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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.   20549

FORM 10-Q

|x                                                                   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
|------------------------------------------------------------------- | ----------------------------------------------------------------------------------------
|                                                                    |                                                                                         
|For the quarterly period ended: March 31, 2003                     
|                                                                    |                                                                                         
|OR                                                                 
|                                                                    |                                                                                         
|o                                                                   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|                                                                    |                                                                                         
|For the transition period from _______________ to _________________
|                                                                    |                                                                                         
|Commission file number:  1-13563                                   
|                                                                    |                                                                                         
|                                                                    | LASER MORTGAGE MANAGEMENT, INC.                                                         
|                                                                    | (Exact name of registrant as specified in its charter)                                  
|                                                                    |                                                                                         
|DELAWARE                                                            |                                                                                         
|(State or other jurisdiction of incorporation or organization)      |                                                                                         
|                                                                    |                                                                                         
|c\o Mariner Investment Group, Inc.                                 
|780 Third Avenue, 16th Floor                                       
|New York, NY 10017                                                 
|(Address of principal executive offices)                           
|(Zip Code)                                                         
|                                                                   
|(212) 758-2024                                                     
|(Registrants telephone number, including area code)               
|                                                                    |                                                                                         

Indicate by check mark whether the registrant (1) has filed all documents and 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 o
|----- | ----

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).

|Yes o | No x
|----- | ----

Indicate the number of shares outstanding of each of the issuers classes of stock, as of the last practicable date: 14,038,983 shares of common stock, $0.001
par value, outstanding as of May 12, 2003.

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LASER MORTGAGE MANAGEMENT, INC.

FORM 10-Q

INDEX

|PART I.     
FINANCIAL INFORMATION | 1                                                                                               
|---------------------------------- | ------------------------------------------------------------------------------------------------
|                                   |                                                                                                 
|                                   | Item 1.   
Financial Statements                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   |                                                                                                 
|                                   | Item 2.   
Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                   |                                                                                                 
|                                   | Item 3.   
Quantitative and Qualitative Disclosures About Market Risk                           
|                                   |                                                                                                 
|                                   | Item 4.   
Controls and Procedures                                                              
|                                   |                                                                                                 
|PART II.     
OTHER INFORMATION    | 12                                                                                              
|                                   |                                                                                                 
|                                   | Item 1.   
Legal Proceedings                                                                    
|                                   |                                                                                                 
|                                   | Item 6.   
Exhibits and Reports on Form 8-K                                                     

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PART I.     
FINANCIAL INFORMATION

Item 1.   
Financial Statements

LASER Mortgage Management, Inc.

Statements of Net Assets in Liquidation  (Liquidation Basis)

|                                        |  | As of                      |           
|--------------------------------------- |  | -------------------------- | ----------
|                                        |  |                            |           
|                                        |  | March 31, 2003 (Unaudited) |           
|                                        |  |                            |           
|Assets                                  |  |                            |           
|Cash and cash equivalents               |  | $                          | 19,970,624
|Interest receivable                     |  |                            | 721       
|                                        |  |                            |           
|Total assets                            |  |                            | 19,971,345
|                                        |  |                            |           
|Liabilities                             |  |                            |           
|Distributions payable                   |  |                            | 7,019,492 
|Accounts payable and accrued expenses   |  |                            | 179,552   
|Reserve for estimated liquidation costs |  |                            | 396,726   
|                                        |  |                            |           
|Total liabilities                       |  |                            | 7,595,770 
|                                        |  |                            |           
|Net assets in liquidation               |  | $                          | 12,375,575
|                                        |  |                            |           

See notes to financial statements.

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LASER Mortgage Management, Inc.

Statements of Changes in Net Assets in Liquidation  (Liquidation Basis) (Unaudited)

|                                                                |  | For The Three Months Ended |           
|--------------------------------------------------------------- |  | -------------------------- | ----------
|                                                                |  |                            |           
|                                                                |  | March 31, 2003             |           
|                                                                |  |                            |           
|Interest Income:                                                |  |                            |           
|Securities and mortgage loans                                   |  | $                          |          
|Cash and cash equivalents                                       |  |                            | 55,612    
|                                                                |  |                            |           
|Total interest income                                           |  |                            | 55,612    
|Interest expense:                                               |  |                            |           
|Repurchase agreement                                            |  |                            |          
|                                                                |  |                            |           
|Net interest income                                             |  |                            | 55,612    
|Net gain on securities                                          |  |                            | 2,026,836 
|General and administrative expenses                             |  |                            | 1,021,319 
|                                                                |  |                            |           
|Increase in net assets in liquidation from operating activities |  |                            | 1,061,129 
|Cash liquidation distribution declared                          |  |                            | (7,019,492
|Net assets in liquidation at beginning of period                |  |                            | 18,333,938
|                                                                |  |                            |           
|Net assets in liquidation at end of period                      |  | $                          | 12,375,575
|                                                                |  |                            |           

See notes to financial statements.

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LASER Mortgage Management, Inc.

Statements of Cash Flows  (Liquidation Basis) (Unaudited)

|                                                                                                                                                 |  | For The Three Months Ended |           
|------------------------------------------------------------------------------------------------------------------------------------------------ |  | -------------------------- | ----------
|                                                                                                                                                 |  |                            |           
|                                                                                                                                                 |  | March 31, 2003             |           
|                                                                                                                                                 |  |                            |           
|Cash Flows From Operating Activities                                                                                                             |  |                            |           
|Increase in net assets in liquidation from operating activities                                                                                  |  | $                          | 1,061,129 
|Adjustments to reconcile increase in net assets in liquidation from operating activities to net cash (used in)
provided by operating activities: |  |                            |           
|Amortization of mortgage premiums                                                                                                                |  |                            |          
|Net (gain) loss on securities                                                                                                                    |  |                            | (2,000,000
|(Increase) decrease in interest receivable                                                                                                       |  |                            | (127      
|Increase in accrued interest payable                                                                                                             |  |                            |          
|Decrease in accounts payable and accrued expenses                                                                                                |  |                            | (17,892   
|Decrease in reserve for estimated liquidation costs                                                                                              |  |                            | (14,033   
|                                                                                                                                                 |  |                            |           
|Net cash (used in) provided by operating activities                                                                                              |  |                            | (970,923  
|                                                                                                                                                 |  |                            |           
|Cash Flows From Investing Activities                                                                                                             |  |                            |           
|Proceeds from sale of securities                                                                                                                 |  |                            | 2,000,000 
|Principal payments on securities and mortgage loans                                                                                              |  |                            |          
|                                                                                                                                                 |  |                            |           
|Net cash provided by investing activities                                                                                                        |  |                            | 2,000,000 
|                                                                                                                                                 |  |                            |           
|Net increase in cash and cash equivalents                                                                                                        |  |                            | 1,029,077 
|Cash and cash equivalents at beginning of period                                                                                                 |  |                            | 18,941,547
|                                                                                                                                                 |  |                            |           
|Cash and cash equivalents at end of period                                                                                                       |  | $                          | 19,970,624
|                                                                                                                                                 |  |                            |           

See notes to financial statements

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LASER Mortgage Management, Inc.

NOTES TO FINANCIAL STATEMENTS  MARCH 31, 2003 (UNAUDITED)

|1. | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
|-- | ------------------------------------------------

LASER Mortgage Management, Inc. (the Company) was incorporated in Delaware on May 1, 2001, as a wholly-owned subsidiary of LASER Mortgage Management,
Inc., a Maryland corporation (LASER Maryland), and is the successor by merger to LASER Maryland.  LASER Maryland was incorporated in Maryland on September 3, 1997 and commenced its operations on November 26, 1997.  On May 30,
2001, the Companys Board of Directors and sole stockholder, LASER Maryland, approved the liquidation and dissolution of the Company under the terms and conditions of the Plan of Liquidation and Dissolution, subject to the approval of the Plan
of Liquidation and Dissolution by the stockholders of LASER Maryland.  On July 27, 2001, the stockholders of LASER Maryland, at the annual meeting, approved the reincorporation of LASER Maryland in Delaware (the Reincorporation),
through the merger of LASER Maryland with and into the Company, and the subsequent liquidation and dissolution of the Company under the terms and conditions of the Plan of Liquidation and Dissolution.  On July 31, 2001, LASER Maryland completed
the Reincorporation by merging with and into the Company.  As of the effective date of the Reincorporation, LASER Maryland ceased to exist.  On August 3, 2001, the Company filed a certificate of dissolution with the Secretary of State of
the State of Delaware, and the dissolution of the Company was effective upon such filing.  The Company has ceased to conduct normal business operations and now operates solely for the purpose of providing for the satisfaction of its
obligations, adjusting and winding-up its business and affairs and distributing its remaining net assets.  References herein to LASER or the Company include LASER Maryland prior to the date of the Reincorporation, as
applicable.

In accordance with the Plan of Liquidation and Dissolution, receiving the approval of the Delaware Court of Chancery, the
Company made distributions of $0.50 and $3.00 per outstanding share of common stock on April 8, 2003 and December 28, 2001, respectively, to stockholders of record as of March 31, 2003 and December 17, 2001, respectively.  As of March 31,
2003, the estimated net realizable value of the Companys net assets in liquidation was $0.88 per share.  After providing for expenses and subject to court approval, the Company expects to distribute the majority of the remaining net
assets in liquidation over the next two years with a final liquidating distribution to occur thereafter.  The total amount of distributions to stockholders is subject to change based on numerous factors, including operating expenses, the
Delaware Court of Chancery modifying the distribution amounts and timing currently envisioned by the Board of Directors under the Plan of Liquidation and Dissolution, unanticipated claims or expenses, as well as other factors beyond the control of
the Company.

The Company was organized to create and manage an investment portfolio of primarily mortgage-backed securities and
mortgage loans that, in combination with financing and hedging activities, would generate income for distribution to its stockholders while preserving the Companys capital base.  At its inception, the Company elected to be taxed as a real
estate investment trust (a REIT) under the Internal Revenue Code of 1986, as amended (the Code), commencing with its short taxable year ended December 31, 1997.  The Company qualified as a REIT for the taxable years
ended December 31, 1997 through 2001.  The Company did not qualify as a REIT for the year beginning January 1, 2002.

Basis
of PresentationAs described above, stockholders approved the Plan of Liquidation and Dissolution of the Company on July 27, 2001.  As a result, the Company adopted liquidation basis accounting effective July 28,
2001.  Accordingly, the Companys assets are stated at their estimated net realizable values and liabilities are stated at their estimated settlement amounts, including an accrual for estimated expenses associated with the liquidation of
the Company.  Before the adoption of liquidation basis accounting, the Company operated as a continuing business and followed going concern basis accounting.  Because substantially all of the existing assets and liabilities of the Company
were carried at approximate fair value in accordance with generally accepted accounting principles (GAAP), the adoption of liquidation basis accounting did not have a material impact on the Companys financial statements other than
requiring the Company to charge stockholders equity for the reduction in the carrying value of securities to reflect their estimated net realizable value, the write-off of the remaining balance of prepaid expenses, and the reserve for
estimated expenses associated with the liquidation of the Company.  However, the valuation of assets and liabilities at their estimated net realizable values and estimated settlement amounts, respectively, necessarily requires estimates and
assumptions.  Changes in market conditions, actual costs associated

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LASER Mortgage Management, Inc.

NOTES TO FINANCIAL STATEMENTS  MARCH 31, 2003 (UNAUDITED)
(Continued)

with the liquidation, and other factors may affect the amounts ultimately realized or settled, and those amounts may differ, perhaps materially, from the carrying values on the
Companys financial statements.

The accompanying unaudited financial statements have been prepared on liquidation basis accounting
in conformity with GAAP and the instructions to Form 10-Q and Article 10, Rule 10-01 of Regulation S-X for interim financial statements.  Accordingly, these unaudited financial statements do not include all of the information and footnotes
required by GAAP for complete financial statements.  In the opinion of the Companys management, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair presentation, have been included in these
financial statements.  These unaudited interim financial statements, as of and for the periods ended March 31, 2003 should be read in conjunction with the audited financial statements included in the Companys Annual Report on Form 10-K
for the year ended December 31, 2002.  Operating results for any interim period are not necessarily indicative of results that may be expected for a full year.

A summary of the Companys significant accounting policies follows:

Cash Equivalents Cash equivalents consist of an overnight reverse repurchase agreement.  The amount reported on the statements of net
assets in liquidation represents the amount advanced under the agreement.

Investments  The Company invested
primarily in mortgage-backed securities and mortgage loans.  The mortgage-backed securities included privately issued or U.S. government or agencies issued mortgage pass-through certificates, collateralized mortgage obligations and other
securities representing interests in, or obligations backed by, pools of mortgage loans (collectively, Mortgage Securities).  The mortgage loans were secured by first or second liens on single-family residential, multi-family
residential, commercial or other real property  (Mortgage Loans, and together with Mortgage Securities, Mortgage Assets).  The Company also invested in other debt and equity securities (together with Mortgage
Securities, Securities, and together with Mortgage Assets, Investments).

Before the adoption of liquidation basis
accounting and in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 115, Accounting for Certain Investments in Debt and Equity Securities, the Company classified its Securities as
available-for-sale.  The available-for-sale classification required that those Securities be carried at estimated fair value, with unrealized gains and losses reported on the balance sheet as a separate component of stockholders equity
within accumulated other comprehensive loss.  This classification was appropriate since the Company may have needed to sell, from time to time, any of its Securities as part of its overall management of its balance sheet even though the Company
generally intended to hold most of its Securities until maturity.

After the adoption of liquidation basis accounting, the Companys
Investments were carried at estimated net realizable value on the statements of net assets in liquidation, with unrealized gains and losses reported on the statements of changes in net assets in liquidation.

The Companys Mortgage Loans were carried at estimated net realizable value on the statements of net assets in liquidation, with unrealized gains and losses
reported on the statements of changes in net assets in liquidation.  Before the adoption of liquidation basis accounting, the Companys Mortgage Loans were carried on the balance sheet at their unpaid principal balance, net of unamortized
discount or premium.

Interest income is accrued based on the outstanding principal or notional amount of the Investments and cash
equivalents and their contractual terms.  Premiums and discounts associated with the purchase of the Investments were amortized into interest income over the lives of the Investments using the effective yield method.

Realized gains and losses on Investment transactions were determined on the specific identification basis and were recorded on the statements of changes in
net assets in liquidation.

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LASER Mortgage Management, Inc.

NOTES TO FINANCIAL STATEMENTS  MARCH 31, 2003 (UNAUDITED)
(Continued)

Repurchase Agreements The Company utilized repurchase agreements to finance most of its
Investments.  The repurchase agreements were collateralized by certain of the Companys Investments and carried interest rates that generally moved in close relation to the one-month London Interbank Offered Rate.

Reserve for Estimated Liquidation Costs Under liquidation basis accounting, the Company is required to estimate and accrue the
costs directly associated with the liquidation.  The amount recorded in the statements of net assets in liquidation represents estimated professional fees and other expenses expected to be incurred in connection with liquidation activities and
paid out over the course of the liquidation.  The ongoing general and administrative expenses related to operating the Company until its liquidation is completed have not been included in this reserve.  The ultimate amount paid might vary
significantly due to, among other things, the timing of the liquidation.

Fair Value of Financial Instruments The
carrying values of cash equivalents, interest receivable, and other financial liabilities approximate their estimated fair value because of the short-term nature of these financial instruments.  Estimated net realizable value approximates
estimated fair value as presented in these financial statements.

Income Taxes At its inception, the Company elected
to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, commencing with its short taxable year ended December 31, 1997.  As such, the Company generally had been entitled to a deduction for all dividends it paid to its
stockholders for a taxable year.  As a result, the Company had not been subject to federal income taxation with respect to its distributed income.  Qualification as a REIT requires that the Company satisfy a number of asset, income and
distribution tests.  The Company qualified as a REIT for the taxable years ended December 31, 1997 through 2001.  The Company did not qualify as a REIT for the year beginning January 1, 2002.

The Company follows the provisions of SFAS No. 109, Accounting for Income Taxes, which provides for the recognition of deferred tax assets and liabilities
relating to the future tax consequences of net operating loss carryforwards and the differences between the financial reporting amounts and the tax bases of assets and liabilities, measured using the enacted tax rates and laws that are expected to
be in effect when the taxes are actually paid or recovered.  When the Company determines that it is more likely than not that the measured amount of the deferred tax assets will not be realized, the Company will reduce the deferred tax assets
through a valuation allowance.

Use of Estimates The preparation of financial statements in conformity with GAAP
requires the Company 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 income and
expenses during the reporting period.  Actual results could differ from those estimates.

|2. | MORTGAGE SECURITIES
|-- | -------------------

On October 23,
2000 the Company filed suit in the Southern District of New York against Asset Securitization Corporation (ASC), Nomura Asset Capital Corporation (Normura Asset) and Nomura Securities International, Inc. (Nomura)
alleging that the defendants defrauded the Company into purchasing approximately $19.0 million worth of ASC Securities by failing to disclose, among other things, that one of the largest loans in a trust fund of which the Company owned subordinated
interests was seriously troubled.

On February 4, 2003, the Company withdrew the lawsuit and all claims were dismissed with
prejudice and without costs.

On March 21, 2003, the Company sold all of the ASC Securities, which previously were estimated to have no
net realizable value, for $2,000,000.

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LASER Mortgage Management, Inc.

NOTES TO FINANCIAL STATEMENTS  MARCH 31, 2003 (UNAUDITED)
(Continued)

|3. | RESERVE FOR ESTIMATED LIQUIDATION COSTS
|-- | ---------------------------------------

At the time of the adoption of liquidation basis accounting, the Company recorded $700,000 for estimated professional fees and other expenses directly related to the
liquidation that are anticipated to be incurred over the course of the liquidation.  The ongoing general and administrative expenses related to operating the Company until its liquidation is completed have not been included in this
reserve.  At March 31, 2003 and December 31, 2002, the reserve for estimated liquidation costs amounted to $396,726 and $410,759, respectively.  During the three months ended March 31, 2003, the Company paid $14,033 of liquidation
costs.

|4. | MANAGEMENT ARRANGEMENTS
|-- | -----------------------

Upon the
termination of the management agreement with Mariner Mortgage Management, L.L.C. (Mariner) on November 1, 2001, the Company became self managed and entered into employment agreements with William J. Michaelcheck, the President and Chief
Executive Officer of the Company, and Charles R. Howe, II, the Vice President, Treasurer and Secretary of the Company, each at a salary of $10,000 per month.  Effective October 1, 2002, the employment agreement with Mr. Howe was amended to
reduce his salary to $5,000 per month.  Messrs. Michaelcheck and Howe previously were responsible for managing the Companys portfolio at Mariner and continue to have significant responsibilities at Mariner.

On November 1, 2001, the Company also entered into a support services agreement with Mariner Investment Group, Inc. (Mariner Investment Group), an
affiliate of Mariner, under which Mariner Investment Group will provide the Company with office space and services, bookkeeping and accounting services and such other services as may be agreed upon from time to time by the Company and Mariner
Investment Group for a fee of $30,000 per month.  Effective July 1, 2002, the fee under the support services agreement was reduced to $20,000 per month.

For the three months ended March 31, 2003 and 2002, the Company incurred $45,000 and $60,000, respectively, of expenses under the employment agreements and $60,000
and $90,000, respectively, of expenses under the support services agreement.

All of the management arrangements discussed above have
been ratified and approved by the Compensation Committee of the Board of Directors.

|5. | INCOME TAXES
|-- | ------------

At its inception, the
Company elected to be taxed as a REIT under the Internal Revenue of 1986, as amended, commencing with its short taxable year ended December 31, 1997.  As such, the Company generally had been entitled to a deduction for all dividends it paid to
its stockholders for a taxable year.  As a result, the Company had not been subject to federal income taxation with respect to its distributed income.  Qualification as a REIT requires that the Company satisfy a number of asset, income and
distribution tests.  The Company qualified as a REIT for the taxable years ended December 31, 1997 through 2001.  Because less than 75% of the Companys gross income for the 2002 taxable year did not derive from certain required REIT
investments, the Company did not qualify as a REIT for the year beginning January 2002.  As a consequence, the Company is no longer entitled to deduct dividends paid to stockholders from its taxable income.  The Company is subject to
federal income tax at corporate rates (including any applicable alternative minimum tax) with respect to gains from liquidating sales of assets and income from operations for the year ended December 31, 2002 and for subsequent taxable years. 
The federal income taxes would reduce the amounts otherwise distributable to its stockholders.

For the tax year ended December 31,
2002, net operating losses as calculated for tax purposes (NOLs) are estimated at approximately $(0.7) million.  Prior to 2002, the Company experienced approximately $(120.1) million of aggregate NOLs.  NOLs generally may be
carried forward for 20 years.  The Company believes that during 1999 it experienced an ownership change within the meaning of Section 382 of the Code.  Consequently, the Companys use of NOLs generated before the ownership
change to reduce taxable income after the ownership

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##### Table of Contents

LASER Mortgage Management, Inc.

NOTES TO FINANCIAL STATEMENTS  MARCH 31, 2003 (UNAUDITED)
(Continued)

change will be subject to limitations under Code Section 382.  Generally, Code Section 382 limits the use of NOLs in any year to the value of the Companys common stock
on the date of the ownership change multiplied by the long-term tax-exempt rate (published by the IRS) with respect to that date.  The Company believes that the annual limitation with respect to the use of its NOLs is approximately $(3.0)
million and that, as of the beginning of the tax year 2003, approximately $(91.2) million of the estimated cumulative NOL of $(120.8) million is subject to the annual limitation.

For the three months ended March 31, 2003, the Company estimates that taxable income before utilizing its carried forward NOLs amounted to approximately $1.0
million.  To the extent that the Company generates taxable income, the Company will utilize its NOLs to reduce its taxable income and adjust its deferred tax assets and valuation allowance accordingly.  For the three months ended March 31,
2003, the Company offset its taxable income with NOLs and reduced its aggregate gross deferred tax assets by approximately $493,000.  The aggregate gross deferred tax asset amounted to approximately $56,050,000 at March 31, 2003.  Due to
the continuing liquidation of the Company and the expectation that the Company will not have sufficient earnings to utilize these deferred tax assets, the existing valuation allowance for the entire gross deferred tax asset was reduced by $493,000
to $56,050,000 at March 31, 2003.

*   *   *   *   *

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##### Table of Contents

|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

The following discussion should be read in conjunction with the Companys financial statements as of and for the three months ended March 31, 2003 and notes
thereto and with the audited financial statements included in the Companys Annual Report on Form 10-K for the year ended December 31, 2002.  References herein to LASER or the Company include LASER Mortgage
Management, Inc., a Maryland corporation, prior to the date of the Reincorporation described in Note 1 to the Notes to Financial Statements included as part of Item 1.

Forward-Looking
Statements

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Statements in this
discussion regarding the Company and its business, which are not historical facts, are forward-looking statements that involve risks and uncertainties.  Risks and uncertainties, which could cause results to differ from those
discussed in the forward-looking statements herein, are listed in the Companys Annual Report filed on Form 10-K.

General

On July 27, 2001, the stockholders of LASER Maryland, at the annual meeting, approved the Reincorporation of LASER Maryland in Delaware, through the merger of LASER
Maryland with and into the Company, and the subsequent liquidation and dissolution of the Company under the terms and conditions of the Plan of Liquidation and Dissolution.  On July 31, 2001, LASER Maryland completed the Reincorporation by
merging with and into the Company.  As of the effective date of the Reincorporation, LASER Maryland ceased to exist.  On August 3, 2001, the Company filed a certificate of dissolution with the Secretary of State of the State of Delaware,
and the dissolution of the Company was effective upon such filing.  The Company has ceased to conduct normal business operations and now operates solely for the purpose of providing for the satisfaction of its obligations, adjusting and
winding-up its business and affairs and distributing its remaining net assets.

In accordance with the Plan of Liquidation and
Dissolution, receiving the approval of the Delaware Court of Chancery, the Company made distributions of $0.50 and $3.00 per outstanding share of common stock on April 8, 2003 and December 28, 2001, respectively, to stockholders of record as of
March 31, 2003 and December 17, 2001, respectively.  As of March 31, 2003, the estimated net realizable value of the Companys net assets in liquidation was $0.88 per share.  After providing for expenses and subject to court approval,
the Company expects to distribute the majority of the remaining net assets in liquidation over the next two years with a final liquidating distribution to occur thereafter.  The total amount of distributions to stockholders is subject to change
based on numerous factors, including operating expenses, the Delaware Court of Chancery modifying the distribution amounts and timing currently envisioned by the Board of Directors under the Plan of Liquidation and Dissolution, unanticipated claims
or expenses, as well as other factors beyond the control of the Company.

As a result of the stockholders approving the Plan of
Liquidation and Dissolution, the Company adopted liquidation basis accounting effective July 28, 2001.  Accordingly, the Companys assets are stated at their estimated net realizable values and liabilities are stated at their estimated
settlement amounts, including an accrual for estimated expenses associated with the liquidation of the Company.  Before the adoption of liquidation basis accounting, the Company operated as a continuing business and followed going concern basis
accounting.  Because substantially all of the existing assets and liabilities of the Company were carried at approximate fair value in accordance with generally accepted accounting principles (GAAP), the adoption of liquidation
basis accounting did not have a material impact on the Companys financial statements other than requiring the Company to charge stockholders equity for: the reduction in the carrying value of securities to reflect their estimated net
realizable value, the write-off of the remaining balance of prepaid expenses, and the reserve for estimated expenses associated with the liquidation of the Company.  However, the valuation of assets and liabilities at their estimated net
realizable values and estimated settlement amounts, respectively, necessarily requires estimates and assumptions.  Changes in market conditions, actual costs associated with the liquidation, and other factors may affect the amounts ultimately
realized or settled, and those amounts may differ, perhaps materially, from the carrying values on the Companys financial statements.

At its inception, the Company elected to be taxed as a REIT under the Code, commencing with its short taxable year ended December 31, 1997.  The Company
qualified as a REIT for the taxable years ended December 31, 1997 through 2001.  The Company did not qualify as a REIT for the year beginning January 1, 2002.

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Changes in Net Assets in Liquidation for the Three Months Ended March 31, 2003

Under liquidation basis accounting, net assets in liquidation from operating activities increased by $1.1 million for the three months ended March 31, 2003.  The
Companys cash equivalents earned $0.1 million of interest income.  In addition, the Company recorded an increase of $2.0 million from securities comprised primarily of the proceeds from the sale of securities previously determined to be
other-than-temporarily impaired and estimated to have no net realizable value.  General and administrative expenses during that period amounted to $(1.0) million and consisted of $(0.8) million paid for directors and officers insurance, $(0.1)
million of fees paid pursuant to the support services agreement and $(0.1) million of professional fees, payroll and other expenses.

The
cash liquidation distribution of $0.50 per outstanding share of common stock that was declared during the three months ended March 31, 2003 offset the Companys increase in net assets in liquidation from operating activities by $(7.0)
million.  At March 31, 2003, the Companys net assets in liquidation amounted to $12.4 million.

During the three months ended
March 31, 2003, a net $(1.0) million of cash was used in the Companys operating activities, primarily for the extension of the insurance coverage for the directors and officers.  Cash generated by the proceeds from the previously
mentioned sale of securities amounted to $2.0 million.  At March 31, 2003, the balance of cash and cash equivalents amounted to $20.0 million.  The balance of cash and cash equivalents after the payment of the $(7.0) million cash
liquidation distribution on April 8, 2003 amounted to $13.0 million.

Changes in Net Assets in Liquidation for the Three Months Ended March 31, 2002

Under liquidation basis accounting, net assets in liquidation increased by $0.1 million for the three months ended March 31, 2002 to $18.5 million.  The
Companys portfolio of interest earning assets, net of interest bearing liabilities, earned $0.2 million of net interest income.  In addition, the Company recorded a net increase of $0.2 million from securities comprised primarily of a
payment received on a security previously determined to be impaired.  General and administrative expenses during that period amounted to $(0.3) million and consisted of $(0.1) million of fees paid pursuant to the support services agreement and
$(0.2) million of professional fees, payroll and other expenses.

During the three months ended March 31, 2002, a net $16.7 million of
cash was generated from the Companys operating and investing activities, including $16.6 million of proceeds from sales of, and principal payments on, securities.  At March 31, 2002, the balance of cash and cash equivalents amounted to
$19.6 million.

Distributions

On March 20, 2003, the Company announced that
it would make a partial liquidation distribution to its stockholders of $0.50 per outstanding share of common stock.  On April 8, 2003, the Company made that distribution to stockholders of record as of March 31, 2003.  For the three
months ended March 31, 2002, the Company did not make any capital distributions or declare any dividends.

Financial Condition

Investments

The Company has disposed of all of its remaining mortgage securities and mortgage loans that
were not previously determined to be other-than-temporarily impaired, pursuant to the Plan of Liquidation and Dissolution.  On March 21, 2003, the Company sold substantially all of the mortgage securities previously determined to be
other-than-temporarily impaired, which were estimated to have no net realizable value, for $2,000,000.  The remaining mortgage securities owned and previously determined to be other-than-temporarily impaired are estimated to have no net
realizable value as of March 31, 2003.

Liquidity and Capital Resources

Liquidity measures the Companys ability to turn non-cash assets into cash during the liquidation period to satisfy its commitments to pay ongoing general and
administrative expenses and estimated costs of liquidation, and

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to make distributions to stockholders.  As of March 31, 2003, all of the readily marketable non-cash assets of the Company were converted into cash and the balance of
cash and cash equivalents amounted to $20.0 million.  The Company believes that its cash on hand and earnings from its cash equivalents will be adequate to support the Company and pay its obligations during the liquidation period.  The
Delaware Court of Chancery granted permission on March 18, 2003 to make a distribution of $0.50 per outstanding share of common stock and the Company made that distribution on April 8, 2003 to stockholders of record as of March 31,
2003.

|Item 3. | Quantitative and Qualitative Disclosures About Market Risk
|------- | ----------------------------------------------------------

Market Risk

Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, commodity prices and equity prices. The primary market
risk exposure that the Company had been subject to was the movement in interest rates with respect to its portfolio of mortgage assets, which were 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.

As a result of the sales
of all the remaining mortgage assets that were not previously determined to be other-than-temporarily impaired, the Companys market risk with its portfolio of mortgage assets has been eliminated.

The Company is exposed to interest rate risk as an investor in an overnight reverse repurchase agreement.  Due to the short-term maturity, the interest rate risk
to the Company is not significant.

Additionally, the Company is a party to certain other financial instruments, including interest
receivable, accounts payable and other accrued expenses that are not interest rate sensitive.

|Item 4. | Controls and Procedures
|------- | -----------------------

The Company maintains a system of internal controls and procedures designed to provide
reasonable assurance that information required to be disclosed in its filings under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange
Commissions rules and forms. The Companys principal executive and financial officers have evaluated the disclosure controls and procedures within 90 days prior to the filing of this Quarterly Report on Form 10-Q and have determined that
such disclosure controls and procedures are effective.

There have been no significant changes in the Companys internal controls
or in other factors which could significantly affect internal controls subsequent to the completion of the evaluation.

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##### Table of Contents

PART II.     
OTHER INFORMATION

|Item 1 | Legal Proceedings
|------ | -----------------

On October 23, 2000,
the Company filed suit in federal court in the Southern District of New York against Asset Securitization Corporation, Nomura Asset Capital Corporation and Nomura Securities International, Inc. alleging that the defendants defrauded the Company into
purchasing over $19.0 million worth of mortgage pass-through certificates by failing to disclose among other things, that one of largest loans in the mortgage pool was seriously troubled.  On December 8, 2000, the defendants filed a motion to
dismiss the action.  On September 5, 2001, defendants motion to dismiss the action was granted with respect to the claims brought under Sections 12(a)(2) and 15 of the Securities Act of 1933 and denied with respect to the common law fraud
claims and claims brought under Sections 10(b) and 20(a) of Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.  On February 4, 2003, the Company withdrew the lawsuit and all claims were dismissed with prejudice and without
costs.

In accordance with the Plan of Liquidation and Dissolution, on November 8, 2001, the Board of Directors filed a petition with the
Delaware Court of Chancery for permission to make an initial distribution to stockholders of $3.00 per outstanding common share.  On November 28, 2001, the Delaware Court of Chancery approved this initial distribution to stockholders.  On
December 28, 2001, a distribution of $3.00 per outstanding share of common stock was made to stockholders of record as of December 17, 2001.  The Delaware Court of Chancery granted permission on March 18, 2003 to make a distribution of
$0.50 per outstanding share of common stock and the Company made that distribution on April 8, 2003 to stockholders of record as of March 31, 2003.

|Item 6 | Exhibits and Reports on Form 8-K
|------ | --------------------------------
|       |                                 
|       | (a) Exhibits                    
|       |                                 
|       | See Exhibit Index.              
|       |                                 
|       | (b) Reports                     

On February 12, 2003, the
Company filed a Current Report on Form 8-K pursuant to Item 5 announcing that it had withdrawn the lawsuit it filed on October 23, 2000 against Nomura, Nomura Asset and ASC.

On March 21, 2003, the Company filed a Current Report on Form 8-K pursuant to Item 5 announcing that it will make a partial liquidation distribution to its
stockholders of $0.50 per outstanding share of common stock.

On March 25, 2003, the Company filed a Current Report on Form 8-K pursuant
to Item 5 announcing that it sold mortgage securities previously determined to be other-than-temporarily impaired.

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##### Table of Contents

SIGNATURES

Pursuant to the requirements
of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  May 15, 2003

| | LASER MORTGAGE MANAGEMENT, INC.
| | -------------------------------
| |                                
| | By:                            
| |                                
| |                                

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CERTIFICATION

I, William J. Michaelcheck, Chief Executive Officer of LASER Mortgage Management, Inc. (the Company), certify that:

| | 1.                                                                                                                                                                                                                                                                                                          | I have reviewed this quarterly report on Form 10-Q of the 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 to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;                                                           
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 3.                                                                                                                                                                                                                                                                                                          | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;                                                                              
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 4.                                                                                                                                                                                                                                                                                                          | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-14 and 15d-14) for the registrant and we have:                                                                                                                                                                
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (a)         designed such disclosure controls and procedures to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (b)         evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within
90 days prior to the filing date of this quarterly report (the Evaluation Date); and                                                                                                  
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (c)         presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;                                                                                                                        
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 5.                                                                                                                                                                                                                                                                                                          | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of
registrants board of directors (or persons performing the equivalent function):                                                                                                                                           
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (a)         all significant deficiencies in the design or operation of internal controls which could adversely affect the
registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and 
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (b)         any fraud, whether or not material, that involves management or other employees who have a significant role
in the registrants internal controls; and                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 6.                                                                                                                                                                                                                                                                                                          | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: May 15, 2003

| | /s/ WILLIAM J. MICHAELCHECK                                            
| | -----------------------------------------------------------------------
| |                                                                        
| | William J. Michaelcheck  Chief Executive Officer, Chairman and Director

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##### Table of Contents

CERTIFICATION

I, Charles R. Howe, II ,
Chief Financial Officer of LASER Mortgage Management, Inc. (the Company), certify that:

| | 1.                                                                                                                                                                                                                                                                                                          | I have reviewed this quarterly report on Form 10-Q of the 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 to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;                                                           
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 3.                                                                                                                                                                                                                                                                                                          | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;                                                                              
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 4.                                                                                                                                                                                                                                                                                                          | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-14 and 15d-14) for the registrant and we have:                                                                                                                                                                
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (a)         designed such disclosure controls and procedures to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (b)         evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within
90 days prior to the filing date of this quarterly report (the Evaluation Date); and                                                                                                  
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (c)         presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;                                                                                                                        
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 5.                                                                                                                                                                                                                                                                                                          | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of
registrants board of directors (or persons performing the equivalent function):                                                                                                                                           
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (a)         all significant deficiencies in the design or operation of internal controls which could adversely affect
the registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and 
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | (b)         any fraud, whether or not material, that involves management or other employees who have a significant role
in the registrants internal controls; and                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                          
| | 6.                                                                                                                                                                                                                                                                                                          | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: May 15, 2003

| | /s/ CHARLES R. HOWE, II                                                   
| | --------------------------------------------------------------------------
| |                                                                           
| | Charles R. Howe, II  Vice President, Chief Financial Officer and Treasurer

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EXHIBIT INDEX

|Exhibit Number |  | Exhibit                                                                                                                                                                                                       
|-------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|               |  |                                                                                                                                                                                                               
|2.1            |  | The Articles of Merger (Incorporated by reference to Exhibit 2.1 to Registrants Quarterly Report on Form 10-Q dated June 30, 2001.)                                                                          
|               |  |                                                                                                                                                                                                               
|2.2            |  | The Certificate of Ownership and Merger (Incorporated by reference to Exhibit 2.2 to Registrants Quarterly Report on Form 10-Q dated June 30, 2001.)                                                         
|               |  |                                                                                                                                                                                                               
|2.3            |  | Plan of Liquidation and Dissolution of LASER Mortgage Management, Inc. (Incorporated by reference to Exhibit 2.3 to Registrants Quarterly Report on Form 10-Q dated June
30, 2001.)                          
|               |  |                                                                                                                                                                                                               
|3.1            |  | Restated Certificate of Incorporation of LASER Mortgage Management, Inc., a Delaware corporation (Incorporated by reference to Exhibit 3.1 to Registrants Quarterly Report
on Form 10-Q dated June 30, 2001.)
|               |  |                                                                                                                                                                                                               
|3.2            |  | Bylaws of LASER Mortgage Management, Inc., a Delaware corporation (Incorporated by reference to Exhibit 3.2 to Registrants Quarterly Report on Form 10-Q dated June 30,
2001.)                               
|               |  |                                                                                                                                                                                                               
|99.1           |  | Certificate of Dissolution (Incorporated by reference to Exhibit 99.1 to Registrants Quarterly Report on Form 10-Q dated September 30, 2001.)                                                                
|               |  |                                                                                                                                                                                                               
|99.2           |  | Section 906 Certification of the Chief Executive Officer                                                                                                                                                      
|               |  |                                                                                                                                                                                                               
|99.3           |  | Section 906 Certification of the Chief Financial Officer                                                                                                                                                      

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