commercial mortgage-backed security-related
investment made on September 30, 1999, an increase in the reimbursements of
certain administrative and other costs incurred by the Advisor on


                                      -23-
<PAGE>

behalf of the Company and an increase in public relations and advertising
expenses due to the restructuring of the Company on April 6, 1999 which were
partially offset by a decrease due to an incentive fee payable to the Advisor
being recorded in 1999.

Amortization in the amount of approximately $40,000 and $54,000 was recorded for
the three and six months ended June 30, 2000 due to amortization of deferred
costs relating to the Nomura Repurchase Facility.

Net gain on repayments of GNMA certificates increased $59,000 for the six months
ended June 30, 2000 as compared to 1999 primarily due to the repayment, in full,
of one of the GNMA certificates on January 18, 2000.

A net loss on the commercial mortgage-backed security-related investment and
government securities sold short in the amounts of approximately $254,000 and
$711,000 was recorded for the three and six months ended June 30, 2000 relating
to a commercial mortgage-backed security-related investment made on September
30, 1999 and securities sold short on September 30, 1999 and March 16, 2000.

Gains on repayment of mortgage loans in the amounts of approximately $22,000 and
$3,273,000 were recorded for the six months ended June 30, 2000 and 1999,
respectively, relating to the repayment of the Town & Country additional loan
and FHA insured mortgage loan on January 21, 2000 and March 31, 2000,
respectively and the repayment of the Cove and Oxford FHA insured mortgage loans
and additional loans on March 1, 1999.

DISTRIBUTIONS

Of the total distributions of $2,783,008 and $2,775,826 for the six months ended
June 30, 2000 and 1999, respectively, $1,668,684 ($.43 per share or 60%) and $0,
respectively, represented a return of capital determined in accordance with
generally accepted accounting principles. As of June 30, 2000, the aggregate
amount of the distributions made since the commencement of the initial public
offering representing a return of capital, in accordance with generally accepted
accounting principles, totaled $13,538,152. The portion of the distributions
which constituted a return of capital was significant during the initial
acquisition stage in order to maintain level distributions to shareholders.

FORWARD-LOOKING STATEMENTS

Certain statements made in this report may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include statements regarding the intent, belief or
current expectations of the Company and its management and involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among other things, the
following: general economic and business conditions, which will, among other
things, affect the availability and creditworthiness of prospective tenants,
lease rents and the terms and availability of financing; adverse changes in the
real estate markets including, among other things, competition with other
companies; risks of real estate development and acquisition; governmental
actions and initiatives; and environment/safety requirements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof.

INFLATION

Inflation did not have a material effect on the Company's results for the
periods presented.


                                      -24-
<PAGE>

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the exposure to loss resulting from changes in interest rates,
changes in spreads on CMBS, foreign currency exchange rates, commodity prices
and equity prices. The primary market risks to which the investments of the
Company are exposed are interest rate risk and CMBS spread risk, which are
highly sensitive to many factors, including governmental monetary and tax
policies, domestic and international economic and political considerations and
other factors beyond the control of the Company.

Changes in the general level of interest rates can affect the net interest
income of the Company. The following table demonstrates the estimated effect, at
June 30, 2000, that changes in interest rates would have on the annual net
interest income from, and the valuation of the Company's CMBS-related investment
and short positions in government securities. All changes in income and
valuation are measured as percentage changes from the projected income and
valuation if no change in interest rates were to occur.

 CHANGE IN EXPECTED ANNUAL INCOME FROM THE CMBS-RELATED INVESTMENT
          AND SHORT POSITIONS FROM CHANGES IN INTEREST RATES

<TABLE>
<CAPTION>
                                    CHANGE IN INCOME *
                              ------------------------------
CHANGE IN INTEREST RATES        AMOUNT            PERCENTAGE
-------------------------     ------------------------------
<S>                           <C>                     <C>
-250 Basis Points             $ 333,897                8.6%
-200 Basis Points               267,118                6.9%
-150 Basis Points               200,338                5.2%
-100 Basis Points               133,559                3.4%
-50 Basis Points                 66,779                1.7%
No Change                             0                0.0%
+50 Basis Points                (66,779)              -1.7%
+100 Basis Points              (133,559)              -3.4%
+150 Basis Points              (200,338)              -5.2%
+200 Basis Points              (267,118)              -6.9%
+250 Basis Points              (333,897)              -8.6%
</TABLE>

* Income includes expected interest income from the CMBS-related investment,
amortization of market discount on CMBS, net interest expense on short positions
in government securities and mark to market adjustments to the CMBS-related
investment and government securities from changes in interest rates.

The Company is further exposed to interest rate risk through its short term
financing through repurchase agreements at rates that are based on 30-day LIBOR.
Changes in interest rates may increase the Company's cost of financing its
investments. The following table demonstrates the estimated effect, at June 30,
2000, that changes in interest rates would have on the annual interest expense
of the Company.


                                      -25-
<PAGE>

 CHANGE IN ANNUAL INTEREST EXPENSE UNDER REPURCHASE AGREEMENT FROM
                           CHANGES IN LIBOR

<TABLE>
<CAPTION>
                                CHANGE IN INTEREST EXPENSE
                             -------------------------------
CHANGE IN LIBOR                AMOUNT             PERCENTAGE
----------------             -------------------------------
<S>                          <C>                    <C>
-250 Basis Points            $-490,600              -31%
-200 Basis Points             -392,480              -25%
-150 Basis Points             -294,360              -18%
-100 Basis Points             -196,240              -12%
-50 Basis Points               -98,120               -6%
No change in LIBOR                   0                0%
+50 Basis Points                98,120                6%
+100 Basis Points              196,240               12%
+150 Basis Points              294,360               18%
+200 Basis Points              392,480               25%
+250 Basis Points              490,600               31%
</TABLE>

The investments of the Company are also exposed to spread risk. The price of a
fixed income security is generally determined by adding an interest rate spread
to a benchmark interest rate, such as the U.S. Treasury rate. As the spread on a
security widens (or increases), the price (or value) of the security falls. As
spreads on CMBS widen, the fair value of the Company's portfolio falls. Spread
widening in the market for CMBS can occur as a result of market concerns over
the stability of the commercial real estate market, excess supply of CMBS, or
general credit concerns in other markets. The following table demonstrates the
estimated effect that changes in CMBS spreads would have on the value of the
Company's CMBS-related investment at June 30, 2000:

 CHANGE IN VALUE OF CMBS-RELATED INVESTMENT FROM CHANGES IN CMBS
                             SPREADS

<TABLE>
<CAPTION>
                             CHANGE IN CMBS PORTFOLIO VALUE
                            ---------------------------------
CHANGE IN CMBS SPREADS         AMOUNT              PERCENTAGE
----------------------      ---------------------------------
<S>                         <C>                      <C>
-250 Basis Points           $ 6,228,668               17.8%
-200 Basis Points             4,982,935               14.2%
-150 Basis Points             3,737,201               10.7%
-100 Basis Points             2,491,467                7.1%
-50 Basis Points              1,245,734                3.6%
No change in CMBS Spreads             0                0.0%
+50 Basis Points             -1,245,734               -3.6%
+100 Basis Points            -2,491,467               -7.1%
+150 Basis Points            -3,737,201              -10.7%
+200 Basis Points            -4,982,935              -14.2%
+250 Basis Points            -6,228,668              -17.8%
</TABLE>

The above tables show the possible impact of changes in interest rates and CMBS
spreads on the Company's CMBS-related investment, the financing related to that
investment, and the associated hedging instruments. Cash flows and income from
the Company's other financial instruments, consisting primarily of mortgage
loans, GNMA certificates, and cash and cash equivalents, would not be
significantly affected by changes in interest rates, because most of these
instruments bear interest at fixed rates, and are not subject to financing or
hedged. Cash and cash equivalents and the mortgage loans are carried at
amortized cost, and so their carrying values are not impacted by changes in
interest rates. The GNMA investments are adjusted to market value through
comprehensive income in the equity statement, but changes in their value have
not historically been significant to shareholders' equity.

The Company's analysis of risks is based on management's experience, estimates
and assumptions. These analyses rely on financial models, which utilize
estimates of fair value and interest rate sensitiv-


                                      -26-
<PAGE>

ity. Actual economic conditions or implementation of investment decisions by
management may produce results significantly different from the projected
results shown in the above tables.


                                      -27-
<PAGE>

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

       The Company is not a party to any material pending legal proceedings.

Item 2.  Changes in Securities - None

Item 3.  Defaults Upon Senior Securities - None

Item 4.  Submission of Matters to a Vote of Security Holders - None

Item 5.  Other Information

         John B. Roche ceased to serve as Chief Financial Officer effective May
         15, 2000. Alan P. Hirmes was appointed interim Chief Financial Officer
         effective May 15, 2000. Michael I. Wirth has been appointed the
         position of Chief financial Officer and will replace Alan P. Hirmes
         effective August 16, 2000

Item 6.  Exhibits and Reports on Form 8-K

         (a) EXHIBITS

             27 Financial Data Schedule (filed herewith).

         (b) REPORTS ON FORM 8-K

           No reports on Form 8-K were filed during this quarter.

                                      -28-

<PAGE>

                                   SIGNATURES

Pursuant to the requirements 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.


                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                                  (Registrant)


Date:  August 13, 2000                By:  /s/ Stuart J. Boesky
                                           --------------------
                                           Stuart J. Boesky
                                           Trustee, Chairman of the Board,
                                           President and Chief Executive Officer


Date:  August 13, 2000                By:  /s/ Alan P. Hirmes
                                           ------------------
                                           Alan P. Hirmes
                                           Interim Chief Financial Officer