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                    U.S. SECURITIES AND EXHANGE COMMISSION
                            Washington, D. C. 20549
                                  FORM 10-KSB

 (Mark One)
   [ X ]          ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                      OF THE SECURITIES EXCHANGE ACT OF 1934
                   For the fiscal year ended April 30, 2003
                                      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 No. 001-14127

                         UNITED FINANCIAL MORTGAGE CORP.
                 (Name of small business Issuer in its charter)

             Illinois                                        36-3440533
   (State or other jurisdiction of                      (I. R. S. Employer
   incorporation or organization)                       Identification No.)

     815 Commerce Drive, Suite 100                             60523
          Oak Brook, Illinois                               (Zip Code)
 (Address of principal executive offices)

                   Issuer's telephone number: (630) 571-7222
          Securities to be registered under Section 12(b) of the Act:

      Title of each class           Name of each exchange on which registered
         Common Stock                        American Stock Exchange

         Securities to be registered under Section 12(g) of the Act:
                                     None
                               (Title of Class)

      Check whether the issuer (1) filed all reports required to be filed  by
 Section 13 or 15(d) of the Securities Exchange Act during the past 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 [  ]

      Check if there  is no disclosure  of delinquent filers  in response  to
 Item 405 of Regulation S-B is not contained in this form, and no  disclosure
 will be  contained, to  the best  of registrant's  knowledge, in  definitive
 proxy or information  statements incorporated by  reference in  Part III  of
 this Form 10-KSB or any amendment to this Form 10-KSB. [ X ]

      State issuers revenues for its most recent fiscal year......$51,291,618

      The aggregate market value of the  voting and non-voting common  equity
      held by non-affiliates was $9,274,209 on July 28, 2003.

      (Applicable only to corporate registrants)  State the number of  shares
 outstanding of each  of the  Issuer's classes of  common equity,  as of  the
 latest practicable date 3,918,529, net of treasury stock.

    Transitional Small Business Disclosure Form (Check one): Yes [  ]  No [X]

      Documents incorporated  by reference.  If the  following documents  are
 incorporated by reference, briefly  describe them and  identify the part  of
 the Form 10-KSB (e.g.,  Part I, Part  II, etc.) into  which the document  is
 incorporated: (1) any annual  report to security holders;  (2) any proxy  or
 information statement; and (3) any prospectus filed pursuant to Rule  424(b)
 or (c)  of  the Securities  Act  of 1933  ("Securities  Act").   The  listed
 documents should be clearly described  for identification purposes (.  e.g.,
 annual report to security holders for fiscal year ended December 24, 1990).

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              SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 This document (including  information incorporated  by reference)  contains,
 and future oral and written statements of the Company and its management may
 contain, forward-looking statements within the  meaning of such term  in the
 Private Securities  Litigation  Reform  Act  of 1995  with  respect  to  the
 financial  condition,  results  of  operations,  plans,  objectives,  future
 performance and business of  the Company. Forward-looking statements,  which
 may be based  upon beliefs,  expectations and assumptions  of the  Company's
 management  and  on  information  currently  available  to  management,  are
 generally identifiable  by the  use of  words such  as "believe,"  "expect,"
 "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could,"
 "should" or other similar expressions. Additionally, all statements  in this
 document, including forward-looking  statements, speak only  as of the  date
 they are  made, and  the  Company undertakes  no  obligation to  update  any
 statement in light of new information or future events.

 The Company's ability  to predict  results or  the actual  effect of  future
 plans or  strategies is  inherently uncertain.  Factors which  could have  a
 material adverse  effect  on the  operations  and  future prospects  of  the
 Company include, but are not limited to, the following:

 *    The strength of the United States economy in general and the strength
 of the local economies in which the Company conducts its operations which
 may be less favorable than expected and may result in, among other things,
 a deterioration in the credit quality and value of the Company's assets.

 *    The economic impact of the terrorist attacks that occurred on September
 11th 2001, as well as any future threats and attacks, and the response of
 the United States to any such threats and attacks.

 *    The effects of, and changes in, federal, state and local laws,
 regulations and policies affecting banking, securities, and monetary and
 financial matters.

 *    The effects of changes in interest rates (including the effects of
 changes in the rate of prepayments of the Company's assets) and the policies
 of the Board of Governors of the Federal Reserve System.

 *    The inability of the Company to obtain new customers and to retain
 existing customers.

 *    The timely development and acceptance of products and services,
 including products and services offered through alternative delivery
 channels such as the Internet.

 *    Technological changes implemented by the Company and by other parties,
 including third party vendors, which may be more difficult or more expensive
 than anticipated or which may have unforeseen consequences to the Company
 and its customers.

 *    The ability of the Company to develop and maintain secure and reliable
 electronic systems.

 *    The ability of the Company to retain key executives and employees and
 the difficulty that the Company may experience in replacing key executives
 and employees in an effective manner.

 *    Consumer spending and saving habits which may change in a manner that
 affects the Company's business adversely.

 *    Integration of acquired businesses which may be more difficult or
 expensive than expected.

 *    The costs, effects and outcomes of existing or future litigation.

 *    Changes in accounting policies and practices, as may be adopted by
 state and federal regulatory agencies and the Financial Accounting Standards
 Board.

 *    The ability of the Company to manage the risks associated with the
 foregoing as well as anticipated.

 These risks and  uncertainties should be  considered in evaluating  forward-
 looking  statements  and  undue  reliance  should  not  be  placed  on  such
 statements. Additional information concerning the Company and  its business,
 including other factors that could materially affect the Company's financial
 results, is  included  in the  Company's  filings  with the  Securities  and
 Exchange Commission.


 Item 1. Description of Business

      United Financial  Mortgage  Corp.  ("the Company")  was  formed  as  an
 Illinois corporation in April of 1986 to engage in the business of  mortgage
 banking.  The Company is approved  to engage in mortgage banking  activities
 in 36  states.   The Company's  mortgage  banking business  principally  has
 focused on retail and wholesale residential mortgage origination activities.
 The Company is  continuing to expand  its mortgage  servicing activities  by
 retaining servicing on  selected loans that  it originates.   The  Company's
 principal lines of  business are  conducted through  the Retail  Origination
 Division, the Wholesale Origination Division, and the Servicing Division.

      The Company actively participates  in the residential mortgage  banking
 market on  a  national  basis.   Mortgage  banking  generally  involves  the
 origination or  purchase of  single-family mortgage  loans for  sale in  the
 secondary mortgage market.  The secondary mortgage market and its  evolution
 have been significantly influenced by two government-sponsored  enterprises,
 Federal National Mortgage Association (commonly referred to as "Fannie Mae")
 and Federal Home Loan Mortgage Corporation (commonly referred to as "Freddie
 Mac"), and one government  agency, Government National Mortgage  Association
 (commonly referred to as "Ginnie Mae").

      Mortgage originators  sell  their  loans directly  to  Fannie  Mae  and
 Freddie Mac either as whole loans or, more typically, as pools of loans used
 to collateralize mortgage-backed  securities issued or  guaranteed by  these
 entities.   Similarly,  originators  can  issue  mortgage-backed  securities
 collateralized  by pools  of loans  that are guaranteed  by Ginnie  Mae.  In
 order to arrange these sales or obtain these guarantees, the originator must
 underwrite its loans to conform to  standards established by Fannie Mae  and
 Freddie Mac or by the Federal  Housing Administration in the case of  Ginnie
 Mae.  Loans with principal  balances exceeding agency guidelines,  currently
 those in excess of $322,900 for single-family mortgage loans (i.e.,  "jumbo"
 or "nonconforming loans"), are sold to private investors.

      The loans that the Company originates and expects to service are  first
 mortgages  secured  by  single-family  residences (one  to  four units).  In
 addition the Company may originate, sell, and service loans secured by first
 mortgages on multi-family residential properties (more than four units).

      The Company's loan production  activities generate revenue through  (i)
 origination fees  and gains  on  the sale  of  loans to  broker-dealers  and
 institutional investors,  and  (ii)  interest on  mortgage  loans  held,  or
 "warehoused," from their origination or purchase until their sale to broker-
 dealers and institutional investors.

      The  Company's  loan  servicing  division  produces  income  from  loan
 servicing fees.

      The Company also engages  in the brokerage or  origination of loans  on
 commercial real estate, including  shopping centers, office properties,  and
 other commercial loans. The Company either brokers (e.g., arranges for  loan
 funding from third-party  lenders) or  funds and  services these  commercial
 loans.  Commercial  loans may be  brokered  to other financial institutions,
 in which case,  the Company  receives  a  negotiated  fee.  If  the  Company
 originates and services a  commercial loan, then  revenues are earned  based
 upon the difference  between the  interest rate paid  to the  issuer of  the
 credit line and the interest rate paid by the borrower.

 Market Area

      At this time, the  Company's primary sources  of loan originations  are
 its Wholesale and Retail Divisions.  On April 30, 2003, the Company's Retail
 Division operated twenty (20) full service  retail origination offices.   At
 such date,  the retail  offices were  located in  seven (7)  states.   These
 offices were staffed by  approximately 150 employees, including  commission-
 based loan officers.  The retail  offices are currently located as  follows:
 Oak Brook  (2),  Oak Park,  Bensenville  (2), Mount  Prospect,  Park  Ridge,
 Cicero, and Chicago (4),  Illinois; Las Vegas,  Nevada; Charlotte and  Cary,
 North Carolina; Hamilton, Ohio; Jackson, Mississippi; Little Rock, Arkansas;
 and Memphis and Nashville, Tennessee.  Wholesale origination principally  is
 conducted from the Company's offices in Oak Brook, Illinois; Midvale,  Utah;
 and Fair Oaks, Chatsworth, and Irvine, California.

 The Wholesale Origination Division

      Wholesale loan origination involves the funding by the Company of loans
 submitted by non-affiliated mortgage brokers("correspondents").  The Company
 realizes revenues  from the  sale of  such loans  to investors  for a  price
 greater than the amount paid to the mortgage broker. The timing of the  sale
 of loans  to investors  and failure  to  comply with  investor  underwriting
 guidelines could result in losses on  loan sales.  Management believes  that
 substantially all  underwriting and  related issues  generally are  resolved
 with the investor  prior to  closing.   It is  management's experience  that
 wholesale loan origination tends to be  less profitable on a per loan  basis
 than retail origination,  but expansion into  the wholesale  sector is  less
 costly than  retail  origination  because  wholesale  origination  does  not
 require the establishment  and maintenance of  costly office  space and  the
 related overhead expense.   This  flexible operating  structure enables  the
 Company to quickly enter new markets.

      In addition  to loan  processing performed  by the  correspondent,  the
 Wholesale Division  performs its  own underwriting  prior to  committing  to
 acquire such loans.  Correspondents qualify to participate in the  Wholesale
 Division's loan  acquisition program  after a  review of  their  reputation,
 mortgage lending experience and financial  condition, including a review  of
 references and financial statements. No single correspondent accounts for  a
 significant portion of the Wholesale Division's mortgage loan production.

 The Retail Origination Division

      Retail loan origination involves  the direct solicitation of  realtors,
 builders, and prospective borrowers for  the origination of mortgage  loans.
 The Company derives  revenues from  the premium  that is  received from  the
 purchaser of the loan.   Generally, that premium  is shared on a  negotiated
 basis with loan officers and others who  procure the loan and assist in  the
 loan origination process.

      The Company's Retail Origination Division solicits loans directly  from
 consumers and through real estate brokers,  builders, and other real  estate
 professionals.  In developing its retail network, the Company has followed a
 strategy of establishing  offices in  areas where  its experience  indicates
 strong loan demand.   This gives the Company  added flexibility to open  and
 close offices as dictated by mortgage demand.

      Establishing a reputation for prompt and responsive customer service is
 another integral  component  of  the  Company's  marketing  strategies.  The
 Company believes  that  the ability  to  process loan  applications  quickly
 provides a  distinct advantage  over its  competitors.   It is  management's
 experience that the average period between receipt of a loan application and
 the  Company's  lending commitment  is  generally less  than  10  days.  The
 Company endeavors to process loans quickly, while maintaining  comprehensive
 underwriting controls through its automated techniques for loan origination,
 processing,  underwriting,  and  closing.  The  Company's  computer   system
 integrates the  Company's  loan  origination  activities  to  expedite  loan
 processing and enhances its ability to respond to market opportunities.

 Quality Control of Mortgage Origination

      In order to ensure  that the Company  originates high quality  mortgage
 loans, it has  retained the services  of a quality  control company with  an
 industry-wide reputation to conduct audits of the Company's loan origination
 activities on a monthly basis.  The quality control company audits, pursuant
 to contractual  specifications, the  aggregate  retail and  wholesale  loans
 originated by the Company  on a monthly basis.   The audit process  includes
 verification  of   mortgage  information,   including:  employment   status,
 wages/salaries; credit  standing; property  appraisal; confirmation  of  the
 borrower's savings and  other assets; and  compliance with other  applicable
 underwriting guidelines.  The quality control company selects loan files  on
 a random basis and provides the Company a quality control management  report
 at the conclusion of each monthly audit.

 Loan Processing and Underwriting

      In general, loan applications are prepared by Company loan officers and
 verified  by  personnel  in  the  Company's  Retail  Origination   Division.
 Verification procedures  may include,  among  other things,  obtaining:  (i)
 written confirmations of the  applicant's income and  bank deposits, (ii)  a
 formal credit report on the applicant from an unaffiliated credit  reporting
 agency, (iii) a preliminary title report, and (iv) a real estate  appraisal.
 Appraisals for  conventional  and FHA  loans  are prepared  by  third-party,
 unaffiliated appraisers who  are pre-approved based  upon their  experience,
 education, and reputation. Completed loan applications are then  transmitted
 to the Company's Underwriting Department or to underwriting  sub-contracting
 companies   who   provide   underwriting  services  to   the  Company.   The
 Underwriting Department  of  the  Company and  its  sub-contractors  contain
 experienced staff who  verify the completeness  and accuracy of  application
 information and  determine its  compliance with  the Company's  underwriting
 criteria and those of applicable government agencies or other investors.

      Underwriting criteria  include  loan-to-value ratios,  borrower  income
 qualifications, investor  requirements,   insurance and  property  appraisal
 requirements.  The Company's underwriting guidelines for FHA, VA, FNMA,  and
 FHLMC loans comply with the written underwriting guidelines of the  relevant
 agency.  The  Company's underwriting guidelines  for "non-conforming"  loans
 are based upon the underwriting standards  established by investors to  whom
 such loans are sold.  "Non-Conforming" loans generally include loan products
 that do not comply with the  underwriting guidelines of Freddie Mac,  Fannie
 Mae, FHA,  or VA.  Non-conforming loans  generally are  underwritten by  the
 Company in accordance  with the  underwriting guidelines  of the  applicable
 investor who purchases the loans.

      Most of the Company's underwriting personnel function independently  of
 the Company's loan origination personnel and do not report to any individual
 directly involved in the loan origination  process.  The Company's  Internal
 Quality Control Department reviews  the Company's origination activities  in
 order to enhance  the ongoing evaluation  of the  loan processing  function,
 including employees, credit reporting agencies, and independent  appraisers.
 In conducting the reviews, the Quality  Control Department reviews the  loan
 applications for compliance with federal and state lending standards,  which
 involves  a  second  verification  of  employment  prior  to  loan  closing,
 reconfirmation  of  banking  information,   and  obtaining  separate  credit
 reports and property appraisals.  The Quality Control Department submits all
 review results directly to the president of the Company.

      During the year ended  April 30, 2003,  the Company sold  approximately
 $1,855.3 million in single-family mortgage loans into the secondary  market,
 of which five loans  were repurchased, representing  less than one-tenth  of
 one percent of the approximately 11,500 loans originated.  The Company views
 loan repurchases as an inherent risk of originating and purchasing loans for
 ultimate resale in the secondary market notwithstanding the ongoing  reviews
 by its Quality Control Department.

 Loan Commitments

      Subsequent to  underwriting approval  but prior  to loan  funding,  the
 Company  issues  loan  commitments  to  qualified   applicants.   Each  loan
 commitment indicates:   loan  amount,  fees,  funding  conditions,  approval
 expiration dates  and  interest  rates. Commitments  providing  for  "fixed"
 interest rates beyond sixty (60) days  generally are not issued, unless  the
 Company receives an  appropriate fee based  upon an assessment  of the  risk
 associated with a longer commitment period.

      The Company assess the interest  rate risk associated with  outstanding
 commitments that the  Company has  extended to  fund loans  and the  Company
 hedges the interest rate  risk of these commitments  based upon a number  of
 factors, including the remaining term of  the commitment, the interest  rate
 at which the commitment  was provided, current  interest rates and  interest
 rate volatility.   These factors  are monitored on  a daily  basis, and  the
 Company adjusts hedging on a daily  basis as needed.  The Company  primarily
 hedges the "held  for sale" mortgage  loan portfolio and  the interest  rate
 risk inherent in the Company's unfunded mortgage commitments through the use
 of the forward sale commitments.  Pursuant to these commitments, the Company
 enters into commitments with terms  of not more than  90 days to sell  these
 loans to Freddie Mac and Fannie Mae.

 Seasonality

      Historically, it  has been  management's experience  that the  mortgage
 loan origination business is  generally subject to  seasonal trends.   These
 trends reflect the general pattern of sale  and resale of homes.  In  recent
 years, due to the  favorable interest rate  environment, management has  not
 experienced these trends.  The mortgage servicing business is generally  not
 subject to seasonal trends.

 Competition

      The mortgage  banking  industry is  highly  competitive.   The  Company
 competes with other  financial institutions, such  as mortgage banks,  state
 and national banks,  savings and  loan associations,  savings banks,  credit
 unions and insurance companies, mortgage bankers, and mortgage brokers. Some
 of the Company's competitors have financial resources that are substantially
 greater than those of  the Company, including some  competitors that have  a
 significant number  of  offices in  areas  where the  Company  conducts  its
 business.   The   Company  competes  principally  by  offering  loans   with
 competitive features,  by emphasizing  the quality  of its  service, and  by
 pricing its range of products at competitive rates.

      Information published by  the Mortgage Bankers  Association of  America
 ("MBA") indicates that  although the  mortgage business  is competitive,  it
 also is fragmented in that no  single lender has a significant market  share
 of total  origination volume.   MBA  data  indicates that  overall  mortgage
 origination volume is shared in varying percentages among commercial  banks,
 savings and loans, and mortgage banking  companies. MBA data also  indicates
 that historically, mortgage banks have had an estimated 20% to 30% share  of
 total  origination  volume.  Commercial  banks,  savings  banks, savings and
 loan associations,  and mortgage  banking  companies  service  the  bulk  of
 residential mortgages. It  is management's  belief that  market share  among
 competitors generally shifts more slowly  in servicing than in  origination.
 Management of the Company does not anticipate any significant changes in the
 market share described above in the near term.

 Regulatory

      The Company's  operations  are  governed by  a  variety  of  rules  and
 regulations at the federal, state, and local levels.  The Company's mortgage
 loan production  activities  are subject  to  the Truth-in-Lending  Act,  as
 amended ("TILA"), and Regulation  Z promulgated under  TILA.  TILA  contains
 disclosure  requirements  designed  to   provide  consumers  with   uniform,
 understandable information with respect to the terms and conditions of loans
 and credit transactions in order to give them the ability to compare  credit
 terms.  TILA also  guarantees consumers a three-day  right to cancel  credit
 transactions,  including  any  refinance mortgage or junior mortgage loan on
 a  consumer's  primary  residence.  The  Company  believes  that  it  is  in
 substantial compliance in all material respects with TILA.

      The  Company  also  is  required  to  comply  with  the  Equal   Credit
 Opportunity Act of 1974, as amended ("ECOA"), which prohibits creditors from
 discriminating against applicants on the basis of race, color, sex, age,  or
 marital status.   Regulation B  promulgated under  ECOA restricts  creditors
 from obtaining certain types of information  from loan applicants.  It  also
 requires certain  disclosures  by  lenders  regarding  consumer  rights  and
 requires lenders to advise applicants of the reasons for any credit  denial.
 In instances where the applicant is denied credit or the rate or charge  for
 loans increases as a result of  information obtained from a consumer  credit
 agency, another statute, the Fair Credit Reporting Act of 1970, as  amended,
 requires lenders to  supply the  applicant with a  name and  address of  the
 reporting agency.

      The federal  Real Estate  Settlement Procedure  Act ("RESPA")  imposes,
 among other things, limits on the amount of funds a borrower is required  to
 deposit with the  Company in  an escrow account  for the  payment of  taxes,
 insurance premiums, or other charges.  The Company has policies, procedures,
 and systems in place to ensure compliance with RESPA.

      The Company believes that it is in possession of all licenses in  those
 states in which it  does business that require  such licenses, except  where
 the absence of such licenses is not material to the business and  operations
 of the Company  as a whole.   Conventional mortgage  operations also may  be
 subject to state usury statutes. FHA and VA loans are generally exempt  from
 the effect of such statutes.

 Secondary Market Activities

      The Company  sells substantially  all of  the  mortgage loans  that  it
 originates or  purchases  through  its  mortgage  banking  operations  while
 retaining the servicing rights to some of the loans.  During the years ended
 April 30, 2003  and  2002,  the Company  originated  or  purchased  $1,963.8
 million and $857.7 million in total  mortgage loans, respectively, and  sold
 $1,855.3 million and $857.8 million of mortgage loans, respectively, in  the
 secondary market.  Generally, mortgage loans  are aggregated into pools  and
 sold or are sold  as individual mortgage loans  to investors principally  at
 prices established  at  the  time  of sale  or  pursuant  to  forward  sales
 commitments.  Conforming  conventional mortgage loans  are generally  pooled
 and exchanged pursuant to the purchase  and guarantee programs sponsored  by
 Fannie Mae, Freddie Mac, and Ginnie Mae  or for Fannie Mae, Freddie Mac,  or
 Ginnie  Mae  mortgage-backed  securities,   which  are  generally  sold   to
 investment banking firms.   A limited number of  mortgage loans are sold  to
 other institutional and  non-institutional investors.   For  the year  ended
 April 30, 2003,  approximately 60% of  the conforming conventional  mortgage
 loans were exchanged for cash or Fannie Mae and Freddie Mac  mortgage-backed
 securities, which securities  were then  sold to  investment banking  firms.
 The remainder were sold to other institutional and private investors.

      The Company exchanges and sells mortgage loans on a non-recourse basis.
 In connection with the Company's loan exchanges and sales, the Company makes
 representations and warranties customary in the industry relating to,  among
 other things, compliance with laws,  regulations, and program standards  and
 to the accuracy of the information.  If a breach of the representations  and
 warranties made by the Company occurs, the Company typically corrects  these
 flaws.  If the  flaws cannot be  corrected, the Company  may be required  to
 take additional actions  including the repurchase  of any loans  that are  a
 subject of the breach.  In cases where  loans are acquired from a broker  or
 correspondent and there  have been material  misrepresentations made to  the
 Company, the Company generally has the right to resell the flawed loan  back
 to the broker or correspondent pursuant to the agreement between the Company
 and the  broker or  correspondent.   Otherwise, the  Company is  indemnified
 against loss on these flawed loans by the broker.  In addition, the  Company
 relies upon contract underwriters for a  portion of its loan production  and
 these underwriters must indemnify the Company against loss for loans,  which
 are eventually determined not to have met investor guidelines.

 Mortgage Loan Servicing Activities

      The Company derives  a portion of  its revenues from  the servicing  of
 mortgage loans for others.  For the years ended April 30, 2003 and 2002, the
 Company realized servicing fee income, net of amortization and  subservicing
 fees, from its mortgage loan servicing operations of $368,336 and  $202,127,
 respectively.   Servicing rights  arise in  connection with  mortgage  loans
 originated or purchased and then sold in the secondary market  with mortgage
 servicing rights retained.

      Mortgage loan servicing includes  collecting payments of principal  and
 interest from  borrowers,  remitting  aggregate mortgage  loan  payments  to
 investors, accounting for  principal and interest  payments, holding  escrow
 funds for payment of mortgage-related expenses such as taxes and  insurance,
 making advances  to  cover  delinquent payments,  inspecting  the  mortgaged
 premises  as   required,  contacting   delinquent  mortgagors,   supervising
 foreclosures and property dispositions if there are unremedied defaults, and
 performing other miscellaneous duties related  to loan administration.   The
 Company collects  servicing fees  from monthly  mortgage payments  generally
 ranging from 0.25% (i.e., 25 basis points) to 0.75% (i.e., 75 basis  points)
 of the declining  principal balances of  the loans per  annum.  The  Company
 engaged a subservicer for these loans  and, as of April 30, 2003, costs  the
 Company approximately $5.75 per loan per month for this service.

      The  Company  services  mortgage  loans  nationwide.   The   geographic
 distribution of  the Company's  servicing  portfolio reflects  the  national
 scope  of  the  Company's  loan  originations.  The  three  largest  states,
 California, Illinois,  and Nevada  accounted for  approximately 96%  of  the
 total number of mortgage loans serviced and approximately 97% of the  dollar
 value of the mortgage loans serviced  at April 30, 2003. The largest  volume
 by state was California with approximately 72% and 75% of the mortgage loans
 serviced by number and value, respectively.  At April 30, 2003 and 2002, the
 Company's loan servicing  portfolio consisted of  $526.2 million and  $107.2
 million of conventional servicing, respectively.

      There is  a prepayment  risk  related to  the  value of  the  Company's
 mortgage servicing rights if declining interest rates provide borrowers with
 refinancing opportunities.  At April 30, 2003  and 2002, the total value  of
 the mortgage servicing right assets recorded by the Company was $4.7 million
 and $1.3  million, respectively.   For  further information,  see Note 5  of
 Notes to the Financial Statements.

      The Company's  mortgage  servicing  portfolio  includes  servicing  for
 adjustable rate and fixed rate fully  amortizing loans.  At April 30,  2003,
 3.8% of  the mortgage  servicing rights  related to  adjustable rate  loans,
 which had  a weighted  average coupon  rate of  4.8%; 1.1%  of the  mortgage
 servicing rights related to  fixed rate balloon payment  loans, which had  a
 weighted average coupon  rate of 5.2%;  and the remaining  95.1% related  to
 fixed rate fully amortizing loans, which had a weighted average coupon  rate
 of 5.9%.  At April 30, 2003, the Company's mortgage servicing portfolio  had
 an aggregate weighted average coupon rate of 5.9%.

      The following  table contains  information, as  of April  30, 2003  and
 2002, on the  percentage of fixed-rate,  single-family mortgage loans  being
 serviced for others by the Company, by interest rate category.

                                         April 30,    April 30,
                                            2003        2002
                                            ----        ----
            Coupon Range                 Percentage of Portfolio
           --------------                -----------------------
           6.00% or under                   68.6%        3.6%
           6.01% - 7.00%                    29.8        72.7
           7.01% - 8.00%                     1.5        19.4
           8.01% - 9.00%                      .1         4.3
                                           -----       -----
             Total                         100.0%      100.0%
                                           =====       =====

      At April  30,  2003,  the Company  was  servicing  approximately  3,000
 mortgage loans with an aggregate unpaid principal balance of $526.2 million.
 Of these  loans, 0.5%  were  delinquent and  none  were in  foreclosure.  At
 April 30, 2003,  the  Company's  delinquency rates  on  loans  serviced  for
 Freddie Mac and Fannie Mae were 0.2% and 0.7%.


 Item 2. Description of Property

      The Company's corporate and administrative headquarters are located  in
 leased  facilities  in  Oak  Brook,  Illinois.   These  facilities  comprise
 approximately 11,200  square feet  of  space in  a  building leased  by  the
 Company for a seven-year term at  an annual rate of approximately $13.00  to
 $15.53 per square foot, gross, which lease expires in 2010.  In addition, at
 April 30,  2003, the  Company leased  an  aggregate of  approximately  1,146
 square feet in Las Vegas, Nevada; 3,679 square feet in Nashville, Tennessee;
 1,701 square feet in Memphis, Tennessee;  2,544 square feet in Little  Rock,
 Arkansas; 1,875 square feet  in Jackson, Mississippi;  1,574 square feet  in
 Cary, North Carolina; 2,604 square feet in Midvale, Utah; 1,475 square  feet
 in Irvine,  California; 3,380  square feet  in Chatsworth,  California;  and
 1,572 square feet in  Fair Oaks, California.   The Company also has  several
 other locations with significantly smaller lease commitments.  The aggregate
 annual lease payments on  properties leased by the  Company as of April  30,
 2003 were $619,472.  The Company  believes that its  present facilities  are
 adequate for its current level of  operations. None of the Company's  leased
 facilities are leased from affiliates or related parties of the Company.

      The Company's corporate headquarters are located at 815 Commerce  Drive
 Suite #100, Oak Brook, Illinois 60523 and its telephone number is (630) 571-
 7222.


 Item 3. Legal Proceedings.

      The Company is involved in litigation in the normal course of business.
 This litigation is not expected to  have a material effect on the  Company's
 results of operations or financial condition.


 Item 4. Submission of Matters to a Vote of Security Holders.

      There were no  items submitted  to a vote  of security  holders in  the
 fourth quarter.


 Item 5. Market for Common Equity and Related Stockholder Matters.

      Market Information

      The  Company's  Common  Stock  began  trading  on  the  American  Stock
 Exchange("AMEX") on September 9, 2002.  The Company's Common Stock is traded
 on AMEX under the symbol UFM.  The Company's Common Stock had listed trading
 privileges on  the Chicago  Stock  Exchange ("CSX")  from  May 27,  1998  to
 September 8, 2002.  The Company's Common  Stock was traded on CSX under  the
 symbol UFM.

      Holders.   As  of July  29,  2003,  the Company  estimates  there  were
 approximately 650 holders of record of the shares.

      Dividends. The Company  has never declared  or paid a  dividend on  its
 Common Stock,  and management  expects that  a  substantial portion  of  the
 Company's earnings,  if any,  for the  foreseeable future  will be  used  to
 expand loan  origination and  servicing capabilities.  The decision  to  pay
 dividends, if any, in the  future is within the  discretion of the Board  of
 Directors  and  will  depend  upon  the  Company's  earnings,  its   capital
 requirements, financial condition, and other  relevant factors such as  loan
 covenants or other contractual obligations.

      Stock Price.  The table below sets forth the high and low sales  price,
 as reported by  AMEX or CSX,  as applicable, of  the Company's Common  Stock
 during the periods indicated.

           Year Ended April 30          High    Low
           -------------------          ----    ---
           2003
           ----
             First Quarter           $  2.75  $ 2.00
             Second Quarter             3.05    2.00
             Third Quarter              5.15    2.65
             Fourth Quarter             5.10    3.93

           2002
           ----
             First Quarter           $  1.50  $ 1.00
             Second Quarter             2.00    1.10
             Third Quarter              3.00    1.75
             Fourth Quarter             3.45    2.55


 Item 6. Selected Financial Data

      The Company is providing the following  information to aid you in  your
 analysis of  the Company.   The  financial  information provided  below  was
 derived from the audited consolidated  financial statements of the  Company.
 The information is only a summary and you should read it in conjunction with
 historical  financial  statements  and   related  notes  and   "Management's
 Discussion and Analysis of Financial  Conditions and Results of  Operations"
 appearing in Item 7 below.


 Summary Financial and Other Data

                                                       At April 30,
                                                2003       2002       2001
                                              --------   --------   --------
                                  (Dollars in thousands, except per share data)
 Balance Sheet Data:
   Total assets                              $ 170,950  $  61,965  $  60,387
   Cash and cash equivalents                     7,913      6,206      4,261
   Loans held for sale                         154,735     51,417     52,719
   Warehouse lines of credit                   151,473     50,210     51,052
   Stockholders' equity                         12,880      8,298      7,430
   Shares outstanding, net of treasury stock     3,919      3,945      4,060
   Book value per share                           3.29       2.10       1.83

 Other Data:
   Number of:
     Retail branch offices                          21         12         10
     Wholesale branch offices                        6          5          4
     Full-time equivalent employees                300        200        150
   Available warehouse lines of credit       $ 187,000  $ 100,000  $  85,000


 Summary of Operations
                                              For the Years Ended April 30,
                                                2003       2002       2001
                                              --------   --------   --------
                                          (In thousands, except per share data)
 Operations Data:
   Revenues                                  $  51,292  $  22,607  $  14,941
   Expenses                                     43,461     20,304     13,901
                                              --------   --------   --------
   Earnings before income taxes                  7,831      2,303      1,040
   Income taxes                                  3,221      1,207        172
                                              --------   --------   --------
   Net income before cumulative effect of
     of change in accounting principle           4,610      1,096        868

   Cumulative effect of change in
     accounting principle net of tax                87          -          -
                                              --------   --------   --------

   Net income                                    4,697      1,096        868

   Preferred stock dividends                        39         39          -
                                              --------   --------   --------
   Net income available to
     common stockholders                     $   4,658  $   1,057  $     868
                                              ========   ========   ========
   Per Share Data :
   Basic earnings per common share           $    1.18  $    0.26  $     .21
   Diluted earnings per common share         $    1.16  $    0.26  $     .21
   Weighted average number of shares
     outstanding (basic)                         3,933      3,992      4,069
   Weighted average number of shares
     outstanding (diluted)                       4,013      4,003      4,069

   Mortgage Servicing Data:
   Mortgage loans serviced for others        $ 526,166  $ 107,176  $  33,902
   Capitalized value of mortgage
     servicing rights                            4,735      1,340        592



 Item 7. Management's Discussion and Analysis of Operations.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS
               OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

 The following  discussion  provides  additional  information  regarding  the
 operations and financial condition of the  Company for the two fiscal  years
 ended  April 30,  2003   and  2002.   This  discussion  should  be  read  in
 conjunction with the "Selected Financial Data," the financial statements  of
 the Company, and the accompanying notes thereto.

 Critical Accounting Estimates

      Financial Reporting  Release No.  60, released  by the  Securities  and
 Exchange Commission,  requires  all companies  to  include a  discussion  of
 critical  accounting  estimates  or  methods  used  in  the  preparation  of
 financial statements.

      Mortgage Loans Held for Sale -  Mortgage loans held for sale  represent
 mortgage loans originated and held pending sale to permanent investors.  The
 mortgages are carried  at lower of  cost or market  as determined by  market
 prices and yields in normal  market outlets used by  the Company.  Gains  or
 losses on such sales are recognized at the time legal title transfers to the
 investor and are based upon the  difference between the sales proceeds  from
 the final investor and the adjusted book value of the loan sold.

      Mortgage Servicing Rights - The  Company recognizes as separate  assets
 the rights to service mortgage loans  for others. Mortgage servicing  rights
 that are retained when  mortgage loans are sold  are recorded by  allocating
 the previous carrying amount of the  sold loan between the servicing  rights
 retained and the  loans that  are sold. This  allocation is  based upon  the
 relative fair values of  the mortgage servicing rights  and the loans  sold.
 Because it  is  retained as  an  asset,  the amount  allocated  to  mortgage
 servicing rights will have a favorable impact on the amount of gain or  loss
 that is recognized on the sale of the loans.

      The mortgage servicing  rights asset  is amortized  over the  projected
 period of,  and in  proportion to,  the estimated  amount of  net  servicing
 income. Amortization of the servicing rights asset will reduce the amount of
 income that is recorded in the  respective period from the servicing of  the
 mortgage loans.

      Each reporting period, the Company re-evaluates  the fair value of  its
 remaining mortgage servicing rights assets. The amount by which the carrying
 amount of mortgage servicing rights exceeds  the new estimate of fair  value
 is charged against earnings  for the period.  Rather than directly  reducing
 the carrying  amount of  the mortgage  servicing rights  asset, a  valuation
 allowance is established for the same amount as the charge against earnings.
 In subsequent reporting  periods, depending upon  current estimates of  fair
 value, the valuation allowance may be  reversed. The reversal is limited  to
 the remaining  amount of  the  valuation allowance  and  will result  in  an
 increase in recorded earnings.

      Judgments and assumptions that are most critical to the application  of
 this accounting policy are the appropriate risk-weighted discount rates used
 to  determine  the  present  value  of  estimated  net  future  cash  flows,
 prepayment speeds that  will determine the  amount and  period of  servicing
 revenue that is expected to be earned, estimated costs to service the loans,
 and estimated interest earned on amounts  collected for real estate tax  and
 property insurance premiums that  are held in escrow  until payment is  due.
 These assumptions are based upon actual performance of the underlying  loans
 and the general  market consensus regarding  changes in  mortgage and  other
 interest rates.  For example,  declining mortgage  interest rates  typically
 result in accelerated mortgage prepayments, which  tend to shorten the  life
 and reduce the value of the servicing rights asset.

      If different  assumptions and  conditions were  to prevail,  materially
 different  amortization  and  valuation  allowances  than  those  that  were
 recorded may be  required. Since, as  described above, so  many factors  can
 affect the value of mortgage servicing  rights, it is difficult to  predict,
 with any degree of certainty, the  effect on income if different  conditions
 or assumptions were to prevail.

      Derivative Financial  Instruments  - The  Company's  mortgage-committed
 pipeline includes interest rate lock commitments that have been extended  to
 borrowers who have applied for loan funding and meet certain defined  credit
 and underwriting criteria.   Effective with  the adoption  of SFAS  No. 133,
 "Accounting for Derivative Instruments and Hedging Activities," as  amended,
 the Company classifies and accounts for  the interest rate lock  commitments
 as  free-standing  derivatives.  At  the  time  of the  interest  rate  lock
 commitment, no gain or loss is recognized.  Subsequent changes in fair value
 are recorded in earnings.  Fair value is determined based on the effect that
 changes in market interest rates subsequent  to the commitment date have  on
 the  value  of the  related loans.  The  fair value  of interest  rate  lock
 commitments is included with loans held for sale, and changes in fair  value
 are included in  the net  gain on sale  of loans.   The  Company uses  other
 derivative instrument,  including  mortgage forward  delivery  contracts  to
 economically hedge  the  interest  rate lock  commitments,  which  are  also
 classified and  accounted  for as  free-standing  derivatives and  thus  are
 recorded at fair value  with the changes in  fair value recorded to  current
 earnings.

 Results of Operations

      Fiscal Years Ended April 30, 2002  and April 30, 2003

      Gain on sale of  loans increased from $18,720,136  for the fiscal  year
 ended April 30,  2002 to  $45,316,255 for  the fiscal  year ended  April 30,
 2003.  This  increase was attributable  to the increase  in loan sales  from
 $857.8 million in 2002 to $1,855.3 million  in 2003.  This increase was  due
 to the increase  in loan originations,  from $857.7 million  for the  fiscal
 year ended April 30,  2002 as compared  to $1,963.8 million  for the  fiscal
 year ended April 30, 2003.

      Loan servicing income increased by $166,209,  or 82.2%, as a result  of
 the increase in loans  serviced. The loan  servicing portfolio increased  by
 $419.0 million, from $107.2 million at  April 30, 2002 to $526.2 million  at
 April 30, 2003.

      The fiscal year ended April 30, 2003 was a period of significant growth
 for the Company.  Loan volume and revenues increased substantially from year
 to year.  In fact, both revenue and loan volume were at record highs in  the
 year ended April 30, 2003.   The primary reasons for the increase in revenue
 and loan volume were the opening  of several new branch office locations  in
 fiscal 2003 set against a backdrop of a favorable interest rate environment.

      Interest income increased from $3,685,011  for the twelve months  ended
 April 30, 2002  to $5,449,380 for  the twelve months  ended April 30,  2003.
 This increase was attributable to an increase in overall loan originations.

      Salary and  commissions expenses  increased  from $13,002,563  for  the
 twelve months ended  April 30,  2002 to  $34,736,981 for  the twelve  months
 ended April 30, 2003.   The increase was  attributed to three main  factors:
 increased volume of loans sold, continued investment in the expansion of the
 Company's sales organization, and the increasing cost of commissions paid on
 wholesale loan originations.

      Selling and administrative expenses  increased from $4,804,329 for  the
 twelve months ended April 30, 2002 to $5,866,086 for the twelve months ended
 April 30, 2003.  This increase was due to the expansion of the sales  effort
 and volume of loan originations and sales.

      Depreciation expense  increased from  $135,025  for the  twelve  months
 ended April 30, 2002 to $171,545 for the twelve months ended April 30, 2003.
 This increase principally  resulted from two  main factors:  the opening  of
 several new branch offices in the fiscal year and the technology investments
 made during previous  fiscal years.   This investment  is in  line with  the
 Company's  strategy   of   technological  advancement   and   infrastructure
 improvements.

      Interest expense increased from $2,362,696 for the twelve months  ended
 April 30, 2002  to $2,686,621 for  the twelve months  ended April 30,  2003.
 This increase was the result of an increase in overall loan originations and
 the average balance of notes payable on the warehouse lines of credit, which
 was offset by the continued decline in interest rates paid on these notes.

      Income taxes  increased  from  $1,207,388 for  the  fiscal  year  ended
 April 30, 2002 to $3,221,090 for the fiscal year ended April 30, 2003.  This
 increase in taxes was the result of an increase in taxable income.

 Liquidity and Capital Resources

      During the twelve months ended April  30, 2002 and April 30, 2003,  net
 cash  from   operating   activities  was   $3,118,321   and   $(98,233,015),
 respectively.  Net cash  from operating activities decreased   from year  to
 year largely due to the amount of mortgage loans held for sale at  April 30,
 2003, the gain on sale of loans and the change in mortgage servicing  rights
 from period to period.

      Net cash from  investing activities decreased  from $(117,867) for  the
 fiscal year ended April 30, 2002 to  $(1,189,973) for the fiscal year  ended
 April 30, 2003.  The  change from 2002 to  2003 was largely attributable  to
 the net change in the purchase  of leasehold improvements and equipment  and
 restricted cash.

      Cash flow from financing activities for the fiscal years 2002 and  2003
 was  $(1,054,859)  and  $101,130,207  respectively.   This  change  resulted
 largely from the fluctuation in warehouse lines of credit.

      The net cash flow from  operating, financing, and investing  activities
 was $1,945,595 for the fiscal year  ended April 30, 2002 and $1,707,219  for
 the fiscal year ended April 30, 2003.

      Capital  expenditures  for   the  year  ended   April  30,  2003   were
 approximately $466,000,  principally  in  expansion  of  sales  organization
 facilities and to a lesser extent in technology.  The Company believes  that
 it will continue to make investments in technology in the future to  enhance
 and maintain its product and service offerings.

      Cash flow requirements depend on the level and timing of the  Company's
 activities in loan origination in relation to the timing of the sale of such
 loans.   In addition,  the Company  requires cash  flow for  the payment  of
 operating expenses, interest expense, and capital expenditures.   Currently,
 the Company's  primary sources  of funding  are borrowings  under  warehouse
 lines of credit, proceeds  from the sale of  loans in the secondary  market,
 and internally generated funds.

      During the past twelve months, the Company has continued to pursue  its
 strategy of servicing mortgage loans.  In order to engage in this  business,
 the Company has  retained the  servicing rights  on certain  loans that  the
 Company originates.  Such retention has resulted in some reduction in short-
 term cash flow available to the  Company.  The Company has employed  capital
 to finance  the retention  of servicing  rights.   This capital  principally
 would have been expended to pay the costs associated with loan  origination,
 such as  loan officer  compensation, broker  commissions, and  miscellaneous
 overhead expenses.  However,  the retention of  servicing rights creates  an
 asset on the Company's balance sheet and creates future cash flow streams.

      The Company analyzes the mortgage servicing rights for impairment on  a
 quarterly  basis.  This  process  includes  stratifying the  loan  servicing
 portfolio by  interest rate  and  then stratifying  the  loans by  term  and
 origination date.   The impairment charges  incurred during  the year  ended
 April 30,  2003 were  a result  of  this process  and the  continued  market
 decline in the values of  Mortgage Servicing rights at  the end of 2002  and
 thru the beginning of 2003.

      Liquidity refers to the ability or the financial flexibility to  manage
 future cash flows and fund operations on a timely and cost-effective basis.

      The Company's sources of cash flow  include cash from gains on sale  of
 mortgage loans, net interest  income, servicing fees,  and borrowings.   The
 Company sells its mortgage  loans generally on a  monthly basis to  generate
 cash for operations.  The Company's uses  of cash in the short term  include
 the funding of  mortgage loan purchases  and originations  and purchases  of
 mortgage  servicing  rights,  payment  of  interest,  repayment  of  amounts
 borrowed pursuant to warehouse lines of credit, operating and administrative
 expenses, income taxes, and capital expenditures.

      The Company funds its  business through the use  of warehouse lines  of
 credit.  As of April 30, 2003, the warehouse lines of credit have a limit of
 $187 million.  Borrowing pursuant to  the warehouse lines of credit  totaled
 $151.5 million at April 30, 2003 and  $50.2 million at April 30, 2002.   The
 interest rates  on  the warehouse  lines  of credit  vary  and result  in  a
 weighted average rate of 2.9% at April 30, 2003 and 3.4% at April 30,  2002.
 The warehouse lines  of credit  are payable  on demand.   The  terms of  the
 warehouse lines of credit  impose certain limitations  on the operations  of
 the Company.

      The Company generally grants commitments to fund mortgage loans for  up
 to 90 days at a  specified term and either  a fixed interest rate  (commonly
 known as a rate lock commitment) or at a floating rate.  At April 30,  2003,
 the Company had $174.8 million of  approved rate lock commitments.   Because
 these  commitments  may  expire  without  being  drawn  upon,  they  do  not
 necessarily represent future cash commitments.  In addition, the Company had
 forward contracts of $173.2 million.  Combined, derivatives such as  forward
 contracts and rate lock commitments are used to manage interest rate risk on
 loan commitments and loans held for sale.

      The Company is  subject to various  capital requirements in  connection
 with seller/servicer  agreements  that the  Company  has entered  into  with
 secondary market investors.   As of April 30,  2003 and 2002, the  Company's
 actual capital amounts of $12,880,050 and $8,297,563 were well in excess  of
 the required amounts.

 Current Developments

      On May 6, 2003, the Company acquired Portland Mortgage Company ("PMC").
 PMC was  a privately  held mortgage  banker that  operated six  branches  in
 Oregon and southwest Washington.  PMC  engages in both wholesale and  retail
 residential lending.   The  Company believes  that PMC  will be  a  valuable
 addition to the Company's  expansion efforts. The  acquisition will be  non-
 dilutive and accretive to the Company's earnings.

 Industry Trends

      The Company believes that the industry  will continue to offer  broader
 and more  diversified product  offerings and  that technology  will play  an
 increasing part in real estate transactions.  This includes expanded use  of
 Internet capabilities,  which  the  Company will  continue  to  aggressively
 pursue.

      The Company's business base principally is concentrated in the  Midwest
 and Western United  States.   As such,  the Company  may be  subject to  the
 effects of  economic conditions  and real  estate markets  specific to  such
 locales.

 Inflation and Seasonality

      The Company  believes that  the effect  of  inflation, other  than  its
 potential effect on market interest rates, has been insignificant thus  far.
 Due to technological  and infrastructure  advancements, an  increase in  the
 Company's servicing portfolio, and the  opening of additional branches,  the
 Company  hopes   to   continue   to   minimize   seasonality   fluctuations.


 Item 8.  Financial Statements


                       UNITED FINANCIAL MORTGAGE CORP.

                             FINANCIAL STATEMENTS
                           April 30, 2003 and 2002


                              TABLE OF CONTENTS


 REPORT OF INDEPENDENT AUDITORS..............................  17


 FINANCIAL STATEMENTS

   BALANCE SHEETS ...........................................  18

   STATEMENTS OF INCOME .....................................  19

   STATEMENTS OF STOCKHOLDERS' EQUITY .......................  20

   STATEMENTS OF CASH FLOWS .................................  21

   NOTES TO FINANCIAL STATEMENTS ............................ 22-35


<PAGE>


                        REPORT OF INDEPENDENT AUDITORS



 Board of Directors and Stockholders
 United Financial Mortgage Corp.
 Oak Brook, Illinois


 We have audited the accompanying balance sheets of United Financial Mortgage
 Corp. as of April 30, 2003 and  2002, and the related statements of  income,
 stockholders'  equity,  and  cash  flows  for the  years  then ended.  These
 financial statements  are the  responsibility of  the Company's  management.
 Our responsibility is to  express an opinion  on these financial  statements
 based on our audits.

 We conducted  our audits  in accordance  with auditing  standards  generally
 accepted in the United States of  America.  Those standards require that  we
 plan and perform the audit to obtain reasonable assurance about whether  the
 financial statements are free of material  misstatement.  An audit  includes
 examining, on a test basis, evidence supporting the amounts and  disclosures
 in  the  financial  statements.   An   audit  also  includes  assessing  the
 accounting principles used and significant estimates made by management,  as
 well as evaluating the overall financial statement presentation.  We believe
 that our audits provide a reasonable basis for our opinion.

 In our opinion, the financial statements  referred to above present  fairly,
 in all  material  respects,  the  financial  position  of  United  Financial
 Mortgage Corp. at April 30, 2003 and  the results of its operations and  its
 cash flows for the years then ended in conformity with accounting principles
 generally accepted in the United States of America.

 As discussed in Note 1 to  the consolidated financial statements, on  May 1,
 2002, the Company adopted new accounting guidance on derivative instruments.


                                    Crowe Chizek and Company LLC

 Oak Brook, Illinois
 July 11, 2003

<PAGE>

                       UNITED FINANCIAL MORTGAGE CORP.
                                BALANCE SHEETS
                           April 30, 2003 and 2002

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

                                                     2003             2002
                                                 -----------      -----------
 ASSETS
   Cash and due from other financial
     institutions                               $  1,541,445     $  1,794,254
   Interest-bearing deposits in other
     financial institutions                        6,371,979        4,411,951
                                                 -----------      -----------
      Total cash and cash equivalents              7,913,424        6,206,205

   Restricted cash                                   745,039                -
   Certificates of deposit                         1,227,451        1,221,835
   Loans held for sale                           154,734,980       51,417,233
   Notes receivable - related parties                 53,984           80,647
   Mortgage servicing rights, net                  4,735,490        1,339,698
   Leasehold improvements and equipment, net         592,516          298,080
   Prepaid expenses and other assets                 947,475        1,401,634
                                                 -----------      -----------
      Total assets                              $170,950,359     $ 61,965,332
                                                 ===========      ===========

 LIABILITIES AND STOCKHOLDERS' EQUITY
 Liabilities
   Warehouse lines of credit                    $151,473,234     $ 50,209,562
   Note payable                                      350,000          369,836
   Accrued expenses and other liabilities          6,247,075        3,088,371
                                                 -----------      -----------
      Total liabilities                          158,070,309       53,667,769

 Stockholders' equity
 Preferred stock,  5,000,000  authorized, no
   par value, Series A redeemable shares, 63
   issued and outstanding at April 30, 2003
   and 2002 (aggregate liquidation preference
   of $315,000)                                      315,000          315,000
 Common stock, no par value, 20,000,000 shares
   authorized, 4,095,229 shares issued at
   April 30, 2003 and 4,095,029 shares issued
   at April 30, 2002                               6,634,403        6,633,903
 Retained earnings                                 6,252,237        1,594,621
 Treasury stock, 176,700 shares at April 30,
   2003 and 149,580 shares at April 30, 2002,
   at cost                                          (321,590)        (245,961)
                                                 -----------      -----------
      Total stockholders' equity                  12,880,050        8,297,563
                                                 -----------      -----------
   Total liabilities and stockholders' equity   $170,950,359     $ 61,965,332
                                                 ===========      ===========

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

               See accompanying notes to financial statements.

<PAGE>

                       UNITED FINANCIAL MORTGAGE CORP.
                             STATEMENTS OF INCOME
                     Years ended April 30, 2003 and 2002

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

                                                     2003             2002
                                                 -----------      -----------
 Revenues
   Gain on sale of loans, net                   $ 45,316,255     $ 18,720,136
   Loan servicing income, net                        368,336          202,127
   Interest income                                 5,449,380        3,685,011
   Other income                                      157,647                -
                                                 -----------      -----------
      Total revenues                              51,291,618       22,607,274

 Expenses
   Salaries and commissions                       34,736,981       13,002,563
   Selling and administrative                      5,866,086        4,804,329
   Interest expense                                2,686,621        2,362,696
   Depreciation                                      171,545          135,025
                                                 -----------      -----------
      Total expenses                              43,461,233       20,304,613

 Income before income taxes
   and cumulative effect of change
   in accounting principle                         7,830,385        2,302,661

 Income taxes                                      3,221,090        1,207,388
                                                 -----------      -----------
 Income before cumulative effect
   of change in accounting principle               4,609,295        1,095,273

 Cumulative effect of change in
   accounting principle, net of tax                   86,821                -
                                                 -----------      -----------
 Net income                                        4,696,116        1,095,273

 Preferred stock dividends                            38,500           38,500
                                                 -----------      -----------
 Net income for common stockholders             $  4,657,616     $  1,056,773
                                                 ===========      ===========
 Basic earnings per common share
   before cumulative effect of change
   in accounting principle                      $       1.16     $        .26

 Per share cumulative effect of a
   change in accounting principle                        .02                -
                                                 -----------      -----------
 Basic earnings per common share                $       1.18     $        .26
                                                 ===========      ===========
 Diluted earnings per common share
   before cumulative effect of change
   in accounting principle                      $       1.14     $        .26

 Per share cumulative effect of a
   change in accounting principle                        .02                -
                                                 -----------      -----------
 Diluted earnings per common share              $       1.16     $        .26
                                                 ===========      ===========

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

               See accompanying notes to financial statements.

<PAGE>
<TABLE>
                       UNITED FINANCIAL MORTGAGE CORP.
                     STATEMENTS OF STOCKHOLDERS' EQUITY
                     Years ended April 30, 2003 and 2002

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

                               Preferred      Common      Retained     Treasury
                                 Stock         Stock      Earnings       Stock        Total
                               ---------    ----------   ----------    --------    ----------
 <S>                          <C>          <C>          <C>          <C>          <C>
 Balance, May 1, 2001         $  315,000   $ 6,633,903  $   537,848  $  (56,647)  $ 7,430,104

 Net income                            -             -    1,095,273           -     1,095,273

 Preferred stock dividends             -             -      (38,500)          -       (38,500)

 Purchase of 114,500 shares of
   treasury stock                      -             -            -    (189,314)     (189,314)
                               ---------    ----------   ----------    --------    ----------

 Balance, April 30, 2002         315,000     6,633,903    1,594,621    (245,961)    8,297,563

 Net income                            -             -    4,696,116           -     4,696,116

 Preferred stock dividend              -             -      (38,500)          -       (38,500)

 Purchase of  27,800 shares
   of treasury stock                   -             -            -     (77,329)      (77,329)

 Issuance of 680 treasury shares       -             -            -       1,700         1,700

 Exercise of 200 options               -           500            -           -           500
                               ---------    ----------   ----------    --------    ----------

 Balance, April 30, 2003      $  315,000   $ 6,634,403  $ 6,252,237   $(321,590)  $12,880,050
                               =========    ==========   ==========    ========    ==========

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

                   See accompanying notes to financial statements.

</TABLE>
<PAGE>

                       UNITED FINANCIAL MORTGAGE CORP.
                           STATEMENTS OF CASH FLOWS
                      Years ended April 30, 2003 and 2002

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

                                                      2003           2002
                                                  ------------   ------------
 Cash flows from operating activities
  Net income                                     $   4,696,116  $   1,095,273
  Adjustments to reconcile net income to net
   cash provided by operating activities
    Depreciation                                       171,545        135,025
    Amortization of mortgage servicing rights          715,955        253,092
    Impairment of mortgage servicing rights          1,060,111              -
    Cumulative effect of a change in
      accounting principle                             (86,821)             -
    Gain on sales of loans                         (45,316,255)   (18,720,136)
    Origination of mortgage loans
      held for sale                             (1,963,800,825)  (857,700,421)
    Proceeds from sale of mortgage loans
      held for sale                              1,900,627,475    876,539,326
    Change in prepaid expenses and
      other assets                                     454,159       (203,478)
    Change in accrued expenses and
      other liabilities                              3,245,525      1,719,640
                                                  ------------   ------------
      Net cash from operating activities           (98,233,015)     3,118,321

 Cash flows from investing activities
  Net change in certificates of deposit                 (5,616)        11,278
  Purchase of leasehold improvements
    and equipment, net                                (465,981)      (119,998)
  Changes in note receivable and
    related parties, net                                26,663         (9,147)
  Restricted cash                                     (745,039)             -
                                                  ------------   ------------
    Net cash from investing activities              (1,189,973)      (117,867)

 Cash flows from financing activities
  Purchase of treasury stock, net                      (75,629)      (189,314)
  Issuance of common stock                                 500              -
  Changes in warehouse lines of credit, net        101,263,672       (842,836)
  Repayment of note payable                            (19,836)       (22,709)
  Preferred stock dividend                             (38,500)             -
                                                  ------------   ------------
    Net cash from financing activities             101,130,207     (1,054,859)
                                                  ------------   ------------
 Increase in cash and cash equivalents               1,707,219      1,945,595

 Cash and cash equivalents at beginning of year      6,206,205      4,260,610
                                                  ------------   ------------
 Cash and cash equivalents at end of year        $   7,913,424  $   6,206,205
                                                  ============   ============
 Supplemental information
   Interest paid                                 $   2,619,935  $   2,540,677
   Taxes paid                                        1,141,511         35,214


 ----------------------------------------------------------------------------
                   See accompanying notes to financial statements.


<PAGE>

                       UNITED FINANCIAL MORTGAGE CORP.
                        NOTES TO FINANCIAL STATEMENTS
                           April 30, 2003 and 2002

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

 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Description of Business:   United Financial Mortgage  Corp. ("UFMC" or  "the
 Company") is an  Illinois corporation  engaged in  the residential  mortgage
 banking business.   The Company is  approved to engage  in mortgage  banking
 activities  in  the  states   of   Alabama,  Alaska,  Arkansas,  California,
 Colorado, Connecticut, Florida,  Hawaii, Idaho,  Illinois, Indiana,  Kansas,
 Kentucky, Louisiana,  Michigan, Minnesota,  Mississippi, Missouri,  Montana,
 Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma,
 Oregon,  South  Carolina,  Tennessee,  Texas,  U.S.  Virgin  Islands,  Utah,
 Virginia, Washington, West Virginia, Wisconsin, and Wyoming.  The Company is
 an approved mortgagee by the Department of Housing and Urban Development and
 is qualified  to originate  mortgage loans  insured by  the Federal  Housing
 Administration as well as service for Federal National Mortgage  Association
 and the  Federal  Home  Loan  Mortgage  Corporation.   While  the  Company's
 management  monitors  the  revenue  streams  of  the  various  products  and
 services, operations are managed and financial performance is evaluated on a
 company-wide basis.   Accordingly,  all of  the Company's  mortgage  banking
 operations are considered by management to  be aggregated in one  reportable
 operating segment.

 Use of Estimates:   Accounting principles generally  accepted in the  United
 States of America require  management to make  estimates and assumptions  in
 preparing  financial  statements  that  affect  the  amounts  reported   and
 disclosed.  These estimates  and assumptions may change  in the future,  and
 future results could differ from these  estimates.  Areas involving the  use
 of management's estimates and assumptions,  which are susceptible to  change
 in the near  term, include the  valuation of loans  held for sale,  mortgage
 servicing rights, and derivatives.

 Cash and Cash  Equivalents:   Cash and  cash equivalents  include both  non-
 interest-bearing  and   interest-bearing  deposits   with  other   financial
 institutions with original maturities of three months or less.

 Restricted Cash:  The Company is required to maintain cash balances with its
 warehouse banks under  the terms of  the warehouse credit  facility and  the
 gross amount is presented in the financial statements.

 Concentration of  Credit  Risk:   The  Company maintains  cash  balances  at
 several financial institutions in excess of the insurance limits provided by
 the Federal Deposit Insurance Corporation.

 Loans Held  for Sale  and Related  Derivatives:   Balances include  deferred
 origination fees and costs  and are stated  at the lower  of cost or  market
 value in the aggregate.  The market value of mortgage loans held for sale is
 based on market  prices and yields  at period end  in normal market  outlets
 used by the Company.

 The Company  enters  into  derivatives that  include  forward  contracts  to
 deliver loans and mortgage-backed securities.  Forward contracts are used to
 manage interest rate risk on loans held  for sale and the pipeline of  loans
 in process.  The  loans held for  sale are generally  sold into the  forward
 contracts.   Under  Statement of  Financial  Accounting Standards  No.  133,
 Accounting for Derivative  Instruments and  Hedging Activities,  (SFAS 133),
 forward contracts are carried at fair value, while the change in fair  value
 of loans held  for sale  will be  recorded to  offset the  value of  forward
 contracts designated as effective hedges.  The fair value of derivatives  is
 included with the balance of loans held for sale.  Changes in the fair value
 of derivatives and the offsetting change in fair value of hedged loans  held
 for sale is included in gain on sale of loans in the statements of income.

 The  pipeline  of  loans  in  process  includes  commitments  to make  loans
 at  specific  interest  rates  (rate  lock  commitments).   The   Derivative
 Implementation Group  (DIG)  of  the Financial  Accounting  Standards  Board
 (FASB) issued guidance on mortgage loan rate lock commitments to  borrowers.
 The  guidance  categorizes  rate  lock  commitments  intended  for  sale  as
 derivatives and was  effective May 1,  2002.   On May 1,  2002, the  Company
 began recording the fair value of rate lock commitments as derivatives  and,
 depending on the amount and attributes of derivatives held at the time,  the
 resulting fair value adjustments could offset the fair value adjustments  on
 forward commitments.  At the time of interest rate lock commitment, no  gain
 or loss is  recognized.  Subsequent  changes in fair  value are recorded  in
 earnings.   Fair value  is determined  based on  the effect  that change  in
 market interest rates subsequent to the commitment date have on the value of
 the related loan.  The fair value of rate lock commitments is included  with
 loans held for sale, and changes in fair value are included in the net  gain
 on sale of loans.

 Effective May  1, 2002,  this  guidance required  the  Company to  record  a
 cumulative effect of a change in accounting principle adjustment to  reflect
 the fair value  of rate  lock commitments outstanding  at May 1,  2002.   At
 May 1, 2002,  the  Company  had  approximately  $41  million  of  rate  lock
 commitments with a fair value of $86,821, net of tax.

 Mortgage Servicing Rights, Net:  The  Company originates mortgage loans  for
 sale to  the secondary  market and  sells the  loans on  either a  servicing
 retained or servicing released  basis.  Servicing  rights are recognized  as
 assets for  purchased  rights  and  for  the  allocated  value  of  retained
 servicing rights on  loans sold.   The  capitalized cost  of loan  servicing
 rights is amortized in  proportion to and over  the period of estimated  net
 future  servicing  revenue.   The  expected  period  of  the  estimated  net
 servicing income  is based,  in  part, on  the  expected prepayment  of  the
 underlying mortgages.

 Mortgage  servicing  rights  are  periodically  evaluated  for   impairment.
 Impairment represents the excess of amortized  cost over its estimated  fair
 value.  Impairment  is evaluated based  upon the fair  value of the  assets,
 using groupings  of the  underlying loans  as to  interest rates  and  then,
 secondarily, as to geographic and prepayment characteristics.  Fair value is
 determined using  prices for  similar assets  with similar  characteristics,
 when available,  or  based upon  discounted  cash flows  using  market-based
 assumptions.   Any impairment  of  a grouping  is  reported as  a  valuation
 allowance.  The impairment  charges incurred during  the period ended  April
 30, 2003 were a result of this  process and the continued decline in  values
 at the end of 2002 and beginning of 2003.

 Leasehold Improvements and Equipment:  Leasehold improvements and  equipment
 are stated at cost less accumulated depreciation.  Depreciation is  computed
 primarily on  the straight-line  method over  the  lease term  or  estimated
 useful lives of the assets, whichever is less.  The cost of maintenance  and
 repairs is charged to expense as incurred, and significant improvements  are
 capitalized.  At the time of sale or disposition of an asset, the applicable
 cost and accumulated depreciation are removed from the books.

 Income and Expense Recognition:  The Company sells loans on both a servicing
 retained and  servicing-released basis.   Gain  or loss  is recognized  upon
 delivery of the loans to the  purchaser.  The gain or  loss is equal to  the
 difference between the  sales price and  the carrying amounts  of the  loans
 sold.  Loan  revenue consists of  various items  including commitment  fees,
 underwriting fees, and other charges that the customer pays to the  Company.
 These charges along  with certain direct  loan origination  costs for  loans
 held for sale are deferred until the related loans are sold.

 Salaries and commissions related to the  origination of loans held for  sale
 are disclosed as a separate line item on the statements of income.

 Interest on  loans  held for  sale  is credited  to  income as  earned,  and
 interest on warehouse lines of credit is charged to expense as incurred.

 Income Taxes:    Deferred tax  assets  and liabilities  are  recognized  for
 temporary differences  between the  financial reporting  basis and  the  tax
 basis  of  the  Company's  assets  and   liabilities.   Deferred  taxes  are
 recognized for the estimated taxes  ultimately payable or recoverable  based
 on enacted tax laws.  Changes in enacted tax rates and laws are reflected in
 the financial statements in the periods in which they occur.

 Series A Preferred  Stock:  The  Series A preferred  stock is nonvoting,  is
 nonparticipating, and has a liquidation  preference upon dissolution of  the
 Company  of  $5,000  per share.  The  holders  of  the preferred  stock  are
 entitled to a variable dividend only at the discretion of and  determination
 by the Board of Directors.

 Earnings Per Common Share:  Basic  earnings per common share is net  income,
 less preferred stock dividends,  divided by the  weighted average number  of
 common shares outstanding during  the period.   Diluted earnings per  common
 share includes the  dilutive effect  of additional  potential common  shares
 issuable under stock options and warrants.

 Stock Compensation:   Employee compensation expense  under stock options  is
 reported using the intrinsic value method.  No stock-based compensation cost
 is reflected in net income for  common stockholders, as all options  granted
 had an exercise  price equal  to or  greater than  the market  price of  the
 underlying common stock at date of  grant.  The following table  illustrates
 the  effect  on  net  income for  common stockholders and earnings per share
 if expense were measured using  the  fair  value  recognition  provisions of
 FASB Statement  No. 123,  Accounting  for Stock-Based Compensation.  Certain
 adjustments were made  to the pro  forma calculations in  prior years to  be
 consistent with the current year presentation.

                                                        2003          2002
                                                     ----------    ----------
   Net income for common stockholders, as reported  $ 4,657,616   $ 1,056,773
   Deduct:  Stock-based compensation expense
     determined under fair value based method           107,212        33,340
                                                     ----------    ----------
   Pro forma net income for common stockholders     $ 4,550,404   $ 1,023,433
                                                     ==========    ==========

   Basic earnings per share as reported                    1.18           .26
   Pro forma basic earnings per share                      1.16           .26

   Diluted earnings per share as reported                  1.16           .26
   Pro forma diluted earnings per share                    1.13           .26


 The pro forma effects  are computed using option  pricing models, using  the
 following weighted-average assumptions as of grant date.

                                                        2003          2002
                                                     ----------    ----------
      Risk-free interest rate                              3.00%         4.17%
      Expected option life                              5 years       5 years
      Expected stock price volatility                     72.61%       146.56%
      Dividend yield                                        N/A           N/A
      Weighted average fair value per option granted    $  1.66       $  1.20


 Loss Contingencies:  Loss contingencies, including claims and legal  actions
 arising in the ordinary course of business, are recorded as liabilities when
 the likelihood of loss  is probable and an  amount or range  of loss can  be
 reasonably estimated.  Management does not  believe that there now are  such
 matters that will have a material effect on the financial statements.

 Impact of Interest Rate Fluctuations:  Interest rate fluctuations  generally
 have  a  direct  impact  on  a  mortgage  banking  institution's   financial
 performance.   Significant increases  in interest  rates  may make  it  more
 difficult for potential  borrowers to purchase  residential property and  to
 qualify for mortgage loans.  As a result, the volume and related income from
 loan originations may be reduced.   Significant increases in interest  rates
 will also generally increase the value of the Company's servicing portfolio,
 as a result of slower anticipated prepayment activity.

 Significant decreases in interest rates may enable more potential  borrowers
 to qualify for a  mortgage loan, resulting in  higher income related to  the
 loan originations.   However, significant  decreases in  interest rates  may
 result in higher  than anticipated  loan prepayment  activity and  therefore
 reduce the value of the loan servicing portfolio.

 New Accounting Pronouncements:  The FASB recently issued two new  accounting
 standards,  Statement 149,   Amendment   of  Statement 133   on   Derivative
 Instruments  and  Hedging  Activities,  and  Statement 150,  Accounting  for
 Certain Financial Instruments With  Characteristics of Both Liabilities  and
 Equities, both of which generally become effective in the quarter  beginning
 August 1, 2003.  Management determined that adopting the new standards  will
 not  materially  affect  the   Company's  operating  results  or   financial
 condition.

 Reclassifications:  Certain prior period  amounts have been reclassified  to
 conform to the current presentation.


 NOTE 2 - CASH AND CASH EQUIVALENTS

 Cash and cash equivalents consist of the following at year end:


                                                        2003          2002
                                                     ----------    ----------
      West Suburban Bank                            $ 4,151,439   $ 2,232,408
      National City Bank of Kentucky                  1,319,496     1,056,429
      Austin Bank of Chicago                          1,076,246     1,064,317
      Bank One                                        1,329,650     1,815,794
      Other                                              36,593        37,257
                                                     ----------    ----------
                                                    $ 7,913,424   $ 6,206,205
                                                     ==========    ==========


 NOTE 3 - RESTRICTED CASH

 Restricted cash consists of the following at April 30, 2003:


      Countrywide                         $ 194,452
      National City Bank of Kentucky        250,000
      Bank One                              300,587
                                           --------
                                          $ 745,039
                                           ========


 NOTE 4 - CERTIFICATES OF DEPOSIT

 Certificates of deposit consist of the following at year end:

                                                      2003           2002
                                                  -----------    -----------
   Austin Bank of Chicago                        $  1,227,451   $    801,835
   West Suburban Bank                                       -        420,000
                                                  -----------    -----------
                                                 $  1,227,451   $  1,221,835
                                                  ===========    ===========


 NOTE 5 - MORTGAGE LOANS SOLD AND SERVICED

 The following summarizes mortgage loans sold for each year:

                                                      2003           2002
                                                 -------------   ------------
   Activity during the year:
     Loans originated for resale, net of
       principal paydowns                       $1,963,800,825  $ 857,700,421
     Proceeds from sales of loans held for sale  1,900,627,475    876,539,326
     Net gains on sales of loans held for sale      45,316,255     18,720,136
     Loan servicing fees, net                          368,336        202,127


                                                      2003           2002
                                                 -------------   ------------
   Balance at year end:
     Loans held for sale                        $  154,734,980  $  51,417,233
     Less:  Allowance to adjust to lower
       of cost or market                                 -                  -
                                                 -------------   ------------
       Loans held for sale, net                 $  154,734,980  $  51,417,233
                                                 =============   ============

 The Company performs servicing activities through  what is referred to  as a
 Sub-Servicer  arrangement  with  Countrywide  Home  Loans  Servicing  LP,  a
 Texas Limited  Partnership  doing  business as Landsafe Servicing.  Landsafe
 Servicing collects the monthly principal and interest payments and  performs
 the  escrow  services  for  the investor  on  behalf  of  the  Company.  The
 Company's  servicing  portfolio  for  outside  parties  was  as  follows  at
 April 30, 2003:

                                                  2003
                                              ------------
   Mortgage loan portfolios serviced for:
      FHLMC                                  $ 333,993,946
      FNMA                                     190,986,838
      IHDA                                       1,184,796
                                              ------------
                                             $ 526,165,580
                                              ============

 These loans are owned by outside parties and are not included in the assets
 of the Company.

 Activity for capitalized mortgage servicing rights and the related valuation
 allowance was as follows:

                                                      2003           2002
                                                  -----------    -----------
      Servicing rights:
        Beginning of year                        $  1,508,724   $    591,593
        Additions                                   5,171,858      1,001,197
        Amortized to expense                         (715,955)       (84,066)
                                                  -----------    -----------
           End of year                           $  5,964,627   $  1,508,724
                                                  ===========    ===========
      Valuation allowance:
        Beginning of year                        $   (169,026)  $          -
        Additions expensed                         (1,060,111)      (169,026)
                                                  -----------    -----------
           End of year                           $ (1,229,137)  $   (169,026)
                                                  ===========    ===========


 NOTE 6 - LEASEHOLD IMPROVEMENTS AND EQUIPMENT

 At year end, premises and equipment consisted of the following:

                                                      2003           2002
                                                  -----------    -----------
   Furniture and fixtures                        $    502,894   $    277,923
   Office equipment                                   867,207        626,197
                                                  -----------    -----------
                                                    1,370,101        904,120
   Accumulated depreciation                          (777,585)      (606,040)
                                                  -----------    -----------
                                                 $    592,516   $    298,080
                                                  ===========    ===========


 NOTE 7 - WAREHOUSE LINES OF CREDIT

 The Company funds mortgage  loan activity using  various warehouse lines  of
 credit, which are secured by the mortgage loans funded by the lines.

 Amounts outstanding  under  the various  credit  facilities consist  of  the
 following:

                                                        2003         2002
                                                     -----------  -----------
   $23  million mortgage  warehouse credit facility
   at  a commercial  bank;  interest at  the 30-day
   LIBOR plus 160  basis points; expires October 1,
   2003; interest rate was 2.90% at period end.     $ 16,439,082 $  3,054,590

   $2 million mortgage warehouse credit facility at
   a commercial bank;  interest at the 30-day LIBOR
   plus 160 basis  points; expires October 1, 2003;
   interest rate was 2.90% at period end.                160,100    1,246,162

   $25  million mortgage  warehouse credit facility
   at  a commercial  bank;  interest at  the 30-day
   LIBOR plus  140 basis  points; expires September
   1, 2003; interest rate was 2.76% at period end.    24,338,124   15,995,219

   $25  million mortgage  warehouse credit facility
   at  a commercial  bank;  interest at the  30-day
   LIBOR plus  140 basis points; expires August 31,
   2003;  interest rate  was  2.76% at  period end.
   This  facility   was  temporarily  increased  on
   September 16, 2002 to $35 million until June 16,
   2003                                               34,923,229   22,512,156

   $25  million mortgage  warehouse credit facility
   at a  commercial bank; interest  rate at the 30-
   day LIBOR  plus a rate depending  on the type of
   loan  funded; expires  August 27, 2003; weighted
   average interest  rate was 2.88%  at period end.
   This  facility   was  temporarily  increased  on
   October 1,  2002 to $60  million until March 14,
   2003.   On  March  15, 2003,  this  facility was
   temporarily increased  to $80 million until June
   13, 2003                                           73,562,560    7,401,435

   $2 million mortgage warehouse credit facility at
   a commercial  bank; interest rate  is a function
   of  the loan  funded; weighted  average interest
   rate was 4.29% at period end.                       1,295,655            -

   $20  million mortgage  warehouse credit facility
   at  a commercial  entity;  interest is  a margin
   based  on  underlying collateral  over the  one-
   month  LIBOR; expiring April 15, 2004;  weighted
   average  interest  rate was  2.86%  at April 30,
   2003.                                                 754,484            -
                                                     -----------  -----------
                                                    $151,473,234 $ 50,209,562
                                                     ===========  ===========


 NOTE 8 - NOTE PAYABLE

 The Company has a short-term note at 3.8% interest secured by a  certificate
 of deposit in the amount  of $420,000, which expires  August 16, 2003.   The
 balance outstanding was $350,000  and $369,836 at April  30, 2003 and  2002,
 respectively.


 NOTE 9 - RELATED PARTY TRANSACTIONS

 In the normal course of business, the Company makes loans to employees other
 than officers and directors.  These loans were $53,984 and $80,647 at  April
 30, 2003 and 2002, respectively.

 The Company has entered into a compensation agreement with Fidelity  Capital
 Markets, Inc. (Fidelity) of which a member of the Board of Directors for the
 Company is a principal.  The  agreement provides for Fidelity to receive  as
 compensation 10% of  net revenues earned  by any mortgage  banking or  other
 opportunity introduced by Fidelity to the Company.  To date, the Company has
 entered into one mortgage  banking transaction with  a person introduced  to
 the Company by Fidelity.


 NOTE 10 - EMPLOYEE BENEFIT PLAN

 The Company  sponsors a  401(k) defined  contribution profit  sharing  plan,
 which covers substantially all employees that  have attained the age of  18.
 Employee contributions are limited to  the maximum contributions allowed  by
 the IRS.  The plan allows for Company matching contributions of up to 15% of
 employee compensation.  There was no  employer matching contribution in  the
 2003 or 2002 fiscal years by the Company.


 NOTE 11 - INCOME TAXES

 The provision for income taxes consists of the following:

                                                      2003           2002
                                                  -----------    -----------
   Current provision
      Federal                                    $  1,169,700   $    770,939
      State                                           239,577         95,285
   Deferred provision                               1,811,813        341,164
                                                  -----------    -----------
                                                 $  3,221,090   $  1,207,388
                                                  ===========    ===========

 The net deferred tax liability is comprised of the following at year end:

                                                      2003           2002
                                                  -----------    -----------
   Deferred tax assets
      Depreciation                               $     46,323   $     41,613
      Derivatives                                     231,278              -
      Other                                                 -         35,332
                                                  -----------    -----------
                                                      277,601         76,945
   Deferred tax liabilities
      Loan origination costs                          853,241        270,365
      Mortgage servicing rights                     1,822,971        490,865
      Other                                            97,487              -
                                                  -----------    -----------
                                                    2,773,699        761,230
                                                  -----------    -----------
        Net deferred tax liability               $  2,496,098   $    684,285
                                                  ===========    ===========

 The difference  between  the financial  statement  tax expense  and  amounts
 computed by applying the statutory federal  rate of 34% to pretax income  is
 reconciled as follows:

                                                      2003           2002
                                                  -----------    -----------
   Statutory rate applied to income before taxes $  2,662,331   $    782,905
   Add (deduct)
      State tax, net                                  289,302        110,290
      Effect of nondeductible expenses and other
        adjustments                                   269,457        314,193
                                                  -----------    -----------
        Income tax expense                       $  3,221,090   $  1,207,388
                                                  ===========    ===========


 NOTE 12 - COMMITMENTS

 The Company  has  entered into  various  leases for  office  facilities  and
 equipment, expiring  in various  years through  2010.   Expenses for  leased
 office facilities  and equipment  were $619,472  and $661,386  for 2003  and
 2002, respectively.  In addition to  minimum lease payments, the Company  is
 obligated to pay its share of building  operating costs in excess of a  base
 amount for certain leases.  Future minimum lease payments are as follows:

              2004                          $    669,000
              2005                               513,000
              2006                               351,000
              2007                               285,000
              2008                               244,000
              Thereafter                         300,000
                                             -----------
              Total minimum lease payments  $  2,362,000
                                             ===========

 In the  normal course  of business,  the  Company is  a party  to  financial
 instruments that are not reflected in  the financial statements to meet  the
 needs of its customers. These  financial instruments include commitments  to
 fund loans.

 At  year  end,  the  contract  amount  of  these  financial  instruments  is
 summarized as follows:

                                                      2003           2002
                                                  -----------    -----------
   Financial instruments whose contract amount
     represents credit risk:
      Commitments to fund loans                  $174,790,000   $ 41,343,000


 The Company's exposure to credit loss in the event of nonperformance by  the
 borrower for commitments to extend credit is represented by the  contractual
 amount of  the commitment.   Since  some commitments  to make  loans  expire
 without being  used,  the contract  amount  does not  necessarily  represent
 future   cash  commitments.   Collateral  obtained  upon  exercise  of   the
 commitment consists of the residential real  estate purchased with the  loan
 proceeds.  Commitments to make loans  are generally at a specified  interest
 rate and are subject to market risk resulting from fluctuations in  interest
 rates.

 Although the Company sells loans without recourse, certain investor purchase
 agreements provide for  conditions, such as  borrower default  on the  first
 payment, that  would require  the Company  to reacquire  the related  loans.
 This risk is controlled by the Company's quality control program.  Since its
 inception, the Company's  repurchase of loans  from investors  has not  been
 significant.


 NOTE 13 - CAPITAL REQUIREMENTS

 The Company is subject  to various capital  requirements in connection  with
 seller/servicer agreements that the Company has entered into with  secondary
 market investors.   Failure to maintain  minimum capital requirements  could
 result in the  Company's inability to  originate and service  loans for  the
 respective investor and therefore could have a direct material effect on the
 Company's financial statements.

 The Company's actual capital  amounts and the  minimum amounts required  for
 capital adequacy purposes, by investor, are as follows:
                                                           Minimum
                                            Actual         Capital
                                            Capital      Requirement
                                          -----------    -----------
      As of April 30, 2003:
        HUD                              $ 12,880,050   $  1,000,000
        GNMA                               12,880,050        250,000
        FHLMC                              12,880,050        250,000
        FNMA                               12,880,050        631,974

      As of April 30, 2002:
        HUD                              $  8,297,563   $  1,000,000
        GNMA                                8,297,563        250,000
        FHLMC                               8,297,563        250,000
        FNMA                                8,297,563        340,966


 NOTE 14 - STOCK OPTIONS AND WARRANTS

 UFMC maintains a Stock  Option and Incentive Plan  (the Plan).  Pursuant  to
 the Plan, 500,000  shares of  common stock  were made  available for  grant.
 Each option  granted under  the Plan  vests  as specified  by the  Board  of
 Directors and has a term of not more than ten years.  The exercise price  of
 options granted is at least equal to market value at the date of grant.  The
 Company accounts for stock options in accordance with APB Opinion No. 25 and
 therefore has recorded no compensation expense for options granted.

 The following is a summary of stock option activity for the years ended
 April 30:

                                            2003                 2002
                                     -----------------    -----------------
                                              Weighted             Weighted
                                              Average              Average
                                              Exercise             Exercise
                                     Options    Price     Options    Price
                                     -------    -----     -------    -----
  Outstanding at beginning of year   220,500   $ 5.03     162,500   $ 6.50
  Granted                            223,500     2.70      62,500     1.31
  Exercised                             (200)    2.70           -        -
  Forfeited                          (30,000)    6.50      (4,500)    6.50
                                     -------    -----     -------    -----
  Outstanding at end of year         413,800     3.67     220,500     5.03
                                     =======    =====     =======    =====
  Exercisable at end of year         148,000     4.91      77,200     6.50
                                     =======    =====     =======    =====

 The following is a summary of the exercise prices, the number of outstanding
 options, and the remaining contractual life of the outstanding options:

                  Outstanding                    Exercisable
                  -----------                    -----------
                                   Average
                                  Remaining                Average
     Exercise                    Contractual              Exercise
      Prices         Number         Life       Number       Price
      ------         ------         ----
      $ 1.10         25,000         8.3 yrs     5,000      $ 1.10
        1.45         37,500         8.4         7,500        1.45
        2.70        223,300         9.5        44,700        2.70
        6.50        128,000         6.9        90,800        6.50
                    -------
      Outstanding
      at year end   413,800
                    =======

 Options outstanding at April  30, 2003 have a  weighted average life of  8.5
 years, with exercise prices ranging from $1.10 to $6.50.  For the year ended
 April 30, 2003, options were granted at $2.70 per share.

 At April 30, 2003,  the Company had total  warrants outstanding to  purchase
 80,000 shares of  the Company's  common stock.   The exercise  price of  the
 warrants is $7.80 per share.  The warrants expired in May 2003 without being
 used.



 NOTE 15 - EARNINGS PER COMMON SHARE

 The following summarizes the computation of  basic and diluted earnings  per
 common share  before  the  cumulative  effect  of  a  change  in  accounting
 principle and after the preferred stock dividend:

                                                      2003           2002
                                                  -----------    -----------
   Basic earnings per common share
      Net income for common stockholders         $  4,570,795   $  1,056,773
                                                  ===========    ===========

      Weighted average shares outstanding           3,933,089      3,992,284
                                                  -----------    -----------
        Basic earnings per common share          $       1.16   $        .26
                                                  ===========    ===========

   Diluted earnings per common share
      Net income for common stockholders         $  4,570,795   $  1,056,773
                                                  ===========    ===========

      Weighted average shares outstanding           3,933,089      3,992,284
      Diluted effect of assumed exercise
        of stock options and warrants                  79,539         10,350
                                                  -----------    -----------
      Diluted average shares outstanding            4,012,628      4,002,634
                                                  ===========    ===========
        Diluted earnings per common share        $       1.14   $        .26
                                                  ===========    ===========

 At April 30, 2003 and 2002, options to purchase 128,000 and 158,000  shares,
 respectively, of common stock at an  average price of $6.50 and warrants  to
 purchase 80,000 shares of common stock  at $7.80 per share were  outstanding
 but were  not included  in the  calculation of  diluted earnings  per  share
 because the option exercise price was greater than the average market  price
 of the common stock and was therefore anti-dilutive.


 NOTE 16 - DERIVATIVES

 Derivatives such as forward contracts and rate lock commitments are used  in
 the  ordinary  course  of  business.   Forward  contracts  represent  future
 commitments to deliver securities and whole  loans at a specified price  and
 date and are used to manage interest rate risk on loan commitments and loans
 held for sale.   Rate lock commitments  are commitments to  fund loans at  a
 specific rate.  The derivatives involve  underlying items, such as  interest
 rates,  and  are designed  to  transfer  risk.  Substantially all  of  these
 instruments  expire  within 90  days from  the date  of  issuance.   Notional
 amounts are amounts on which calculations and payments are based, but  which
 do not  represent credit  exposure, as  credit exposure  is limited  to  the
 amounts required to  be received or  paid.  Beginning  May 1, 2001,  forward
 commitments were  recorded  in  the  financial  statements  at  fair  value.
 Beginning May 1, 2002, rate lock commitments were required to be  recognized
 at fair value.  The notional  amounts, fair values, and carrying amounts  of
 these derivatives are as follows at April 30, 2003:

                                                      2003           2002
                                                  -----------    -----------
           Forward contracts
             Notional amount                     $173,176,000   $ 45,059,000
             Fair value                            (1,210,000)      (182,000)
             Carrying amount                       (1,210,000)      (182,000)
           Rate lock commitments
             Notional amount                      174,790,000              -
             Fair value                               329,000              -
             Carrying value                           329,000              -

 Forward contracts also  contain an  element of risk  in the  event that  the
 counterparties may be unable to meet the  terms of such agreements.  In  the
 event the parties to all delivery  commitments were unable to fulfill  their
 obligations, the Company would not incur any significant additional cost  by
 replacing the  positions  at  market rates  in  effect  on  April 30,  2003.
 Management does not expect any counterparty to default on their  obligations
 and therefore does not expect to incur any cost due to counterparty default.
 Since many rate lock commitments may  expire without being used, the  amount
 above does not necessarily represent future cash commitments.


 NOTE 17 - PORTLAND MORTGAGE COMPANY ACQUISITION

 Effective May 6, 2003, the Company acquired Portland Mortgage Company (PMC).
 PMC is a privately held mortgage banker that employs 58 full-time  employees
 and operates six branches in Oregon  and southwest Washington.  PMC  engages
 in both wholesale and retail residential lending.

 PMC had $20  million of loans  at April 30,  2003 and  no other  significant
 assets.  The acquisition price is based on equity at April 30, 2003, and the
 Company is currently negotiating this with PMC.


 Item  9.    Changes  in  and  Disagreements  on  Accounting  and   Financial
 Disclosures.

      None


                                   PART III

 Item 10. Directors, Executive Officers, Promoters, and Control Persons;
 Compliance with Section 16(a) of the Exchange Act.

      The Company hereby incorporates by reference the information called for
      by item 10 of this form 10-KSB regarding item subject from the  section
      entitled "Section 16 (a) Beneficial Ownership Reporting Compliance"  of
      the Company's 2003 proxy statement.


 Item 11. Executive Compensation

      The Company hereby incorporates by reference the information called for
      by item 11 of this form 10-KSB regarding item subject from the  section
      entitled  "Summary  Compensation  Table-Annual  Compensation"  of   the
      Company's 2003 proxy statement.


 Item 12. Security Ownership of Certain Beneficial Owners and Management

      The Company hereby incorporates by reference the information called for
      by item 12 of this form 10-KSB regarding item subject from the  section
      entitled  "Security  Ownership   of  Certain   Beneficial  Owners   and
      Management" of the Company's 2003 proxy statement.


 Item 13. Certain Relationships and Related Transactions.

      The Company hereby incorporates by reference the information called for
      by item 13 of this form 10-KSB regarding item subject from the  section
      entitled  "Certain  Relationships  and  Related  Transactions"  of  the
      Company's 2003 proxy statement.


 Item 14.  Controls  And Procedures

      Within the 90  days prior  to the date  of this  report, the  Company's
 Chief  Executive  Officer  and  Chief  Financial  Officer  carried  out   an
 evaluation, with the  participation of other  member of  management as  they
 deemed appropriate, of the effectiveness of the design and operation of  the
 Company's disclosure controls and procedures as contemplated by Exchange Act
 Rule 13a-14.  Based upon, and as of  the date of that evaluation, the  Chief
 Executive Officer and Chief Financial  Officer concluded that the  Company's
 disclosure controls and procedures are effective, in all material  respects,
 in timely  alerting them  to material  information relating  to the  Company
 required to be included in the  periodic reports the Company is required  to
 file and submit to the SEC under the Exchange Act.

      There were no significant changes to the Company's internal controls or
 in other factors  that could  significantly affect  these internal  controls
 subsequent to  the  date the  Company  carried  out its  evaluation  of  its
 internal  controls.  There  were  no  significant deficiencies  or  material
 weaknesses identified  in  the  evaluation  and,  therefore,  no  corrective
 actions were taken.


 Item 15. Exhibits, Financial Statement Schedules, and Reports of Form 8-K.

       (a) (1)  Financial Statements.

                The following financial statements and notes thereto, and the
                related Independent Auditor's Report, are filed as part of
                this Form 10-KSB on Pages 11 to 21 hereof:

                Independent Auditors' Report
                Balance Sheets at April 30, 2003 and 2002
                Statements of Income for the twelve months ended April 30,
                  2003 and 2002
                Statements of Stockholders' Equity for the twelve months
                  ended April 30, 2003 and 2002
                Statements of Cash Flows for the twelve months ended April
                  30, 2003 and 2002
                Notes to Financial Statements

           (2)  Financial Statement Schedules.
                All financial statement schedules have been omitted because
                such schedules are not required or the information required
                has been included in the financial statements and notes
                thereto.

           (3)  Exhibits
                The following exhibits are filed with this report or
                incorporated by reference as set forth below.

       (b) (1)  Exhibits and Reports on Form 8-K

                Exhibits
                  99.1 Certification Pursuant to 18 U.S.C Section 1350, as
                       adopted pursuant to Section 906 of the Sarbanes-Oxley
                       Act of 2002 from the Company's Chief Executive Officer
                  99.2 Certification Pursuant to 18 U.S.C. Section 1350, as
                       adopted pursuant to Section 906 of the Sarbanes-Oxley
                       Act of 2002 from the Company's Chief Financial Officer

           (2)  Reports
                The following reports on Form 8-K have been filed by the
                Company during the last quarter of the period:

                     Form 8-K dated 01/14/03
                     Form 8-K dated 01/28/03
                     Form 8-K dated 01/29/03
                     Form 8-K dated 03/17/03
                     Form 8-K dated 04/23/03

 <PAGE>

                                    SIGNATURES

      In accordance with the Exchange Act, this report has been signed below
 on July 29, 2003 by the following persons on behalf of the registrant and in
 the capacities indicated.

 Registrant:    United Financial Mortgage Corp.


 Directors:                         By:  /S/ Joseph Khoshabe
                                    ---------------------------------------
                                         Joseph Khoshabe, Chairman and
                                         Director



                                    By:  /S/ Steve Y. Khoshabe
                                    ---------------------------------------
                                         Steve Y. Khoshabe, President,
                                         Principal Executive Officer,
                                         and Director


                                    By:  /S/ John A. Clark
                                    ---------------------------------------
                                        John A. Clark, Director

                                    By:  /S/ James Zuhlke
                                    ---------------------------------------
                                        James Zuhlke, Director

                                    By:  /S/ Elliot Jacobs
                                    ---------------------------------------
                                         Elliot Jacobs, Director

                                    By:  /S/ Robert S. Luce
                                    ---------------------------------------
                                         Robert S. Luce, Secretary and a
                                         Director

                                    By:  /S/ Matt Kaufmann
                                    ---------------------------------------
                                         Chief Financial Officer

<PAGE>


                       UNITED FINANCIAL MORTGAGE CORP.

                 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
                 --------------------------------------------

 I, Steve Khoshabe, President and Principal Executive Officer, certify that:

 1) I have reviewed this annual report on Form 10-KSB of United Financial
    Mortgage Corp.;

 2) Based on my knowledge, this annual 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 annual report;

 3) Based on my knowledge, the financial statements, and other financial
    information included in this annual 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
    annual 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 annual 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 annual report (the "Evaluation Date"); and

   c) presented in this annual 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 that 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
    annual 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: July 29, 2003

 /s/ Steve Khoshabe
 Steve Khoshabe
 President and Principal Executive Officer

<PAGE>


                       UNITED FINANCIAL MORTGAGE CORP.


                 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
                 --------------------------------------------

 I, Matt Kaufmann, Principal Financial and Accounting Officer, certify that:

 1) I have reviewed this annual report on Form 10-KSB of United Financial
    Mortgage Corp.;

 2) Based on my knowledge, this annual 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 annual report;

 3) Based on my knowledge, the financial statements, and other financial
    information included in this annual 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
    annual 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 annual 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
      annual report (the "Evaluation Date"); and

   c) presented in this annual 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 that 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
    annual 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: July 29, 2003

 /s/ Matt Kaufmann
 Matt Kaufmann
 Principal Financial and Accounting Officer