SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


(Mark One)


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

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005


                                       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) 317-5700


     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 Rule 12b-2 of the Exchange Act). Yes  X  No
                                               -----  -----


     Indicate  by check mark  whether  the  Registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act). Yes     No  X
                                               -----  -----


As of  October  31,  2005,  8,311,226  shares  of  the  Registrant's  shares  of
beneficial interest, $0.10 par value, were outstanding.


<PAGE>



                                TABLE OF CONTENTS

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY

                                    FORM 10-Q

<TABLE>
<CAPTION>

                                                                                                      PAGE
<S>            <C>           <C>                                                                       <C>
PART I
               Item 1.       Condensed Consolidated Financial Statements                                3
               Item 2.       Management's Discussion and Analysis of Financial Condition and
                                 Results of Operations                                                 15
               Item 3.       Quantitative and Qualitative Disclosures about Market Risk                21
               Item 4.       Controls and Procedures                                                   22

PART II
               Item 1.       Legal Proceedings                                                         23
               Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds               23
               Item 3.       Defaults Upon Senior Securities                                           23
               Item 4.       Submission of Matters to a Vote of Security Holders                       23
               Item 5.       Other Information                                                         23
               Item 6.       Exhibits                                                                  23

SIGNATURES                                                                                             24

</TABLE>

     See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>



                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets
                    (In thousands, except per share amounts)

<TABLE>
<CAPTION>

                                     ASSETS
                                                                               September 30,   December 31,
                                                                                   2005            2004
                                                                               -------------   ------------
                                                                                (Unaudited)
<S>                                                                              <C>            <C>
Cash and cash equivalents                                                        $  16,959      $   2,674
 Investments
   Debt securities                                                                 202,938        194,587
   Mortgage loans, net                                                              54,052         21,376
   Notes receivable, net                                                            13,725         23,111
   Revenue bonds                                                                     6,559          6,672
   ARCap preferred shares                                                           20,240         20,240
   Real estate owned - held and used, net                                           50,842         60,211
   Real estate owned - held for sale                                                19,390         17,924
Accounts receivable                                                                 25,757          1,925
Other assets                                                                         1,599            313
                                                                                 ---------      ---------

Total assets                                                                     $ 412,061      $ 349,033
                                                                                 =========      =========

                                        LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Repurchase facilities payable                                                  $ 214,645      $ 157,633
  Warehouse facility payable                                                         4,070          3,827
  Mortgages payable on real estate owned                                            40,618         56,993
  Preferred shares of subsidiary (subject to mandatory repurchase)                  25,000           --
  Line of credit - due to related party                                               --            4,600
  Accounts payable and accrued expenses                                              1,622          1,344
  Due to Advisor and affiliates                                                      2,429            770
  Distributions payable                                                              3,324          3,334
                                                                                 ---------      ---------

Total liabilities                                                                  291,708        228,501
                                                                                 ---------      ---------

Commitments and contingencies

Shareholders' equity:
  Shares of beneficial interest; $.10 par value; 25,000 shares authorized;
   8,717 issued and 8,311 outstanding in 2005 and 8,716 issued and 8,337
   outstanding in 2004                                                                 872            871
  Treasury shares of beneficial interest at par; 406 shares in 2005 and 379
   shares in 2004                                                                      (41)           (38)
  Additional paid-in capital                                                       126,414        126,800
  Share - based compensation                                                          --              (16)
  Distributions in excess of net income                                            (13,979)       (17,202)
  Accumulated other comprehensive income                                             7,087         10,117
                                                                                 ---------      ---------

Total shareholders' equity                                                         120,353        120,532
                                                                                 ---------      ---------

Total liabilities and shareholders' equity                                       $ 412,061      $ 349,033
                                                                                 =========      =========

</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                   Condensed Consolidated Statements of Income
                    (In thousands, except per share amounts)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                              Three Months Ended       Nine Months Ended
                                                                 September 30,           September 30,
                                                              --------------------    --------------------
                                                                2005        2004        2005        2004
                                                              --------    --------    --------    --------
<S>                                                           <C>         <C>         <C>         <C>
Revenues:
  Interest income:
     Debt securities                                          $ 3,351     $ 2,426     $ 9,722     $ 7,169
     Mortgage loans                                             1,734         394       3,497       1,189
     Notes receivable                                             365         699       1,222       1,965
     Revenue bonds                                                145         149         438         485
     Temporary investments                                         48          12         132          32
  Rental income of real estate owned - held and used            1,654       1,873       5,159       5,583
  Fees related to prepayment of investments                     5,314         173       5,314         173
  Other revenues                                                  155          39         883          87
                                                              -------     -------     -------     -------
     Total revenues                                            12,766       5,765      26,367      16,683
                                                              -------     -------     -------     -------

Expenses:
  Interest                                                      1,937       1,053       4,854       2,781
  Interest - distributions to preferred shareholders of
    subsidiary (subject to mandatory repurchase)                  461          --         961          --
  Mortgage interest for real estate owned - held and used         601          --       1,808          --
  Property operations of real estate owned - held and used        794         959       2,420       2,356
  General and administrative                                      608         372       1,513       1,015
  Fees to Advisor                                               1,906         618       3,280       1,782
  Depreciation                                                    336          59       1,038         367
  Amortization and other                                           68          55         292         258
                                                              -------     -------     -------     -------
     Total expenses                                             6,711       3,116      16,166       8,559
                                                              -------     -------     -------     -------

Other income:
  Equity in earnings of ARCap                                     600         600       1,800       1,800
  Income from real estate owned - held for sale                   403          --       1,024          --
  Net gain on repayment of debt securities                        254          --         183          --
                                                              -------     -------     -------     -------
     Total other income                                         1,257         600       3,007       1,800
                                                              -------     -------     -------     -------

  Net income                                                  $ 7,312     $ 3,249     $13,208     $ 9,924
                                                              =======     =======     =======     =======

  Net income per share (basic and diluted)                    $  0.88     $  0.39     $  1.59     $  1.19
                                                              =======     =======     =======     =======

  Dividends per share                                         $  0.40     $  0.40     $  1.20     $  1.20
                                                              =======     =======     =======     =======

  Weighted average shares outstanding:
     Basic                                                      8,311       8,336       8,320       8,337
                                                              =======     =======     =======     =======
     Diluted                                                    8,314       8,336       8,323       8,341
                                                              =======     =======     =======     =======

</TABLE>

     See accompanying notes to condensed consolidated financial statements.


                                       4
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                 Nine Months Ended
                                                                   September 30,
                                                              ----------------------
                                                                2005          2004
                                                              --------      --------
<S>                                                           <C>           <C>
Cash flows from operating activities:
Net income                                                    $ 13,208      $  9,924
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation expense                                        1,038           367
     Net gain on repayment of debt securities                     (183)           --
     Amortization and accretion                                    121            76
     Other non-cash expense                                         20            20
   Changes in operating assets and liabilities:
     Accounts receivable                                          (923)          622
     Other assets                                                 (445)         (442)
     Due to Advisor and affiliates                               1,659           626
     Accounts payable and accrued expenses                         262          (333)
     Accrued interest payable                                      294          (511)
                                                              --------      --------

   Net cash provided by operating activities                    15,051        10,349
                                                              --------      --------

Cash flows from investing activities:
   Investment in debt securities                               (40,503)      (14,221)
   Principal repayments of debt securities                       6,872        16,754
   Purchase of mortgage on real estate owned                   (17,150)           --
   Proceeds from sale of real estate owned                       7,474            --
   Funding of notes receivable                                    (472)       (7,145)
   Repayment of notes receivable                                 9,883        21,099
   Principal payment on real estate owned - held and used          480            --
   Principal repayments on revenue bonds                           157           841
   Funding of mortgage loans                                   (36,872)       (6,838)
   Repayments of mortgage loans                                  2,874         1,306
                                                              --------      --------

Net cash (used in) provided by investing activities            (67,257)       11,796
                                                              --------      --------

</TABLE>

                                   continued

                                       5
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                    Nine Months Ended
                                                                      September 30,
                                                                 ----------------------
                                                                   2005          2004
                                                                 --------      --------
<S>                                                              <C>           <C>
Cash flows from financing activities:
   Proceeds from repurchase facilities                           $ 80,659      $ 13,322
   Repayments of repurchase facilities                            (23,647)      (18,246)
   Proceeds from warehouse facility                                   243           943
   Repayments of warehouse facility                                  --         (13,061)
   Proceeds from line of credit - due to related party             14,761        15,361
   Repayment of line of credit - due to related party             (19,361)         --
   Distribution paid to shareholders                               (9,994)      (10,005)
   Deferred financing costs                                          (802)         --
   Treasury stock purchases                                          (368)          (52)
   Issuance of preferred shares of subsidiary                      25,000          --
                                                                 --------      --------

Net cash provided by (used in) financing activities                66,491       (11,738)
                                                                 --------      --------

Net increase in cash and cash equivalents                          14,285        10,407

Cash and cash equivalents at the beginning of the year              2,674         2,028
                                                                 --------      --------

Cash and cash equivalents at the end of the period               $ 16,959      $ 12,435
                                                                 ========      ========

Non-cash investing activities:
  Accounts receivable from repayment and sale of investments     $ 22,910      $   --
                                                                 ========      ========

</TABLE>

     See accompanying notes to condensed consolidated financial statements.

                                       6
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



NOTE 1 - BASIS OF PRESENTATION

The condensed consolidated financial statements include the accounts of American
Mortgage Acceptance Company and its wholly owned subsidiaries.  All intercompany
accounts  and  transactions  have  been  eliminated  in  consolidation.   Unless
otherwise indicated, we herein refer to American Mortgage Acceptance Company and
its  subsidiaries  as "AMAC",  "we",  "us",  "our",  and "our  Company".  We are
externally  managed by Related AMI Associates,  Inc., which acts as our Advisor.
We operate in one business segment.

In March 2005,  we formed AMAC  Capital  Financing  I ("ACFI"),  a wholly  owned
trust, for the purpose of issuing trust preferred securities,  which are subject
to mandatory  repurchase  in March 2035 and are callable in March 2010 (see Note
8).

The condensed  consolidated  financial  statements  have been  prepared  without
audit.  In the  opinion of  management,  the  financial  statements  contain all
adjustments  (consisting  of only normal  recurring  adjustments)  necessary  to
present fairly our financial  position as of September 30, 2005, and the results
of our operations and our cash flows. However, the operating results for interim
periods may not be indicative of the results for the full year.

Certain  information  and  footnote  disclosures  normally  included  in  annual
consolidated   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 consolidated financial statements and notes thereto
included in our Form 10-K for the year ended December 31, 2004.

Our annual report on Form 10-K for the year ended December 31, 2004,  contains a
summary of our  significant  accounting  policies.  There have been no  material
changes to these items since December 31, 2004;  however, we have entered into a
transaction during 2005 which involves a new significant  accounting policy (see
Note 8).

The preparation of the consolidated financial statements in conformity with GAAP
requires us to make estimates and assumptions  that affect the reported  amounts
of  assets  and  liabilities  and  the  disclosure  of  contingent   assets  and
liabilities  as of 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.

Certain prior year amounts have been reclassified to conform to the current year
presentation,  in particular,  the  reclassification of results of operations of
our real estate owned - held and used portfolio.

NOTE 2 - INVESTMENTS IN DEBT SECURITIES - AVAILABLE FOR SALE

During the nine months ended  September 30, 2005, we purchased  seven Fannie Mae
("FNMA")  certificates  with  principal  amounts  totaling  approximately  $38.2
million.  The  certificates  were purchased at premiums  totaling  approximately
$119,000  with a  weighted  average  maturity  date of  February  2014  and bear
interest at a weighted average rate of 5.56%.

During the nine months ended  September 30, 2005, we funded  approximately  $2.2
million on debt securities originated prior to December 31, 2004.

During the nine months ended  September 30, 2005,  three Ginnie Mae ("GNMA") and
FNMA  certificates  were  repaid,  one prior to the maturity  date.  We received
approximately  $10.8  million in proceeds,  of which,  $5.2  million  related to
penalties and fees resulting from the prepayment,  which are classified as "fees
related to prepayment of investments" on the condensed consolidated statement of
income.  The principal  balance on the prepaid GNMA  certificate  (approximately
$21.4  million)  was received in October  2005,  and is  classified  in accounts
receivable  on the condensed  consolidated  balance sheet of September 30, 2005.
These  pay-downs  also  resulted in  write-offs  of  unamortized  discounts  and
premiums  of  approximately  $183,000,  which  are  classified  as a net gain on


                                       7
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



repayment of debt securities on our condensed  consolidated  statement of income
(see also Note 3 regarding the prepayment of an associated mezzanine loan).

In July 2005,  we received an executed  letter of intent to purchase a defaulted
GNMA certificate and mezzanine loan at par plus any accrued interest through the
date of the  letter.  As such,  we have  recognized  approximately  $201,000  in
previously  unrecorded,  unpaid interest  relating to the mezzanine loan. We are
currently in negotiations to finalize this sale.

Information regarding our investments in debt securities is as follows:

<TABLE>
<CAPTION>

(In thousands)
                                               September 30,        December 31,
                                                   2005                 2004
                                               -------------        ------------
<S>                                              <C>                 <C>
Amortized cost                                   $ 196,591           $ 184,576
Unrealized gains                                     7,201              11,370
Unrealized losses                                     (854)             (1,359)
                                                 ---------           ---------
Net unrealized gain                                  6,347              10,011
                                                 ---------           ---------
Fair value                                       $ 202,938           $ 194,587
                                                 =========           =========

</TABLE>

The fair value and gross unrealized losses of our debt securities  aggregated by
length of time that these  individual  debt securities have been in a continuous
unrealized  loss  position,  at September  30, 2005,  and December 31, 2004,  is
summarized in the table below:

<TABLE>
<CAPTION>

(Dollars in thousands)
                                September 30, 2005                   December 31, 2004
                        ----------------------------------   ---------------------------------
                        Fewer than   12 Months               Fewer than  12 Months
                        12 Months     or More      Total     12 Months    or More      Total
                        ----------   ---------   ---------   ----------  ---------   ---------
<S>                       <C>         <C>        <C>         <C>          <C>        <C>
Number of securities            7           5          12          11           7          18
Fair value                $35,746     $11,873     $47,619     $46,055     $16,832     $62,887
Gross unrealized loss     $   208     $   646     $   854     $   515     $   844     $ 1,359

</TABLE>

These  unrealized  losses  are  as a  result  of  increases  in  interest  rates
subsequent to the acquisition of the securities.  All of the debt securities are
performing according to their terms. Furthermore, we have the intent and ability
to hold these  securities to maturity,  or at least until  interest rates change
such that the fair value is no longer less than book value. Accordingly, we have
concluded that these impairments are temporary.

At  September  30, 2005,  all of our debt  securities  were  partially or wholly
pledged as collateral under our repurchase facilities. At September 30, 2005, we
had no availability to borrow against partially or unpledged debt securities.


                                       8
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



NOTE 3 - INVESTMENTS IN MORTGAGE LOANS

During May 2005,  we were called upon to fund a $7.5 million  first  mortgage in
connection with a loan stabilization guarantee (see Note 12). The loan, which we
expect to be repaid when  permanent  financing is arranged,  bears interest at a
rate of 10.82% per year.

During 2005, we originated the following mezzanine loans:

<TABLE>
<CAPTION>

(In thousands)
                                Amount
                                funded
                                through                                                  Minimum
                 Amount      September 30,                                               interest     Maturity
   Month        committed        2005          Secured by                  Rate            rate         date
------------    ---------    ------------    -----------------       ----------------    --------    ----------
<S>             <C>           <C>            <C>                      <C>                   <C>      <C>
May             $   7,300     $   3,604      Land parcel              20%                   N/A       Apr 2007
May                 8,350         8,350      Multi-family housing     LIBOR + 12.75%        16%       Dec 2007
June                3,250         3,250      Shopping center          10.25%                N/A       Jun 2015
July                7,500         6,460      Multi-family housing     LIBOR + 11.50%        15%       Aug 2007
July                2,800         2,329      Multi-family housing     LIBOR + 12.75%        16%       Aug 2007
September           5,800         5,000      Land parcel              LIBOR + 12.50%        16%      Sept 2006
                ---------     ---------

Totals          $  35,000     $  28,993
                =========     =========

</TABLE>

During 2005, we also funded approximately  $379,000 on existing loans originated
prior to December 31, 2004.

During  September  2005, one mezzanine loan paid off prior to the maturity date.
We received approximately $3.0 million, which includes approximately $144,000 in
prepayment  penalties and fees (see also Note 2 regarding  the  prepayment of an
associated debt security).

During  September 2005, we sold a mortgage loan to CharterMac,  a related party.
During October 2005, we received  approximately  $1.6 million,  representing the
par value plus unpaid  accrued  interest up to the date of the sale.  This total
amount is classified in accounts receivable on the September 30, 2005, condensed
consolidated balance sheet.

NOTE 4 - NOTES RECEIVABLE

During the nine months ended September 30, 2005,  several notes  receivable have
partially  or fully  repaid.  We have  received  a total of  approximately  $9.9
million in  proceeds  relating  to  repayments  of these  notes with no gains or
losses realized.


                                       9
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



NOTE 5 - REAL ESTATE OWNED

Our real estate owned at September 30, 2005, and December 31, 2004, consisted of
the following:

<TABLE>
<CAPTION>

(Dollars in thousands)
                                                                                Carrying        Carrying
                                                                                 Value            Value
                                                                                 as of            as of
                                              Number of                       September 30,    December 31,
                                                Units          Location           2005            2004
                                             -----------    ---------------   -------------   -------------
<S>                                                  <C>    <C>                <C>             <C>
Real Estate Owned - Held and Used

Plaza at San Jacinto (1)                              --       La Porte, TX    $        --     $    7,929
   Less: accumulated depreciation                     --                                --           (425)
                                             -----------                       -----------     ----------
Total Plaza at San Jacinto, net                       --                                --          7,504
                                                                               -----------     ----------

Concord Portfolio                                    852        Houston, TX         53,568         54,425
   Less: accumulated depreciation                     --                            (2,726)        (1,718)
                                             -----------                       -----------     ----------
Total Concord Portfolio, net                         852                            50,842         52,707
                                             -----------                       -----------     ----------

Total Real Estate  Owned - Held and Used,
net                                                  852                       $    50,842     $   60,211
                                             ===========                       ===========     ==========

Real Estate Owned - Held for Sale

Reserve at Autumn Creek (2)                          212    Friendswood, TX    $    19,390     $   17,924
                                             ===========                       ===========     ==========

Mortgages Payable on Real Estate Owned

Concord Portfolio                                                              $    40,618     $   41,000
Reserve at Autumn Creek (2)                                                             --         15,993
                                                                               -----------     ----------

Total  Mortgages  Payable on Real  Estate
Owned                                                                          $    40,618     $   56,993
                                                                               ===========     ==========

</TABLE>

(1)  During  February  2005,  the Plaza at San Jacinto  property  was sold to an
     unaffiliated  third  party.  We  received  approximately  $7.4  million  in
     proceeds from the sale, which  approximated the property's  carrying value.
     Accordingly, no gain or loss was recorded.
(2)  During  February  2005, we purchased  the first  mortgage on the Reserve at
     Autumn Creek  property at a  foreclosure  auction for  approximately  $17.2
     million.


                                       10
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



NOTE 6 - ACCOUNTS RECEIVABLE

Accounts receivable consisted of:

<TABLE>
<CAPTION>

(In thousands)
                                                          September 30,   December 31,
                                                              2005            2004
                                                          ------------    -----------
<S>                                <C>                       <C>            <C>
GNMA prepayment proceeds (see Note 2)                        $21,431        $    --
Interest and other                                             2,847          1,925
Sale proceeds due from related party (see Note 3) (1)          1,479             --
                                                             -------        -------

                                                             $25,757        $ 1,925
                                                             =======        =======

</TABLE>

(1) Excludes interest and other costs receivable of approximately $75,000, which
is included in "interest and other".

NOTE 7 - REPURCHASE FACILITIES

During June 2005,  we executed a new  repurchase  agreement  with UBS  Financial
Services,  which  offers us an advance  rate of 97% and a borrowing  rate set at
30-day  LIBOR.  The  borrowings  are  subject  to 30-day  settlement  terms.  We
transferred ten FNMA and GNMA certificates  previously held as collateral on our
RBC repurchase facility to this facility,  and the amount outstanding under this
facility at September 30, 2005, was approximately  $50.8 million with a weighted
average interest rate of 3.79%.

NOTE 8 - SUBSIDIARY EQUITY

During March 2005, ACFI issued 25,000 Floating Rate Preferred Securities, having
a stated  liquidation amount of $1,000 per security.  We received  approximately
$24.2 million in proceeds,  net of closing costs, which are deferred and will be
amortized  ratably over a 30-year period to the redemption  date. The securities
are callable in March 2010 and bear interest, re-set quarterly,  equal to 30-day
LIBOR plus 3.75%. At September 30, 2005, the rate was 7.24%.

SFAS No. 150, ACCOUNTING FOR CERTAIN FINANCIAL  INSTRUMENTS WITH CHARACTERISTICS
OF BOTH LIABILITIES AND EQUITY,  requires that mandatorily  redeemable financial
instruments  be  classified  as  liabilities  in  the   consolidated   financial
statements  and the  payments or accruals of dividends  and other  amounts to be
paid to the holders of these  securities be reported as interest  costs.  Due to
the  mandatory  redemption  feature,  we have  classified  these  securities  as
liabilities and recorded and carry them at fair value.


                                       11
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



NOTE 9 - RELATED PARTY TRANSACTIONS

The costs paid or payable to our  Advisor  for the three and nine  months  ended
September 30, 2005 and 2004, were as follows:

<TABLE>
<CAPTION>

(In thousands)
                                      Three Months Ended       Nine Months Ended
                                         September 30,           September 30,
                                     --------------------    --------------------
                                       2005        2004        2005        2004
                                     --------    --------    --------    --------
<S>                                   <C>         <C>         <C>         <C>
Shared services expenses              $  235      $  199      $  691      $  555
Asset management fees                    433         324       1,143         942
Incentive management fee*              1,238          95       1,446         285
                                      ------      ------      ------      ------

                                      $1,906      $  618      $3,280      $1,782
                                      ======      ======      ======      ======

</TABLE>

* Accrual based on proportion of actual earnings as compared to our estimates of
full-year results.

In June 2004,  we entered  into a  revolving  credit  facility  (the  "Revolving
Facility") with CharterMac, an affiliated company and parent of our Advisor. The
Revolving  Facility,  which  is  unsecured,  provides  up to  $20.0  million  in
borrowings  to purchase new  investments.  As of September  30, 2005,  we had no
outstanding  borrowings  on this  facility.  At December 31,  2004,  we had $4.6
million in borrowings outstanding on this facility at an interest rate of 5.42%.
This facility expires in June 2006, pursuant to a one year extension.

In September 2005, we sold one mortgage loan, at par, to CharterMac (see Notes 3
and 6).

NOTE 10 - COMPREHENSIVE INCOME

Comprehensive  income for the nine months ended September 30, 2005 and 2004, was
as follows:

<TABLE>
<CAPTION>

(In thousands)
                                                                                  Nine Months Ended
                                                                                    September 30,
                                                                               ----------------------
                                                                                 2005          2004
                                                                               --------      --------
<S>                                                                            <C>           <C>
Net income                                                                     $ 13,208      $  9,924
Net unrealized gain on interest rate derivatives arising during the period          589           142
Unrealized holding (loss) gain on investments arising during the period            (483)          624
Less: reclassification adjustment                                                (3,137)         --
                                                                               --------      --------

Total comprehensive income                                                     $ 10,177      $ 10,690
                                                                               ========      ========

</TABLE>


                                       12
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



NOTE 11 - EARNINGS PER SHARE

Diluted net income per share is calculated  using the weighted average number of
shares  outstanding  during the period plus the  additional  dilutive  effect of
common share  equivalents.  The dilutive effect of outstanding  share options is
calculated using the treasury stock method.

<TABLE>
<CAPTION>

(In thousands, except per share amounts)

Three Months Ended September 30, 2005:           Income       Shares      Per Share
                                                ---------    --------     ---------
<S>                                              <C>            <C>        <C>
   Basic EPS                                     $ 7,312        8,311      $   0.88
   Effect of dilutive securities                      --            3            --
                                                 -------      -------      --------
   Diluted EPS                                   $ 7,312        8,314      $   0.88
                                                 =======      =======      ========

Three Months Ended September 30, 2004:

   Basic EPS                                     $ 3,249        8,336      $   0.39
   Effect of dilutive securities                      --           --            --
                                                 -------      -------      --------
   Diluted EPS                                   $ 3,249        8,336      $   0.39
                                                 =======      =======      ========

Nine Months Ended September 30, 2005:

   Basic EPS                                     $13,208        8,320      $   1.59
   Effect of dilutive securities                      --            3            --
                                                 -------      -------      --------
   Diluted EPS                                   $13,208        8,323      $   1.59
                                                 =======      =======      ========

Nine Months Ended September 30, 2004:

   Basic EPS                                     $ 9,924        8,337      $   1.19
   Effect of dilutive securities                      --            4            --
                                                 -------      -------      --------
   Diluted EPS                                   $ 9,924        8,341      $   1.19
                                                 =======      =======      ========

</TABLE>

NOTE 12 - COMMITMENTS AND CONTINGENCIES

a) Legal
On October 27, 2003,  prior to taking  possession of the real estate  collateral
supporting a loan investment, we were named in a lawsuit, Concord Gulfgate, Ltd.
vs. Robert  Parker,  Sunrise  Housing  Ltd.,  and American  Mortgage  Acceptance
Company,  Cause No.  2003-59290 in the 133rd  Judicial  District Court of Harris
County,  Texas.  The suit  alleges  that the loan  transaction  was not properly
authorized by the partnership and was not for a legitimate  partnership purpose.
The suit claims, among other causes of action against the respective defendants,
wrongful foreclosure of the real estate collateral,  tortious  interference with
contract  and civil  conspiracy.  The suit seeks,  among other  relief,  actual,
consequential,  and exemplary damages, and a declaration that the loan documents
are  unenforceable  and constitute a cloud on title. The discovery phase of this
suit has been completed.  A summary  judgment was filed by us, but was denied on
July 25, 2005. It is not known when the case will be called to trial.

We filed a countersuit on November 25, 2003, against Concord Gulfgate,  Ltd., as
guarantor,  seeking a deficiency  on the loan,  and recovery of unpaid taxes and
certain  property  receipts.  We are currently  unable to determine the possible
outcome of the litigation.


                                       13
<PAGE>



              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



b)   Guarantees

In June and October of 2000, we originated two loans totaling $3.3 million under
an agreement  with Fannie Mae that  provided for our  guaranteeing  a first-loss
position on the loans. In September 2003, we transferred and assigned all of our
obligations  with respect to the two loans we  originated  under this program to
CharterMac  Mortgage Capital  Corporation  ("CMC"),  a subsidiary of CharterMac,
both of which are affiliates of our Advisor. Pursuant to the agreement with CMC,
CharterMac  guaranteed  CMC's  obligations  under  the  loans,  and we agreed to
indemnify  both CMC and  CharterMac  for any losses  incurred  in  exchange  for
retaining  all fees  which we were  otherwise  entitled  to  receive  under  the
program. While provisions of this agreement could potentially result in exposure
of up to $7.5  million,  the maximum  exposure at September  30, 2005,  was $3.2
million, and we expect that we will not be called upon to fund these guarantees.

In the first quarter of 2003, we  discontinued  our loan program with Fannie Mae
and will issue no further guarantees pursuant to such program.

For these  guarantees,  we monitor the status of the  underlying  properties and
evaluate our exposure under the  guarantees.  To date, we have concluded that no
accrual  for  probable  losses is  required  under  SFAS No. 5,  ACCOUNTING  FOR
CONTINGENCIES.

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

We  issued  the  following   standby  and  forward  bridge  and  permanent  loan
commitments  for the purpose of funding  construction/rehabilitation  of certain
multifamily apartment complexes in various locations.

<TABLE>
<CAPTION>

                                 STANDBY AND FORWARD LOAN COMMITMENTS
                                 -----------------------------------------------------------
                                                                                        (In thousands)
                                                                                  MAXIMUM AMOUNT OF COMMITMENT
                                                                             -------------------------------------
                                                                NO.OF APT.                LESS THAN 1
ISSUE DATE        PROJECT               LOCATION                  UNITS         TOTAL        YEAR        1-3 YEARS
------------------------------------------------------------------------------------------------------------------
  <S>                                                              <C>        <C>          <C>            <C>
  Jun-04          Woods of Mandarin     Jacksonville, FL           401        $   428      $   428        $   --
  Apr-05          Atlantic Hearthstone  Hillsborough, NJ           198          1,500        1,500            --
  July-05         222 Pearson           Chicago, IL                219          1,200          600           600
  July-05         Bayfront Villas       Gulfport, FL               120            500          500            --
  Sept-05         Marbella              Clearwater, FL              --            800          800            --
                                                             ------------------------------------------------------

TOTAL STANDBY AND FORWARD LOAN COMMITMENTS                         938        $ 4,428      $ 3,828        $  600
                                                             ======================================================

</TABLE>

Mezzanine Loan/Preferred Stock Commitment
-----------------------------------------

In  November  2004,  we  provided a  commitment  to fund up to $74.5  million in
connection  with the  borrower's  financing of an  acquisition.  The  commitment
expired   unused  in  April  2005,   and  we  recognized  a  commitment  fee  of
approximately $412,000, net of related legal expenses, upon the expiration.

Loan Stabilization Guarantees
-----------------------------

In  accordance  with  an  agreement  entered  into in 2002  with  Wachovia  Bank
("Wachovia")  to  provide  stabilization  guarantees  for  new  construction  of
multifamily  properties,  we were  called upon to fund the last  guarantee  made
under  the  program.  In May 2005,  we funded a $7.5  million  loan  secured  by
multifamily housing (see Note 3).


                                       14
<PAGE>




              AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2005
                                   (Unaudited)



NOTE 13 - SUBSEQUENT EVENTS

During  October  2005,  we borrowed  $8.0  million  from our line of credit with
CharterMac  to  repay a  portion  of our  repurchase  facility.  This  repayment
resulted from a GNMA certificate that was repaid in September 2005 (see Note 2).
Subsequently,  we received the principal  proceeds  from the GNMA  repayment and
repaid the full amount outstanding on our line of credit with CharterMac.

On November 8, 2005, Stuart J. Boesky, announced that he will step down from his
positions  as Chairman of the Board of  Trustees,  Chief  Executive  Officer and
President, effective November 15, 2005. Mr. Boesky will serve as a consultant to
CharterMac,  the  parent  of our  Advisor,  for a period  of one  year,  and his
consulting contract may be terminated by either party. In the interim, the Board
of Trustees  has  appointed  Jeff T. Blau, a trustee of  CharterMac,  as interim
Chairman  and Chief  Executive  Officer.  The Board has also  appointed  Marc D.
Schnitzer, the President of CharterMac, as our President.


                                       15
<PAGE>



ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

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 and Exchange Act of 1934, as amended.
Such forward-looking  statements include statements regarding the intent, belief
or current  expectations  of us and our management  (which includes our Advisor)
and involve known and unknown risks,  uncertainties  and other factors which may
cause the actual results, performance or achievements to be materially different
from any future  results,  performance or  achievements  expressed or implied by
such forward-looking statements.  These factors, which are outlined in detail in
our annual report on Form 10-K for the year ended December 31, 2004, include the
following:

o    Risks of investing in uninsured and  non-investment  grade mortgage  assets
     and subordinated CMBS;

o    Competition in acquiring desirable investments;

o    Interest rate fluctuations and changes in prepayment rates which may affect
     the value of our assets;

o    Risks  associated  with  investments  in  real  estate  generally  and  the
     properties which secure many of our investments;

o    General economic  conditions,  particularly as they affect the value of our
     assets and the credit status of our borrowers;

o    Dependence  on  our  external   Advisor  for  all  services  vital  to  our
     operations;

o    Conflicts  which may arise among us and other entities  affiliated with our
     Advisor which have similar investment policies to ours; and

o    Risks  associated with the repurchase  agreements we utilize to finance our
     investments and the availability of financing generally.

Readers  are  cautioned  not to place undue  reliance  on these  forward-looking
statements, which speak only as of the date of this quarterly report.

Factors Affecting Comparability
-------------------------------

During 2004, we owned several properties through foreclosure, classified as Real
Estate Owned - Held and Used,  -Subject to Sales  Contracts and - Held for Sale.
As a result of certain  circumstances during 2004, we reclassified some of these
assets from Held for Sale to Held and Used,  resulting  in greater  depreciation
expenses and recognition of property level mortgage interest in the current year
(see "Real Estate Owned" below).

During March 2005, we issued $25.0 million of Floating Rate Preferred Securities
through  a  subsidiary.  Due  to  the  mandatory  redemption  feature  of  these
securities,  the payments or accruals of dividends  and other amounts to be paid
to the holders of these  securities are reported as interest costs. As a result,
these  interest costs are  classified as Interest -  Distributions  to Preferred
Shareholders of Subsidiary (Subject to Mandatory Repurchase). There were no such
interest costs in prior, comparable periods.

During  September  2005, the GNMA  certificate  and mezzanine  loan  investments
relating to one property were paid off prior to the maturity date.  This pay off
resulted in  significantly  higher levels of fees earned and gain on redemption.
As a large  portion of these  proceeds  were  retained  by GNMA until the normal
clearing date in October 2005, we also had higher levels of accounts  receivable
at September 30, 2005.


                                       16
<PAGE>



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

The following is a summary of our operations for the three and nine months ended
September 30, 2005 and 2004:

<TABLE>
<CAPTION>

(In thousands)

                        Three Months Ended September 30,     Nine Months Ended September 30,
                       ---------------------------------    --------------------------------
                         2005         2004       Change       2005        2004       Change
                       --------     --------    --------    --------    --------    --------
<S>                    <C>          <C>          <C>        <C>         <C>           <C>
Total revenues         $ 12,766     $  5,765     121.4%     $ 26,367    $ 16,683      58.0%
Total expenses            6,711        3,116     115.4        16,166       8,559      88.9
Total other income        1,257          600     109.5         3,007       1,800      67.1
                       --------     --------     -----      --------    --------      ----
Net income             $  7,312     $  3,249     125.1%     $ 13,208    $  9,924      33.1%
                       ========     ========     =====      ========    ========      ====

</TABLE>

In both the three and nine month periods  ended  September 30, 2005, as compared
to the same periods in 2004, revenues increased mainly due to fees received as a
result of early pay-off of investments,  the purchases of new FNMA  certificates
and the funding of several new mezzanine loans. Expenses have also increased for
these periods due to the recognition of mortgage  interest costs for Real Estate
Owned, financing costs (particularly due to higher interest rates), and advisory
costs due to expected profits. Other income has increased due to the recognition
of  income  relating  to Real  Estate  Owned  - Held  For  Sale,  as well as the
recognition of a gain resulting from the early paydown of a GNMA certificate.

<TABLE>
<CAPTION>

REVENUES

                                                    Three Months              Nine Months
                                                        Ended                    Ended
                                                 September 30, 2005        September 30, 2005
                                                    % Change from            % Change from
                                                     Prior Year                Prior Year
---------------------------------------          ------------------        ------------------
<S>                                                     <C>                      <C>
Interest income:
   Debt securities                                         38.1 %                   35.6 %
   Mortgage loans                                         340.1                    194.1
   Notes receivable                                       (47.8)                   (37.8)
   Revenue bonds                                           (2.7)                    (9.7)
   Temporary investments                                  300.0                    312.5
   Fees related to prepayment of assets                 2,971.7                  2,971.7
Other revenues                                            297.4                    914.9
                                                     -----------              -----------
   Subtotal                                               185.5                     91.1

Rental income                                             (11.7)                    (7.6)
                                                     -----------              -----------

Total revenues                                            121.4 %                   58.0 %
                                                     ===========              ===========

</TABLE>

At September 30, 2005, and December 31, 2004, we had the following investments:

<TABLE>
<CAPTION>

                                         As of                            As of
                                  September 30, 2005                December 31, 2004
                              ----------------------------    ------------------------------
                                               Weighted                         Weighted
                               Carrying         Average         Carrying         Average
                                Amount       Interest Rate       Amount       Interest Rate
                             -----------     -------------     -----------   --------------
<S>                          <C>                <C>            <C>                <C>
Debt securities              $   202,938         6.16%         $   194,587         6.47%
Mortgage loans               $    54,052        14.46%         $    21,376        11.68%
Notes receivable             $    13,725         9.49%         $    23,111         9.43%
Revenue bonds                $     6,559         8.69%         $     6,672         8.69%

</TABLE>


                                       17
<PAGE>



Interest income from debt securities  increased,  primarily due to the continued
advances  on an existing  GNMA  certificate  and the  purchase of eight new FNMA
certificates  during the fourth quarter of 2004 and seven new FNMA  certificates
during 2005,  partially  offset by the repayment of two GNMA  certificates.  The
decrease  in the  weighted  average  interest  rate  on  debt  securities  as of
September 30, 2005,  as compared to December 31, 2004,  was primarily due to the
rising  interest  rates on  mortgage  loans;  as mortgage  interest  rates rise,
interest rates on debt securities tend to decrease.

Interest  income from  mortgage  loans  increased  for the three and nine months
ended  September 30, 2005, as compared to 2004,  primarily due to the funding of
three  mezzanine  loans  during the second  half of 2004 and the  funding of six
mezzanine  loans during the second and third  quarters of 2005. We also funded a
loan  pursuant to a guarantee  during the second  quarter of 2005 (see Note 12).
The  increase in the weighted  average  interest  rates on mortgage  loans as of
September 30, 2005,  as compared to December 31, 2004,  was primarily due to the
increase in market interest rates.

Interest  income from notes  receivable  decreased for the three and nine months
ended  September 30, 2005,  as compared to 2004,  primarily due to the payoff of
several  notes in 2004 and 2005,  partially  offset by the funding of a new note
receivable.

Fees related to prepayment of assets increased  primarily due to the recognition
of fees relating to an early payoff of a GNMA  certificate  and a mezzanine loan
during the third quarter of 2005.

Other revenues increased for the three and nine months ended September 30, 2005,
as compared to 2004,  primarily due to the recognition of a commitment fee and a
non-refundable  due  diligence  fee during 2005.  No such fees were  recorded in
2004.

Rental income  decreased for the three and nine months ended September 30, 2005,
as compared to 2004, due to the Plaza at San Jacinto sale in February 2005.

<TABLE>
<CAPTION>

EXPENSES

                                                             Three Months          Nine Months
                                                                Ended                 Ended
                                                          September 30, 2005    September 30, 2005
                                                            % Change from         % Change from
                                                             Prior Year             Prior Year
-------------------------------------------------------   ------------------    ------------------
<S>                                                                <C>                <C>
Interest                                                            84.0%              74.5%
Distributions to preferred shareholders                            100.0              100.0
General and administrative                                          63.4               49.1
Fees to Advisor                                                    208.4               84.1
Amortization and other                                              23.6               13.2
                                                               ----------          ---------
  Subtotal                                                         137.4               86.8

Property operations                                                (17.2)               2.7
Depreciation                                                       469.5              182.8
Mortgage interest for real estate owned - held and used            100.0              100.0
                                                               ----------          ---------

Total expenses                                                     115.4%              88.9%
                                                               ==========          =========

</TABLE>

At September 30, 2005,  excluding  mortgages on real estate owned,  we had total
debt of  approximately  $243.7 million with a weighted  average interest rate of
4.14% per year,  including  the effect of our swap  agreement.  At September 30,
2004,  we had a  comparable  balance  of  approximately  $182.8  million  with a
weighted  average  interest rate of 2.64% per year. The increase in the weighted
average interest rate is due to steady increases in market interest rates during
2004 and 2005.

Interest  expense  increased  for the three and nine months ended  September 30,
2005,  as compared to 2004,  primarily  due to the  increased  borrowings on the
repurchase  facilities  stemming  from  an  increased  investment  base  and the
increase in interest rates during 2004 and 2005.


                                       18
<PAGE>



Distributions to preferred  shareholders were recorded following the issuance of
the securities in March 2005. There were no such securities  outstanding  during
2004.

General  and  administrative  expenses  increased  for the three and nine months
ended  September 30, 2005, as compared to 2004,  primarily due to an increase in
legal fees related to  foreclosed  properties,  an increase in  accounting  fees
related to  Sarbanes-Oxley  compliance,  and an increase in excise  taxes due to
undistributed taxable income.

Fees to Advisor  increased  for the three and nine months  ended  September  30,
2005,  as compared to 2004,  due to incentive  management  fees  relating to the
increase in 2005 earnings.  In addition,  we incurred  higher overhead costs and
asset  management  fees  because of  expansion  of our business and an increased
asset base.

Property  operations  represent all non-interest  costs at the property level on
all of our Real Estate Owned - Held and Used properties.  Mortgage  interest for
Real Estate Owned - Held and Used  increased for the three and nine months ended
September  30, 2005, as compared to 2004,  due to debt service costs  associated
with a $41.0 million mortgage on the Concord  Portfolio (see "Real Estate Owned"
below).

Depreciation expense increased for the three and nine months ended September 30,
2005, as compared to 2004, due to a higher base of depreciable real estate owned
in 2005 as compared to the 2004 period.  In 2004,  only the Plaza at San Jacinto
property  was  depreciated.  In 2005,  the Concord  Portfolio  is  depreciating,
partially offset by the removal of Plaza at San Jacinto upon its sale.

OTHER INCOME

Other income  increased for the three and nine months ended  September 30, 2005,
as compared to 2004, due to purchase of the Autumn Creek mortgage,  resulting in
the recording of property operations from Real Estate Owned - Held For Sale (see
"Real Estate Owned" below).

REAL ESTATE OWNED

During 2004, we reclassified some of our investments in foreclosed properties as
Real Estate  Owned - Held for Sale on our balance  sheet and  recognized  income
from the operations of these properties. As a result of these circumstances,  we
have reclassified  certain prior year amounts relating to the income recognition
of our real estate owned portfolio to conform to current year presentation.

During  the time we have  owned  the real  estate,  certain  circumstances  have
occurred  that  warranted  the  reclassification  of most of these  assets.  The
following  is the  September  30, 2005  classification  of our real estate owned
portfolio:

o    REAL ESTATE OWNED - HELD AND USED

     During  2004,  we had three  properties  classified  as Real Estate Owned -
     Subject  to  Sales  Contracts,  as the  sale of  these  properties  did not
     constitute  a sale in  accordance  with  GAAP.  After the  properties  were
     refinanced  during December 2004, we reclassified  these  properties on our
     balance   sheet  as  Real  Estate  Owned  -  Held  and  Used;  we  recorded
     depreciation  on the properties in 2004, as well as  retroactively  for the
     period  since  foreclosure.   We  recognized  income  associated  with  the
     properties  as income from real estate owned on the income  statement up to
     the date of refinancing.  Subsequently, we recognize income associated with
     a $12.8 million  mezzanine  loan (our  remaining  economic  interest in the
     properties) as rental income,  property operations and mortgage interest on
     Real Estate Owned - Held and Used on the income statement.

     During 2005, we sold the Plaza at San Jacinto  property to an  unaffiliated
     third party for approximately its carrying value.

o    REAL ESTATE OWNED - HELD FOR SALE

     One  remaining  property in our real  estate  owned  portfolio,  Reserve at
     Autumn Creek,  will continue to remain as Real Estate Owned - Held for Sale
     as we continue to market the real  estate.  We have  changed the  marketing
     strategy of this asset in order to reflect marketplace behavior.


                                       19
<PAGE>



IMPACT OF HURRICANES DURING THE QUARTER ENDED SEPTEMBER 30, 2005

During the third quarter of 2005, two hurricanes struck the Gulf Coast region of
the United States. Six of our investments,  secured by properties in Texas, were
affected  by  Hurricane  Rita.  The  damage  to these  properties  was minor and
therefore  it is expected  that we have no  financial  exposure in this  matter.
There were no properties  affected by Hurricane  Katrina or by Hurricane  Wilma,
which occurred subsequent to September 30, 2005.

Funds from Operations
---------------------

Funds  from  operations  ("FFO"),  represents  net income or loss  (computed  in
accordance  with  GAAP),  excluding  gains or  losses  from  sales of  property,
excluding  depreciation and amortization  related to real property and including
funds from operations for unconsolidated  joint ventures  calculated on the same
basis.  FFO is calculated in accordance  with the National  Association  of Real
Estate  Investment  Trusts  ("NAREIT")  definition.  FFO does not represent cash
generated  from  operating  activities  in  accordance  with  GAAP  and  is  not
necessarily  indicative of cash available to fund cash needs.  FFO should not be
considered  as an  alternative  to net income as an indicator  of the  Company's
operating  performance  or as an  alternative  to cash  flows  as a  measure  of
liquidity.  Our  management  considers FFO a  supplemental  measure of operating
performance,  and,  along with cash flows from operating  activities,  financing
activities,  and investing activities,  it provides investors with an indication
of our ability to incur and service debt, make capital expenditures, and to fund
other cash needs.

The following table reconciles net income to FFO:

<TABLE>
<CAPTION>

                                              Three months ended         Nine months ended
            (In thousands)                       September 30,              September 30,
                                            ----------------------     ----------------------
                                              2005          2004         2005          2004
                                            --------      --------     --------      --------
<S>                                         <C>           <C>          <C>           <C>
Net income                                  $  7,312      $  3,249     $ 13,208      $  9,924

Add back: depreciation of real property     $    336      $     59     $  1,038      $    367
                                            --------      --------     --------      --------

FFO                                         $  7,648      $  3,308     $ 14,246      $ 10,291
                                            ========      ========     ========      ========

Cash flows from:
Operating activities                        $  8,547      $  3,765     $ 15,051      $ 10,349
                                            ========      ========     ========      ========
Investing activities                        $(10,619)     $  3,113     $(67,257)     $ 11,796
                                            ========      ========     ========      ========
Financing activities                        $ 10,182      $  3,101     $ 66,491      $(11,738)
                                            ========      ========     ========      ========

Weighted average shares outstanding:
Basic                                          8,311         8,336        8,320         8,337
                                            ========      ========     ========      ========
Diluted                                        8,314         8,336        8,323         8,341
                                            ========      ========     ========      ========

</TABLE>

Since not all companies  calculate  FFO in a similar  fashion,  our  calculation
presented above may not be comparable to similarly  titled measures  reported by
other companies.

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

SOURCES OF FUNDS

We expect that cash  generated  from our  investments,  as well as our borrowing
capacity, will meet our needs for short-term liquidity and will be sufficient to
pay all expenses and distributions to our shareholders in amounts  sufficient to
retain our Real  Estate  Investment  Trust  ("REIT")  status in the  foreseeable
future.  We also  believe we have the  capacity and the ability to fund our long
term growth through equity issuances, debt offerings and other funding vehicles.
In order to qualify as a REIT under the Internal  Revenue Code (the "Code"),  as
amended,  we must,  among other  things,  distribute at least 90% of our taxable
income. We believe that we are in compliance with the REIT-related provisions of
the Code.

We finance our  investing  activity  primarily  through  borrowing  from various
facilities at  short-term  rates.  At September  30, 2005, we had  approximately
$20.0  million  available to borrow,  contractually,  under our debt  facilities
without exceeding limits imposed by debt covenants and our by-laws.


                                       20
<PAGE>



In August  2005,  our  warehouse  facility  matured.  Although  we can no longer
originate new loans on this facility,  two existing loans were extended  through
February  2006.  We  are  currently  in  negotiations   with  several  financial
institutions to replace this facility with others in the near term.

From time to time,  we may also  issue  common  shares  or other  equity to fund
investing activity. During 2005, our subsidiary issued $25.0 million of variable
rate  Preferred  Securities.  The proceeds  received  were used to purchase FNMA
certificates.

We have capacity to raise  approximately  $170.0 million of additional  funds by
issuing  either  common or  preferred  shares  pursuant to a shelf  registration
statement filed with the SEC in 2002. If market conditions  warrant, we may seek
to raise additional funds for investment through further offerings, although the
timing and amount of such offerings cannot be determined at this time.

We are currently  exploring further expansion of our investment platform through
the use of  Collateralized  Debt  Obligations  ("CDOs").  A real estate CDO is a
capital markets  transaction in which the holder of various forms of real estate
debt  instruments  finances  those assets by selling bonds backed by the assets.
The assets can be  floating  or fixed rate,  and may  include  first  mortgages,
subordinate  participations in first mortgages,  bridge loans,  mezzanine loans,
CMBS, and trust preferred  stock.  The assets would be aggregated on our balance
sheet and would later be securitized. The CDO execution would enable us to lower
our cost of capital significantly,  which in turn would make us more competitive
in the mezzanine  lending  marketplace.  It is anticipated  that our origination
activity  would begin to increase in the fourth quarter 2005 and we would access
the  securitization  market in the first quarter of 2006,  although there are no
assurances that we will proceed with such a program.

SUMMARY OF CASH FLOWS

During the nine months ended  September 30, 2005, as compared to the nine months
ended September 30, 2004, the net change in cash and cash equivalents  increased
approximately $3.9 million. Operating cash flows increased by approximately $4.7
million  primarily  due to higher  earnings  and the  timing of  collections  of
receivables. Earnings increased for the nine months ended September 30, 2005 due
to fees received from an early paydown of a GNMA security and mezzanine loan.

An  increase  in net cash  used in  investing  activities  (approximately  $79.1
million)  offset by an increase in net cash  provided  by  financing  activities
(approximately $78.2 million) was due to a higher level of investing activity in
debt securities and mortgage loans,  and the purchase of a mortgage loan on real
estate owned during the 2005 period.  The investing  activity was funded through
borrowings from our repurchase  facilities and through the issuance of preferred
shares.

OTHER

During November 2005,  distributions  of  approximately  $3.3 million ($0.40 per
share) will be paid to common  shareholders,  which were  declared in  September
2005, and special  distributions of approximately $2.5 million ($0.30 per share)
will be paid,  which were  declared in October  2005.  The special  distribution
relates to the earnings  realized in the third  quarter from fees  received from
the early  repayment of a GNMA security and mezzanine  loan and is to be made in
accordance with REIT provisions.

In addition,  we expect to purchase an interest in revenue bonds from CharterMac
for approximately $18.8 million during November 2005.

We are 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 made  (approximately  $10.0 million for both the nine
months ended September 30, 2005 and 2004), none were determined to be returns of
capital in 2005, while in 2004, approximately $80,000 ($0.01 per share or 0.80%)
represented  a return of capital  determined  in  accordance  with  GAAP.  As of
September 30, 2005, the aggregate amount of distributions made since the initial
public  offering  representing  returns of capital in  accordance  with GAAP was
approximately $14.0 million.  The portion of the distributions which constituted


                                       21
<PAGE>



a return of capital was more significant in our initial years in order to permit
us to maintain level  distributions to shareholders while we were in the process
of investing the proceeds from our initial public offering.

Commitments, Contingencies and Off-Balance Sheet Arrangements
-------------------------------------------------------------

See Note 12 of our condensed  consolidated  financial  statements for a complete
summary of our guarantees and commitments and contingencies.

We  have no  unconsolidated  subsidiaries,  special  purpose  off-balance  sheet
financing entities, or other off-balance sheet arrangements.

CONTRACTUAL OBLIGATIONS

In conducting business, we enter into various contractual  obligations.  Details
of these  obligations,  including  expected  settlement  periods,  are contained
below.

<TABLE>
<CAPTION>
                                                                Payments Due by Period
                                                                    (In thousands)
                                        ----------------------------------------------------------------------
                                                       Less than                                    More than
                                           Total         1 Year      1 - 3 Years   3 - 5 Years       5 Years
                                        ----------    -----------    -----------   -----------     -----------
<S>                                     <C>           <C>            <C>           <C>             <C>
Debt:
Lines of credit:
  Repurchase facilities                 $  214,645    $   214,645    $       --    $        --     $        --
  Warehouse facility                         4,070          4,070            --             --              --
Mortgage loan on real estate owned (1)      40,618            490         1,165          1,310          37,653
Preferred shares of subsidiary
  (subject to mandatory repurchase)         25,000             --            --             --          25,000
Funding Commitments:
  Standby and forward loan commitments       4,428          3,828           600             --              --
                                        ----------    -----------    ----------    -----------     -----------

Total                                   $  288,762    $   223,033    $    1,765    $     1,311     $    62,653
                                        ==========    ===========    ==========    ===========     ===========

</TABLE>

(1) Represents a first  mortgage on  properties we report as Real Estate Owned -
    Held and Used (Concord  Portfolio) as a sale of the  properties did not meet
    the  criteria  for sale  recognition  in  accordance  with  GAAP.  The first
    mortgage loan is non-recourse with respect to AMAC, the debt service is paid
    from the cash flows of the properties and we will not be required to satisfy
    the obligation. (See Note 5).

Inflation
---------

Inflation  did not  have a  material  effect  on our  results  for  the  periods
presented.

Subsequent Event
----------------

Refer to Note 13 of the condensed consolidated financial statements with respect
to the resignation of our Chief Executive Officer.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the exposure to loss resulting from changes in interest rates and
equity  prices.  The  primary  market  risk to which 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 our income in many ways and
present a variety of risks,  including the risk of mismatch between asset yields
and borrowing rates.

Our operating  results  depend in large part on  differences  between the income
from our assets (net of credit losses) and our borrowing costs.  Although we are
increasing our originations of variable rate loans,  most of our assets generate
fixed  returns and have terms in excess of five years.  We fund the  origination
and  acquisition of a significant  portion of our assets with  borrowings  which
have variable interest rates that reset relatively  rapidly,  such as monthly or


                                       22
<PAGE>



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 our net income. Our
borrowings under repurchase, warehouse and revolving facilities bear interest at
rates that fluctuate with LIBOR.

Various  financial  vehicles  exist which would allow our management to mitigate
the impact of interest rate fluctuations on our cash flows and earnings.  During
March 2003, upon our management's  analysis of the interest rate environment and
the costs and risks of such strategies, we entered into an interest rate swap in
order to hedge against increases in the floating interest rate on our repurchase
facilities.  The swap is a  five-year  agreement  with Bank of  America  ("BOA")
whereby  we pay BOA a fixed  3.48% on a  notional  amount of $30.0  million.  In
return,  BOA pays us a floating rate  equivalent to the 30-day LIBOR rate on the
same notional  amount.  A possible risk of such swap  agreements is the possible
inability of BOA to meet the terms of the contracts with us;  however,  there is
no current indication of such an inability.

Based on the $213.7 million unhedged portion of the $243.7 million of borrowings
outstanding  at September 30, 2005, a 1% change in LIBOR would impact our annual
net  income  and cash  flows by  approximately  $2.1  million.  However,  as the
interest  income from some of our loans is also based on LIBOR, a 1% increase in
LIBOR  would  increase  our  annual net income and cash flows from such loans by
approximately $366,000. The net effect of a 1% increase in LIBOR would therefore
result in a reduction of our annual net income by approximately $1.8 million. In
addition,  an increase in LIBOR could also impede the collections of interest on
our variable  rate loans.  Because the value of our debt  securities  fluctuates
with changes in interest rates,  rate  fluctuations  will also affect the market
value of our net assets.

ITEM 4.  CONTROLS AND PROCEDURES

(a)  EVALUATION  OF  DISCLOSURE  CONTROLS AND  PROCEDURES.  Our Chief  Executive
     Officer and Chief Financial Officer have evaluated the effectiveness of our
     disclosure  controls and  procedures  (as defined in Rule 13a-15(e) or Rule
     15a-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange
     Act")) as of the end of the period covered by this quarterly report.  Based
     on such  evaluation,  such  officers  have  concluded  that our  disclosure
     controls  and  procedures  as of the  end of the  period  covered  by  this
     quarterly report were effective to ensure that  information  required to be
     disclosed by the Company in the reports  that the Company  files or submits
     under the Exchange Act is recorded,  processed,  summarized  and  reported,
     within the time periods specified in the SEC rules and forms, and to ensure
     that such  information is  accumulated  and  communicated  to the Company's
     management,  including  the Chief  Executive  Officer  and Chief  Financial
     Officer,  as  appropriate,  to allow timely  decisions  regarding  required
     disclosure.

(b)  INTERNAL  CONTROL  OVER  FINANCIAL  REPORTING.  There  have  not  been  any
     significant changes in our internal control over financial reporting during
     the fiscal  quarter  to which  this  report  relates  that have  materially
     affected,  or are  reasonably  likely to  materially  affect,  our internal
     control over financial reporting.


                                       23
<PAGE>



                           PART II. OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

         On October  27,  2003,  prior to taking  possession  of the real estate
         collateral  supporting a loan  investment,  we were named in a lawsuit,
         Concord  Gulfgate,  Ltd. vs. Robert Parker,  Sunrise  Housing Ltd., and
         American Mortgage Acceptance Company, Cause No. 2003-59290 in the 133rd
         Judicial District Court of Harris County,  Texas. The suit alleges that
         the loan transaction was not properly authorized by the partnership and
         was not for a legitimate  partnership  purpose.  The suit claims, among
         other  causes of action  against the  respective  defendants,  wrongful
         foreclosure of the real estate collateral,  tortious  interference with
         contract  and civil  conspiracy.  The suit seeks,  among other  relief,
         actual,  consequential,  and exemplary damages,  and a declaration that
         the loan documents are  unenforceable  and constitute a cloud on title.
         The discovery phase of this suit has been completed. A summary judgment
         was filed by us, but was denied on July 25, 2005.  It is not known when
         the case will be called to trial.

         We filed a countersuit on November 25, 2003,  against Concord Gulfgate,
         Ltd., as guarantor,  seeking a deficiency on the loan,  and recovery of
         unpaid taxes and certain property receipts.  We are currently unable to
         determine the possible outcome of the litigation.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS - None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES - None

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - None

ITEM 5.  OTHER INFORMATION

         On November 8, 2005,  Stuart J.  Boesky,  announced  that he will  step
         down from his  positions as Chairman of  the Board of  Trustees,  Chief
         Executive  Officer  and  President,  effective  November 15, 2005.  Mr.
         Boesky will  serve as a  consultant  to  CharterMac,  the parent of our
         Advisor,  for a  period of one year, and his consulting contract may be
         terminated by either party.  In the interim,  the Board of Trustees has
         appointed Jeff T. Blau, a trustee of  CharterMac,  as interim  Chairman
         and Chief  Executive  Officer.  The Board  has also  appointed  Marc D.
         Schnitzer, the President of CharterMac, as our President.

ITEM 6.  EXHIBITS

         Exhibits


         31.1  Chief Executive Officer certification  pursuant to Section 302 of
               the Sarbanes-Oxley Act of 2002.*

         31.2  Chief Financial Officer certification  pursuant to Section 302 of
               the Sarbanes-Oxley Act of 2002.*

         32.1  Certification  pursuant to Section 906 of the Sarbanes-Oxley Act
               of 2002.*

         *  Filed herewith.


                                       24
<PAGE>



                                   SIGNATURES



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



                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                                  (Registrant)



Date: November 8, 2005             By:     /s/ Stuart J. Boesky
                                           --------------------
                                           Stuart J. Boesky
                                           President and Chief Executive Officer



Date:  November 8, 2005            By:     /s/ Alan P. Hirmes
                                           ------------------
                                           Alan P. Hirmes
                                           Chief Financial Officer




<PAGE>



                                                                    Exhibit 31.1


                                  CERTIFICATION

I, Stuart J. Boesky, hereby certify that:

     1.  I have  reviewed  this  quarterly  report on Form  10-Q for the  period
         ending September 30, 2005, 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  officer and I are responsible for
         establishing  and  maintaining  disclosure  controls and procedures (as
         defined in Exchange Act Rules  13a-15(e)  and  15d-15(e))  and internal
         control  over  financial  reporting  (as defined in Exchange  Act Rules
         13a-15(f) and 15d-15(f)) for the registrant and we have:

         a) designed  such  disclosure  controls and  procedures  or caused such
         disclosure   controls  and   procedures   to  be  designed   under  our
         supervision,  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) designed such internal control over financial  reporting,  or caused
         such internal control over financial reporting to be designed under our
         supervision,  to provide reasonable assurance regarding the reliability
         of financial reporting and the preparation of financial  statements for
         external  purposes in accordance  with  generally  accepted  accounting
         principles;

         c) evaluated the effectiveness of the registrant's  disclosure controls
         and procedures presented in this quarterly report our conclusions about
         the effectiveness of the disclosure controls and procedures,  as of the
         end of the period covered by this report based on such evaluation; and

         d)  disclosed  in this report any change in the  registrant's  internal
         control over financial  reporting that occurred during the registrant's
         most  recent  fiscal  quarter  that  has  materially  affected,  or  is
         reasonably  likely to  materially  affect,  the  registrant's  internal
         control over financial reporting; and

     5.  The registrant's other certifying  officer and I have disclosed,  based
         on our most  recent  evaluation  of  internal  control  over  financial
         reporting,  to the registrant's auditors and the audit committee of the
         registrant's  board of directors (or persons  performing the equivalent
         functions):

         a) all significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect  the  registrant's  ability to
         record, process, summarize and report financial information; and

         b) any fraud,  whether or not  material,  that  involves  management or
         other  employees  who  have a  significant  role  in  the  registrant's
         internal control over financial reporting.


         Date:  November 8, 2005                    By:  /s/ Stuart J. Boesky
                ----------------                         --------------------
                                                         Stuart J. Boesky
                                                         Chief Executive Officer


<PAGE>



                                                                    Exhibit 31.2


                                  CERTIFICATION

I, Alan P. Hirmes, hereby certify that:

     1.  I have  reviewed  this  quarterly  report on Form  10-Q for the  period
         ending September 30, 2005, 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  officer and I are responsible for
         establishing  and  maintaining  disclosure  controls and procedures (as
         defined in Exchange Act Rules  13a-15(e)  and  15d-15(e))  and internal
         control  over  financial  reporting  (as defined in Exchange  Act Rules
         13a-15(f) and 15d-15(f)) for the registrant and we have:

         a) designed  such  disclosure  controls and  procedures  or caused such
         disclosure   controls  and   procedures   to  be  designed   under  our
         supervision,  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) designed such internal control over financial  reporting,  or caused
         such internal control over financial reporting to be designed under our
         supervision,  to provide reasonable assurance regarding the reliability
         of financial reporting and the preparation of financial  statements for
         external  purposes in accordance  with  generally  accepted  accounting
         principles;

         c) evaluated the effectiveness of the registrant's  disclosure controls
         and procedures presented in this quarterly report our conclusions about
         the effectiveness of the disclosure controls and procedures,  as of the
         end of the period covered by this report based on such evaluation; and

         d)  disclosed  in this report any change in the  registrant's  internal
         control over financial  reporting that occurred during the registrant's
         most  recent  fiscal  quarter  that  has  materially  affected,  or  is
         reasonably  likely to  materially  affect,  the  registrant's  internal
         control over financial reporting; and

     5.  The registrant's other certifying  officer and I have disclosed,  based
         on our most  recent  evaluation  of  internal  control  over  financial
         reporting,  to the registrant's auditors and the audit committee of the
         registrant's  board of directors (or persons  performing the equivalent
         functions):

         a) all significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect  the  registrant's  ability to
         record, process, summarize and report financial information; and

         b) any fraud,  whether or not  material,  that  involves  management or
         other  employees  who  have a  significant  role  in  the  registrant's
         internal control over financial reporting.


         Date:  November 8, 2005                    By:  /s/ Alan P. Hirmes
                ----------------                         ------------------
                                                         Alan P. Hirmes
                                                         Chief Financial Officer


<PAGE>



                                                                    Exhibit 32.1



                            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, 2005 as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
Stuart J. Boesky, as Chief Executive Officer of the Company, and Alan P. Hirmes,
as Chief Financial Officer of the Company each hereby certifies,  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                           By:  /s/ Alan P. Hirmes
     --------------------                                ------------------
     Stuart J. Boesky                                    Alan P. Hirmes
     Chief Executive Officer                             Chief Financial Officer
     November 8, 2005                                    November 8, 2005


A signed  original of this  written  statement  required by Section 906 has been
provided to the Company and will be retained by the Company and furnished to the
Securities and Exchange Commission or its staff upon request.