UNITED STATES 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: September 30, 2002
OR
[ ] 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) | 22-3535916
(I.R.S. Employer
Identification No.)
|----------------------------------------------------------------------- | -----------------------------------------------

c/o Mariner Investment Group, Inc.
780 Third Avenue, 16th Floor
New York, New York 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    ____

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 November 1, 2002.

LASER MORTGAGE MANAGEMENT, INC.
FORM 10-Q
INDEX

|PART I. | FINANCIAL INFORMATION | 3
|------- | --------------------- | -

| | Item 1. | Financial Statements | 3
| | ------- | -------------------- | -

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

| | Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 20
| | ------- | ---------------------------------------------------------- | --

| | Item 4. | Controls and Procedures | 20
| | ------- | ----------------------- | --

|PART II. | OTHER INFORMATION | 21
|-------- | ----------------- | --

| | Item 1.
Item 6. | Legal Proceedings
Exhibits and Reports on Form 8-K | 21
21
| | --------------- | -------------------------------------------------- | -----

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

LASER Mortgage Management, Inc.

---

`As of
Statements of Net Assets in Liquidation                    September 30, 2002      December 31, 2001
(Liquidation Basis)                                            (Unaudited)`

---

`Assets
Cash and cash equivalents                               $     19,229,752           $   2,960,185
Investment in securities                                              --              15,305,268
Investment in mortgage loans                                          --               2,004,114
Interest and principal paydowns receivable                         1,019               1,649,692
                                                        --------------------    --------------------

            Total assets                                      19,230,771              21,919,259
                                                        --------------------    --------------------

Liabilities
Repurchase agreements                                                 --               2,028,000
Accrued interest payable                                              --                  30,576
Accounts payable and accrued expenses                            324,970                 892,513
Reserve for estimated liquidation costs                          482,685                 524,937
                                                        --------------------    --------------------

            Total liabilities                                    807,655               3,476,026
                                                        --------------------    --------------------

            Net assets in liquidation                   $     18,423,116           $  18,443,233
                                                        ====================    ====================`

See notes to financial statements.

LASER Mortgage Management, Inc.

---

`Statements of Changes in Net Assets in                        For The                        For The Period
 Liquidation                                 Three Months Ended     Nine Months Ended     July 28, 2001 Through
(Liquidation Basis) (Unaudited)              September 30, 2002     September 30, 2002     September 30, 2001`

---

`Interest Income:
  Securities and mortgage loans              $         --             $   174,757            $  874,620
  Cash and cash equivalents                        83,737                 232,183               115,120
                                             -------------------     ---------------       -------------------

            Total interest income                  83,737                 406,940               989,740

Interest expense:
  Repurchase agreements                                --                  19,662               244,795
                                             -------------------    ------------------     --------------------

Net interest income                                83,737                 387,278               744,945

Net gain on securities                             19,000                 264,352               147,393

General and administrative expenses               169,317                 671,747               239,737
                                             --------------------   ------------------     --------------------

(Decrease) increase in net assets in
 liquidation from operating activities            (66,580)                (20,117)               652,601
                                             --------------------   ------------------     --------------------

Adjustments to reflect the change to
 liquidation basis accounting:
  Reduction to reflect estimated net
  realizable value of securities                                                                (938,188)
  Write-off of prepaid expenses                                                               (1,098,222)
  Reserve for estimated liquidation costs                                                       (700,000)
                                                                                            --------------------

            Adjustment to liquidation basis
            accounting                                                                        (2,736,410)
                                                                                            ---------------------

Net assets in liquidation at beginning of
  period                                       18,489,696              18,443,233             61,471,679
                                            --------------------   ------------------       ---------------------

Net assets in liquidation at end of period   $ 18,423,116            $ 18,423,116           $  59,387,870
                                            ====================   ==================      ======================`

See notes to financial statements.

LASER Mortgage Management, Inc.

---

`For The Period
Statements of Operations and Comprehensive Income     July 1, 2001 Through    January 1, 2001 Through
(Going Concern Basis) (Unaudited)                        July 27, 2001             July 27, 2001`

---

`Interest Income:
  Securities and mortgage loans                        $       472,801       $     7,231,003
  Cash and cash equivalents                                     63,137               525,563
                                                      ------------------    ------------------

           Total interest income                               535,938             7,756,566

Interest expense:
  Repurchase agreements                                        152,840             4,059,974
                                                      ------------------    ------------------

Net interest income                                            383,098             3,696,592

Net realized loss on securities                                (24,279)           (4,218,425)

Net loss on interest rate agreement                                 --              (120,000)

General and administrative expenses                            170,526             2,527,690
                                                      ------------------    ------------------

Net income (loss)                                      $       188,293       $    (3,169,523)
                                                      ------------------    ------------------

Other comprehensive income:
Unrealized net gain (loss) on securities:
  Unrealized holding gain (loss) arising
   during period                                                59,866            (3,016,779)
  Add: reclassification adjustment for net
   realized loss included in net income (loss)                  24,279             4,218,425
                                                      ------------------    ------------------

  Other comprehensive income                                    84,145             1,201,646
                                                      ------------------    ------------------

Comprehensive income (loss)                             $      272,438       $    (1,967,877)
                                                      ==================    ==================


Net income (loss) per share:
  Basic                                                 $         0.01       $         (0.23)
                                                      ==================    ==================
  Diluted                                               $         0.01       $         (0.23)
                                                      ==================    ==================

Weighted average number of shares outstanding:
  Basic                                                     14,038,983             14,038,983
                                                      ==================    ==================
  Diluted                                                   14,038,983             14,038,983
                                                      ==================    ==================`

See notes to financial statements.

LASER Mortgage Management, Inc.

---

`For The                     For The Period
Statements of Cash Flows                           Three Months Ended    Nine Months Ended   July 28, 2001 Through
(Liquidation Basis) (Unaudited)                    September 30, 2002    September 30, 2002    September 30, 2001`

---

`Cash Flows From Operating Activities
(Decrease) increase in net assets in
  liquidation from operating activities             $       (66,580)      $        (20,117)     $      652,601
Adjustments to reconcile (decrease)
 increase in net assets
  in liquidation from operating activities
  to net cash (used in) provided by operating
  activities:
  Amortization of mortgage premiums and
   discounts, net                                              --                   (8,766)            (16,455)
  Net loss (gain) on securities                                --                   33,614            (147,393)
  Decrease in interest and principal paydowns
   receivable                                                 2,077                317,259             863,326
  Decrease in accrued interest payable                         --                  (30,576)           (626,183)
  Decrease in accounts payable and accrued
   expenses                                                (147,892)              (567,543)            (25,357)
  Decrease in reserve for estimated
   liquidation costs                                        (22,434)               (42,252)            (45,458)
                                                       ----------------     ----------------      --------------

Net cash (used in) provided by operating activities        (234,829)              (318,381)            655,081
                                                       ----------------     ----------------      --------------


Cash Flows From Investing Activities
Proceeds from sale of securities                               --              16,105,648                --
Principal payments on securities and mortgage loans            --               2,510,300           7,964,413
                                                       ----------------     ----------------      --------------

Net cash provided by investing activities                      --              18,615,948           7,964,413
                                                       ----------------     ----------------      --------------


Cash Flows From Financing Activities
Repayments of repurchase agreement                             --              (2,028,000)        (11,431,041)
                                                       ----------------     ----------------      --------------


Net (decrease) increase in cash and cash
   equivalents                                             (234,829)           16,269,567          (2,811,547)

Cash and cash equivalents at beginning of period         19,464,581             2,960,185          22,592,344
                                                       ----------------     ----------------      --------------

Cash and cash equivalents at end of period             $ 19,229,752         $  19,229,752         $19,780,797
                                                       ================     ================      ==============

Supplemental Disclosure of Cash Flow Information:
Interest paid                                          $      --            $     (50,238)        $  (870,978)
                                                       ================     ================      ==============

Supplemental Disclosure of Non-Cash Operating
  Activities:
Adjustment to liquidation basis accounting             $      --            $        --           $(2,736,410)
                                                       ================     ================      ==============`

See notes to financial statements.

LASER Mortgage Management, Inc.

---

`For The Period
Statements of Cash Flows                              July 1, 2001 Through         January 1, 2001 Through
(Going Concern Basis) (Unaudited)                         July 27, 2001                 July 27, 2001`

---

`Cash Flows From Operating Activities
Net income (loss)                                     $        188,293             $      (3,169,523)
Adjustments to reconcile net income (loss)
   to net cash (used in) provided by
   operating activities:
  Amortization of mortgage premiums and
    discounts, net                                              (7,175)                     (186,354)
  Net realized loss on sale of securities
    and interest rate agreement                                 24,279                     6,918,425
  Unrealized gain on interest rate agreement                      --                      (2,580,000)
Change in assets and liabilities:
  (Increase) decrease in interest and principal
     paydowns receivable                                      (597,704)                    1,359,204
  Decrease in prepaid expenses                                  45,510                       318,570
  Increase in accrued interest payable                         152,840                       141,843
  Increase in accounts payable and accrued expenses             46,563                        96,310
                                                      -------------------           --------------------

Net cash (used in) provided by operating activities           (147,394)                    2,898,475
                                                      -------------------           --------------------

Cash Flows From Investing Activities
Purchase of securities                                           --                      (55,048,842)
Decrease in payable for securities acquired                      --                      (23,321,844)
Proceeds from sale of securities                                 --                      255,982,732
Proceeds from sale of interest rate agreement                    --                          260,000
Principal payments on securities and mortgage loans          4,490,706                    31,765,038
                                                      -------------------           --------------------

Net cash provided by investing activities                    4,490,706                   209,637,084
                                                      -------------------           --------------------

Cash Flows From Financing Activities
Proceeds from repurchase agreements                              --                    1,960,972,986
Repayments of repurchase agreements                              --                   (2,154,458,410)
                                                      -------------------           --------------------

Net cash used in financing activities                            --                     (193,485,424)
                                                      -------------------           --------------------


Net increase in cash and cash equivalents                    4,343,312                    19,050,135

Cash and cash equivalents at beginning of period            18,249,032                     3,542,209
                                                      -------------------           --------------------

Cash and cash equivalents at end of period            $     22,592,344              $      22,592,344
                                                      ===================           ====================

Supplemental Disclosure of Cash Flow Information:
  Interest paid                                       $         --                  $       3,918,131
                                                      ===================           ====================


Net change in unrealized gain on
   available-for-sale securities                      $         84,145              $       1,201,646
                                                      ===================           ====================`

See notes to financial statements.

LASER Mortgage Management Inc.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 (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, 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. As of September 30, 2002, the
estimated net realizable value of the Company's net assets in liquidation was
$1.31 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 Company plans to petition the Delaware Court of Chancery
during the fourth quarter of 2002 for permission to make a second distribution
to stockholders. 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 and income received, if any, from
the pending litigation against Asset Securitization Corporation ("ASC"), Nomura
Asset Capital Corporation ("Nomura Asset") and Nomura Securitization
International, Inc. ("Nomura"), 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 does not
expect to qualify as a REIT for the year beginning January 1, 2002, or
thereafter.

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 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 and going concern basis accounting, as appropriate, 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 September 30, 2002 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, 2001. 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 consists 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 or the statements of operations, as appropriate.

Interest Rate Agreement - The Company followed an interest-rate risk-management
strategy designed to protect against the adverse effects of major interest rate
changes and used a derivative purchased interest rate cap agreement ("cap").

A
cap is a contractual agreement for which the Company pays an initial premium in
return for subsequent cash flows to the Company to the extent that a specific
interest rate index exceeds the contractual fixed rate, applied to a notional
amount. The amount of the risk of loss on a cap is the premium paid. The cap was
recorded and carried at estimated fair value with changes in fair value reported
on the statements of operations. Interest payments received were recorded as a
component of net interest income on the statements of operations.

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
("LIBOR"). The amount reported on the statements of net assets in liquidation
represented the contractual amount to be repaid under such agreement.

Reserve for Estimated Liquidation Costs - Under liquidation basis accounting,
the Company is required to estimate and accrue the costs 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 ultimate amount paid might vary significantly due to,
among other things, the timing of the liquidation.

Fair Value of Financial Instruments -The fair values of the Company's
Investments were based on prices and valuations provided by dealers who make
markets in these financial instruments. The fair values reported reflected
estimates and were not necessarily indicative of the amounts the Company could
have realized in a current market exchange. The carrying values of cash
equivalents, interest and principal paydowns receivable, accrued interest
payable, the repurchase agreement and other financial liabilities approximated
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 has been entitled
to a deduction for all dividends it paid to its stockholders for a taxable year.
As a result, the Company has 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 for the years ended December 31, 1997
through 2001. The Company does not expect to qualify as a REIT for the year
beginning January 1, 2002, or thereafter.

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.

Recent Accounting Pronouncements - Effective January 1, 2001, the Company
adopted the provisions of SFAS No. 133, "Accounting for Derivative Instruments
and Hedging Activities" as amended by SFAS No. 138, "Accounting for Certain
Derivative Instruments and Certain Hedging Activities - an Amendment of
Statement No. 133." The adoption of the provisions of these accounting
pronouncements with respect to the Company's sole derivative instrument at that
time, the interest rate agreement, had no impact on the Company's financial
condition or results of operations.

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

During January 2002, the Company sold all of the Mortgage Securities it owned as
of December 31, 2001. The following table shows the Company's Mortgage
Securities as of December 31, 2001:

`Agency
                                            Floating Rate
                                               Mortgage
                                              Securities

          Current principal amount           $14,854,868

          Unamortized discount                       --
          Unamortized premium                    217,674
                                               ---------

          Amortized cost                      15,072,542

          Gross unrealized gains                 232,726
                                               ---------

          Estimated net realizable value     $15,305,268
                                             ===========`

The
Company was notified in June 2000 of a default in a $50.0 million mortgage loan
in a trust fund of which the Company owns subordinated interests. The Securities
that are affected by this event are subordinated classes of Commercial Mortgage
Pass-Through Certificates, Series 1997-D5 that represent beneficial ownership
interests in a trust fund created by ASC, an affiliate of Nomura, at the time of
the offering. Thereafter, a representative of Nomura notified a representative
of the Company that the amount of the recovery of the Securities may be
negligible. Accordingly, management increased the unrealized loss on those
Securities at that time by approximately $(9.1) million representing the
remaining total aggregate carrying value of those Securities, pending further
developments.

On
October 23, 2000 the Company filed suit in the Southern District of New York
against ASC, Nomura Asset and 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 the
mortgage pool was seriously troubled. The Company is seeking rescission of the
purchase of the Securities. During the quarter ended December 31, 2000, the
Company recognized the probable other-than-temporary impairment of those
Securities by charging the statement of operations and crediting accumulated
other comprehensive loss on the balance sheet for the aggregate cumulative loss
of $(17,596,917); such recognition had no further impact on stockholders' equity
from the time of the earlier increase in unrealized loss.

On
December 8, 2000, the defendants filed a motion to dismiss the action. On
September 5, 2001, such motion 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. Discovery is proceeding with regard to the surviving claims. A
recovery of this Investment may be possible, but management is unable to predict
the likelihood of this occurrence.

|3. | MORTGAGE LOANS
|-- | --------------

During May 2002, the Company sold all of the remaining Mortgage Loans it owned
at their estimated net realizable value of $1,677,563. At December 31, 2001, the
estimated net realizable value (and current principal amount) of the Company's
Mortgage Loans amounted to $2,004,114.

|4. | INTEREST RATE AGREEMENTCap
|-- | --------------------------

The
Company used a cap, during 2000 and continuing into January 2001, to reduce the
risk of rising interest rates on the cost of the short-term repurchase
agreements used to finance its Investments.

As a
result of the reduction in interest rates in January 2001, the Company closed
out the existing cap, with a notional amount of $100.0 million, for $260,000 in
cash and recognized a net loss of $(120,000) in the statement of operations that
is comprised of a realized loss of $(2,700,000) and an unrealized gain of
$2,580,000 from the reversal of the unrealized loss on the cap at December 31,
2000 due to its sale. The Company purchased this cap for a premium of $2,960,000
during the second quarter of 2000. The cap agreement had a term of three years
and provided for monthly payments of interest to the Company to the extent that
the one-month LIBOR exceeded 6.54% as applied to the notional amount. By
December 31, 2000, the Company had recorded an unrealized loss of $(2,580,000)
in the statement of operations with respect to the cap to reflect its estimated
fair value of $380,000 in the balance sheet at that time.

|5. | REPURCHASE AGREEMENT
|-- | --------------------

During May 2002, the Company repaid its outstanding repurchase agreement of
$2,028,000 and the related accrued interest of $50,238. At December 31, 2001,
the Company had a $2,028,000 repurchase agreement outstanding with a weighted
average borrowing rate of 3.24% and a remaining maturity of 28 days. The
associated accrued interest expense payable on the outstanding repurchase
agreement amounted to $30,576 at December 31, 2001. At December 31, 2001, the
repurchase agreement was collateralized by Investments that had an estimated net
realizable value of approximately $2,004,000.

|6. | 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 anticipated over the
course of the liquidation. At September 30, 2002 and December 31, 2001, the
reserve for estimated liquidation costs amounted to $482,685 and $524,937,
respectively. During the three and nine months ended September 30, 2002, the
Company paid $22,434 and $42,252, respectively, of liquidation costs.

|7. | EARNINGS (LOSS) PER SHARE ("EPS" or "LPS")
|-- | ------------------------------------------

Basic EPS or LPS is computed by dividing the net income (loss) attributable to
common shares by the weighted average number of common shares outstanding during
the period. The calculation of diluted EPS or LPS considered the effect of all
dilutive potential common shares that were outstanding during the period under
the Company's stock incentive plan. Basic and diluted EPS and LPS for the period
July 1, 2001 through July 27, 2001 and for the period January 1, 2001 through
July 27, 2001 were as follows:

`For the Period
                                        July 1, 2001 through July 27, 2001
                            Net Income                    Shares                 Per-Share
                           (Numerator)                 (Denominator)               Amount

Basic EPS                 $    188,293                  14,038,983              $      0.01
                          ============                ============              ===========

Diluted EPS               $    188,293                  14,038,983              $      0.01
                          ============                ============              ===========

                                                  For the Period
                                       January 1, 2001 through July 27, 2001
                             Net Loss                     Shares                 Per-Share
                           (Numerator)                 (Denominator)               Amount

Basic LPS                 $ (3,169,523)                 14,038,983              $    (0.23)
                          =============               ============              ===========

Diluted LPS               $ (3,169,523)                 14,038,983              $    (0.23)
                          =============               ============              ===========`

For
the period July 1, 2001 through July 27, 2001 and for the period January 1, 2001
through July 27, 2001, there were no deferred common shares reserved for
issuance and there were no outstanding options to purchase common shares of the
Company.

|8. | MANAGEMENT AGREEMENT
|-- | --------------------

From
November 1, 1999 to November 1, 2001, Mariner Mortgage Management, L.L.C.
("Mariner") served as the external manager of the Company and was responsible
for the day-to-day management of the Company's investments and
operations.

Under the most recent management agreement, which was entered into on November
1, 2000 and terminated on November 1, 2001, Mariner became entitled to be paid
an incentive fee upon the earlier of (1) the termination date of the management
agreement or (2) the date on which the Board of Directors adopted resolutions
approving the liquidation and dissolution, referred to as the anniversary date,
which it did on April 25, 2001, equal to the number of shares outstanding on the
applicable date, multiplied by:

| |  | 10% of the difference between the 15-day average closing market price (plus any
distributions per share other than common stock) of the Companys common
stock preceding November 1, 2001 (or such earlier anniversary date, as set forth
in the agreement) and $3.317 per share (which approximates the average closing
price of the Companys common stock for the fifteen days ended October 31,
2000) up to the equivalent of $3.50 per share;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 15% of the difference between the 15-day average closing market price (plus any
distributions per share other than common stock) of the Companys common
stock preceding November 1, 2001 or on the anniversary date, whichever is
earlier, and $3.50 per share up to $4.00 per share; and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 20% of the difference between the 15-day average closing market price (plus any
distributions per share other than common stock) of the Companys common
stock preceding November 1, 2001 or on the anniversary date, whichever is
earlier, and $4.00 per share.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Based upon this calculation, an incentive fee of $1,219,285 was paid to Mariner
on May 1, 2001. Mariner was not entitled to receive any other fee upon the
adoption of the Plan of Liquidation and Dissolution.

In
accordance with the terms of the management agreement, Mariner continued to
receive its base management fee of $50,000 per month until the termination of
the management agreement. During the period July 28, 2001 through September 30,
2001, the period July 1, 2001 through July 27, 2001 and the period January 1,
2001 through July 27, 2001, the Company incurred base fees of $100,000, $50,000
and $350,000, respectively.

Upon
the termination of the most recent management agreement 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. 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 provides 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 and nine months ended
September 30, 2002, the Company incurred $60,000 and $180,000, respectively, of
expenses under the employment agreements and $60,000 and $240,000, respectively,
of expenses under the support services agreement. Effective October 1, 2002, the
employment agreement with Mr. Howe was amended to reduce his salary to $5,000
per month.

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 set forth in this Form 10-Q 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, 2001. 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

As
of September 30, 2002, the Company has liquidated all of its Mortgage Assets
pursuant to the Plan of Liquidation and Dissolution, thereby minimizing
substantially the risk of loss on the Company's net assets in liquidation.
However, the valuation of assets and liabilities at their estimated net
realizable values and estimated settlement amounts, respectively, necessarily
requires estimates and assumptions. 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.

The
Company conducted its operations before January 2002 so as not to become
regulated as an "investment company" under the Investment Company Act of 1940
(the "Investment Company Act"). As a result of the sales of Mortgage Assets
described above, and applicable provisions of the Investment Company Act, the
Company will not engage in any transactions except those which are "merely
incidental to its dissolution" so as to avoid having to register as an
"investment company" under the Investment Company Act.

At
its inception, the Company elected to be taxed for federal income tax purposes
as a REIT under the Code. In order to qualify as a REIT, the Company must
satisfy a number of asset, income and distribution tests, including the
requirement that 75% of its gross income be derived from real estate sources.
The Company does not expect to qualify as a REIT for the year beginning January
2002 because less than 75% of the Company's gross income for the 2002 taxable
year is expected to be derived from real estate sources.

The
New York Stock Exchange ("NYSE") announced on May 15, 2002 that, as a
consequence of the Company's adoption of the Plan of Liquidation and
Distribution, it would take action to delist the Company's common stock. The
Company did not challenge the NYSE's actions and the NYSE suspended trading in
the common stock on May 24, 2002.

Changes in Net Assets in Liquidation for the Three and Nine
Months Ended September 30, 2002

Under liquidation basis accounting, net assets in liquidation amounted to $18.4
million at September 30, 2002 and were essentially unchanged for the three and
nine months then ended. The Company's portfolio of interest earning assets, net
of interest bearing liabilities, earned $0.1 million and $0.4 million,
respectively, of net interest income. In addition, the Company recorded a net
increase of $0.3 million for the nine months ended September 30, 2002 from
securities comprised primarily of payments received on a security previously
determined to be impaired. General and administrative expenses for the three and
nine months ended September 30, 2002 amounted to $ (0.2) million and $(0.7)
million, respectively, and consisted of $(0.1) million and $(0.2) million,
respectively, of fees paid pursuant to the support services agreement and $(0.1)
million and $(0.5) million, respectively, of professional fees, payroll and
other expenses.

During the three and nine months ended September 30, 2002, net cash (used by)
generated from the Company's operating and investing activities amounted to
$(0.2) million and $16.3 million, respectively, including $18.6 million of
proceeds from sales of, and principal payments on, securities during the nine
months ended September 30, 2002. At September 30, 2002, the balance of cash and
cash equivalents amounted to $19.2 million.

Changes in Net Assets in Liquidation for the Period July 28,
2001 Through September 30, 2001

Under liquidation basis accounting, net assets in liquidation increased by $0.7
million to $59.4 million for the period July 28, 2001 through September 30,
2001. The Company's portfolio of interest earning assets, net of interest
bearing liabilities, earned $0.7 million of net interest income. In addition,
the estimated net realizable value of the portfolio increased by $0.2 million.
General and administrative expenses during that period amounted to $0.2 million
and consisted of $0.1 million of management fees and $0.1 million of
professional fees and other expenses.

During the period July 28, 2001 through September 30, 2001, a net $8.6 million
of cash was generated from the Company's operating and investing activities.
Additionally, the Company paid $11.4 million to reduce a portion of its
outstanding repurchase agreements. Cash and cash equivalents amounted to $19.8
million at September 30, 2001.

At
adoption of liquidation basis accounting, certain adjustments were made to
stockholders' equity, as determined under going concern basis accounting, to
reflect more accurately the estimated net realizable values of the remaining net
assets of the Company. In that regard, reductions in the aggregate amount of
$2.7 million were charged to stockholders' equity of $61.4 million at that time.
These adjustments consist of a $0.9 million reduction in the carrying value of
securities, the immediate write-off of the remaining balance of all prepaid
expenses and the recognition of the estimated costs associated with the
liquidation.

Results of Operations for the Period July 1, 2001 Through July 27, 2001 and the
Period January 1, 2001 Through July 27, 2001

Net Income (Loss) Summary

General. For the period July 1, 2001 through July 27, 2001, the Company had net
income of $0.2 million, or $0.01 per weighted average share. For the period July
1, 2001 through July 27, 2001, the weighted average number of shares of common
stock outstanding was 14,038,983; no distributions or dividends were declared or
paid and return on average stockholders' equity was 0.29% on an actual basis.

For
the period January 1, 2001 through July 27, 2001, the Company had net income of
$2.4 million, or $0.17 per weighted average share, excluding aggregate net
losses from investment activities and the interest rate agreement of $(4.3)
million, or $(0.31) per share, and the accrued incentive fee of $(1.2) million,
or $(0.09) per share. For the period January 1, 2001 through July 27, 2001, the
weighted average number of shares of common stock outstanding was 14,038,983; no
distributions or dividends were declared or paid and return on average
stockholders' equity was (4.87)% on an actual basis.

Gains/Losses from investment activities. For the period July 1, 2001 through
July 27, 2001, the Company recorded a $0.1 million increase in other
comprehensive income from the unrealized net gain on securities resulting in a
net gain in stockholders' equity from securities of $0.1 million.

For
the period January 1, 2001 through July 27, 2001, the Company sold securities
and recorded a net realized loss of $(4.2) million, or $(0.30) per share. Also
during this period, the Company recorded a $1.2 million increase in other
comprehensive income from the unrealized net gain on securities resulting in an
overall net loss in stockholders' equity from securities of $(3.0)
million.

Interest Income and Average Interest Earning Asset
Yield

Historically, the Company earned interest income primarily from its portfolio of
investments and cash equivalents. The table below shows, for the period July 1,
2001 through July 27, 2001 and the period January 1, 2001 through July 27, 2001
the Company's average balance of cash equivalents, investments, the yields
earned on each type of interest earning asset, the yield on average interest
earning assets and total interest income.

`Total                  Yield on   Yield on
                                              Average    Average     Yield on   Average    Average
                                    Average   Amortized  Interest     Average   Amortized  Interest      Total
                                     Cash     Cost of    Earning       Cash     Cost of    Earning     Interest
                                  Equivalents Investments  Assets   Equivalents Investments  Assets     Income
                                                              (dollars in thousands)

For the period July 1, 2001
through
July 27, 2001                       $19,656     $89,153   $108,809     3.73%       6.36%      5.91%       $536

For the period January 1, 2001
through
July 27, 2001                       $19,109    $169,793   $188,902     4.67%       7.30%      7.04%     $7,757`

During 2001, the Company reduced its portfolio of Mortgage Securities and
Mortgage Derivatives and the leverage financing used to maintain the portfolio
in contemplation of a liquidation or sale of the Company.

Interest Expense and the Average Cost of
Funds

Historically, the Company incurred interest expense primarily from borrowed
funds under short-term repurchase agreements that financed most of its portfolio
of investments. Interest expense is calculated in the same manner for tax and
GAAP purposes. The Company generally structured its borrowings to closely
correlate the Company's cost of borrowed funds with changes in one-month LIBOR.

The
table below shows, for the period July 1, 2001 through July 27, 2001 and the
period January 1, 2001 through July 27, 2001 the Company's average borrowed
funds, interest expense and average cost of funds compared to average one and
six-month LIBOR.

`Average     Average   Average
                                                                                  One-Month   Cost of   Cost of
                                                                                  LIBOR       Funds     Funds
                                                                                  Relative   Relative   Relative
                                                                                  to         to         to
                           Average               Average    Average    Average    Average    Average    Average
                           Borrowed   Interest   Cost of    One-Month  Six-Month  Six-Month  One-Month  Six-Month
                             Funds     Expense     Funds      LIBOR      LIBOR      LIBOR      LIBOR     LIBOR
                                                          (dollars in thousands)

For the period July 1,
2001 through July 27,
2001                       $ 46,392     $ 153       3.83%      3.82%      3.79%      0.02%      0.01%      0.03%

For the period January
1, 2001 through July 27,
2001                       $126,104    $4,060       5.47%      4.74%      4.53%      0.21%      0.72%      0.94%`

During 2001, interest rates decreased due primarily to the effect of interest
rate setting actions taken by the Federal Reserve Board.

Interest Rate Agreement

The
Company followed an interest-rate risk-management strategy designed to protect
against the adverse effects of major interest rate changes and used a derivative
purchased interest rate cap agreement ("cap").

As a
result of the reduction in interest rates in January 2001, the Company closed
out the existing cap, with a notional amount of $100.0 million, for $0.3 million
in cash and recognized a net loss of $(0.1) million, or $(0.01) per share in the
statement of operations that is comprised of a realized loss of $(2.7) million
and an unrealized gain of $2.6 million from the reversal of the unrealized loss
on the cap at December 31, 2000 due to its sale.

The
Company did not enter into any other interest rate agreements during the three
and nine months ended September 30, 2001.

General and Administrative Expenses

General and administrative expenses ("G&A expenses") consisted of management and
incentive fees incurred to Mariner and professional and other expenses. There
were no differences in the calculation of G&A expenses for taxable and GAAP
income purposes. The table below shows the G&A expenses for the period July 1,
2001 through July 27, 2001 and the period January 1, 2001 through July 27, 2001.

`Other G&A     Total G&A
                                                           Management Fee Incentive Fee   Expenses      Expenses
                                                                            (dollars in thousands)
For the period July 1, 2001 through July 27, 2001             $   50        $   --     $  121          $  171
For the period January 1, 2001 through July 27, 2001          $  350        $1,219     $  959          $2,528`

Net Income (Loss) and Return on Average Stockholders Equity

Net
income (loss) was $0.2 million and $(3.2) million for the period July 1, 2001
through July 27, 2001 and the period January 1, 2001 through July 27, 2001,
respectively. Return on average stockholders' equity, on an actual basis, for
the period July 1, 2001 through July 27, 2001 and the period January 1, 2001
through July 27, 2001 was 0.29% and (4.87)%, respectively.

The
table below shows, on an actual basis, for the period July 1, 2001 through July
27, 2001 and the period January 1, 2001 through July 27, 2001, the Company's net
interest income, losses from investment activities and G&A expenses each as a
percentage of average stockholders' equity and the return on average
stockholders' equity.

`Losses                           Return on
                                                                        from                             Average
                                                       Net           Investment          G&A          Stockholders'
                                                 Interest Income     Activities        Expenses          Equity

For the  period  July 1, 2001  through
  July 27, 2001                                       0.60%           (0.04)%           0.27%            0.29%

For the period  January 1, 2001 through
 July 27, 2001                                        5.67%           (6.66)%           3.88%           (4.87)%`

Distributions

For
the three and nine months ended September 30, 2002, the period July 1, 2001
through July 27, 2001 and the period January 1, 2001 through July 27, 2001, the
Company did not make any capital distributions or declare any
dividends.

Financial Condition

Investments

During the nine months ended September 30, 2002, the Company disposed of all of
its remaining Mortgage Securities and Mortgage Loans that it held on December
31, 2001 at their carrying values, pursuant to the Plan of Liquidation and
Dissolution. As of December 31, 2001, the Company's portfolio (stated at
estimated net realizable value) consisted of:

`As of December 31, 2001
                                           -----------------------
                                        Dollar Amount
            Securities                  (in millions)       Percentage
            ----------                  -------------       ----------
Agency Certificates................         $15.3              88.4%
Mortgage Loans.....................           2.0              11.6%
                                     -------------------- ---------------
   Total...........................         $17.3             100.0%
                                     ==================== ===============`

The
tables below summarize the Company's investments at December 31,
2001.

`SECURITIES
                                         (dollars in thousands)
                                                                                       Estimated
                                                                                          Net
                                                             Amortized                Realizable
                                                              Cost to     Estimated    Value to
                       Current                                Current        Net        Current     Weighted
                      Principal      Net       Amortized     Principal    Realizable   Principal    Average
                       Amount      Discount       Cost        Amount        Value       Amount    Life (Years)


December 31, 2001    $ 14,855    $      218   $   15,073     101.47%     $    15,305     103.03%       3.0`

`MORTGAGE LOANS
                                               (dollars in thousands)

                                                       Estimated
                                                          Net
                              Current                 Realizable
                             Principal    Estimated    Value to
                            Amount and       Net        Current     Weighted
                             Amortized    Realizable   Principal    Average
                               Cost         Value       Amount    Life (Years)


December 31, 2001          $ 2,004       $  2,004       100.00%        16.0`

The
table below shows gross and net unrealized gains and (losses) on all securities
in the Company's portfolio at December 31, 2001 (stated at estimated net
realizable value).

`UNREALIZED GAINS AND LOSSES
                                 (dollars in thousands)
                                                            At December 31, 2001
                                                            --------------------
Unrealized Gain                                              $          233
Unrealized Loss                                                          --
                                                             --------------
Net Unrealized Gain                                          $          233
                                                             ==============
Net Unrealized Gain as % of  Investments
  Principal Amount                                                     1.38%
Net Unrealized Gain as % of Investments Amortized Cost                 1.36%`

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 including estimated costs of liquidation and to make
distributions to stockholders. As of September 30, 2002, all of the Company's
non-cash assets were converted into cash. At September 30, 2002, the balance of
cash and cash equivalents amounted to $19.2 million. The Company will continue
to generate liquidity through net earnings held prior to distribution to
stockholders. 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 Company plans to petition the Delaware Court
of Chancery during the fourth quarter of 2002 for permission to make a second
distribution to stockholhers.

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 is 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
of the remaining Mortgage Assets during the nine months ended September 30,
2002, the Company's market risk with respect to 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.

PART II. OTHER INFORMATION

References in this Part II 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.

Item 1. Legal Proceedings

On
October 23, 2000, the Company filed suit in federal court in the Southern
District of New York against ASC, Nomura Asset and Nomura 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, such motion 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. Discovery is proceeding with regard to the surviving claims. A
recovery of this investment may be possible, but management is unable to predict
the likelihood of this occurrence.

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

See Exhibit Index.

(b) Reports

None.

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.

|Dated: November 14, 2002 | LASER MORTGAGE MANAGEMENT, INC.
By:   /s/ CHARLES R. HOWE, II
Charles R. Howe, II
Chief Financial Officer
(principal accounting officer)
(authorized officer of registrant)
|------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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: November 11, 2002

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

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: November 14, 2002

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

CERTIFICATION

I,
William J. Michaelcheck, Chief Executive Officer of LASER Mortgage Management,
Inc. (the "Company"), pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, do hereby certify as
follows:

| | 1. | The Quarterly Report on Form 10-Q of the Company for the period ended September
30, 2002 (the Report) fully complies with the requirements of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

Date: November 11, 2002

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

CERTIFICATION

I,
Charles R. Howe, II, Chief Financial Officer of LASER Mortgage Management, Inc.
(the "Company"), pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, do hereby certify as
follows:

| | 1. | The Quarterly Report on Form 10-Q of the Company for the period ended September
30, 2002 (the Report) fully complies with the requirements of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

Date: November 14, 2002.

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

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.)
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------