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 March 31, 2003


                                       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
                                             ---   ---

     Indicate by check mark whether the registrant is an  accelerated  filer (as
defined in Exchange Act Rule 12b-2). 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>
                                                    ===========     ===========
                                                     March 31,      December 31,
                                                        2003            2002
                                                    -----------     -----------
                                                    (Unaudited)
<S>                                                   <C>             <C>
ASSETS
Investments in mortgage loans, net                    $  12,367       $  22,384
Investments in GNMA certificates-
   available for sale                                   115,773         114,034
Investment in ARCap                                      20,240          20,240
Real estate owned                                         7,920              --
Cash and cash equivalents                                 3,645          10,404
Restricted cash                                           8,282              --
Notes receivable                                         42,442          25,997
Accrued interest receivable                               1,336           1,170
Other assets                                                801             834
                                                      ---------       ---------
Total assets                                          $ 212,806       $ 195,063
                                                      =========       =========


LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:

   Repurchase facility payable                        $  93,565       $  87,880
   Warehouse facility payable                            16,997           8,788
   Interest rate derivatives                                393              --
   Accrued interest payable                                 187              60
   Accounts payable and accrued expenses                    350             762
   Due to Advisor and affiliates                            611             690
   Distributions payable                                  2,545           2,545
                                                      ---------       ---------
Total liabilities                                       114,648         100,725
                                                      ---------       ---------

Commitments and contingencies
Shareholders' equity:
   Common shares of beneficial interest; $.10 par value;
     25,000,000 shares authorized; 6,738,826 issued
     and 6,363,630 outstanding in 2003 and 2002             674             674
   Treasury shares of beneficial interest;
     375,196 shares                                         (38)            (38)
   Additional paid-in capital                            99,470          99,470
   Distributions in excess of net income                (13,824)        (14,471)
   Accumulated other comprehensive income                11,876           8,703
                                                      ---------       ---------
Total shareholders' equity                               98,158          94,338
                                                      ---------       ---------
Total liabilities and shareholders' equity            $ 212,806       $ 195,063
                                                      =========       =========

</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
                                                              March 31,
                                                     ---------------------------
                                                        2003            2002
                                                     ---------------------------
<S>                                                  <C>             <C>
Revenues:
   Interest income:
     Mortgage loans                                  $     1,407     $       401
     GNMA certificates                                     1,872           1,084
     Notes receivable                                        918             487
     Temporary investments                                     8              11
   Other income                                               28              60
                                                     -----------     -----------

     Total revenues                                        4,233           2,043
                                                     -----------     -----------

Expenses:
   Interest                                                  407             272
   General and administrative                                243             120
   Fees to advisor                                           443             357
   Amortization                                               77               6
   Fannie Mae loan program                                    --             355
   Other                                                      80              --
                                                     -----------     -----------

     Total expenses                                        1,250           1,110
                                                     -----------     -----------

Other gain:
   Equity in earnings of ARCap                               600             592
   Net gain (loss) on repayments and sales of
     GNMA certificates                                      (391)            614
                                                     -----------     -----------

     Total other gain                                        209           1,206
                                                     -----------     -----------

   Net income                                        $     3,192     $     2,139
                                                     ===========     ===========

   Net income per share (basic and diluted)          $       .50     $       .43
                                                     ===========     ===========

   Weighted average shares outstanding
     (basic and diluted)                               6,363,630       4,960,852
                                                     ===========     ===========

</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>

                                                                              Treasury Shares of
                                      Shares of Beneficial Interest           Beneficial Interest            Additional
                                      -----------------------------       --------------------------          Paid-in
                                        Shares             Amount           Shares          Amount            Capital
                                      ----------         ----------       ----------      ----------        ------------

<S>                                    <C>               <C>                <C>           <C>               <C>
Balance at January 1, 2003             6,738,826         $      674         (375,196)     $      (38)       $     99,470


Comprehensive income:
Net income                                    --                 --               --              --                  --
Other comprehensive income:
  Net unrealized loss on interest
   rate derivatives
  Unrealized holding gain arising
   during the period
Less: reclassification adjustment for
   loss included in net income


Total other comprehensive income


Comprehensive income


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

Balance at March 31, 2003              6,738,826         $     674          (375,196)     $      (38)       $     99,470
                                      ==========         ==========       ==========      ==========        ============

</TABLE>


<TABLE>
<CAPTION>
                                                                                     Accumulated
                                       Distributions                                    Other
                                         in Excess            Comprehensive         Comprehensive
                                       of Net Income              Income                Income                Total
                                      ---------------         -------------         -------------         -------------

<S>                                   <C>                     <C>                   <C>                   <C>
Balance at January 1, 2003            $      (14,471)                               $       8,703         $      94,338


Comprehensive income:
Net income                                     3,192          $       3,192                    --                 3,192
                                                              -------------
Other comprehensive income:
  Net unrealized loss on interest
   rate derivatives                                                    (393)
  Unrealized holding gain arising
   during the period                                                  3,175
Less: reclassification adjustment for
  loss included in net income                                           391
                                                              -------------

Total other comprehensive income                                      3,173                 3,173                 3,173
                                                              -------------

Comprehensive income                                          $       6,365
                                                              =============

Distributions                                 (2,545)                                          --                    --
                                      --------------                                -------------         -------------

Balance at March 31, 2003             $      (13,824)                               $      11,876         $      98,158
                                      ==============                                =============         =============

</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>
                                                         =======================
                                                            Three Months Ended
                                                                 March 31,
                                                         -----------------------
                                                           2003          2002
                                                         -----------------------
<S>                                                      <C>           <C>

Cash flows from operating activities:
   Net income                                            $  3,192      $  2,139
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Net (gain) loss on repayments of GNMA
       certificates and mortgage loans                        391          (614)
     Equity in earnings of ARCap, in excess of
       distributions received                                  --            13
     Amortization - deferred financing costs                   --             6
     Amortization - loan premium and
       origination costs and fees                            (204)          (20)
     Accretion of GNMA discount (premium)                       8            (5)
   Changes in operating assets and liabilities:
     Accrued interest receivable                             (166)         (280)
     Other assets                                             (71)          543
     Due to Advisor and affiliates                            (79)           72
     Accounts payable and accrued expenses                   (410)           (9)
     Accrued interest payable                                 127            29
                                                         --------      --------

   Net cash provided by operating activities                2,788         1,874
                                                         --------      --------

Cash flows from investing activities:
   Increase in investment in mortgage loans                (7,049)       (4,209)
   Repayments of mortgage loans                             9,350            11
   Funding of notes receivable                            (20,502)       (7,354)
   Repayment of notes receivable                            4,057            --
   Principal repayments of GNMA Certificates                5,960           109
   Increase in investment in GNMA Certificates             (4,532)      (31,438)
   Increase in restricted cash                             (8,282)           --
                                                         --------      --------

Net cash used in investing activities                     (20,998)      (42,881)
                                                         --------      --------

</TABLE>

                                   continued

                                       5
<PAGE>

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

<TABLE>
<CAPTION>
                                                    ===========================
                                                        Three Months Ended
                                                              March 31,
                                                    ---------------------------
                                                       2003             2002
                                                    ---------------------------
<S>                                                 <C>             <C>

Cash flows from financing activities:
   Proceeds from repurchase facility payable             21,184          11,250
   Proceeds from warehouse facility payable               8,209              --
   Repayments of repurchase facility payable            (15,499)             --
   Distribution paid to shareholders                     (2,545)         (2,307)
   Increase in deferred loan costs                          102              --
   Increase from distribution payable                        --             915
   Issuance of common shares                                 --          30,967
                                                    -----------     -----------

Net cash provided by financing activities                11,451          40,825
                                                    -----------     -----------

Net decrease in cash and cash equivalents                (6,759)           (182)
Cash and cash equivalents at the beginning
   of the period                                         10,404           1,018
                                                    -----------     -----------
Cash and cash equivalents at the end of the
   period                                           $     3,645     $       836
                                                    ===========     ===========
Supplemental information:
Interest paid                                       $       430     $       243
                                                    ===========     ===========

Conversion of mortgage loans to real estate
   owned:

Increase in real estate owned                       $ 7,920,000
Decrease in mortgage loans                           (7,920,000)
                                                    -----------

                                                    $        --
                                                    -----------

</TABLE>

           See accompanying notes to consolidated financial statements

                                       6
<PAGE>

              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

Note 1 - General

American Mortgage Acceptance Company (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 "Code").

The Company's  business  plan focuses on  originating  and  acquiring  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. The Company also issues guarantees
of construction and permanent financing and makes standby loan commitments.

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,  tax, capital markets,  asset  monitoring,
portfolio  management,  investor  relations and public relations  services.  The
Company  believes  that it benefits  significantly  from its  relationship  with
Related,  since  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
three  wholly-owned  subsidiaries which it controls:  AMAC Repo Seller,  AMAC/FM
Corporation  and AMAC  Credit  Facility,  LLC.  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 March 31, 2003 and
the  results of its  operations  and its cash flows for the three  months  ended
March 31, 2003 and 2002. 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, 2002.

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
                                 March 31, 2003
                                   (Unaudited)

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 became effective January 1, 2003. The
implementation of this statement did not 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 became effective January 1,
2003. The implementation of this statement did not have a material effect on the
Company's consolidated financial statements.

In November 2002, the FASB issued Interpretation No. 45, "Guarantors' Accounting
and Disclosure  Requirements for Guarantees,  Including  Indirect  Guarantees of
Indebtedness of Others". The Interpretation  elaborates on the disclosures to be
made by a guarantor in its  financial  statements  about its  obligations  under
certain  guarantees  that it has issued.  It also  clarifies that a guarantor is
required to recognize, at the inception of a guarantee, a liability for the fair
value of the obligation undertaken in issuing the guarantee. This Interpretation
does  not  prescribe  a  specific   approach  for  subsequently   measuring  the
guarantor's  recognized  liability over the term of the related  guarantee.  The
disclosure  provisions  of this  Interpretation  are  included  in Note 11.  The
initial  recognition and initial  measurement  provisions of this Interpretation
are  applicable on a prospective  basis to guarantees  issued or modified  after
December 31, 2002. The Company currently receives a fee, in advance,  for acting
as a guarantor of certain construction loans. This fee is deferred and amortized
over  the  guarantee  period.   The  Company  believes  that  the  fee  received
approximates  the  fair  value  of the  obligation  undertaken  in  issuing  the
guarantee; therefore, the Company's current accounting for these guarantees will
not be affected by this Interpretation.

In January  2003,  the FASB  issued  Interpretation  No. 46,  "Consolidation  of
Variable Interest Entities".  This  Interpretation  clarifies the application of
existing accounting pronouncements to certain entities in which equity investors
do not have the  characteristics  of a controlling  financial interest or do not
have sufficient equity at risk for the entity to finance its activities  without
additional  subordinated financial support from other parties. The provisions of
the Interpretation  will be immediately  effective for all variable interests in
variable  interest entities created after January 31, 2003, and the Company will
need to apply its  provisions  to any  existing  variable  interest  in variable
interest  entities by no later than July 1, 2003.  The Company is in the process
of evaluating all of its mezzanine loans, which may be deemed variable interests
in variable  interest  entities  under the  provision of FIN 46. The real estate
entities  whose  ownership  interests  collateralize  these  loans  have  assets
totaling  approximately  $95.1 million at March 31, 2003. The Company's  maximum
exposure to loss  represents  its recorded  investment in these loans,  totaling
approximately  $10.6 million at March 31, 2003. The Company  believes that some,
and possibly all, of these investments may not ultimately fall under the

                                       8
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

provisions of FIN 46 and, accordingly, continue to be accounted for as loans and
not  consolidated  as  investments  in real estate.  The Company cannot make any
definitive conclusion until it completes its evaluation.

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



                                       9
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

Note 2 - Investments in Mortgage Loans

Information relating to the Company's  investments in mortgage loans as of March
31, 2003 is as follows:
(Dollars in thousands)

<TABLE>
<CAPTION>

                                                       Final                                                           Share of
                                                     Maturity                                        Lifetime      Excess Operating
Property                              Description      Date    Call Date (A)   Interest Rate (B)   Interest Cap       Cash Flows
<S>                                    <C>            <C>         <C>           <C>                     <C>             <C>
First Mortgage Loans:

  Stony Brook II (E)(M)
    East Haven, CT                     125 Units       6/37        12/06                7.625%          N/A             N/A

  Sunset Gardens
    Eagle Pass, TX                      60 Units       9/03         N/A                 11.50%          N/A             N/A

  Alexandrine
    Detroit, MI                         30 Units      12/03         N/A                 11.00%          N/A             N/A


Subtotal First Mortgage Loans


Mezzanine Loans (G):

Stabilized Properties
---------------------

  Stony Brook II (J)(N)(M)
    East Haven, CT                     125 Units       6/37        12/06                15.33%          16%             40%

  Plaza at San Jacinto (N)(P)
    Houston, TX                        132 Units       1/43         6/11                11.40%          16%             50%


Subtotal Stabilized Mezzanine Loans


Properties in Lease-Up
----------------------

  The Hollows (K)(N)
    Greenville, NC                     184 Units       1/42         1/12                10.00%          16%             50%

  Elmhurst Village (J)(N)
    Oveido, FL                         313 Units       1/42         3/19                10.00%          16%             50%

  The Reserve at Autumn Creek (J)(N)
    Friendswood, TX                    212 Units       1/42         9/14                10.00%          16%             50%


Subtotal Properties in Lease-Up

Properties in Construction
--------------------------

  Club at Brazos (I)(N)(K)
    Rosenberg, TX                      200 Units       5/43         TBD                 10.00%          14%             50%

  Northbrooke (J)(N)
    Harris County, TX                  240 Units       8/43         TBD                 11.50%          14%             50%

  Del Mar Villas
    Dallas, TX                         260 Units       4/04         N/A         LIBOR + 4.625%          (O)             N/A

  Mountain Valley
    Dallas, TX                         312 Units      11/04         N/A         LIBOR + 4.750%          (O)             N/A


Subtotal Properties in Construction

Subtotal Mezzanine Loans

Total Mortgage Loans

</TABLE>

<TABLE>
<CAPTION>
                                                                                                                        Interest
                                       Share of                                                                          Earned
                                        Excess                             Outstanding                                  Applicable
                                        Sale or    Periodic                   Face       Unamortized    Carrying       to the Three
                                      Refinancing  Payment                  Amount of       Costs       Amount of      Months Ended
                                       Proceeds     Terms    Prior Liens   Mortgages (C)   and Fees    Mortgages (D)  March 31, 2003
<S>                                      <C>         <C>        <C>          <C>           <C>           <C>              <C>

First Mortgage Loans:

  Stony Brook II (E)(M)
    East Haven, CT                        N/A        (F)            --       $    --       $    --       $    --          $   497

  Sunset Gardens
    Eagle Pass, TX                        N/A        (H)            --         1,451            (9)        1,442               45

  Alexandrine
    Detroit, MI                           N/A        (H)            --           342            --           342                9
                                                                             -------------------------------------------------------

Subtotal First Mortgage Loans                                                  1,793           (9)         1,784              551
                                                                             -------------------------------------------------------


Mezzanine Loans (G):

Stabilized Properties
---------------------

  Stony Brook II (J)(N)(M)
    East Haven, CT                        35%        (H)            --            --            --            --              526

  Plaza at San Jacinto (N)(P)
    Houston, TX                           50%        (H)            --            --            --            --               39
                                                                             -------------------------------------------------------

Subtotal Stabilized Mezzanine Loans                                               --            --            --              565
                                                                             -------------------------------------------------------

Properties in Lease-Up
----------------------

  The Hollows (K)(N)
    Greenville, NC                        25%        (H)         8,907         1,549          (146)        1,403               43

  Elmhurst Village (J)(N)
    Oveido, FL                            25%        (H)        21,657 (L)     2,874          (413)        2,461               79

  The Reserve at Autumn Creek (J)(N)
    Friendswood, TX                       25%        (H)        16,008 (L)     1,987           (59)        1,928               52
                                                                             -------------------------------------------------------

Subtotal Properties in Lease-Up                                                6,410          (618)        5,792              174
                                                                             -------------------------------------------------------

Properties in Construction
--------------------------

  Club at Brazos (I)(N)(K)
    Rosenberg, TX                         25%        (H)        14,025         1,962           (77)        1,885               49

  Northbrooke (J)(N)
    Harris County, TX                     50%        (H)        12,134 (L)     1,500          (135)        1,365               44

  Del Mar Villas
    Dallas, TX                            N/A        (H)         5,554           765            --           765               12

  Mountain Valley
    Dallas, TX                            N/A        (H)         5,451           776            --           776               12
                                                                             -------------------------------------------------------

Subtotal Properties in Construction                                            5,003          (212)        4,791              117
                                                                             -------------------------------------------------------

Subtotal Mezzanine Loans                                                      11,413          (830)       10,583              856
                                                                             -------------------------------------------------------

Total Mortgage Loans                                                         $13,206       $  (839)      $12,367          $ 1,407
                                                                             =======================================================


</TABLE>



                                       10

<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

(A)  Loans are subject to mandatory  prepayment at the option of the Company ten
     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  and  participation  in sale or  refinancing  proceeds  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 March 31, 2003.

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

(E)  Interest and principal  payments on this first mortgage loan are 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  five-year  lockout  against
     prepayments,  as well as a prepayment  penalty  structure during the second
     five-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)  The  Stonybrook II first  mortgage  loan and mezzanine  loan were repaid in
     January 2003 - see Note 5. Of the $10 million received,  approximately $8.3
     million is being held as restricted  cash for  collateral in the Fannie Mae
     DUS program.

(N)  Lifetime  interest cap  represents  the maximum  annual  return,  including
     interest,  fees and participations,  that can be earned by the Company over
     the life of the mezzanine loan,  computed as a percentage of the balance of
     the first mortgage loan plus the mezzanine loan.

(O)  Interest cap on these loans is the maximum rate permitted by law.

(P)  The  Plaza at San  Jacinto  mezzanine  loan has been  reclassified  to real
     estate owned -- see Note 6.


                                       11
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

Note 3 - Investments in GNMA Certificates-Available for Sale

Information  relating to GNMA certificates  owned by the Company as of March 31,
2003 is as follows:
(Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                                                           Interest
                                                                                                  Unrealized                Income
                                                   Date                    Principal  Amortized   Gain (Loss)   Balance     Earned
                                                 Purchased/     Stated        at       Cost at        at          at      Applicable
                                  Certificate      Final       Interest      March      March       March        March        to
Name                                Number      Payment Date     Rate      31, 2003    31, 2003    31, 2003     31, 2003  the Period
----                              -----------   ------------   ---------   ---------  ---------   -----------   --------  ----------

<S>                                 <C>           <C>            <C>       <C>         <C>         <C>          <C>        <C>
Western Manor (1)                   0355540       7/27/94        7.125%    $   2,452   $  2,467    $    34      $  2,501   $     49
                                                  3/15/29

Copper Commons (1)(3)               0382486       7/28/94        8.500%        2,084      2,153        (27)        2,126         44
                                                  8/15/29

SunCoast Capital Group, Ltd. (1)    G002412       6/23/97        7.000%          463        463         25           488          9
                                                  4/20/27

Elmhurst Village (1)                 549391       6/28/01        7.745%       21,657     21,657      3,032        24,689        419
                                                  1/1/42

Reserve at Autumn Creek (1)          448748       6/28/01        7.745%       16,008     16,008      2,906        18,914        310
                                                  1/1/42

Casitas at Montecito (1)(2)          519289       3/11/02        7.300%           --         --         --            --         70
                                                  10/15/42

Village at Marshfield (1)            519281       3/11/02        7.475%       19,849     21,463      1,990        23,453        361
                                                  1/15/42

Cantera Crossing (1)                 532662       3/28/02        6.500%        5,941      5,871        696         6,567         94
                                                  6/1/29

Fillmore Park (1)                    536739       3/28/02        6.700%        1,221      1,235        133         1,368         20
                                                  10/15/42

Northbrooke (1)                      548972       5/24/02        7.080%       12,134     12,283      1,588        13,871        202
                                                  8/1/43

Ellington Plaza (1)                  585494       7/26/02        6.835%       12,946     13,018      1,575        14,593        194
                                                  6/1/44

Burlington (1)                       595515       11/1/02        5.900%        6,801      6,886        317         7,203        100
                                                  4/15/31

                                                                           ---------   --------    -------      --------   --------

Total                                                                      $ 101,556   $103,504    $12,269      $115,773   $  1,872
                                                                           =========   ========    =======      ========   ========

</TABLE>

     (1)  These GNMA  certificates are partially or wholly-pledged as collateral
          for borrowings under the repurchase facility - See Note 7.

     (2)  This GNMA  certificate was repaid in March 2003 at par. As a result of
          the repayment,  the Company realized a loss of approximately  $391,000
          due to the  unamortized  balance of the premium that was recorded when
          the GNMA certificate had been purchased.

     (3)  This GNMA certificate was repaid in April 2003 at par.


                                       12
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)


The amortized  cost,  unrealized  gain and fair value for the investment in GNMA
Certificates at March 31, 2003 and December 31, 2002 were as follows:

<TABLE>
<CAPTION>

                                    (Dollars in thousands)


                                                     March 31,      December 31,
                                                       2003             2002
                                                  --------------    ------------

<S>                                                  <C>              <C>
Amortized cost                                       $103,504         $105,331
Net unrealized gain                                    12,269            8,703
                                                     --------         --------
Fair Value                                           $115,773         $114,034
                                                     ========         ========

</TABLE>

As of  March  31,  2003,  there  were  gross  unrealized  gains  and  losses  of
$12,296,332 and $27,254, respectively. As of December 31, 2002, there were gross
unrealized gains and losses of $8,730,076 and $27,147, respectively.


                                       13
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)


NOTE 4 - Notes Receivable

The Company's notes  receivable are  collateralized  by equity  interests in the
owner of the related property and consist of the following as of March 31, 2003:

                             (Dollars in thousands)
<TABLE>
<CAPTION>


                                                                                    Remaining
                                           Outstanding     Unamortized              Committed
                                            Principal       Costs and    Carrying   Balance to       Interest
Property                 Location            Balance          Fees        Amount     Fund (1)          Rate              Maturity
------------------------------------------------------------------------------------------------------------------------------------

<S>                      <C>                 <C>             <C>          <C>         <C>          <C>                 <C>
Parwood (3)(5)           Long Beach, CA      $  4,033        $  19        $ 4,014     $   567          11.00%           January 2004

Concord at Little York   Houston, TX            3,500           19          3,481          --          12.00%          February 2004

Concord at Gulfgate      Houston, TX            3,500           38          3,462          --          12.00%               May 2004

Reserve at Fox River(3)  Yorkville, IL          1,350            5          1,345          --          12.00%               May 2003

Noble Towers             Oakland, CA            6,872           27          6,845       7,300          12.00%              July 2005

Clarks Crossing          Laredo, TX               550           55            495       1,099          12.00%           October 2003

Concord at Gessner       Houston, TX            1,496           33          1,463         204          12.00%             March 2005

Del Mar Villas (4)       Dallas, TX             5,554           33          5,521          --      LIBOR + 4.625%(6)      April 2004

Mountain Valley (4)      Dallas, TX             5,451           58          5,393         856(2)   LIBOR + 4.750%(6)   November 2004

Baywoods (4)             Antioch, CA           10,490           67         10,423         500      LIBOR + 4.000%(6)      March 2005

                                             --------------------------------------------------

    Total                                    $ 42,796        $ 354        $42,442     $10,526
                                             ==================================================

</TABLE>

     (1)  Funded on an as needed basis.
     (2)  To be funded for rehabilitation.
     (3)  These loans are to limited  partnerships  whose  general  partners are
          affiliates of the Advisor (see Note 9).
     (4)  Pledged as collateral in connection with warehouse facility with Fleet
          National Bank (see Note 8).
     (5)  This  note  receivable  was  partially  paid  down  in the  amount  of
          $1,350,000 in April 2003.
     (6)  LIBOR at March 31, 2003 was 1.30%.

                                       14
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

NOTE 5 - Restricted Cash

During February 2003, the Company received approximately $10 million in proceeds
relating to the  repayment of the Stony Brook II first  mortgage  and  mezzanine
loans.   The  first  mortgage  and  mezzanine   loans  had  carrying  values  of
approximately $8.3 million and approximately  $651,000,  respectively.  The cash
proceeds from the principal  repayment of the first mortgage loan are being held
as collateral for the Company's  contingent  liabilities under guarantees issued
in the Fannie Mae DUS Program (see Note 11) and are recorded as restricted  cash
in the accompanying March 31, 2003 consolidated  balance sheet.  Included in the
$10 million of cash proceeds were additional  interest payments of approximately
$526,000 and prepayment penalties of approximately $331,000 that are recorded as
interest  income  from  mortgage  loans  in  the  accompanying  March  31,  2003
consolidated  statement  of income.  The Company also  recognized  approximately
$113,000 in  deferred  fee income  which is  recorded  in  interest  income from
mortgage  loans in the  accompanying  March 31, 2003  consolidated  statement of
income.

NOTE 6 - Real Estate Owned

On March 7,  2003,  the  Company  exercised  its rights  under the  subordinated
promissory  note and  other  documents  to take  possession  of the real  estate
collateral of the Plaza at San Jacinto, a 132-unit  multifamily property located
in La Porte,  Texas.  The Company had provided a $1.2 million  mezzanine loan to
the  owner  of the  Plaza at San  Jacinto  on May 24,  2001.  The  Company  paid
approximately $6.7 million and now owns the first mortgage loan on the property.
As such,  the Company is now a "mortgagee in  possession".  On May 6, 2003,  the
Company acquired the real estate at a foreclosure auction for approximately $6.7
million, which has enabled the Company to secure and protect the real estate and
cash  collateral,  securing both the first mortgage loan and the mezzanine loan.
Based on a recent independent appraisal,  the Company believes that the value of
the collateral,  less estimated disposal costs,  exceeds the amount paid for the
first  mortgage  loan and the carrying  amount of the mezzanine  loan.  However,
there can be no assurance  that the Company  will be able to sell this  property
for an amount  greater  than or equal to its  appraised  value.  The Company has
reclassified its investment in the Plaza at San Jacinto  mezzanine loan, as well
as the balance of the first  mortgage,  purchased  during the  quarter,  to real
estate owned on the March 31, 2003 consolidated balance sheet and ceased accrual
of interest.  The Company also incurred approximately $80,000 of costs to effect
this troubled debt  restructuring,  which are included in other  expenses in the
March 31, 2003 consolidated statement of income.

NOTE 7 - Repurchase Facility

Effective February 15, 2000, the Company 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 up to 97% of the fair  market  value of
Fannie Mae DUS Certificates owned by the Company.  Through May 2002,  borrowings
on the GNMA  Certificates  would  bear  interest  at 30-day  LIBOR  plus  0.50%.
Subsequent  to  May  2002,  interest  on  borrowings  on the  GNMA  Certificates
decreased to 30-day LIBOR plus 0.05%.  Interest on  borrowings on Fannie Mae DUS
Certificates  are at 30-day  LIBOR.  As of March 31, 2003 and December 31, 2002,
the  amounts  outstanding  under this  facility  were  $93.6 and $87.9  million,
respectively,  and interest rates were 1.36% and 1.47%,  respectively.  Deferred
costs  relating to the Nomura  Securities  Repurchase  Facility  have been fully
amortized.  All amounts  outstanding  at March 31, 2003,  had 30-day  settlement

                                       15
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

terms. As of March 31, 2003 and December 31, 2002, all GNMA  certificates  owned
by the Company were wholly or partially-pledged as collateral for this facility.

NOTE 8- Warehouse Facility

In October 2002,  the Company  entered into a mortgage  warehouse line of credit
with Fleet National Bank in the amount of up to $40 million.  Advances under the
warehouse  facility,  up to 83% of the total loan package,  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.  This facility,  which
matures  April 2006,  bears an interest rate of 30-day LIBOR + 200 basis points,
payable  monthly on advances.  Principal is 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. As of
March 31, 2003 and December 31, 2002,  the Company had  approximately  $17.0 and
$8.8 million in loans outstanding under this program, respectively.

NOTE 9 - Related Party Transactions

The costs incurred to related  parties for the three months ended March 31, 2003
and 2002 were as follows, all of which are paid or payable to the Advisor:
<TABLE>
<CAPTION>

                                                          Three Months Ended
                                                               March 31,
                                                      --------------------------
                                                         2003            2002
                                                      --------------------------

<S>                                                   <C>             <C>
Expense reimbursement                                 $      147      $      175
Asset management fees                                        249             182
Incentive fee                                                 47*             --
                                                      ----------      ----------

                                                      $      443      $      357
                                                      ==========      ==========
</TABLE>

*    Accrual  based on  management  estimates of the  Company's  full-year  2003
     results.

Some of the Company's notes  receivable (see Note 4), the guarantee on Creekside
Apartments  and standby  bridge  loan  commitments  described  in Note 11 are to
limited partnerships where the general partner is an affiliate of the Advisor.

In December 2002,  Charter  Municipal  Mortgage  Acceptance  Company announced a
proposed acquisition of Related. This acquisition will not affect the Company or
its day-to-day operations.

NOTE 10 - Earnings Per Share

Basic net  income  per share in the  amount  $.50 and $.43 for the three  months
ended March 31, 2003 and 2002,  respectively,  equals net income for the periods
($3,192,151  and  $2,139,024,  respectively),  divided by the  weighted  average
number of shares outstanding which were 6,363,630 and 4,960,852, respectively.

Because  the Company had no  dilutive  securities  outstanding  during the three
months ended March 31, 2003 or 2002, diluted net income per share is the same as
basic net income per share.

                                       16
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

NOTE 11 - 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  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 March 31, 2003,
the Company has originated loans totaling  approximately  $3.3 million under the
Fannie  Mae  Program  and  has  made  forward   commitments  for  an  additional
approximate $1.0 million.  The Company's  maximum guaranty at March 31, 2003 was
approximately $4.3 million.

Subsequent to creating this program,  the level of loan origination  competition
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  $355,000 and is included in Fannie Mae loan  program  expenses in
the March 31, 2002 consolidated statement of income.

During  March  of 2003,  the  Company's  liability  under a  forward  commitment
relating  to a loan in the Fannie  Mae  Program,  in the amount of $3.0  million
expired.

Except for the write-off of the program costs  described  above,  the Fannie Mae
loan program has not had, and its  discontinuance  is not anticipated to have, a
significant  impact  on  the  Company's   financial   condition  or  results  of
operations.

                                       17
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

The following table provides  information  relating to the loans  originated and
forward commitments made on Fannie Mae's behalf.

                             (Dollars in thousands)
<TABLE>
<CAPTION>


Loans
----------------
                                         Number of                     Loss
                                         Apartment                  Sharing Fee
Property                Location           Units     Loan Amount   (annual rate)
--------------------------------------------------------------------------------
<S>                     <C>                 <C>          <C>          <C>
Valley View             Cedar  Rapids, IA    96          $2,187       0.36%

Maple Ridge Apartments  Jackson, MI          69           1,137       0.52%
                                        --------------------------
         Total                              165          $3,324
                                        --------------------------

</TABLE>
<TABLE>
<CAPTION>

Forward Commitments
--------------------
                                         Number of                     Loss
                                         Apartment                  Sharing Fee
Property                Location           Units     Loan Amount   (annual rate)
--------------------------------------------------------------------------------
<S>                     <C>                 <C>          <C>          <C>
Desert View
Apartments (1)          Coolidge, AZ        372          $1,011       0.52%
                                        --------------------------

</TABLE>


(1)  During April 2003, the Company  purchased the Desert View construction loan
     due to a default on such loan,  which was 100%  guaranteed  by the  Company
     under the Fannie Mae Program.  The loan defaulted due to problems  relating
     to  construction.  The Company will classify this loan as a first  mortgage
     loan in the second quarter of 2003. The loan bears interest at a rate of 4%
     per annum above prime rate (8.25% at April 30, 2003);  interest will not be
     accrued  until  construction  issues are  resolved  and the loan is brought
     current by the borrower.


                                       18
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)


Standby and Forward Loan and GNMA Commitments
---------------------------------------------

During  2003 and 2002,  the  Company  issued the  following  standby and forward
bridge    and    permanent    loan    commitments    for    the    purpose    of
constructing/rehabilitating  certain multi-family apartment complexes in various
locations.

                             (Dollars in thousands)
<TABLE>
<CAPTION>

Standby and
Forward Bridge Loan Commitments
---------------------------------------

                                                                                               Maximum Amount of Commitments
                                                                                ----------------------------------------------------

Issue Date  Project                      Location          No. of Apt. Units           Less than 1 Year                  1-3 Years
------------------------------------------------------------------------------------------------------------------------------------

  <S>       <C>                          <C>                    <C>                       <C>                           <C>
  Jan-02    Parwood                      Long Beach, CA           528                     $   --                        $    567 (3)
  Jan-02    Valley View/Summertree (8)   Little Rock, AK          240                        400 (5)                          --
  Nov-02    Mountain Valley              Dallas, TX               312                        856 (3)
  Feb-03    Noble Towers                 Oakland, CA              195                                                      7,300 (3)
  Feb-03    Clark's Crossing Apartments  Laredo, TX               160                      1,099 (2)(5)                       --
  Mar-03    Concord at Gessner           Houston, TX              288                        204 (3)
  Mar-03    Baywoods Apartments          Antioch, CA              128                        500 (3)
                                                           -------------------------------------------------------------------------

Total Standby and Forward Bridge Loan Commitments               1,851                     $3,059                        $  7,867
                                                           =========================================================================


 Standby and Forward Permanent Loan
 Commitments
 ----------------------------------------

                                                                                               Maximum Amount of Commitments
                                                                                ----------------------------------------------------

Issue Date  Project                      Location          No. of Apt. Units           Less than 1 Year                  1-3 Years
------------------------------------------------------------------------------------------------------------------------------------

  Mar-02    Sunset Gardens               Eagle Pass, TX            60                     $  766 (4)                          --
  May-02    Highland Park                Topeka, TX               200                      4,250 (1)(6)(7)                    --
                                                           -------------------------------------------------------------------------

Total Standby and Forward Permanent Loan Commitments              260                     $5,016                              --
                                                           =========================================================================


</TABLE>

                                       19
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

<TABLE>
<CAPTION>

Forward GNMA Commitments
------------------------
                                                                                       Maximum Amount of Commitments
                                                                 -------------------------------------------------------------------

Date Purchased           Project                                    Less than 1 Year                        1-3 Years
-----------------------------------------                        -------------------------------------------------------------------

   <S>              <C>                                                   <C>                               <C>
   Mar-02           Cantera Crossing                                      $     587 (3)                     $      --
   Mar-02           Fillmore Park                                               203 (3)                            --
   May-02           Ellington Plaza                                          24,669 (3)                            --
    N/A             Northbrooke                                               1,756 (3)                            --
                                                                 -------------------------------------------------------------------

Total Forward GNMA Commitments                                            $  27,215                                --
                                                                 -------------------------------------------------------------------

Total Standby and Forward Loan and GNMA Commitments                       $  35,290                         $   7,867
                                                                 ===================================================================


</TABLE>


(1)  Funding not anticipated to occur.
(2)  Funding in the amount of $850,000  occurred  during  April 2003.  Remaining
     fundings are on an as needed basis.
(3)  Funding has already begun.  Amount  represents  remaining  commitment to be
     funded.
(4)  Commitment amount represents  approximately  $49,000 remaining to be funded
     on first mortgage loan and a $717,000 standby permanent loan commitment.
(5)  The  Company  received  a loan  commitment  fee of 2.50%  for  issuing  the
     commitment.
(6)  The  Company  received  a loan  commitment  fee of 2.00%  for  issuing  the
     commitment.
(7)  The Company will receive a 1% loan origination fee if funding occurs.
(8)  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.

                                       20
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)


Construction Loan Guarantees
----------------------------

During  2002,  the Company  guaranteed  the  following  loans in relation to the
construction  of  affordable   multi-family   apartment   complexes  in  various
locations.  The construction loan guarantees will provide credit support for the
following  projects after  construction  completion,  up until the date in which
permanent financing takes place.

During October 2002,  the Company  entered into an agreement with Wachovia Bank,
National Association  ("Wachovia") to provide  stabilization  guarantees for new
construction  of  multi-family  properties  under  the LIHTC  program.  Wachovia
already provides  construction and  stabilization  guarantees to Fannie Mae, for
loans Wachovia  originates  under the Fannie Mae LIHTC forward  commitment  loan
program,  but  only  for  loans  within  regions  of the  country  Wachovia  has
designated to be within its territory.  For loans outside Wachovia's  territory,
the Company has agreed to issue a  stabilization  guarantee,  for the benefit of
Wachovia.  The  Company is  guarantying  that  properties  which have  completed
construction will stabilize and the associated  construction  loans will convert
to permanent Fannie Mae loans.  The Company  receives  origination and guarantee
fees from the developers for providing the guarantees.  If the properties do not
stabilize  with  enough  Net  Operating  Income for Fannie Mae to fully fund its
commitment  for  a  permanent  loan,  AMAC  may  be  required  to  purchase  the
construction  loan  from  Wachovia  or  to  fund  the  difference   between  the
construction loan amount and the reduced Fannie Mae permanent loan amount.

                             (Dollars in thousands)
<TABLE>
<CAPTION>


                                                                                Maximum Amount of
                                                                                    Guarantee

                                                                                                     Loan Administra-   Construction
                                                               No. of     Less than                   tion Fee (1)        Guarantee
Date Closed   Project                   Location               Units       1 Year      1-3 Years   (annual percentage)    Fee (2)
-----------------------------------------------------------------------------------------------------------------------------------

<S>           <C>                       <C>                     <C>        <C>          <C>               <C>                <C>
Jul-02        Clark's Crossing          Laredo, TX              160        $ 4,790      $     --          0.500%             0.625%
Sept-02       Creekside Apts.           Colorado Springs, CO    144          7,500            --          0.375%                --
Oct-02        Village at Meadowbend     Temple, TX              138             --         3,675          0.500%             0.750%
Nov-02        Mapleview Apartments (3)  Saginaw, MI             104             --         3,240          0.625%             0.247%
                                                               ---------------------------------------------------------------------
                                                                546        $12,290      $  6,915
                                                               =====================================================================

</TABLE>


(1)  Loan  Administration  Fee is paid on a monthly  basis during the  guarantee
     period.
(2)  Construction  Guarantee  Fee is an  up-front  fee -  paid  at  closing  and
     amortized over the guarantee period.
(3)  Guarantee was made under  Wachovia  Bank,  National  Association  Guarantee
     Agreement.

For each of these  guarantees,  and for the  guarantees  issued  under  the FNMA
program  discussed in the first paragraph of this Note 11, the Company  monitors
the status of the  underlying  properties  and evaluates its exposure  under the
guarantees.  To date,  the Company has  concluded  that no accrual for  probable
losses is required under SFAS 5.

                                       21
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

NOTE 12 - Financial Risk Management and Derivatives

On March 25, 2003,  the Company  entered into a five year  interest rate swap in
order to reduce the Company's exposure to any possible increases in the floating
interest rate on its Nomura Securities  Repurchase  Facility (Note 7). Under the
interest rate swap agreement, the Company is required to pay Fleet National Bank
(the  "Counterparty") a fixed rate of 3.48% on a notional amount of $30 million.
In return,  the Counterparty  will pay the Company a floating rate equivalent to
30-day LIBOR.

The average  30-day LIBOR rate for the three  months  ended March 31, 2003,  was
1.33%. A possible risk of such swap agreements is the possible  inability of the
Counterparty to meet the terms of the contracts with the Company; however, there
is no current indication of such an inability.

The Company will account for this swap under  Statement of Financial  Accounting
Standards  No.  133, as amended and  interpreted.  Accordingly,  the Company has
documented  its  established  policy for risk  management and its objectives and
strategies for the use of derivative  instruments  to potentially  mitigate such
risks.  The Company  evaluates  its  interest  rate risk on an ongoing  basis to
determine  whether  or not it would be  advantageous  to engage  in any  further
hedging  transactions.  At inception,  the Company  designated the interest rate
swap as cash flow hedges on the variable  interest payments on its floating rate
financing.  Accordingly,  the  interest  rate swap will be  recorded at the fair
market  value each  accounting  period,  with  changes in the market value being
recorded in other comprehensive income to the extent that the hedge is effective
in achieving offsetting cash flows. The Company assesses,  both at the inception
of the  hedge and on an  ongoing  basis  whether  the swap  agreement  is highly
effective in offsetting  changes in the cash flows of the hedged financing.  Any
ineffectiveness  in the  hedging  relationship  is  recorded  in  earnings.  The
Company's assessment is that this swap will be highly effective.

At March 31, 2003,  this interest  rate swap was recorded as a liability  with a
fair  market  value  of  approximately  $393,000,   included  in  interest  rate
derivatives on the consolidated balance sheet.

NOTE 13 - Subsequent Events

In April 2003,  the Company  completed a public  offering of 1.7 million  common
shares  at  a  price  of  $15.00  per  share,  resulting  in  proceeds,  net  of
underwriters  discount and expenses, of approximately $24 million. In connection
with the  offering,  the  Company  issued  19,550  shares  to the  Advisor.  The
underwriters exercised an option to purchase an additional 255,000 common shares
at a price of  $15.00  per  share,  resulting  in  additional  net  proceeds  of
approximately  $3.6 million.  The net proceeds from the public  offering and the
over-allotment will be used to fund future investment activity.

On April 11, 2003,  in  accordance  with the  Incentive  Share Option Plan,  the
Company's Compensation Committee granted 190,000 options to employees of Related
for the year ended 2002. The per share exercise price was $15.03,  which was the
market price of the  Company's  common stock at the issuance  date.  The Company
will account for its stock  options by adopting the  provisions of SFAS No. 123,
"Accounting  for  Stock-Based  Compensation"  for its  share  options  issued to
non-employees.  Accordingly,  compensation cost will be accrued at the estimated
fair value of the options issued, and amortized over the vesting period.

                                       22
<PAGE>


              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                 March 31, 2003
                                   (Unaudited)

During  April and May 2003,  the Company has made  commitments  to purchase  six
Fannie Mae DUS certificates for an aggregate face amount of approximately  $18.9
million.  The Fannie Mae DUS certificates have an average coupon yield of 5.60%.
These purchases will be funded using drawdowns from the repurchase  facility and
from proceeds received from the April 2003 common share public offering.

In May 2003, a distribution of $2,545,452,  ($0.40 per share) which was declared
in March 2003, was paid to shareholders for the quarter ended March 31, 2003.


                                       23
<PAGE>


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

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

Interest income from mortgage loans increased  approximately  $1,006,000 for the
three  months  ended March 31, 2003 as  compared  to 2002  primarily  due to the
additional  interest  and  prepayment   penalties  received,   as  well  as  the
recognition  of  deferred  loan  origination  fees,  from the  repayment  of the
Stonybrook II first mortgage and mezzanine loans in January 2003.

Interest income from GNMA certificates increased  approximately $788,000 for the
three  months  ended March 31, 2003 as  compared  to 2002  primarily  due to the
purchase of an additional three GNMA Certificates in the latter part of 2002.

Interest income from notes receivable increased  approximately  $431,000 for the
three months ended March 31, 2003 as compared to 2002 due to the funding of four
notes receivable during 2003.

Other income decreased in the amount of $32,000 for the three months ended March
31, 2003 as compared to 2002 due to loan extension fees earned in 2002.

Interest  expense  increased  approximately  $135,000 due to the addition of the
warehouse facility and additional borrowings under the repurchase facility.

Fees to advisor increased approximately $86,000 for the three months ended March
31, 2003 as compared to 2002  primarily  due to an increase in asset  management
fees  payable to the Advisor due to an increase in the assets and the accrual of
incentive management fees.

Amortization expenses increased approximately $71,000 for the three months ended
March 31, 2003 as compared to 2002 due to the  amortization of deferred costs on
the Fleet Warehouse Facility.

During  the  three  months  ended  March  31,  2002,   the  Company   recognized
approximately  $355,000  in FNMA  loan  program  expenses  associated  with  the
write-off  of the  unamortized  deferred  costs  related  to the Fannie Mae loan
program.

Other  expenses of  approximately  $80,000 for the three  months ended March 31,
2003 represents costs incurred in the Plaza at San Jacinto debt restructuring.

A loss on the  repayment  of GNMAs in the amount of  approximately  $391,000 was
recorded for the three months ended March 31, 2003, relating to the write-off of
a purchase premium due to the repayment of one GNMA certificate.

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

As of March 31,  2003,  the  Company's  mortgage  investments  consisted  of two
mortgage  loans  and seven  mezzanine  loans  originated  by or on behalf of the
Company, eleven GNMA mortgage-backed  securities and pass-through  certificates,
eleven bridge loans and a preferred equity investment in ARCap Investors, L.L.C.
("ARCap").

During  the  three  months  ended  March  31,  2003,  cash and cash  equivalents
decreased approximately $6,759,000 primarily due to funding of notes receivable,
$20,509,000,  increase in restricted cash, $8,282,000, increase in investment in
mortgage  loans,  $7,049,000,  investments  in  GNMA  Certificates,  $4,532,000,
repayments  of repurchase  facility  payable,  $15,499,000,  offset by principal

                                       24
<PAGE>

payments  of  mortgage  loans,  $9,350,000,  proceeds  from  warehouse  facility
payable, $8,209,000, proceeds from the repurchase facility payable, $21,184,000,
principal repayments of GNMA certificates,  $5,960,000 and a repayment of a note
receivable, $4,057,000.

The Company finances the acquisition of its assets primarily  through  borrowing
at  short-term  rates  using  demand  repurchase  agreements  and  the  mortgage
warehouse line of credit (see below). 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.

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 of approximately
$31  million,  net of  underwriter's  discount and  expenses,  were used to fund
investments.  On April 23, 2003, the Company  completed a public offering of 1.7
million common shares at a price of $15.00 per share, resulting in proceeds, net
of  underwriters  discount  and  expenses,  of  approximately  $24  million.  In
connection  with this  offering,  the  Company has issued  19,550  shares to the
Advisor. The underwriters  exercised an option to purchase an additional 255,000
common  shares at a price of $15.00  per  share,  resulting  in  additional  net
proceeds  of  approximately  $3.6  million.  The net  proceeds  from the  public
offering and the over-allotment will be used to fund future investment activity.

The Company has the capacity to raise an additional  approximate  amount of $172
million  in  either  common  or  preferred   shares   remaining  under  a  shelf
registration  statement filed with the Securities and Exchange Commission during
2002. If market  conditions  warrant,  the Company may seek to raise  additional
funds up to this amount for investment  through further common and/or  preferred
offerings in the future, although the timing and amount of such offerings cannot
be determined at this time.

In April 2003, in accordance with the Incentive Share Option Plan, the Company's
Compensation  Committee  granted 190,000 options to employees of Related for the
year ended 2002. The per share exercise price on April 11, 2003 was $15.03.

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 up to 97% of the
fair market value Fannie Mae DUS  Certificates  owned by the Company,  which are
pledged  as  collateral  for the  borrowings.  Up until  May 2002,  interest  on
borrowings  on the GNMA  Certificates  would bear  interest at 30-day LIBOR plus
0.50%.  Subsequent to May 2002,  interest on borrowings on the GNMA Certificates
decreased to 30-day LIBOR plus 0.05%.  Interest on  borrowings on Fannie Mae DUS
Certificates  are at 30-day  LIBOR.  As of March 31, 2003 and December 31, 2002,
the amount  outstanding  under this facility was  approximately  $93.6 and $87.9
million,  respectively,  and interest rates were 1.36% and 1.47%,  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.

In October  2002,  the Company  entered into the Fleet  Warehouse  Facility with
Fleet  National Bank in the amount of $40 million.  Advances under the warehouse
facility,  up to 83% of the  total  loan  package,  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 warehouse facility,

                                       25
<PAGE>

which  matures  April 2006,  bears an interest  rate of 30-day LIBOR + 200 basis
points,  payable  monthly  on  advances.  Principal  is 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.  As of  March  31,  2003  and  December  31,  2002,  the  Company  had
approximately $17.0 million and $8.8 million, respectively, in loans outstanding
under this program.

In order to qualify as a REIT under the Code,  as  amended,  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  entered into 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  March  31,  2003,  the  Company  has  originated  loans  totaling
approximately  $3.3  million  under the Fannie Mae Program and has made  forward
commitments for an additional  approximate $1.0 million.  The Company's  maximum
guaranty at March 31, 2003 was $4.3 million.

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  $355,000 and is included in Fannie Mae loan  program  expenses in
the March 31, 2002 Consolidated Statement of Income.

During  March  of 2003,  the  Company's  liability  under a  forward  commitment
relating to the Fannie Mae Program, in the amount of $3.0 million expired.

Except for the write-off of the program costs  described  above,  the Fannie Mae
loan program has not had, and its  discontinuance  is not anticipated to have, a
significant  impact  on  the  Company's   financial   condition  or  results  of
operations.

                                       26
<PAGE>

During February 2003, the Company received approximately $10 million in proceeds
relating to the  repayment of the Stony Brook II first  mortgage  and  mezzanine
loans,  of which,  $8.3 million is being held as  collateral  for the  Company's
contingent liabilities under guarantees issued in the Fannie Mae DUS program.

In May 2003, a distribution of $2,545,452  ($.40 per share),  which was declared
in March 2003,  was paid to the  shareholders  for the  quarter  ended March 31,
2003.

For a summary of the Company's  commitments and contingencies at March 31, 2003,
see Note 11 to the consolidated financial statements.

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.

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

Of the total  distributions  of $2,545,452  and  $2,306,815 for the three months
ended March 31, 2003 and 2002,  respectively,  the three  months ended March 31,
2003 had no return of capital and for 2002,  $167,792  ($.03 per share or 7.27%)
represented a return of capital determined in accordance with generally accepted
accounting  principles.  As of March  31,  2003,  the  aggregate  amount  of the
distributions  made  since  the  commencement  of the  initial  public  offering
representing  a  return  of  capital,  in  accordance  with  generally  accepted
accounting  principles,  totaled  $13,806,079.  The portion of the distributions
which  constituted  a return of  capital  was  significant  during  the  initial
acquisition stage in order to maintain level distributions to shareholders.

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

The Company's  critical  accounting  policies are described in its Form 10-K for
the year ended December 31, 2002.  These critical  accounting  policies have not
changed during 2003, but the Company has entered into several transactions which
involve new  critical  accounting  policies as described  in the  following  two
paragraphs.

During 2003, the Company entered into a five-year  interest rate swap,  which is
accounted for under SFAS No. 133,  "Accounting  for Derivative  Instruments  and
Hedging  Standards  No. 133".  At the  inception,  the Company  designated  this
interest rate swap as a cash flow hedge on the variable interest payments in its
floating rate financing. Accordingly, the interest rate swap is recorded at fair
market value each accounting period, with changes in market value being recorded
in other comprehensive  income to the extent the hedge is effective in achieving
offsetting cash flows. This hedge has been highly  effective,  so there has been
no ineffectiveness included in earnings. Net amounts receivable or payable under
the swap agreements are recorded as adjustments to interest expense.

During 2003, the Company  exercised its rights under a  subordinated  promissory
note and other documents to take  possession of certain real estate  collateral.
The Company has also purchased the first mortgage loan on the property.  This is
a  preliminary  step  towards  foreclosure.  When a loan  is in the  process  of
foreclosure,  it is the Company's  policy to reclassify  the balance of the loan
into real  estate  owned at the  lower of fair  value of the real  estate,  less
estimated  disposal  costs or the  carrying  amount  of the  loan,  and to cease
accrual of interest.

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

                                       27
<PAGE>

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.

Interest Rate Risk

Interest rate  fluctuations  can adversely affect the Company's income and value
of its common shares in many ways and present a variety of risks,  including the
risk of mismatch  between  asset yields and  borrowing  rates,  variances in the
yield curve and changing prepayment rates.

Various  financial  vehicles  exist  which  would allow  Company  management  to
mitigate the impact of interest rate  fluctuations  on the Company's  cash flows
and earnings. During March 2003, upon management's analysis of the interest rate
environment and the costs and risks of such strategies, the Company entered into
an  interest  rate  swap in order to hedge  against  increases  in the  floating
interest rate on its Nomura Securities  Repurchase Facility.  Under the interest
rate swap  agreement,  the Company is required to pay Fleet  National  Bank (the
"Counterparty")  a fixed  rate on a  notional  amount of debt.  In  return,  the
Counterparty will pay the Company a floating rate equivalent to the 30-day LIBOR
rate. On March 25, 2003, the Company entered into a five-year interest rate swap
that fixes the 30-day  LIBOR rate to 3.48% on a notional  amount of $30 million.
This effectively fixes $30 million of the Company's secured borrowings at 3.48%,
protecting the Company in the event the 30-day LIBOR rate rises.

The Company's operating results will depend in large part on differences between
the income from its assets (net of credit losses) and its borrowing costs.  Most
of  the  Company's  assets,   consisting   primarily  of  mortgage  loans,  GNMA
certificates,  and notes receivable,  generate fixed returns and will have terms
in excess of five years.  The Company funds the origination and acquisition of a
significant  portion of these assets with  borrowings  which have interest rates
that reset relatively rapidly, such as monthly or quarterly.  In most cases, the
income from assets will respond more slowly to interest rate  fluctuations  than
the cost of borrowings,  creating a mismatch  between asset yields and borrowing
rates. Consequently, changes in interest rates, particularly short-term interest
rates,  may influence the  Company's net income.  The Company bears  interest at
rates that fluctuate with LIBOR.  Based on the $80.6 million unhedged portion of
$110.6  million of borrowings  outstanding  under these  facilities at March 31,
2003, a 1% change in LIBOR would reduce the Company's annual net income and cash

                                       28
<PAGE>

flows by approximately $806,000.  Increases in these rates will decrease the net
income and market value of the Company's net assets.  Interest rate fluctuations
that  result in interest  expense  exceeding  interest  income  would  result in
operating losses.

The  value of the  Company's  assets  may be  affected  by  prepayment  rates on
investments.  Prepayment  rates are  influenced  by changes in current  interest
rates  and a variety  of  economic,  geographic  and other  factors  beyond  the
Company's control,  and consequently,  such prepayment rates cannot be predicted
with certainty. When the Company originates mortgage loans, it expects that such
mortgage loans will have a measure of protection  from prepayment in the form of
prepayment lock-out periods or prepayment  penalties.  However,  such protection
may not be available with respect to investments which the Company acquires, but
does not originate. In periods of declining mortgage interest rates, prepayments
on mortgages generally increase.  If general interest rates decline as well, the
proceeds  of such  prepayments  received  during  such  periods are likely to be
reinvested  by the  Company  in  assets  yielding  less  than the  yields on the
investments  that were  prepaid.  In  addition,  the  market  value of  mortgage
investments may, because of the risk of prepayment,  benefit less from declining
interest rates than from other fixed-income securities.  Conversely,  in periods
of rising interest rates,  prepayments on mortgages generally decrease, in which
case the Company would not have the prepayment  proceeds  available to invest in
assets with higher yields.  Under certain interest rate and prepayment scenarios
the  Company  may fail to  recoup  fully  its  cost of  acquisition  of  certain
investments.

Real Estate Risk

Multi-family  and commercial  property  values and net operating  income derived
from such properties are subject to volatility and may be affected  adversely by
a number of factors, including, but not limited to, national, regional and local
economic  conditions (which may be adversely  affected by industry slowdowns and
other factors);  local real estate conditions (such as an oversupply of housing,
retail,  industrial,  office or other  commercial  space);  changes or continued
weakness in specific industry segments;  construction  quality,  age and design;
demographic  factors;  retroactive  changes to  building or similar  codes;  and
increases  in  operating  expenses  (such as  energy  costs).  In the  event net
operating income decreases,  a borrower may have difficulty paying the Company's
mortgage  loan,  which  could  result  in losses to the  Company.  In  addition,
decreases  in  property  values  reduce  the  value  of the  collateral  and the
potential  proceeds  available  to a borrower  to repay the  Company's  mortgage
loans, which could also cause the Company to suffer losses.

Risk in Owning Subordinated Interests

The Company has invested  indirectly in subordinated  CMBS through its ownership
of a $20.2 million preferred membership interest in ARCap.  Subordinated CMBS of
the type in which ARCap invests  include "first loss" and  non-investment  grade
subordinated interests. A first loss security is the most subordinate class in a
structure  and  accordingly  is the  first to bear the loss  upon a  default  on
restructuring  or  liquidation  of the  underlying  collateral  and the  last to
receive  payment of interest and principal.  Such classes are subject to special
risks, including a greater risk of loss of principal and non-payment of interest
than more senior, rated classes. The market values of subordinated  interests in
CMBS and other  subordinated  securities tend to be more sensitive to changes in
economic  conditions than more senior,  rated classes.  As a result of these and
other factors,  subordinated interests generally are not actively traded and may
not provide holders with liquidity of investment.  With respect to the Company's
investment in ARCap, the ability to transfer the membership interest in ARCap is
further limited by the terms of ARCap's operating agreement.

                                       29
<PAGE>

Participating Interest

In connection with the  acquisition  and  origination of mortgages,  the Company
has, on occasion,  obtained and may continue to obtain  participating  interests
that may entitle it to payments based upon a development's cash flow, profits or
any  increase  in the value of the  development  that would be  realized  upon a
refinancing or sale of the development.  Competition for participating interests
is dependent to a large degree upon market conditions.  Participating  interests
are more difficult to obtain when mortgage  financing is available at relatively
low interest rates. In the current  interest rate  environment,  the Company may
have  greater  difficulty  obtaining   participating   interest.   Participating
interests are not government  insured or guaranteed and are therefore subject to
the general risks inherent in real estate  investments.  Therefore,  even if the
Company is  successful  in investing in mortgage  investments  which provide for
participating  interests,  there can be no assurance  that such  interests  will
result in additional payments.

Repurchase Facility Collateral Risk

Repurchase  agreements  involve the risk that the market value of the securities
sold by the Company  may  decline and that the Company  will be required to post
additional collateral,  reduce the amount borrowed or suffer forced sales of the
collateral. If forced sales were made at prices lower than the carrying value of
the collateral,  the Company would experience  additional losses. If the Company
is  forced  to  liquidate  these  assets  to repay  borrowings,  there can be no
assurance  that the Company  will be able to maintain  compliance  with the REIT
asset and source of income requirements.

Item 4.  Controls and Procedures

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.

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.

                                       30
<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

          Steven  Wendel has resigned his  position as Chief  Operating  Officer
          ("COO") of the Company  effective  April 25, 2003,  in order to pursue
          other endeavors.  The Company has begun a search for a new COO. In the
          interim,  Alan Hirmes,  the Executive  Vice  President of the Company,
          will function as the COO.

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.

          Reports on Form 8-K

          Current  report on Form 8-K  relating to the Company  entering  into a
          five-year, 30-day London Inter-Bank offer rate interest rate swap with
          a notional amount of $30 million.


                                       31
<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: May 9, 2003                   By:  /s/ Stuart J.  Boesky
                                         ---------------------
                                         Stuart J. Boesky
                                         Trustee, Chairman of the Board,
                                         President and Chief Executive Officer



Date: May 9, 2003                   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:  May 9, 2003                                   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:  May 9, 2003                                   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
     May 9, 2003

<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
     May 9, 2003