UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)
       [X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended: September 30, 2004
                -------------------------------------------------

       [  ]   TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE
                                  EXCHANGE ACT

                        For the transition period from to
            ------------------------------ --------------------------
                        Commission file number 000-29549
            --------------------------------------------------------

                         Northeast Mortgage Corporation
--------------------------------------------------------------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

                                Nevada 86-0972558
-------------------------------------------------------------------------------
                   (State or other jurisdiction (IRS Employer
              of incorporation or organization) Identification No.)

               800 Main Street South, Southbury, Connecticut 06488
                    (Address of principal executive offices)

                                 (203) 262-6110
                            Issuer's telephone number


                (Former name,  former address and former fiscal year, if changed
since last report.)


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDING DURING THE PRECEDING FIVE YEARS

         Check whether the registrant  filed all documents and reports  required
to be  filed  by  Section  12,  13 or  15(d)  of  the  Exchange  Act  after  the
distribution of securities under a plan confirmed by a court. Yes ----- No -----


<PAGE>




                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares  outstanding of each of the issuer's classes
of common equity, as of the latest practical date:  September 30, 2004 4,000,000


         Transitional Small Business Disclosure Format (check one).
Yes      ;  No   X
    ----       -----








































<PAGE>



                                     PART I

ITEM 1.  FINANCIAL STATEMENTS

                         NORTHEAST MORTGAGE CORPORATION
                                 BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                               September 30,        December 31,
ASSETS:                                                                             2004                2003
                                                                             ------------------  ------------------
Current Assets:
<S>                                                                          <C>                 <C>
     Cash                                                                    $          110,056  $                -
     Mortgages Receivable                                                            13,289,245          15,537,517
     Accounts Receivable                                                                518,682             437,585
     Employee Advances                                                                  424,132             170,223
                                                                             ------------------  ------------------

          Total Current Assets                                                       14,342,115          16,145,325
                                                                             ------------------  ------------------

Fixed Assets - Net                                                                      114,657             138,753
                                                                             ------------------  ------------------

Other Assets:
     Deposits                                                                           230,847             221,835
     Investment in Real Estate                                                           15,000             101,456
     Other Receivable                                                                    68,477              78,837
     Notes Receivable - Second Mortgages                                                 52,800              52,800
     Customer Lists - Net                                                                96,600             173,850
     Deferred Tax Assets                                                                 15,046             143,864
                                                                             ------------------  ------------------

          Total Other Assets                                                            478,770             772,642
                                                                             ------------------  ------------------

          Total Assets                                                       $       14,935,542  $       17,056,720
                                                                             ==================  ==================
</TABLE>














<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                                 BALANCE SHEETS
                                   (continued)

<TABLE>
<CAPTION>
                                                                               September 30,        December 31,
LIABILITIES & STOCKHOLDERS' EQUITY                                                  2004                2003
                                                                             ------------------  ------------------
Current Liabilities:
<S>                                                                          <C>                 <C>
     Checks Written in Excess of Cash                                        $                -  $           60,095
     Note Payable - Bank                                                                 67,600              67,600
     Warehouse Line of Credit                                                        12,761,201          15,064,064
     Accounts Payable and Accrued Expenses                                              668,230             306,391
     Capital Lease Obligation - Current                                                       -              19,016
     Income Taxes Payable                                                                     -             133,625
                                                                             ------------------  ------------------

         Total Current Liabilities                                                   13,497,031          15,650,791

Long-Term Liabilities:
     Notes Payable - Bank                                                               365,289             415,989
                                                                             ------------------  ------------------

         Total Liabilities                                                           13,862,320          16,066,780
                                                                             ------------------  ------------------

Stockholders' Equity
     Preferred Stock, par value $.001, 10,000,000 shares
        Authorized, 4,600,000 shares issued at September 30, 2004,
        and December 31, 2003                                                             4,600               4,600
     Common Stock, par value $.001, 100,000,000 shares
        Authorized, 4,000,000 shares issued at September 30, 2004,
        and December 31, 2003                                                             4,000               4,000
     Additional Paid-In Capital                                                       1,082,734           1,082,734
     Retained Earnings (Deficit)                                                        (18,117)           (101,394)
                                                                             ------------------  ------------------

          Total Stockholders' Equity                                                  1,073,217             989,940
                                                                             ------------------  ------------------

          Total Liabilities and Stockholders' Equity                         $       14,935,537  $       17,056,720
                                                                             ==================  ==================
</TABLE>



                             See accompanying notes.






<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                              For the Three Months                    For the Nine Months
                                                      Ended                                  Ended
                                                  September 30,                          September 30,
                                      -------------------------------------  --------------------------------------
                                            2004                2003                2004                2003
                                      -----------------   -----------------  ------------------  ------------------

<S>                                   <C>                 <C>                <C>                 <C>
Revenues                              $       2,378,868   $       3,443,857  $        7,839,462  $       10,946,845
                                      -----------------   -----------------  ------------------  ------------------

Operating Expenses:
  Sales and Marketing                           156,437             307,102             672,094           1,055,876
  General and Administrative                  1,787,533           3,015,868           6,559,734           8,873,935
                                      -----------------   -----------------  ------------------  ------------------

      Total Operating Expenses                1,943,970           3,322,970           7,231,828           9,929,811
                                      -----------------   -----------------  ------------------  ------------------

Net Operating Income (Loss)                     434,898             120,887             607,634           1,017,034

Other Income (Expense):
   Interest Income                                    -             250,701                   -             710,396
   Interest Expense                            (159,570)           (458,961)           (505,725)         (1,158,793)
                                      -----------------   -----------------  ------------------  ------------------

Net Income (Loss) Before
   Income Taxes                                 275,328             (87,373)            101,909             568,637

Income Tax (Expense) Benefit
   Current Federal Tax                          (16,401)             59,105             (16,401)           (156,707)
   Current State Tax                               (846)             13,689              (2,230)            (36,296)
   Deferred Income Tax                                -                 (53)                  -               9,085
                                      -----------------   -----------------  ------------------  ------------------

Net Income (Loss)                     $         258,081   $         (14,632) $           83,278  $          384,719
                                      =================   =================  ==================  ==================

Basic Income (Loss) per Share         $            0.06   $               -  $             0.02  $             0.10
                                      =================   =================  ==================  ==================

Diluted Income (Loss)
   Per Share                          $            0.03   $               -  $             0.01  $             0.04
                                      =================   =================  ==================  ==================
</TABLE>





                             See accompanying notes.


<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                   For the nine months ended
                                                                                         September 30,
                                                                             --------------------------------------
                                                                                    2004                2003
                                                                             ------------------  ------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                          <C>                 <C>
Net Income (Loss)                                                            $           83,278  $          469,688
Adjustments to reconcile net loss to net cash
Provided by operating activities
Depreciation and Amortization                                                           101,346             168,921
(Increase) Decrease in Deferred Tax Asset                                               128,818             (29,500)
(Increase) Decrease in Accounts Receivable                                              (81,097)            (90,929)
(Increase) Decrease in Employee Advances                                               (253,909)            (36,590)
(Increase) Decrease in Other Receivable                                                  10,360                   -
(Increase) Decrease in Mortgages Receivable                                           2,248,272          (4,532,587)
Net Borrowing under Line of Credit Arrangements                                      (2,302,863)          4,027,422
(Decrease) Increase in Income Taxes Payable                                            (133,625)                  -
(Decrease) Increase in Accounts Payable and Accrued Expenses                            301,744             262,730
                                                                             ------------------  ------------------
      Net Cash Used in Operating Activities                                             102,324             239,155
                                                                             ------------------  ------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets                                                                      -             (17,496)
Investment in Real Estate                                                                86,456                   -
(Increase) Decrease in Deposits                                                          (9,012)            (23,820)
                                                                             ------------------  ------------------
      Net Cash Used in Investing Activities                                              77,444             (41,316)
                                                                             ------------------  ------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on Long-term Debt                                                              (19,016)            (56,047)
Payments Under Bank Loan Agreement                                                      (50,700)            (61,822)
                                                                             ------------------  ------------------
      Net Cash Provided by Financing Activities                                         (69,716)           (117,869)
                                                                             ------------------  ------------------

Net (Decrease) Increase in
  Cash and Cash Equivalents                                                             110,052              79,970
Cash and Cash Equivalents
  at Beginning of Period                                                                      -             106,030
                                                                             ------------------  ------------------
Cash and Cash Equivalents
  at End of Period                                                           $          110,052  $          186,000
                                                                             ==================  ==================


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
-------------------------------------------------
Cash paid during the year for:
  Interest                                                                   $          505,725  $          518,269
  Franchise and income taxes                                                 $                -  $                -
</TABLE>

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES: None

                             See accompanying notes.



<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         This summary of accounting policies for Northeast Mortgage  Corporation
is presented to assist in understanding the Company's financial statements.  The
accounting policies conform to generally accepted accounting principles and have
been consistently applied in the preparation of the financial statements.

Interim Reporting

         The unaudited financial statements as of September 30, 2004 and for the
three and nine month periods then ended  reflect,  in the opinion of management,
all adjustments (which include only normal recurring  adjustments)  necessary to
fairly state the financial  position and results of operations for the three and
nine  months.   Operating  results  for  interim  periods  are  not  necessarily
indicative of the results which can be expected for full years.

Organization and Basis of Presentation

         The Company was  incorporated  under the laws of the State of Nevada on
July 25, 1997.  The Company  ceased all operating  activities  during the period
from July 25, 1997 to October 20, 1999 and was considered dormant.  From October
20,  1999 to March 26,  2002,  the  Company  was in the  development  stage.  On
February  25,  2002,  the  Company  changed  its  name  to  Northeast   Mortgage
Corporation  in  anticipation  of its  acquisition  of the  assets of  Northeast
Mortgage,  LLC, a Connecticut  limited liability company. On March 27, 2002, the
Company  completed  the  acquisition  of the assets of Northeast  Mortgage,  LLC
pursuant to a Contribution  Agreement dated October 30, 2001. The Company,  with
offices in Southbury,  Connecticut; Easton, Massachusetts;  Scottsdale, Arizona:
and Philadelphia, PA, is a mortgage lender.

         Since the former members of Northeast Mortgage,  LLC control 88% of the
Company  after  the  acquisition,   the  transaction  has  been  recorded  as  a
recapitalization of Northeast Mortgage,  LLC. The equity of the Company has been
restated  retroactively  to  reflect  the  recapitalization  on these  financial
statements.

Nature of Business

         The Company is engaged primarily in the mortgage banking business.  Its
principal  activity is the origination  and sale of mortgage loans.  The Company
does not retain the right to service any of the mortgage loans sold to permanent
investors.  The Company,  as a non  supervised  mortgagee,  also  originates FHA
insured Title II mortgages which are sold to permanent investors.









<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Cash and Cash Equivalents

         For purposes of the statement of cash flows, the Company  considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

Pervasiveness of Estimates

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  required  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.

Fixed Assets

         Fixed assets are recorded at cost.  Major renewals and improvements are
capitalized,  while  maintenance  and repairs are expensed when incurred.  As of
September 30, 2004, depreciation is computed as follows:

<TABLE>
<CAPTION>
                                                                                Accumulated
                                      Cost       Method           Life         Depreciation             Net
                         -----------------  ----------------  ------------  -------------------  ------------------
Furniture and
<S>                      <C>                                    <C>         <C>                  <C>
Fixtures                 $         288,518       Accelerated    7 Years     $           243,125  $           45,393
Office Equipment                   512,605       Accelerated    5 Years                 443,341              69,264
                         -----------------                                  -------------------
                         $         801,123                                  $           686,466  $          114,657
                         =================                                  ===================  ==================
</TABLE>

         As of December 31, 2003, depreciation is computed as follows:

<TABLE>
<CAPTION>

                                                                                Accumulated
                                      Cost       Method           Life         Depreciation             Net
                         -----------------  ----------------  ------------  -------------------  ------------------
Furniture and
<S>                      <C>                                    <C>         <C>                  <C>
Fixtures                 $         288,518       Accelerated    7 Years     $           226,962  $           61,556
Office Equipment                   512,605       Accelerated    5 Years                 435,408              77,197
                         -----------------                                  -------------------
                         $         801,123                                  $           662,370  $          138,753
                         =================                                  ===================  ==================

</TABLE>



<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Net Income (Loss) Per Common Share

         Basic earnings per share are computed by dividing earnings available to
common  stockholders by the weighted average number of common shares outstanding
during the period.  Diluted  earnings per share  reflect per share  amounts that
would have  resulted if dilutive  potential  common stock had been  converted to
common  stock.  The  following  reconciles  amounts  reported  in the  financial
statements:

<TABLE>
<CAPTION>

                                                               For the Three Months Ended September 30, 2004
                                                       -------------------------------------------------------------
                                                              Income               Shares              Per-Share
                                                            (Numerator)         (Denominator)           Amount
                                                         -----------------    -----------------    -----------------
<S>                                                      <C>                          <C>          <C>
Income (Loss) Available to Common                        $         258,081            4,000,000    $               0.06
                                                                                                   =================
  Stockholders

Effect of Dilutive Securities:
  Convertible Preferred Stock                                            -            4,600,000
                                                         -----------------    -----------------

Income (Loss) Available to Common
  Stockholders-Diluted Earnings Per Share                $         258,081            8,600,000    $               0.03
                                                         =================    =================    =================


                                                               For the Three Months Ended September 30, 2003
                                                       -------------------------------------------------------------
                                                              Income               Shares              Per-Share
                                                            (Numerator)         (Denominator)           Amount
                                                         -----------------    -----------------    -----------------
Income (Loss) Available to Common                        $         (14,632)           4,000,000    $                   -
                                                                                                   =================
  Stockholders

Effect of Dilutive Securities:
  Convertible Preferred Stock                                            -            4,600,000
                                                         -----------------    -----------------

Income (Loss) Available to Common
  Stockholders-Diluted Earnings Per Share                $         (14,632)           8,600,000    $                   -
                                                         =================    =================    =================

</TABLE>







<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

<TABLE>
<CAPTION>

                                                               For the Nine Months Ended September 30, 2004
                                                       -------------------------------------------------------------
                                                              Income               Shares              Per-Share
                                                            (Numerator)         (Denominator)           Amount
                                                         -----------------    -----------------    -----------------
<S>                                                      <C>                          <C>          <C>
Income (Loss) Available to Common                        $          83,278            4,000,000    $               0.02
                                                                                                   =================
  Stockholders

Effect of Dilutive Securities:
  Convertible Preferred Stock                                            -            4,600,000
                                                         -----------------    -----------------

Income (Loss) Available to Common
  Stockholders-Diluted Earnings Per Share                $          83,278            8,600,000    $0.01
                                                         =================    =================    =================


                                                               For the Nine Months Ended September 30, 2003
                                                       -------------------------------------------------------------
                                                              Income               Shares              Per-Share
                                                            (Numerator)         (Denominator)           Amount
                                                         -----------------    -----------------    -----------------
Income (Loss) Available to Common                        $         384,719            4,000,000    $               0.10
                                                                                                   =================
  Stockholders

Effect of Dilutive Securities:
  Convertible Preferred Stock                                            -            4,600,000
                                                         -----------------    -----------------

Income (Loss) Available to Common
  Stockholders-Diluted Earnings Per Share                $         384,719            8,600,000    $               0.04
                                                         =================    =================    =================
</TABLE>

Concentration of Credit Risk

         The Company's  financial  instruments that are exposed to concentration
of credit risk consist primarily of cash and mortgages  receivable.  The Company
places its cash investments with high credit quality institutions. At times such
investments  may be in  excess  of  the  FDIC  insurance  limit.  The  mortgages
receivable are secured by residential real estate.

Income Taxes

         The Company  accounts  for income  taxes under the  provisions  of SFAS
No.109,  "Accounting  for Income  Taxes." SFAS No.109  requires  recognition  of
deferred  income tax assets and  liabilities  for the expected future income tax
consequences,  based on enacted tax laws, of temporary  differences  between the
financial reporting and tax bases of assets and liabilities.




<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Comprehensive Income

         The Company does not have any accumulated  comprehensive  income items,
and therefore, is not required to report comprehensive income.

Advertising

         Advertising costs are expensed as incurred.

Revenue Recognition

         Revenue and related  costs are reflected in the accounts when earned or
incurred.

Intangible Assets

         Intangible Assets consisted of the following at September 30, 2004:

<TABLE>
<CAPTION>

           Intangible Asset                                                     Amortization Period
<S>                                             <C>                                   <C>
Customer Lists                                  $       516,609                       5 Years
Less accumulated amortization                          (420,009)
                                                ---------------
Total                                           $        96,600
                                                ===============

         Intangible Assets consisted of the following at December 31, 2003:


           Intangible Asset                                                     Amortization Period
Customer Lists                                  $       516,609                       5 Years
Less accumulated amortization                          (342,759)
                                                ---------------
Total                                           $       173,850
                                                ===============
</TABLE>

         On January 1, 2002, the Company  adopted SFAS 142 and as required,  the
useful lives of the customer lists were evaluated and the remaining amortization
periods  adjusted  accordingly.  Prior to the  adoption of SFAS 142, the Company
amortized  the customer  lists over an estimated  useful life of fifteen  years.
Since the adoption of SFAS 142, the Company amortizes the customer lists over an
estimated useful life of five years.






<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - MORTGAGES RECEIVABLE

         Mortgages  Receivable consist principally of real estate mortgage loans
originated and held for sale to permanent  investors.  They are held at lower of
cost or market. Market value is determined by the permanent investor commitment.
Also included in Mortgages  Receivable are private real estate  mortgages,  with
terms of three and six months, that bear interest at 13.99% per annum. The notes
are secured by residential  real estate located in the states of Connecticut and
Arizona and are financed through the Company. The fair value for these mortgages
receivable  approximate  carrying  amounts due to the short  maturities of these
instruments.

         Losses are  recorded as  incurred.  The Company  has no  provision  for
losses because it has never had a  delinquency.  The  probability  for a loss is
immaterial,  due to the fact  that the  loans  are sold to  permanent  investors
before funding.

NOTE 3 - CUSTOMER LISTS

         The Company  acquired its customer lists through  direct  purchase from
various  vendors.  These are recorded at cost and  amortized  using the straight
line  method over five  years,  which is the  estimated  useful  life.  With the
formation of the Company's telemarketing department,  the customer lists are now
a  component  of the  Company's  data base,  and  through  statistical  reports,
impairment is evaluated on an annual basis.

NOTE 4 - INCOME TAXES

         Deferred taxes result from temporary  differences in the recognition of
income and expenses for income tax reporting and financial  statement  reporting
purposes. The Company had deferred tax benefits of $143,864 at June 30, 2004 and
December 31,  2003.  These  deferred tax benefits are the result of  differences
between book and tax depreciation and amortization of intangible assets.

         The  difference  between the effective  income tax rate and the federal
statutory  income tax rate on the income (loss) from  continuing  operations are
presented below:

<TABLE>
<CAPTION>

                                                                               September 30,       September 30,
                                                                                    2004                2003
                                                                             ------------------  ------------------

<S>                                                <C>                       <C>                 <C>
Expense (Benefit) at the federal statutory rate of 34%                       $           27,556  $          180,996
Nondeductible expenses                                                                    1,472                 626
State Income Taxes                                                                        2,230              36,296
Other                                                                                   (14,857)            (61,211)
                                                                             ------------------  ------------------
Effective Tax Expense                                                        $           16,401  $          156,707
                                                                             ==================  ==================
</TABLE>



<PAGE>



                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (continued)

NOTE 5 - OPERATING LEASE COMMITMENTS

         The Company  leases  office space in  Southbury,  Connecticut;  Easton,
Massachusetts;   Scottsdale,   Arizona  and  Philadelphia,   Pennsylvania  under
agreements with terms of one to five years.  In addition to the base rents,  the
Company  is,  in  general,  responsible  for  paying  its pro rata  share of the
increases  in real  estate  taxes  and  operating  expenses  over the base  year
amounts.

         The Company  leases office  equipment  under  agreements  with terms of
three years.

         The following  summarizes  the future  minimum lease payments under all
noncancellable operating lease obligations:

                                    2004                                $236,888
                                    2005                                  50,367
                                    2006                                       -
                                    2007                                       -
                                    2008                                       -

NOTE 6 - DEPOSITS

         Included in deposits  are amounts  paid to  permanent  investors  under
indemnification  agreements  for loans sold and now serviced by said  investors.
Management expects no future indemnifications,  nor do they expect to repurchase
any loan sold,  and  accordingly,  no provision  has been made in the  financial
statements.

NOTE 7 - LINE OF CREDIT

<TABLE>
<CAPTION>
                                                                                   September 30,      December 31,
                                                                                       2004               2003
                                                                                 ----------------- ------------------
<C>                                                                              <C>               <C>
$35,000,000 Line of Credit -Horizon Bank                                         $      10,728,996 $       12,449,645
    Interest at Prime plus 1% per annum
    Security interest in all business assets and personal guarantee
    of members and their spouses, Amended and restated
    February 18, 2003, Expires January 31, 2005

$7,500,000 Line of Credit - People's Bank                                                2,032,205          2,614,419
    Interest at Federal Discount Rate
    Security interest in all business assets and personal guarantee
    of  members and their spouses
    Expires July 31, 2004

                                                                                 ----------------- ------------------
                            Total Lines Of Credit                                $      12,761,201 $       15,064,064
                                                                                 ================= ==================
</TABLE>

<PAGE>

                         NORTHEAST MORTGAGE CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (continued)

NOTE 8 - PROFIT SHARING PLAN

         On June 1, 1997,  the Company  (employer)  established  a 401(k) Profit
Sharing Plan.  Any full time employee who has completed  three months of service
and has  attained  age 21 is eligible to  participate.  The  employer can make a
discretionary matching contribution based on the employee elective contribution.
The contribution, if any, is determined each year. For 2004 and 2003, there were
no matching contribution made.

NOTE 9 - NOTE PAYABLE - BANK

         On March 29, 2001, the Company  signed a credit  agreement with Newtown
Savings Bank (Bank).  The new agreement amends the Commercial Note and Revolving
Loan Agreement  dated December 4, 1997 wherein a revolving  credit  facility was
made  available to the Company by the Bank in the amount of one million  dollars
($1,000,000).

         The new  agreement,  with a  principal  sum of  $676,000  is payable in
fifty-nine (59) monthly principal payments of $5,633.33 plus interest commencing
April 29, 2001 with the final payment of the entire unpaid principal  balance of
$343,633.53 plus interest payable on March 29, 2006. Interest is calculated at a
variable  rate per  annum of two  percentage  points  above  the  Prime  Rate as
published by the Wall Street Journal.

NOTE 10 - PREFERRED STOCK

         On  January  8,  2001,  the  Company  authorized  10,000,000  shares of
Preferred Stock,  designated as Series A and Series B Preferred Stock.  Series A
and Series B Preferred  Stock consist of 5,000,000  shares,  with a par value of
$.001  per  share.  On  January  18,  2002 the  Board of  Directors  approved  a
resolution that  designates the 5,000,000  shares of Series A shares as Series A
Convertible  Preferred  Stock,  with a par value of $.001 per share.  The Stated
Value of each  Series A  Preferred  Share is $.10.  The holders of shares of the
Series A Preferred Stock shall be entitled to receive  dividends when, if and as
declared by the Board of Directors. Each share of Series A Preferred Stock shall
be  convertible,  at the option of the holder,  into one share of the  Company's
common stock.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

GENERAL  - This  discussion  should  be read in  conjunction  with  Management's
Discussion and Analysis of Financial  Condition and Results of Operations in the
Company's annual report on Form 10-KSB for the year ended December 31, 2003.

         The following  statement is made pursuant to the safe harbor  provision
for forward-looking  statements  described in the Private Securities  Litigation
Reform Act of 1995. Northeast Mortgage


<PAGE>



Corporation may make certain statements in this Prospectus,  including,  without
limitation   statements  that  contain  the  words  "believes,"   "anticipates,"
"estimates," "expects," and words of similar import, constitute "forward-looking
statements."  Forward-looking  statements  may relate to our  future  growth and
profitability;  the  anticipated  trends in our  industry;  and our  competitive
strengths and business strategies; Further, forward-looking statements are based
on our current expectations and are subject to a number of risks,  uncertainties
and assumptions  relating to our operations,  financial condition and results of
operations. For a discussion of factors that may affect the outcome projected in
such  statements,  see "Risk Factors and Investment  Considerations."  If any of
these  risks  or  uncertainties  materialize,   or  if  any  of  the  underlying
assumptions prove incorrect, actual results could differ materially from results
expressed  or  implied  in  any  of our  forward-looking  statements.  We do not
undertake any obligation to revise these  forward-looking  statements to reflect
events or circumstances arising after the date of this 10QSB.

PLAN OF OPERATION

         During the three months ended September 30, 2004, Northeast focused its
resources in further  establishing a presence in the financial services industry
as a regional mortgage banker.  Its primary goals were to increase the number of
loans originated while controlling and then reducing salaries and other expenses
required to facilitate the closing of the mortgage  transaction.  In addition to
taking the necessary steps to increase production we eliminated and consolidated
a number of salary positions while also  restructuring the compensation plans of
all salespeople in an effort to improve earnings.

THIRD QUARTER 2004 AS COMPARED TO THIRD  QUARTER 2003 RESULTS OF OPERATIONS  AND
ANALYSIS OF FINANCIAL CONDITION

         Revenues  decreased  for the three months ended  September  30, 2004 as
compared to the three months ended  September 30, 2003.  Revenues  decreased 31%
from  $3,443,857 for the three months ended September 30, 2003 to $2,378,868 for
the three months ended September 30, 2004. The decrease in revenues was due to a
decrease in loans originated.  General and administrative expenses decreased 41%
from  $3,015,868 for the three months ended September 30, 2003 to $1,787,533 for
the three months ended  September 30, 2004. This decrease in expenses was due to
a decrease in activity. Sales and marketing expenses decreased 49% from $307,102
for the three months ended  September  30, 2003 to $156,437 for the three months
ended  September  30,  2004.  Net income was $258,081 for the three months ended
September  30, 2004  compared to net loss of $14,632 for the three  months ended
September  30, 2003.  The increase in net income was due to expenses  decreasing
more than revenues.  We expect our advertising expenses to remain constant since
the majority of our ongoing expense  related to advertising is budgeted  through
our internal telemarketing  department. We do not foresee any material increases
in costs in the near future.

         We  originated  470 loans in the third  quarter of 2004, a 39% decrease
over the comparable  period in 2003 when we originated 777 loans.  These numbers
represent total loans funded amounts of $78,473,663 in the third quarter of 2004
and $134,325,768 in the third quarter of 2003.

SEASONALITY


<PAGE>




         The mortgage banking industry is generally  subject to seasonal trends.
We are subject to this  seasonality.  Production  tends to  decrease  during the
summer and increase during the fall, winter, and spring.

MARKET RISK

         Interest rates are the primary market risk Northeast faces.  Increasing
interest  rates  tend to  decrease  the  number of loans  originated.  Northeast
compensates  for interest rate  increases by offering  variable rate  mortgages,
sub-prime  loans,  and equity  loans,  which tend to gain in  popularity  during
periods of increased  interest rates.  In periods of decreasing  interest rates,
there is an increase  in the number of loans  originated  during the  decreasing
rate  trend.  Investors  to whom  Northeast  sells  its  loans  compete  for its
business.  Therefore a decreasing  interest rate environment has only a positive
effect on its results of operations.

LIQUIDITY AND CAPITAL RESOURCES

         We expect that we will be able to satisfy our cash requirements for the
next twelve months from its existing cash flow.

EMPLOYEES

         We do not expect any material change in the number of employees.

ITEM 3.  CONTROLS AND PROCEDURES

The  Company's  Chief  Executive   Officer  and  Chief  Financial  Officer  have
concluded,  based on an evaluation  conducted within 90 days prior to the filing
date of this  Quarterly  Report on Form 10- QSB, that the  Company's  disclosure
controls and  procedures  have  functioned  effectively  so as to provide  those
officers the information necessary to evaluate whether:

         (i) this Quarterly  Report on Form 10-QSB contains any untrue statement
         of a material fact or omits to state a material fact  necessary 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 on Form 10-QSB, and

         (ii) the financial statements, and other financial information included
         in this Quarterly Report on Form 10-QSB, fairly present in all material
         respects the financial condition,  results of operations and cash flows
         of the Company as of, and for, the periods  presented in this Quarterly
         Report on Form 10-QSB.

There have been no significant  changes in the Company's internal controls or in
other  factors  since  the  date of the  Chief  Executive  Officer's  and  Chief
Financial Officer's  evaluation that could  significantly  affect these internal
controls,   including  any   corrective   actions  with  regard  to  significant
deficiencies and material weaknesses.


<PAGE>




                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 2.  CHANGES IN SECURITIES

None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None/Not Applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

None/Not Applicable.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS

         The  following  documents  are filed  herewith or have been included as
exhibits to previous filings with the Commission and are incorporated  herein by
this reference:

         Exhibit No.       Exhibit

         3.1      Articles of Incorporation(1)

         3.2      Amended Articles of Incorporation(1)

         3.3      Bylaws(1)

         3.4      Amended Articles of Incorporation(2)

         31.1     Certification  Pursuant to Section  302 of the  Sarbanes-Oxley
                  Act of 2002.

         31.2     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.


<PAGE>



         32.2     Certification  Pursuant to Section  906 of the  Sarbanes-Oxley
                  Act of 2002.


(b)      No  reports on 8-K were filed by the  Company  during the three  months
         ended March 31, 2004.

(1)      Incorporated  herein  by  reference  from  Registrant's  Form  10SB12G,
         Registration Statement, dated February 16, 2000.

(2)      Incorporated  herein by reference  from  Registrant's  Form 8-K,  dated
         April 11, 2002




































<PAGE>



                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, this 11th day of November, 2004.

Northeast Mortgage Corporation



/s/ Brian Rogerson
Brian Rogerson
President
(Principal Executive Officer)


/s/ Sean Rogerson
Sean Rogerson
Vice-President
(Principal Financial Officer)


November 11, 2004