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 September 30, 2002


                                       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 AND SUBSIDIARIES
                           Consolidated Balance Sheets
                             (Dollars in thousands)

<TABLE>
<CAPTION>

                                                   =============   =============
                                                    September 30,   December 31,
                                                        2002            2001
                                                   -------------   -------------
                                                    (Unaudited)
<S>                                                     <C>            <C>
ASSETS
Investments in mortgage loans                           $ 20,406       $ 17,799
Investments in GNMA certificates-
   available for sale                                     99,439         50,060
Investment in ARCap                                       20,240         20,246
Cash and cash equivalents                                  2,759          1,018
Notes receivable                                          14,997         11,373
Accrued interest receivable                                  900            570
Other assets                                                 436            916
                                                        --------       --------
Total assets                                            $159,177       $101,982
                                                        ========       ========

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:

   Repurchase facilities payable                        $ 62,412       $ 43,610
   Accrued interest payable                                   49             22
   Accounts payable and accrued expenses                     503          1,348
   Due to Advisor and affiliates                             441            331
   Distributions payable                                   2,386          1,392
                                                        --------       --------
Total liabilities                                         65,791         46,703
                                                        --------       --------

Commitments and contingencies
Shareholders' equity:
   Shares of beneficial interest; $.10 par value;
     25,000,000 shares authorized; 6,738,826 issued
     and 6,363,630 outstanding and 4,213,826 issued
     and 3,838,630 outstanding in 2002 and 2001,
     respectively                                            674            421
   Treasury shares of beneficial interest;
     375,196 shares                                          (38)           (38)
   Additional paid-in capital                             99,470         68,841
   Distributions in excess of net income                 (14,399)       (14,505)
   Accumulated other comprehensive income                  7,679            560
                                                        --------       --------
Total shareholders' equity                                93,386         55,279
                                                        --------       --------
Total liabilities and shareholders' equity              $159,177       $101,982
                                                        ========       ========
</TABLE>

          See accompanying notes to consolidated financial statements

                                       2
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                        Consolidated Statements of Income
               (Dollars in the thousands except per share amounts)
                                   (Unaudited)


<TABLE>
<CAPTION>

                                   ====================    ====================
                                    Three Months Ended       Nine Months Ended
                                       September 30,            September 30,
                                   --------------------    --------------------
                                      2002       2001        2002        2001
                                   --------------------    --------------------
<S>                                <C>        <C>          <C>        <C>
Revenues:
  Interest income:
    Mortgage loans                 $     536  $     350    $   1,546   $  2,257
    GNMA certificates                  1,548        859        4,002      1,354
    Notes receivable                     548        127        1,662        234
    Temporary investments                 16         20           40         47
   Equity in earnings of ARCap           600        604        1,800      1,788
   Other income                           67         40          203         70
                                   ---------  ---------    ---------  ---------
    Total revenues                     3,315      2,000        9,253      5,750
                                   ---------  ---------    ---------  ---------

Expenses:
  Interest                               290        463          869      1,100
  General and administrative             119        113          409        375
  Fees to advisor                        318        122        1,046        418
  FNMA loan program                       --         --          358         --
                                   ---------  ---------    ---------  ---------

    Total expenses                       727        698        2,682      1,893
                                   ---------  ---------    ---------  ---------

  Net gain (loss) on repayments of
    GNMA certificates and
    mortgage loans                        --       (212)         614       (212)
                                   ---------  ---------    ---------  ---------

  Net income                       $   2,588  $   1,090    $   7,185  $   3,645
                                   =========  =========    =========  =========

  Net income per share (basic
    and diluted)                   $     .41  $     .28    $    1.22  $     .95
                                   =========  =========    =========  =========

  Weighted average shares
    outstanding (basic and
    diluted)                       6,363,630  3,838,630    5,901,176  3,838,630
                                   =========  =========    =========  =========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                        3
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
            Consolidated Statement of Changes in Shareholders' Equity
                             (Dollars in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                    Shares of Beneficial     Treasury Shares of
                                          Interest           Beneficial Interest
                                    ---------------------    -------------------
                                      Shares      Amount      Shares     Amount
                                    ---------   ---------    --------  ---------
<S>                                 <C>        <C>           <C>       <C>

Balance at January 1, 2002          4,213,826  $      421    (375,196) $    (38)


Comprehensive income:
Net income                                 --          --          --        --
Other comprehensive income:
  Unrealized holding gain arising
   during the period
Less: reclassification adjustment
   for gain included in net income

Total other comprehensive gain

Comprehensive income

Issuance of common shares           2,525,000         253
Distributions                              --          --          --        --
                                    ---------  ----------    --------  --------

Balance at September 30, 2002       6,738,826  $      674    (375,196) $    (38)
                                    =========  ==========    ========  ========

</TABLE>

<TABLE>
<CAPTION>
                                                                                     Accumulated
                                   Additional     Distributions                         Other
                                     Paid-in        in Excess      Comprehensive     Comprehensive
                                     Capital      of Net Income       Income            Income           Total
                                   ----------     -------------    -------------    --------------     ---------
<S>                                <C>            <C>                 <C>              <C>             <C>

Balance at January 1, 2002         $   68,841     $  (14,505)                          $   560         $  55,279

Comprehensive income:
Net income                                 --          7,185          $   7,185             --             7,185
Other comprehensive income:
  Unrealized holding gain arising                                         7,733
   during the period
Less: reclassification adjustment
   for gain included in net income                                         (614)
                                                                      ---------
Total other comprehensive gain                                            7,119          7,119             7,119
                                                                      ---------
Comprehensive income                                                  $  14,304
                                                                      =========
Issuance of common shares              30,629                                                             30,882
Distributions                              --         (7,079)                               --            (7,079)
                                   ----------     ----------                           -------         ---------

Balance at September 30, 2002      $   99,470     $  (14,399)                          $ 7,679         $  93,386
                                   ==========     ==========                           =======         =========
</TABLE>


          See accompanying notes to consolidated financial statements.

                                       4

<PAGE>

               AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                             (Dollars in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                      =====================
                                                        Nine Months Ended
                                                           September 30,
                                                      ---------------------
                                                        2002        2001
                                                      --------    ---------

<S>                                                   <C>         <C>
Cash flows from operating activities:
   Net income                                         $   7,185   $   3,645
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Net (gain) loss on repayments of GNMA
       Certificates and mortgage loans                     (614)        212
     Equity in earnings of ARCap, in excess of
       (less than) distributions received                     5        (197)
     Amortization - deferred financing costs                  6          35
     Amortization - loan premium and
       origination costs                                    (75)         41
     Accretion of GNMA discount (premium)                    14         (16)
     Accretion of deferred income                            --         (39)
     Changes in operating assets and liabilities:
       Accrued interest receivable                         (330)        254
       Other assets                                          53           6
       Due to Advisor and affiliates                        110        (798)
       Accounts payable and accrued expenses               (845)        117
       Accrued interest payable                              28           2
                                                      ---------   ---------

   Net cash provided by operating activities              5,537       3,262
                                                      ---------   ---------

Cash flows from investing activities:
   Increase in investment in mortgage loans              (2,566)    (19,794)
   Periodic principal payments of mortgage loans             34         194
   Funding of notes receivable                           (3,520)     (4,139)
   Principal repayments of GNMA Certificates                287         244
   Increase in investment in GNMA Certificates          (41,949)     (6,556)
   Decrease (increase) in other assets                      370         (59)
                                                      ---------   ---------

Net cash used in investing activities                   (47,344)    (30,110)
                                                      ---------   ---------

</TABLE>

           See accompanying notes to consolidated financial statements


                                       5
<PAGE>

              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                             (Dollars in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                      =====================
                                                        Nine Months Ended
                                                           September 30,
                                                      ---------------------
                                                        2002        2001
                                                      ---------    --------

<S>                                                   <C>          <C>
Cash flows from financing activities:
   Proceeds from repurchase facilities payable           18,802      30,535
   Distributions paid to shareholders                    (6,084)     (4,175)
   Increase in deferred loan costs                          (52)        (42)
   Issuance of common shares                             30,882          --
                                                      ---------    --------

Net cash provided by financing activities                43,548      26,318
                                                      ---------    --------

Net increase (decrease) in cash and cash
   equivalents                                            1,741        (530)
Cash and cash equivalents at the beginning
   of the period                                          1,018       1,632
                                                      ---------    --------
Cash and cash equivalents at the end of the
   period                                             $   2,759    $  1,102
                                                      =========    ========
Supplemental information:
  Interest paid                                       $     841    $  1,098
                                                      =========    ========

Consolidation of formerly unconsolidated subsidiary:
Increase in investment in mortgage loans                           $  8,353
Decrease in notes receivable                                         (7,264)
Decrease in investment in unconsolidated
   subsidiary                                                        (1,089)
                                                                   --------
                                                                   $     --
                                                                   --------
Conversion of FHA mortgage loans to
   GNMA certificates:

Investment in GNMA certificates                                    $ 34,515
Decrease in investment in mortgage loans                            (34,515)
                                                                   --------

                                                                   $     --
                                                                   --------
</TABLE>

           See accompanying notes to consolidated financial statements

                                       6
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (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.  The  Company  elected to be treated as a real  estate  investment  trust
("REIT") under the Internal Revenue Code of 1986, as amended.

The Company's  business  plan focuses on  originating  and acquiring  government
insured and uninsured  mortgages secured by multi-family  properties,  which may
take the form of  government  insured first  mortgages  and uninsured  mezzanine
loans,  construction  loans and bridge  loans.  Additionally,  the  Company  has
indirectly invested in subordinate commercial mortgage-backed securities and may
invest in other real estate assets, including non-multi-family mortgages.

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".

On February 25,  2002,  the Company  completed a public  offering of 2.5 million
common  shares  at a price of  $13.50  per  share.  The net  proceeds  from this
offering,  approximately $31 million net of underwriters' discount and expenses,
have been primarily used to invest in GNMA Certificates.

The Company is governed by a board of trustees  comprised  of three  independent
trustees and two  trustees  who are  affiliated  with  Related  Capital  Company
("Related").   The  Company  has  engaged  Related  AMI  Associates,  Inc.  (the
"Advisor"),  an  affiliate of Related,  to manage its  day-to-day  affairs.  The
Advisor has  subcontracted  with Related to provide the  services  contemplated.
Through the  Advisor,  Related  offers the  Company a core group of  experienced
staff and  executive  management  providing  the Company with services on both a
full  and  part-time  basis.   These  services  include,   among  other  things,
acquisition, financial, accounting, capital markets, asset monitoring, portfolio
management,  investor  relations  and public  relations  services.  The  Company
believes  that it benefits  significantly  from its  relationship  with Related,
because  Related  provides the Company  with  resources  that are not  generally
available to smaller-capitalized, self-managed companies.

The consolidated  financial  statements  include the accounts of the Company and
two wholly-owned  subsidiaries  which it controls:  AMAC Repo Seller and AMAC/FM
Corporation  ("AMAC/FM").  All intercompany  accounts and transactions have been
eliminated  in  consolidation.  Unless  otherwise  indicated,  the  "Company" as
hereinafter  used,  refers  to  American  Mortgage  Acceptance  Company  and its
subsidiaries.

The consolidated  financial statements of the Company 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 September 30, 2002
and the results of its operations for the three and nine months ended  September
30, 2002 and 2001 and its cash flows for the nine  months  ended  September  30,
2002 and 2001. 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 accounting principles generally
accepted  in the  United  States of  America  ("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, 2001.

The preparation of the consolidated 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.

                                       7

<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)



In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
No. 141, "Business  Combinations (SFAS 141) and Statement No. 142, "Goodwill and
Other Intangible  Assets" (SFAS 142).  These statements  establish new standards
for  accounting  and  reporting for business  combinations  and for goodwill and
intangible assets resulting from business combinations.  SFAS 141 applies to all
business  combinations  initiated  after June 30, 2001; the Company  implemented
SFAS 142 on January 1, 2002.  Implementation  of these statements did not have a
material impact on the Company's consolidated financial statements.

In June 2001,  the FASB issued SFAS No. 143,  "Accounting  for Asset  Retirement
Obligations".  SFAS No. 143  requires  the fair value of a liability or an asset
retirement obligation to be recorded in the period in which it is incurred. SFAS
No. 143 is not effective  until January 1, 2003.  Management does not anticipate
that the  implementation  of this statement  will have a material  impact on the
Company's consolidated financial statements.

In  August  2001,  the  FASB  issued  Statement  No.  144,  "Accounting  for the
Impairment or Disposal of Long Lived Assets"  (effective  January 1, 2002). SFAS
No. 144 supercedes  existing  accounting  literature dealing with impairment and
disposal of long-lived assets, including discontinued  operations.  It addresses
financial  accounting and reporting for the impairment of long-lived  assets and
for  long-lived  assets to be disposed  of, and expands  current  reporting  for
discontinued  operations to include disposals of a "component" of an entity that
has been disposed of or is classified as held for sale. The Company  implemented
SFAS No. 144 on January 1, 2002.  Implementation  of SFAS No. 144 did not have a
material impact on the Company's consolidated financial statements.

In April 2002, the FASB issued  Statement No. 145 "Rescission of FASB Statements
No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections".
SFAS No. 145 among  other  things,  rescinds  SFAS No. 4,  "Reporting  Gains and
Losses from Extinguishment of Debt", and accordingly, the reporting of gains and
losses from the early  extinguishments of debt as extraordinary  items will only
be required if they meet the specific criteria for extraordinary  items included
in  Accounting  Principles  Board  Opinion  No. 30,  "Reporting  the  Results of
Operations".  The  rescission  of SFAS  No.  4 is  effective  January  1,  2003.
Management  does not anticipate that the  implementation  of this statement will
have a material impact on the Company's consolidated financial statements.

In July  2002,  the  FASB  issued  Statement  No.  146,  "Accounting  for  Costs
Associated  with Exit or  Disposal  Activities.  SFAS No. 146  replaces  current
accounting literature and requires the recognition of costs associated with exit
or  disposal  activities  when they are  incurred  rather  than at the date of a
commitment  to an exit or disposal  plan.  SFAS No. 146 is not  effective  until
January 1, 2003.  Management does not anticipate that the implementation of this
statement will have a material  effect on the Company's  consolidated  financial
statements.

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

                                       8
<PAGE>


               AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                    Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


Note 2 - Investments in Mortgage Loans

Information  relating to  investments in mortgage loans as of September 30, 2002
is as follows:

<TABLE>
<CAPTION>

                                              Final                            Periodic
                                            Maturity     Call       Interest    Payment     Prior
Property                       Description    Date       Date       Rate (B)     Terms      Liens
--------                       -----------  --------   --------     --------   ---------  ----------
<S>                             <C>          <C>         <C>         <C>          <C>     <C>
First Mortgage Loans
    Stony Brook II
      East Haven, CT (E)(M)     125 Units     6/37       12/06       7.625%       (F)             --
    Sunset Gardens
      Eagle Pass, TX             60 Units     9/03         TBD       11.50%       (H)             --
    Northbrooke
      Harris County, TX         240 Units     8/43         N/A        7.45%       (L)             --
    Alexandrine
      Detroit, MI (N)            30 Units    11/02         N/A       11.00%       (H)             --

Subtotal First Mortgage Loans

Mexxanine Loans (G):

  Stabilized Properties
  ---------------------
    Stony Brook II (J)
      East Haven, CT            125 Units     6/37       12/06       15.33%       (H)      8,297,343
    Plaza at San Jacinto (K)
      Houston, TX               132 Units     1/43        6/11       11.40%       (H)      6,638,300

Subtotal Stabilized Mezzanine
  Loans

  Properties in Lease-Up
  ----------------------
    The Hollows (K)
      Greenville, NC            184 Units     1/42        1/12       10.00%       (H)      8,481,092
    Elmhurst Village (J)
      Oveido, FL                313 Units     1/42        3/19       10.00%       (H)     21,697,184(L)
    The Reserve at Autmn Creek(J)
      Friendswood, TX           212 Units     1/42        9/14       10.00%       (H)     16,038,089(L)

Subtotal Properties in Lease-UP

  Properties in Construction
  --------------------------
    Club at Brazos (I)
      Rosenberg, TX             200 Units     5/43         TBD       10.00%       (H)     14,363,800
    Northbrooke (J)
      Harris County, TX         240 Units     8/43         TBD       11.50%       (H)      6,143,579(L)

Subtotal Properties
    in Construction

Subtotal Mezzanine Loans

Total Mortgage Loans

</TABLE>

<TABLE>
<CAPTION>
                                                                        Interest Income
                                                                       Earned Applicable
                                    Outstanding                        To the Six Months
                                  Face Amount of    Carrying Amount          Ended
Property                           Mortgages (C)    of Mortgages (D)   September 30, 2002
--------                          ---------------   ----------------   ------------------
<S>                                 <C>              <C>                   <C>
First Mortgage Loans
    Stony Brook II
      East Haven, CT (E)(M)          $8,297,343       $8,297,343           $  475,383
    Sunset Gardens
      Eagle Pass, TX                    892,902          874,411               61,235
    Northbrooke
      Harris County, TX                      --               --               15,458
    Alexandrine
      Detroit, MI (N)                   342,000          342,000                5,038
                                    -------------------------------------------------
Subtotal First Mortgage Loans         9,352,245        9,513,754              557,114
                                    -------------------------------------------------
Mezzanine Loans (G):

  Stabilized Properties
  ---------------------
    Stony Brook II (J)
      East Haven, CT                    763,909          656,898               67,730
    Plaza at San Jacinto (K)
      Houston, TX                     1,250,000        1,222,189              109,281
                                    -------------------------------------------------

Subtotal Stabilized Mezzanine
  Loans                               2,013,909        1,879,087              117,011
                                    -------------------------------------------------
Properties in Lease-Up
----------------------
    The Hollows (K)
      Greenville, NC                  1,549,200        1,394,186               99,528
    Elmhurst Village (J)
      Oveido, FL                      2,874,000        2,446,037              237,655
    The Reserve at Autmn Creek (J)
      Friendswood, TX                 1,987,000        1,925,753              146,772
                                    -------------------------------------------------

Subtotal Properties in Lease-Up       6,410,200        5,765,976              483,955
                                    -------------------------------------------------

Properties in Construction
--------------------------
    Club at Brazos (I)
      Rosenberg, TX                   1,962,000        1,884,245              148,559
    Northbrooke (J)
      Harris County, TX               1,500,000        1,362,823              179,492
                                    -------------------------------------------------
Subtotal Properties
    in Construction                   3,462,000        3,247,068              328,051
                                    -------------------------------------------------
Subtotal Mezzanine Loans             11,886,109       10,892,131              989,017
                                    -------------------------------------------------
Total Mortgage Loans                $21,418,354      $20,405,885           $1,546,131
                                    =================================================
</TABLE>


                                       9
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


(A)  Loans are subject to mandatory  prepayment  at the option of the Company 10
     years after construction  completion,  with one year's notice. Loans with a
     call date of "TBD" are still under construction.

(B)  Interest  on the  mezzanine  loans is based  on a fixed  percentage  of the
     unpaid principal  balance of the related first mortgage loan (prior liens).
     The amount shown is the approximate effective rate earned on the balance of
     the  mezzanine  loan.  The  mezzanine  loans also  provide for  payments of
     additional interest based on a percentage of cash flow remaining after debt
     service  (generally 50%) and participation in sale or refinancing  proceeds
     (generally 25%) and certain  provisions that cap the Company's total yield,
     including  additional  interest  and  participations,  over the term of the
     loan.

(C)  No principal  amounts of mortgage loans are subject to delinquent  interest
     as of September 30, 2002.

(D)  Carrying  amounts of the mezzanine  loans include  unamortized  origination
     costs and fees and loan discounts.

(E)  Interest and principal  payments on this first  mortgage loan is insured by
     the U.S. Department of Housing and Urban Development.

(F)  Requires  monthly  payments of principal  and  interest  based on a 40-year
     amortization period. Loan is subject to 5-year lockout against prepayments,
     as well as a prepayment  penalty structure during the second 5-year term of
     the loan.

(G)  The principal  balance of the mezzanine loans is secured by the partnership
     interests  of the  entity  that owns the  underlying  property  and a third
     mortgage  deed of  trust.  Interest  payments  on the  mezzanine  loans are
     secured by a second mortgage deed of trust and are guaranteed for the first
     36 months after construction completion by an entity related to the general
     partner of the entity that owns the underlying property.

(H)  Interest only payments are due monthly, with loan balance due at maturity.

(I)  The funding of this mezzanine  loan is based on property level  operational
     achievements.

(J)  The Company has an  interest  in the first lien  position  relating to this
     mezzanine loan.

(K)  The Company does not have an interest in the first lien  position  relating
     to this mezzanine loan.

(L)  The first  mortgage loans related to those  properties  were converted from
     participations  in FHA loans to ownership of the GNMA  Certificates and are
     held by the Company.

(M)  This first  mortgage  loan is pledged  to secure the  Company's  obligation
     under a first loss  protection  agreement with Fannie Mae - See Notes 9 and
     10.

(N)  The Alexandrine first mortgage loan was purchased in August 2002.


                                       10

<PAGE>

               AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                    Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


Note 3 - Investments in GNMA Certificates-Available for Sale

Information  relating to  investments in GNMA  certificates  as of September 30,
2002 is as follows:

<TABLE>
<CAPTION>
                                                                                                                        Income
                                                                                                                        Earned
                                           Date                                                                        Applicable
                                        Purchase/                            Amortized    Unrealized                    to the
                                          Final     Stated     Principal      Cost at     Gain(Loss)    Balance at    Nine Months
                           Certificate   Payment   Interest  at September  at September  at September  at September Ended September
Name                         Number        Due       Rate      30, 2002      30, 2002     30, 2002       30, 2002      30, 2002
----                       -----------   --------  --------   ------------- -----------  -----------   ------------  --------------
<S>                           <C>         <C>        <C>       <C>           <C>          <C>           <C>

Western Manor (1)             0355540     7/27/94    7.125%    $ 2,467,349   $ 2,473,044  $   41,324    $ 2,514,368   $  146,857
                                          3/15/29

Copper Commons (1)            0382486     7/28/94    8.500%      2,093,372     2,162,276      (6,103)     2,156,173      134,380
                                          8/15/29

SunCoast Capital Group,       G002412     6/23/97    7.000%        641,003       641,704      23,346        665,050       39,889
    Ltd. (1)                              4/20/27

Hollows Apts. (2)             511909      5/29/01                       --            --          --             --      196,859


Elmhurst Village (1)          549391      6/28/01    7.745%     21,697,184    21,697,184   2,473,213     24,170,397    1,239,518
                                           1/1/42

Reserve at Autumn Creek (1)   448747      6/28/01    7.745%     16,038,089    16,038,089   2,132,993     18,171,082      889,451
                                           1/1/42

Casitas at Montecito (1)      519289      3/11/02    7.300%      5,787,263     6,180,818     101,194      6,282,012      218,019
                                         10/15/42

Village at Marshfield (1)     519281      3/11/02    7.475%     19,887,779    21,522,879     821,470     22,344,349      779,777
                                          1/15/42

Cantera Crossing              532662      3/28/02    6.500%      4,759,432     4,702,534     467,152      5,169,686      127,119
                                           6/1/29

Fillmore Park (1)             536739      3/28/02    6.700%      1,189,095     1,202,905      31,999      1,234,904       28,376
                                         10/15/42

Northbrooke                   548972      5/24/02    7.080%      6,143,579     6,294,545     646,852      6,941,397      103,807
                                           8/1/43

Ellington Plaza               585494      7/26/02    6.835%      8,795,268     8,844,547     945,633      9,790,180       97,426
                                           6/1/44
                                                               -----------------------------------------------------------------
Total                                                          $89,499,413   $91,760,525  $7,679,073    $99,439,598   $4,001,478
                                                               =================================================================
</TABLE>

(1)  These GNMA  Certificates are pledged as collateral for borrowings under the
     repurchase facility - See Note 5.

(2)  This GNMA Certificate was sold March 25, 2002.


                                       11

<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


The amortized  cost,  unrealized  gain and fair value for the investment in GNMA
Certificates at September 30, 2002 and December 31, 2001 were as follows:

<TABLE>
<CAPTION>

(Dollars in thousands)
                                     September 30,     December 31,
                                         2002              2001
                                    --------------    -------------

<S>                                  <C>               <C>
Amortized cost                       $    91,760       $    49,500
Unrealized gain - net                      7,679               560
                                      ----------        ----------
Fair Value                           $    99,439       $    50,060
                                      ==========        ==========
</TABLE>

As of  September  30,  2002,  there  were gross  unrealized  gains and losses of
$7,685,176 and $6,103,  respectively.  As of December 31, 2001, there were gross
unrealized gains and losses of $579,252 and $18,865, respectively.

On  March  25,  2002,  the  Company  sold  the  Hollows  GNMA   Certificate  for
approximately  $9.6  million.  The  amortized  cost at the  date of the sale was
approximately $9.0 million,  resulting in a gain of approximately  $614,000. The
Company  recorded the sale on the trade date of March 25, 2002.  The  settlement
date was in April 2002.


                                       12
<PAGE>


               AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                    Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


NOTE 4 - Notes Receivable

The Company's  notes  receivable are  collateralized  by equity  interest in the
owner of the related  property and consist of the  following as of September 30,
2002:

<TABLE>
<CAPTION>


                                                                                            Remaining
                                          Number of                        Outstanding      Committed
                                          Apartment        Carrying         Principal       Balance to     Interest
Property              Location              Units           Amount           Balance           Fund          Rate        Maturity
------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                     <C>            <C>            <C>                <C>            <C>

Alexandrine (2)     Detroit, MI                30          $   213,936    $   213,936                --     12.50%     November 2002

Coronado
   Terrace (2)      San Diego, CA             312              574,292        581,360(1)     $1,418,640     11.00%     December 2002

Plaza Manor (2)     National City, CA         372            1,499,010      1,499,010                --     11.00%     December 2002

Concorde at
   Palm             Houston, TX               360            3,826,254      3,850,000                --     12.00%     December 2003

Parwood (2)         Long Beach, CA            528            1,969,438      2,000,000(1)      2,600,000     11.00%      January 2004

Concord at
   Little York      Houston, TX               276            3,469,654      3,500,000                --     12.00%     February 2004

Concord at
   Gulfgate         Houston, TX               288            3,444,116      3,500,000                --     12.00%          May 2004
                                        --------------------------------------------------------------------------------------------

      Total                                 2,326          $14,996,700    $15,144,306        $4,019,640
                                        ============================================================================================
</TABLE>


(1)  Funded on an as needed basis.
(2)  Affiliated transaction (see Note 6).


                                       13
<PAGE>


               AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                    Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


The  Company's  notes  receivable  pay  interest  only until  maturity  when the
principal is due. As of September 30, 2002,  there were no past due amounts owed
the Company on any note.

NOTE 5 - Repurchase Facilities

During 2001,  the Company was party to a $40 million  repurchase  facility  with
Nomura Asset Capital Corporation,  which enabled the Company to borrow up to 80%
(90% with a qualified  hedge) of the fair market value of FHA loans owned by the
Company.  The interest rate under this repurchase facility was LIBOR plus 1.25%.
As of December 31, 2001 there was no outstanding  balance under this  agreement.
The agreement was not renewed upon its expiration in February 2002.

Effective February 15, 2000, the Company also entered into a repurchase facility
with Nomura Securities  International  Inc. (the "Nomura  Securities  Repurchase
Facility").  This  facility  enables the Company to borrow up to 95% of the fair
market value of GNMA Certificates and other qualified mortgage  securities owned
by the Company,  some of which are pledged as collateral for the borrowings.  In
past quarters,  interest on borrowings was at LIBOR plus 0.50%. During the third
quarter,  interest on borrowings  decreased to LIBOR plus 0.05%. As of September
30, 2002 and December 31, 2001, the amounts outstanding under this facility were
$62,412,000   and   $43,610,000   and  interest  rates  were  1.87%  and  2.58%,
respectively.  Deferred  costs  relating  to the  Nomura  Securities  Repurchase
Facility have been fully  amortized.  All amounts  outstanding  at September 30,
2002,  had  30-day  settlement  terms and are  collateralized  by  certain  GNMA
Certificates as indicated in Note 3.

NOTE 6 - Related Party Transactions

The costs  incurred  to  related  parties  for the three and nine  months  ended
September  30,  2002  and 2001  were as  follows,  all of which  are paid to the
Advisor:

<TABLE>
<CAPTION>
(Dollars in thousands)
                                    Three Months Ended     Nine Months Ended
                                       September 30,          December 31,
                                    -------------------   -------------------
                                      2002      2001        2002      2001
                                    -------------------   -------------------

<S>                                 <C>        <C>         <C>        <C>
Expense reimbursement               $    110   $     61   $    428   $    233
Asset management fees                    208         61        618        185
                                    --------   --------   --------   --------

                                    $    318   $    122   $  1,046   $    418
                                    ========   ========   ========   ========
</TABLE>

Some of the Company's notes  receivable (see Note 4), the guarantee on Creekside
Apartments  and  standby  bridge  loan  commitments  described  in Note 8 are to
limited  partnerships  where the general  partner is an affiliate of the Advisor
with a 1% interest in the limited partnership,  and the 99% limited partner is a
limited  partnership  in which an  affiliate  of the  Advisor  owns a 1% general
partnership  interest  and one or more Fortune 500  companies  own a 99% limited
partnership interest.

Note 7 - Earnings Per Share

Basic net income  per share in the  amount  $.41 and $.28 and $1.22 and $.95 for
the three and nine  months  ended  September  30,  2002 and 2001,  respectively,
equals net income for the periods  ($2,587,524 and $1,090,107 and $7,184,958 and
$3,645,284,  respectively),  divided by the  weighted  average  number of shares
outstanding  which were  6,363,630 and  3,838,630  and 5,901,176 and  3,838,630,
respectively.

Because  the  Company had no  dilutive  securities  outstanding  during the nine
months  ended  September  30, 2002 or 2001,  diluted net income per share is the
same as basic net income per share.


                                       14
<PAGE>


               AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                    Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


Note 8 - Commitments and Contingencies

The Company completed a loan program with Fannie Mae, which 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 loan  program,  the Company
intended to originate and contract for individual loans of up to $6 million each
over a two-year  period in  conjunction  with American  Property  Financing,  an
unaffiliated  third  party,  which  would  underwrite  and service the loans for
Fannie  Mae.  The  Company  guarantees  a first  loss  position  of up to $21.25
million,  depending on the aggregate  principal  amount of the loans the Company
originates under this program and would receive  guaranty,  loan origination and
other fees.  The Company  also  guarantees  construction  loans for which it has
issued a forward  commitment  to  originate a loan under the Fannie Mae program,
with  respect  to which it  guarantees  repayment  of 100% of such  construction
loans.  As of September  30, 2002,  the Company has  originated  loans  totaling
approximately  $3.3  million  under the Fannie Mae program and has made  forward
commitments for an additional  approximate $5.3 million.  The Company's  maximum
guaranty at September 30, 2002 was $8.6 million.

During August 2002, the Company purchased one construction loan in the amount of
$342,000 due to a default on a construction loan that was 100% guaranteed by the
Company  under the  Fannie  Mae  program.  The loan  defaulted  due to  problems
relating to  construction  issues of  Alexandrine  Square,  a 30-unit  apartment
complex in Detroit,  Michigan.  The  construction  loan is classified as a first
mortgage loan on the balance sheet at September 30, 2002.

Subsequent to creating this program,  the level of loan origination  competition
has   increased,   reducing  the  program's   projected   financing   value  and
profitability.  As a result, the Company decided in the first quarter of 2002 to
discontinue  this program.  The Company has reached an agreement in principle to
terminate this program and transfer its rights and obligations to a third party.
There can be no assurance,  however,  that this agreement  will be  consummated.
Accordingly, during the first quarter of 2002, the Company wrote off the balance
of unamortized  deferred costs relating to this program.  This write-off totaled
approximately  $358,000  and is  included in FNMA loan  program  expenses in the
Consolidated Statement of Income.

In May of 2002, The Company guaranteed a construction loan of approximately $7.5
million for Creekside  Apartments,  a proposed 144-unit affordable  multi-family
apartment  complex  located in Colorado  Springs,  Colorado,  in exchange  for a
0.375%  fee,  which  will be  received  on a monthly  basis  after  construction
completion  up until the date in which  permanent  financing  takes  place ("the
guarantee period").  The construction loan guarantee will provide credit support
for the guarantee  period. It is anticipated that construction will be completed
in February 2003 and that the property will reach stabilization in October 2003.
The fee will be recognized monthly during the guarantee period.

In July of 2002, the Company granted a standby bridge loan commitment to a third
party in the amount of  approximately  $1.7  million.  The purpose of the bridge
loan,  which  is  expected  to be  funded  in  February  2003,  is to  fund  the
construction of a 160-unit affordable  multi-family apartment complex located in
Laredo, TX, known as Clark's Crossing Apartments.  The bridge loan will carry an
interest rate of 12%. The Company  received a bridge loan  origination fee of 2%
which has been deferred and will begin amortizing over the life of the loan when
the loan is funded.

In  conjunction  with  the  bridge  loan,  the  Company  has also  guaranteed  a
construction  loan of approximately  $4.8 million,  providing credit support for
the period  beginning with  construction  completion  until the property reaches
stabilization,  in exchange for an up-front  construction  loan guarantee fee of
0.625% of the construction loan amount, which was received by the Company and is
being amortized over the life of the construction loan, and a 0.50% construction
loan  administration  fee,  which will be received on a monthly basis during the
guarantee  period.  Construction  is expected to be  completed in April 2003 and
stabilization achieved in October 2003.

                                       15
<PAGE>


               AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                    Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


In February of 2002,  the Company  issued a standby  bridge loan  commitment  of
$400,000 for the  rehabilitation of Valley View and Summertree  Apartments,  two
apartment  complexes  featuring  240 total  units and  located  in Little  Rock,
Arkansas. The loan, if funded, will bear interest at 12%. Funding,  should it be
needed,  is not anticipated to occur until the property  reaches  stabilization.
The  Company  received  a fee of 2.5% for  issuing  the  commitment.  The  first
mortgage bond relating to these apartments is held by Charter Municipal Mortgage
Acceptance Company ("CharterMac"), a publicly traded company which is managed by
an affiliate of the Advisor.

In June of 2002,  the Company  issued a standby  bridge loan  commitment of $1.4
million for the construction of Willow Creek Apartments, a 104-unit multi-family
apartment complex located in North Port, Florida. The loan, if funded, will bear
interest at a rate of 12%.  Funding,  should it be needed, is not anticipated to
occur until December 2003, at the earliest.  The Company received a fee of 3.57%
for issuing the commitment. The first mortgage bond relating to these apartments
is held by CharterMac.

In June of 2002, the Company issued a standby bridge loan commitment of $400,000
for the  rehabilitation  of  McMullen  Square  Apartments,  a  100-unit  complex
featuring 18 two-story  buildings  and two one-story  buildings,  located in San
Antonio,  Texas.  The loan,  if  funded,  will bear  interest  at a rate of 12%.
Funding,  should it be needed,  is not anticipated to occur until February 2003.
The Company received a fee of 2.5% for issuing the commitment.

In August of 2002, the Company issued a standby  permanent loan commitment of up
to  approximately  $4.3  million,   for  the  rehabilitation  of  Highland  Park
Apartments, a 200-unit garden style apartment complex located in Topeka, Kansas,
for which the Company received a loan standby commitment fee of 2.0%. If funded,
which could occur in December 2003, the Company would receive  interest of 9.5%.
If funded, the Company will also receive a loan origination fee of 1.0%.

Based on the Company's  experience  with similar  arrangements,  management  has
taken  the  position  that  the  likelihood  that  any  of the  above  described
commitments, with the exception of the standby bridge loan commitment granted to
fund the construction of Clark's Crossing  Apartments in the approximate  amount
of $1.7 million, will be exercised is remote. Therefore, the fees received for a
commitment to originate a loan are recognized  over the  commitment  period on a
straight-line  basis in other income. If, however,  management believes that the
likelihood that the commitments  will be exercised is possible or probable,  the
commitment fees will be deferred and, if the commitment is exercised, recognized
over the life of the loan as an  adjustment  of  yield,  or,  if the  commitment
expires  unexercised,   recognized  in  other  income  upon  expiration  of  the
commitment.

Note 9 - Investment in Unconsolidated Subsidiary and Note Receivable

As discussed  in Note 8, the Company has entered  into an agreement  with Fannie
Mae whereby the Company  would  provide  first loss  protection on certain loans
funded by Fannie Mae pursuant to a Master Financing and Loss Sharing Agreement.

Through a  consolidated  subsidiary,  AMAC/FM,  and  pursuant to a Guaranty  and
Security  Agreement  with Fannie Mae, the payment of the  Company's  obligations
under this program is  guaranteed  and secured by AMAC/FM's  pledge and grant to
Fannie Mae of a security interest on certain assets of AMAC/FM.

AMAC/FM  was  capitalized  by a  contribution  by the  Company to AMAC/FM of the
mortgage  loan  secured by Stony Brook  Village II  Apartments  with a principal
amount of $8,404,092.  This contribution was recorded by AMAC/FM as a $7,264,092
loan from the Company via a subordinated promissory note, with a stated interest
rate of 7.75% and a  $1,140,000  capital  contribution  through the  issuance of
AMAC/FM  non-voting  common stock.  During 2000,  the Company  accounted for its
$1,140,000 investment in AMAC/FM under the equity method of accounting,  because
all of AMAC/FM's  voting common shares were held by the Advisor and,  therefore,
the Company did not control AMAC/FM.

                                       16
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2002
                                   (Unaudited)


During January 2001, all of the voting common stock of AMAC/FM, previously owned
by the Advisor,  was  purchased  by the Company,  the effect of which is to make
AMAC/FM a wholly-owned,  consolidated subsidiary of the Company. This change was
implemented  as a result of the REIT  Modernization  Act of 1999,  which  allows
REITs to directly own taxable REIT subsidiaries, beginning after the year 2000.

Note 10 - Shareholders' Equity

On February 25,  2002,  the Company  completed a public  offering of 2.5 million
common  shares  at a price of  $13.50  per  share.  The net  proceeds  from this
offering,  approximately $31 million net of underwriters' discount and expenses,
have been primarily used to invest in GNMA Certificates.

Note 11 - Subsequent Events

In November  2002, a distribution  of  $2,386,361,  ($0.375 per share) which was
declared in  September  2002,  was paid to  shareholders  for the quarter  ended
September 30, 2002.

In November 2002, the Company  purchased a GNMA Permanent Loan Certificate (PLC)
secured by Burlington  Apartments,  a 427-unit  multi-family  apartment  complex
located in St. Paul, Minnesota in the approximate amount of $6,830,000.  The PLC
yields interest at a rate of 5.90% and matures in April 2031.

In October 2002,  the Company  guaranteed a construction  loan of  approximately
$3,675,000 for Village of Meadowbend Apartments,  a proposed 138 unit affordable
multi-family  apartment  complex  located in Temple,  Texas,  in exchange for an
up-front  construction  loan  guarantee  fee of 0.75% of the  construction  loan
amount and a 0.50% construction loan  administration fee, which will be received
on a monthly basis during the guarantee period.  The construction loan guarantee
will provide credit  support for the guarantee  period.  It is anticipated  that
construction will be completed in December 2003 and that the property will reach
stabilization  in April  2004.  The  construction  loan  guarantee  fee has been
received by the Company in October 2002. The  construction  loan  administration
fee will be recognized monthly during the guarantee period.

During  October 2002,  the Company  secured a Mortgage  Warehouse Line of Credit
("Facility")  with Fleet Securities Inc. in the amount of $40 million.  Advances
under the Facility will be used to fund first mortgage loans,  which the Company
will make to its customers for the  acquisition/refinancing and minor renovation
of  existing,   lender-approved   multi-family   properties  located  in  stable
sub-markets.  The Facility,  which matures April 2006, bears an interest rate of
LIBOR + 200 basis points,  payable  monthly on advances.  Principal  will be due
upon  the  earlier  of  refinance  or sale  of the  underlying  project  or upon
maturity.  The Company will pay a fee of 12.5 basis points,  paid quarterly,  on
any unused portion of the Facility.

During November 2002, the Company funded a $6.3 million  acquisition bridge loan
for Del Mar Villas, a 260-unit multi-family apartment complex located in Dallas,
Texas.  The bridge loan,  which  matures  April 2004,  bears an interest rate of
LIBOR + 462.5 basis points.  Payments on the loan are interest only for the full
18-month term. The Company will receive a loan  origination fee of 1.5% and will
receive a exit fee of 0.5% - 1.5%,  depending  upon the timing and source of the
repayment of the loan.


                                       17
<PAGE>



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

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

The net income for the three and nine months ended  September  30, 2002 and 2001
was $2,587,524 and $1,090,107 and $7,184,958 and $3,645,284,  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 nine months
ended September 30, 2002 and 2001.

Interest  income from mortgage loans  increased  approximately  $186,000 for the
three months ended September 30, 2002 as compared to 2001 due to the addition of
Northbrooke, Sunset Gardens, and Alexandrine Square mortgage loans and decreased
approximately  $711,000 for the nine months ended September 30, 2002 as compared
to 2001 primarily due to the conversion of Hollows,  Elmhurst Village and Autumn
Creek  mortgages to GNMA  Certificates  and the sale of the Columbiana  mortgage
during 2001.

Interest  income from GNMA  certificates  increased  approximately  $689,000 and
$2,648,000 for the three and nine months ended September 30, 2002 as compared to
2001,  primarily  due  to  the  conversion  of  three  mortgage  loans  to  GNMA
certificates in 2001 and the purchase of an additional five GNMA Certificates in
2002,  offset by the loss of interest  income from the Hollows GNMA  Certificate
which was sold in March of 2002.

Interest  income from notes  receivable  increased  approximately  $421,000  and
$1,428,000 for the three and nine months ended September 30, 2002 as compared to
2001 due to the addition of nine notes receivable during 2001 and 2002.

During  the nine  months  ended  September  30,  2002,  the  Company  recognized
approximately  $358,000  in FNMA  loan  program  expenses  associated  with  the
write-off of the unamortized deferred costs related to the FNMA loan program.

Fees to advisor increased  approximately $196,000 and $628,000 for the three and
nine months ended  September  30, 2002 as compared to 2001 due to an increase in
the  Company's  assets  and  an  increase  in  the   reimbursements  of  certain
administrative and other costs incurred by the Advisor on behalf of the Company.

A gain  on  the  repayment  of  GNMAs  and  mortgage  loans  in  the  amount  of
approximately  $614,000 was recorded  for the nine months  ended  September  30,
2002,  relating to the sale of the Hollows  GNMA on March 25,  2002;  during the
three  and nine  months  ending  September  30,  2001,  a loss on  repayment  of
approximately  $212,000 was recorded  relating to the repayment of the Columbian
loans.

Liquidity and Capital Resources
-------------------------------

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
commenced  trading  on the  American  Stock  Exchange  on July 1, 1999 under the
symbol "AMC". As of September 30, 2002, there were 6,363,630 shares outstanding.

The Company's  business  plan focuses on  originating  and acquiring  government
insured and uninsured  mortgages secured by multi-family  properties,  which may
take the form of  government  insured first  mortgages  and uninsured  mezzanine
loans,  construction  loans and bridge  loans.  Additionally,  the  Company  has
indirectly invested in subordinate commercial mortgage-backed securities and may
invest in other real estate assets, including non-multi-family mortgages.

On February 25,  2002,  the Company  completed a public  offering of 2.5 million
common  shares  at a price of  $13.50  per  share.  The net  proceeds  from this
offering,  approximately $31 million net of underwriters' discount and expenses,
have been primarily used to invest in GNMA Certificates.


                                       18
<PAGE>



During the nine months  ended  September  30,  2002,  cash and cash  equivalents
increased approximately $2 million primarily due to net proceeds from the common
share offering,  approximately $31 million,  proceeds from repurchase facilities
payable,  approximately $18.8 million and cash provided by operating activities,
approximately   $5.5  million,   offset  by  investments   in  mortgage   loans,
approximately $2.6 million, investments in GNMA Certificates,  approximately $42
million,   increase  in  notes  receivable,   approximately   $3.6  million  and
distributions to shareholders, approximately $6 million.

The  yield on the GNMA  Certificates  will  depend,  in part,  upon the rate and
timing of principal  prepayments  on the  underlying  mortgages.  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  Company's  GNMAs  are
collateralized by mortgage loans on multi-family properties.

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 effect of prepayments 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.

The  yield  on the  mezzanine  loans  is  based  on a  fixed  percentage  of the
associated  first  mortgage  loan,  plus a percentage of the available cash flow
produced by the underlying multi-family property, and a participation in sale or
refinancing proceeds.  The yield will vary based on the operating results of the
underlying property, its requirements for capital improvements,  and the ability
of the  property  owners  to  successfully  sell  or  refinance  the  underlying
property.

The yield on the bridge loans will depend, in part, on when, and if, the Company
disposes of the loans prior to  maturity or the obligor  repays the  outstanding
debt.  These loans are  typically of shorter term,  about 12 months,  and higher
risk.  However,  the  Company's  bridge loans are  collateralized  by the equity
interests  of the  property  owner.  Although  the  loans  bear a fixed  rate of
interest, the shorter term somewhat reduces the Company's interest rate risk.

The  Company's  equity in the  earnings of ARCap will  generally be equal to the
Company's  preferred  equity  dividend  rate of 12%,  unless ARCap does not have
earnings  and cash flows  adequate to meet this  dividend  requirement.  ARCap's
investment  portfolio  consists  of  subordinated   commercial  mortgage  backed
securities,  whose yields depend,  among other things, on the rate and timing of
principal  payments,  the pass through  rate,  interest  rate  fluctuations  and
defaults on the  underlying  mortgages.  The  Company's  investment  in ARCap is
illiquid and its carrying amount is not necessarily representative of the amount
the Company would receive upon a sale of this investment.

The Company finances the acquisition of its assets primarily  through  borrowing
at  short-term  rates using demand  repurchase  agreements.  Under the Company's
declaration of trust, the Company may incur permanent  indebtedness of up to 50%
of total market  value  calculated  at the time the debt is incurred.  Permanent
indebtedness  and  working  capital  indebtedness  may  not  exceed  100% of the
Company's  total market value. In February of 2002, the Company sold 2.5 million
common  shares  at a  price  of  $13.50  per  share,  raising  net  proceeds  of
approximately $31 million. If market conditions warrant, the Company may seek to
raise  additional  funds for investment  through further common offerings in the
future, although the timing and amount of such offerings cannot be determined at
this time.

Effective February 15, 2000, the Company entered into a repurchase facility with
Nomura Securities International Inc. This facility enables the Company to borrow
up to 95% of the fair  market  value of GNMA  certificates  and other  qualified
mortgage  securities  owned by the Company,  which are pledged as collateral for
the borrowings.  Through the quarter ended June 30, 2002, interest on borrowings
were at LIBOR plus  0.50%.  During the third  quarter,  interest  on  borrowings
decreased to LIBOR plus 0.05%.  As of September  30, 2002 and December 31, 2001,
the amount  outstanding  under this facility was $62,412,000 and $43,610,000 and
interest rates were 1.87% and 2.58%,  respectively.  All  borrowings  under this
facility  typically have 30-day settlement terms.  However,  the Company has the
option  to  shorten  or  extend  the  length  of  the  settlement  terms  at its
discretion.  The Company has not  experienced  any  problems  when  renewing its
borrowing  and  management  believes  it will be able to  continue  to renew its
borrowings  when due. If the Company were unable to renew such  borrowings  with
Nomura,  it would have to either find  replacement  financing  or sell assets at
prices which may be below market value.


                                       19
<PAGE>


During  October 2002,  the Company  secured a Mortgage  Warehouse Line of Credit
("Facility")  with Fleet Securities Inc. in the amount of $40 million.  Advances
under the Facility will be used to fund first mortgage loans,  which the Company
will make to its customers for the  acquisition/refinancing and minor renovation
of  existing,   lender-approved   multi-family   properties  located  in  stable
sub-markets.  The Facility,  which matures April 2006, bears an interest rate of
LIBOR + 200 basis points,  payable  monthly on advances.  Principal  will be due
upon  the  earlier  of  refinance  or sale  of the  underlying  project  or upon
maturity.  The Company will pay a fee of 12.5 basis points,  paid quarterly,  on
any unused portion of the Facility.

In order to qualify as a REIT under the Code,  the  Company  must,  among  other
things, distribute at least 90% 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.

The Company completed a loan program with Fannie Mae, which 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 loan  program,  the Company
will originate and contract for individual loans of up to $6 million each over a
two-year period and will work with American Property Financing,  an unaffiliated
third  party,  which will  underwrite  and service the loans for Fannie Mae. The
Company  guarantees a first loss position of up to $21.25 million,  depending on
the aggregate  principal  amount of the loans the Company  originates under this
program and will receive guaranty,  loan origination and other fees. The Company
also guarantees  construction loans for which it has issued a forward commitment
to  originate  a loan  under the Fannie Mae  program,  with  respect to which it
guarantees  repayment of 100% of such  construction  loans.  As of September 30,
2002, the Company has originated loans totaling approximately $3.3 million under
the  Fannie Mae  program  and has made  forward  commitments  for an  additional
approximate $5.3 million.  The Company's  maximum guaranty at September 30, 2002
was $8.6 million.

Since the Company  entered into the Fannie Mae loan  program,  the level of loan
origination  competition has increased,  reducing the projected financing volume
and profitability. As a result, the Company decided in the first quarter of 2002
to discontinue  this program.  The Company has reached an agreement in principle
to terminate  this program and  transfer its rights and  obligations  to a third
party. There can be no assurance, however, that this agreement will happen.

In November 2002, a  distribution  of $2,386,361  ($0.375 per share),  which was
declared in September 2002, was paid to the  shareholders  for the quarter ended
September 30, 2002.

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.


                                       20
<PAGE>

Distributions
-------------

Of the total  distributions  of $7,079,540  and  $4,174,510  for the nine months
ended September 30, 2002 and 2001, respectively,  the current year has no return
of capital and for 2001, $317,654 ($.08 per share or 7.61%) represented a return
of  capital  determined  in  accordance  with  generally   accepted   accounting
principles.  As of September 30, 2002, the aggregate amount of the distributions
made  since  the  inception  of the  Company  in 1977  representing  a return of
capital,  in accordance with generally accepted accounting  principles,  totaled
approximately  $14,399,000.  The portion of the distributions that constituted a
return of capital was significant during the initial  acquisition stage in order
to maintain level distributions to shareholders.

Critical Accounting Policies
----------------------------

The Company's  critical  accounting  policies are described in its Form 10-K for
the year ended December 31, 2001.  These critical  accounting  policies have not
changed during 2002, but the Company has entered into several transactions which
involve new  critical  accounting  policies as described  in the  following  two
paragraphs.

The Company has entered into agreements to guarantee certain construction loans.
The Company must  periodically  evaluate  its  potential  liability  under these
guarantees  and  might be  required  to  record a  liability,  or  purchase  the
associated loan,  should the loan experience credit  difficulties.  To date, the
Company has not provided for any liability  under its guarantees;  although,  it
has purchased one  construction  loan that was in default and was  guaranteed by
the Company.

The Company has entered into standby loan commitments,  for which it receives an
upfront fee. The Company must evaluate each commitment's likelihood of exercise.
To date,  management  has taken the  position,  with the  exception of a standby
bridge loan commitment to fund the construction of Clark's Crossing  Apartments,
that the  likelihood  that any of the  commitments  will be exercised is remote;
accordingly, the fees are being recognized as income over the commitment period.
If it is determined  that the likelihood  that a commitment will be exercised is
possible  or  probable,  as in the  case of the  loan  commitment  to  fund  the
construction of Clark's Crossing Apartments,  such fees are deferred and, if the
commitment  is  exercised,  will be  amortized  over  the life of the loan as an
adjustment to yield or, if the  commitment  expires  unexercised,  recognized as
income upon expiration of the commitment.

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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the exposure to loss  resulting  from changes in interest  rates,
foreign currency exchange rates, commodity prices and equity prices. The primary
market risk to which the  investments of the Company is exposed is interest rate
risk, which is 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.

                                       21
<PAGE>


The Company's borrowings under repurchase agreements bear interest at rates that
fluctuate with LIBOR. Based on the $62.4 million of borrowings outstanding under
these  facilities  at September  30, 2002, a 1% change in LIBOR would impact the
Company's annual net income and cash flows by approximately $624,000.

Cash flows and income from the Company's other financial instruments, consisting
primarily of mortgage loans, a preferred equity interest, 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 are not 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 shareholders'  equity.
The preferred equity interest is carried on the equity method;  although changes
in interest  rates would not directly  impact the carrying  value of this asset,
they might  adversely  affect the ability of the  underlying  entity to meet its
preferred distribution requirements.

Item 4.  Controls and Procedures

(a)  Evaluation  of Disclosure  Controls and  Procedures.  The  Company's  Chief
     Executive   Officer  and  Chief   Financial   Officer  have  evaluated  the
     effectiveness of the Company's  disclosure controls and procedures (as such
     term is defined  in Rules  13a-14(c)  and  15d-14(c)  under the  Securities
     Exchange Act of 1934, as amended (the "Exchange  Act")) as of a date within
     90 days prior to the filing date of this quarterly  report (the "Evaluation
     Date"). Based on such evaluation,  such officers have concluded that, as of
     the Evaluation Date, the Company's  disclosure  controls and procedures are
     effective  in  alerting  them on a  timely  basis to  material  information
     relating to the Company (including its consolidated  subsidiaries) required
     to be  included  in the  Company's  reports  filed or  submitted  under the
     Exchange Act.

(b)  Changes in Internal  Controls.  Since the Evaluation  Date,  there have not
     been any significant changes in the Company's internal controls or in other
     factors that could significantly affect such controls.


                                       22
<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 and Use of Proceeds - None.

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

Item 5.   Other Information - None.

Item 6.   Exhibits and Reports on Form 8-K

          Exhibits

          99.1 Chief  Executive  Officer  certification  pursuant  to 18  U.S.C.
               Section  1350,  as  adopted   pursuant  to  Section  906  of  the
               Sarbanes-Oxley Act of 2002.

          99.2 Chief  Financial  Officer  certification  pursuant  to 18  U.S.C.
               Section  1350,  as  adopted   pursuant  to  Section  906  of  the
               Sarbanes-Oxley Act of 2002.


           Form 8-K - None.


<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: November 12, 2002           By:  /s/ Stuart J. Boesky
                                       --------------------
                                       Stuart J. Boesky
                                       Trustee, Chairman of the Board,
                                       President and Chief Executive Officer


Date: November 12, 2002           By:  /s/ Stuart A. Rothstein
                                       -----------------------
                                       Stuart A. Rothstein
                                       Chief Financial Officer


<PAGE>

                                  CERTIFICATION


I, Stuart J. Boesky, hereby certify that:

     1.   I have  reviewed  this  quarterly  report  on Form  10-Q  of  American
          Mortgage Acceptance Company;

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

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

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:


          a) designed  such  disclosure  controls and  procedures  to ensure the
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

          b) evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

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

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's   board  of  directors  or  persons
          performing the equivalent functions:

          a) all significant deficiencies in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

          b) any fraud,  whether or not material,  that  involves  management or
          other  employees  who  have a  significant  role  in the  registrant's
          internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this quarterly report whether or not there were significant changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.




Date:  November 12, 2002                           By:   /s/ Stuart J. Boesky
       -----------------                                 --------------------
                                                         Stuart J. Boesky
                                                         Chief Executive Officer

<PAGE>

                                  CERTIFICATION


I, Stuart A. Rothstein, hereby certify that:

     1.   I have  reviewed  this  quarterly  report  on Form  10-Q  of  American
          Mortgage Acceptance Company;

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

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

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:


          a) designed  such  disclosure  controls and  procedures  to ensure the
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

          b) evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

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

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's   board  of  directors  or  persons
          performing the equivalent functions:

          a) all significant deficiencies in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

          b) any fraud,  whether or not material,  that  involves  management or
          other  employees  who  have a  significant  role  in the  registrant's
          internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this quarterly report whether or not there were significant changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.




Date:  November 12, 2002                           By:   /s/ Stuart A. Rothstein
       -----------------                                 -----------------------
                                                         Stuart A. Rothstein
                                                         Chief Financial Officer


<PAGE>
                                                                    Exhibit 99.1


                            CERTIFICATION PURSUANT TO
                             18.U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of American Mortgage  Acceptance Company
(the  "Company") on Form 10-Q for the period ending  September 30, 2002 as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
I, Stuart J. Boesky, Chief Executive Officer of the Company,  certify,  pursuant
to  18  U.S.C.  Section  1350,  as  adopted  pursuant  to  Section  906  of  the
Sarbanes-Oxley Act of 2002, that:


     (1) The Report fully  complies  with the  requirements  of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


     (2)  The  information  contained  in the  Report  fairly  presents,  in all
material  respects,  the  financial  condition  and results of operations of the
Company.


By:    /s/ Stuart J. Boesky
       --------------------
       Stuart J. Boesky
       Chief Executive Officer
       November 12, 2002


<PAGE>
                                                                    Exhibit 99.2


                            CERTIFICATION PURSUANT TO
                             18.U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of American Mortgage  Acceptance Company
(the "Company") on Form 10-Q for the period ending September, 2002 as filed with
the Securities  and Exchange  Commission on the date hereof (the  "Report"),  I,
Stuart A. Rothstein,  Chief Financial Officer of the Company,  certify, pursuant
to  18  U.S.C.  Section  1350,  as  adopted  pursuant  to  Section  906  of  the
Sarbanes-Oxley Act of 2002, that:


     (1) The Report fully  complies  with the  requirements  of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


     (2)  The  information  contained  in the  Report  fairly  presents,  in all
material  respects,  the  financial  condition  and results of operations of the
Company.


By:    /s/ Stuart A. Rothstein
       -----------------------
       Stuart A. Rothstein
       Chief Financial Officer
       November 12, 2002