U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB


(Mark One)

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

                           For the quarterly period ended March 31, 2000

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

       For the transition period from __________________ to ______________

Commission file number: 1-14219

                      Transnational Financial Network, Inc
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

California                                              94-2964195
--------------------------------------------------------------------------------
(State or other jurisdiction                            (IRS Employer
of incorporation or organization)                       Identification No.)

401 Taraval Street, San Francisco, CA                   94116
--------------------------------------------------------------------------------
(Address of principal executive offices)                (Zip Code)

                                 (415) 242-7800
--------------------------------------------------------------------------------
                         (Registrant's telephone number)

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

         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the 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 ____

                      APPLICABLE ONLY TO CORPORATE ISSUERS


         State the number of shares outstanding of each of the issuer's classes
of common equity, as of May 22, 2000: 4,279,310


<PAGE>


                      TRANSNATIONAL FINANCIAL NETWORK, INC.

                                 March 31, 2000

                                    UNAUDITED

                                TABLE OF CONTENTS                    PAGE NUMBER

PART 1  ITEM 1      FINANCIAL INFORMATION

                    Condensed Balance Sheets as of  March  31,  2000
                    And December 31, 1999                                 2

                    Condensed Statements of Operations
                    For the Three  Months
                    Ended March 31, 2000 and 1999                         3

                    Condensed Statements of Cash Flows for the
                    Three Months Ended  March 31, 2000  and 1999          4

                    Notes to Condensed Financial Statements               5

        ITEM 2      Management's Discussion and Analysis of

                    Financial Condition and Results of Operations         8

PART II Item 6. Exhibits and Reports on Form 8-K                         12

                  SIGNATURES-


<PAGE>
                        PART I - FINANCIAL INFORMATION

                     TRANSNATIONAL FINANCIAL NETWORK, INC.
                           CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                       March 31,           December 31,
                                                                                          2000                  1999
                                                                                -------------------     -----------------
                                                                                      (Unaudited)             (Audited)

ASSETS
<S>                                                                               <C>                    <C>
    Cash and cash equivalents                                                     $       1,737,542      $        862,257
    Mortgage loans held for sale                                                         20,683,823             2,009,092
    Accrued interest receivable                                                              29,978                40,126
    Investment in Loan Link, LLC                                                                  0               300,000
    Receivable from Loan Link, LLC                                                          300,000               200,000
    Notes receivable                                                                        100,000               135,819
    Investment in real estate                                                               189,512               190,671
    Goodwill                                                                              3,661,040             3,758,827
    Property and equipment, net                                                             523,982               577,079
    Other  assets                                                                           709,209               988,930
                                                                                -------------------     -----------------
    TOTAL ASSETS                                                                  $      27,935,086      $      9,062,801
                                                                                   ================       ===============


LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:

    Warehouse notes payable                                                       $      20,358,746      $              0
    Accrued interest payable                                                                 95,829               164,278
    Real estate mortgage                                                                    139,574               140,283
    Due to shareholders                                                                      22,043                22,043
    Accounts payable and accrued expenses                                                     9,588                80,392
                                                                                -------------------     -----------------

    Total liabilities                                                                    20,625,780               406,996

SHAREHOLDERS' EQUITY:
    Preferred stock, no par value; 2,000,000 shares
       authorized; no shares issued or outstanding                                                0                     0
    Common stock, no par value; 10,000,000 shares authorized:
       4,279,310 shares  issued and  outstanding
       as of March 31, 2000 and December 31, 1999                                        10,558,709            10,558,709
    Accumulated deficit                                                                  (3,249,403)           (1,902,904)
                                                                                -------------------     -----------------

    Total shareholders' equity                                                            7,309,306             8,655,805



    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                    $      27,935,086      $      9,062,801
                                                                                   ================       ===============
</TABLE>




           See accompanying notes to condensed financial statements.




<PAGE>


                 TRANSNATIONAL FINANCIAL NETWORK, INC.
                   CONDENSED STATEMENTS OF OPERATIONS
                              (Unaudited)


<TABLE>
<CAPTION>
                                                                                         Three Months Ended
                                                                                              March 31

                                                                                      2000                   1999
                                                                                -------------------     -----------------
<S>                                                                      <C>                             <C>
INCOME
              Net gain on sale of mortgage loans                         $             397,164           $ 1,473,451
              Production income                                                      1,302,488               936,272
              Interest income                                                          474,757             1,029,531
              Other                                                                     28,925                 9,855
                                                                                -------------------     -----------------
                                                                                     2,203,334             3,449,109

EXPENSES
              Interest expense                                                         493,807             1,000,158
              Salaries and benefits                                                  2,085,717             1,431,075
              General and administrative                                               790,797               422,893
              Occupancy                                                                179,512                91,601
                                                                                -------------------     -----------------
                                                                                     3,549,833             2,945,727

INCOME(LOSS) BEFORE INCOME TAXES                                                    (1,346,499)              503,382

INCOME TAX  EXPENSE                                                                          0               211,420

NET INCOME (LOSS)                                                        $          (1,346,499)            $ 291,962
                                                                         ======================   ===================



NET (LOSS) INCOME PER SHARE
              Basic and diluted                                          $               (0.31)               $ 0.08

WEIGHTED AVERAGE SHARES OUTSTANDING
              Basic                                                                  4,279,310             3,700,000
              Diluted                                                                4,279,310             3,700,000
</TABLE>




              See accompanying notes to condensed financial statements



<PAGE>



                      TRANSNATIONAL FINANCIAL NETWORK, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                        For the Three Months
                                                                                            Ended March 31

                                                                                      2000                    1999
                                                                                -------------------     -----------------
<S>                                                                             <C>                       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net (Loss) Income                                                            $ (1,346,499)             $ 291,962
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
     Gain on sale of mortgage loans                                                 (368,412)            (1,727,402)
     Provision for loan losses                                                        28,752                 (7,500)
     Depreciation and amortization                                                   155,010                 25,678
     Mortgage loans originated for sale                                         (152,070,208)          (269,693,249)
     Proceeds from sales of mortgage loans                                       133,735,137            304,202,129
    Changes in assets and liabilities:


        Accrued interest receivable                                                   10,148                    145
        Notes receivable                                                              35,819                      -
        Other assets                                                                 279,721                (23,782)
        Accrued interest payable                                                     (68,449)              (202,464)
        Accounts payable and accrued liabilities                                     (70,804)              (387,926)

           Net cash provided by (used in) operating activities                   (19,679,785)            32,477,591



CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchases of property and equipment                                               (2,967)              (153,415)
    Repayment of advances by Loan Link, LLC                                          200,000                      -


           Net cash provided by (used in) investing activities                       197,033               (153,415)



CASH FLOWS FROM FINANCING ACTIVITIES:
    Borrowings on warehouse notes payable                                        188,108,591            265,273,574
    Payments on warehouse notes payable                                         (167,749,845)          (297,337,071)
    Payments on real estate mortgage                                                    (709)                (1,069)
    Payments on distributions payable to "S" corporation stockholders                      -                (65,742)


           Net cash provided by (used in) financing activities                    20,358,037            (32,130,308)



INCREASE IN CASH AND CASH EQUIVALENTS                                                875,285                193,868


CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                         862,257                990,115


CASH AND CASH EQUIVALENTS, END OF YEAR                                           $ 1,737,542            $ 1,183,983
                                                                           =================    ===================


CASH PAID DURING THE PERIOD FOR:
     Interest                                                                      $ 562,255            $ 1,202,602
     Taxes                                                                               $ -              $ 340,746
</TABLE>





           See accompanying notes to condensed financial statements.

<PAGE>




                      TRANSNATIONAL FINANCIAL NETWORK, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS

                                 March 31, 2000

                                   (Unaudited)


NOTE 1             The accompanying financial statements of Transnational
                   Financial Network, Inc. (the "Company") are unaudited and
                   have been prepared without audit pursuant to the rules and
                   regulations of the Securities and Exchange Commission.
                   Certain information and financial disclosures normally
                   included in financial statements prepared in accordance with
                   generally accepted accounting principles have been condensed
                   or omitted pursuant to such rules and regulations.
                   Accordingly, these unaudited condensed financial statements
                   should be read in conjunction with the audited financial
                   statements included in the Company's Form 10-KSB for the year
                   ended December 31, 1999. These statements include all
                   adjustments consisting only of normal recurring accruals,
                   which are, in the opinion of management considered necessary
                   for a fair presentation of financial position and results of
                   operations.

                   The preparation of financial statements in conformity with
                   generally accepted accounting principles requires management
                   to make estimates and assumptions that affect certain
                   reported amounts and disclosures. Accordingly, actual results
                   could differ from those estimates.

                   Reclassifications - Certain amounts in the March 31, 1999
                   financial statements have been reclassified to conform to the
                   March 31, 2000 presentation.

NOTE 2             The results of operations of the Company for the three-month
                   periods ended March 31, 2000 and 1999 are not necessarily
                   indicative of the results to be expected for the full year.



<PAGE>


NOTE 3             Net Income (Loss) Per Share

                   Basic net (loss) income per share is computed by dividing net
                   income (loss) by the weighted average common shares
                   outstanding during the period. Diluted net income (loss) per
                   share is computed based on the weighted average number of
                   common shares outstanding adjusted for the common stock
                   equivalents, which include stock options, if dilutive. For
                   the three months ended March 31, 2000 and 1999, the effect of
                   including outstanding options in the calculation of diluted
                   income (loss) per share would be antidilutive. As a result,
                   the effect of those outstanding options has not been included
                   in the calculations.


 NOTE 4            Acquisition

                   On July 30, 1999, the Company acquired all of the issued and
                   outstanding stock of LRS, Inc., a Silicon Valley based
                   mortgage banking company. Under the terms of the agreement,
                   the Company paid $1.5 million in cash and issued 579,310
                   shares of Common Stock at a closing share price of $3.625 per
                   share as of July 30, 1999. In addition, the Company must pay
                   certain earn-out amounts based on pretax income, as defined,
                   to the former stockholders of LRS, Inc. up to a total of $3.2
                   million over a four-year period beginning August 1, 1999 and
                   ending July 31, 2003. In connection with the acquisition,
                   goodwill of $3,944,425 was recorded and is being amortized
                   using the straight-line method over 10 years.

                   The following Unaudited Pro Forma Combined Summary of
                   Operations presents a pro forma combined summary of
                   operations of the Company and LRS, Inc. for the three-month
                   period ended March 31, 1999, and it is presented as if the
                   acquisition had been effective on January 1, 1999. This pro
                   forma combined historical summary of operations was adjusted
                   for the amortization of purchase accounting adjustments.

                   The Unaudited Pro Forma Combined Summary of Operations data
                   is intended for informational purposes only and is not
                   necessarily indicative of the future results of operations of
                   the Company, or the results of operations that would have
                   actually occurred had the merger been in effect for the
                   periods presented.

Unaudited Pro forma Combined Summary of Operations (the Company and LRS, Inc.)
for the three month period ending March 31, 1999





    GROSS REVENUE                                           $     6,819,609
                                                            ---------------

    NET INCOME (LOSS)                                       $       683,698
                                                            ---------------

    NET INCOME (LOSS) PER SHARE
        Basic                                               $        0.16
        Diluted                                             $        0.16

    WEIGHTED AVERAGE SHARES OUTSTANDING
        Basic                                                   4,279,310
        Diluted                                                 4,279,310



NOTE 5

                   During the first quarter of 2000, Transnational Financial
                   Network, Inc. entered into an agreement with 4ADREAM LOAN
                   LINK LLC to convert its $300,000 cash investment to a
                   receivable to be repaid in three years. The Company will
                   continue to maintain a 19.9% ownership interest. The $200,000
                   receivable at December 31, 1999 was repaid in February 2000.

NOTE 6

                   In February 2000, the Company's Board of Directors approved
                   the 2000 Stock Incentive Plan ("2000 plan") effective March
                   1, 2000. All options presently issued and outstanding under
                   the 1998 Stock Compensation Plan ("1998 plan") will continue
                   to be honored but no more options may be issued under the
                   1998 Plan.

                   Under the 2000 Plan, the maximum number of shares that can be
                   granted in any one year to any single individual either
                   directly or via option grants will be 150,000. Among other
                   features of the plan is an initial outside directors' option
                   grant of 15,000 shares to each director at the date the plan
                   was adopted or upon the director first becoming such. Each
                   outside director also receives an option for 5,000 shares
                   upon election at the annual meeting of stockholders provided
                   the director has served at least six months. The option price
                   is the market price of the stock on the date of grant. The
                   2000 Plan also contains an incentive stock option plan which
                   allows options to be granted to eligible employees. The 2000
                   Plan also permits directors and certain employees to receive
                   options in lieu of compensation as well as directly granting
                   stock to certain employees as a bonus. As of May 12, 2000,
                   there have been no options granted under the 2000 Plan other
                   than automatic grants to outside directors.



<PAGE>



                                     ITEM 2

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                   The following discussion and analysis should be read in
                   conjunction with the condensed financial statements and the
                   notes thereto included as Item 1 of this Report. The
                   discussion of results and trends does not necessarily imply
                   that these results and trends will continue.

                   Forward-Looking Information

                   The Management's Discussion and Analysis of Financial
                   Condition and Results of Operations and other sections of the
                   Form 10-QSB contain forward-looking information. The
                   forward-looking information involves risks and uncertainties
                   that are based on current expectations, estimates, and
                   projections about the Company's business, management's
                   beliefs and assumptions made by management. Words such as
                   "expects", "anticipates", "intends", "plans", "believes",
                   "seeks", "estimates", and variations of such words and
                   similar expressions are intended to identify such
                   forward-looking information. Therefore, actual outcomes and
                   results may differ materially from what is expressed or
                   forecasted in such forward-looking information due to
                   numerous factors, including, but not limited to, availability
                   of financing for operations, successful performance of
                   internal operations, impact of competition and other risks
                   detailed below as well as those discussed elsewhere in this
                   Form 10-QSB and from time to time in the Company's Securities
                   and Exchange Commission filings and reports. In addition,
                   general economic and market conditions and growth rates could
                   affect such statements.

GENERAL

                   Transnational Financial Network, Inc. ("TFN" or the
                   "Company") is a wholesale and retail mortgage banker which
                   originates, funds and sells mortgage loans secured by one to
                   four family residential properties primarily in California
                   and Arizona. During the second quarter of 1999, the Company
                   opened additional loan production offices in Houston, Texas
                   and Phoenix, Arizona and in Reno, Nevada. Both the Texas and
                   Reno offices were subsequently closed.

                   Similar to industry experience, the Company's loan production
                   and profit performance are strongly affected by mortgage
                   interest rates. FHLMC's 30-year fixed rates for home
                   mortgages have been increasing throughout 1999 and have
                   continued to rise thus far in 2000. In January 1999, these
                   rates were 6.74%, reaching 7.55% at the end of the second
                   quarter and 7.91%% at year-end. During the first three months
                   of 2000, FHLMC 30-year fixed mortgage rates rose further
                   reaching 8.24% by the end of the quarter.

                   Increasing interest rates increase the cost of home ownership
                   resulting in diminished demand for mortgage loans. Thus, the
                   Company saw its volume of mortgage loans drop beginning in
                   the second quarter of 1999 and continuing through the first
                   quarter of 2000. The following table sets forth the wholesale
                   and retail production for the periods indicated.

                              Mortgage Loan Volume
                       For 1999 Through First Quarter 2000


<TABLE>
<CAPTION>
                                    1st  Qtr.-99    2nd Qtr. -99     3rd Qtr. -99     4th Qtr. -99     1st Qtr. -00
<S>                                 <C>             <C>              <C>              <C>              <C>
                   Wholesale        $269,810,903    $185,189,710     $165,426,612     $159,819,500     $144,043,724

                   Retail             27,053,889      21,097,932       75,457,636       69,371,902       77,405,856
                                    -------------   -------------    -------------    -------------    -------------
                   TOTAL            $296,864,792    $206,287,642     $240,884,248     $229,191,402     $221,449,580
                                    ============    ============     ============     ============     ============
</TABLE>

         The Company's mortgage loan volume declined by $75,415,212 or 25.4% for
         the first three months of 2000 when compared to the first three months
         of 1999 with wholesale mortgage loan production dropping by
         $125,767,179 or 46.6% while retail mortgage loan production more than
         doubled and increased by $50,351,967 or 186.1%. Wholesale loan
         production followed the overall slowdown in the mortgage banking
         industry as a result of increasing mortgage interest rates. Wholesale
         loan production of the office in Arizona and of the wholesale division
         of the acquired LRS, Inc. added to the volume but not enough to offset
         the decline in production of the other offices. On the other hand,
         retail production increased because of the large retail operations of
         the acquired LRS, Inc..

THREE  MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31, 1999

                   For the first three months of 2000 the Company incurred a net
                   loss of $1,346,499 compared to net income after tax of
                   $291,962 during the same period in 1999. Gross revenue
                   declined by $1,245,771 or $ 36.1% attributable to reduced
                   wholesale loan originations while expenses went up by
                   $604,112 or 20.5% because of the acquisition of LRS, Inc. on
                   July 31, 1999 and the establishment of new branches in
                   Houston, Texas, Reno, Nevada, and Phoenix, Arizona midyear
                   1999. The Company closed the branch in Texas but the
                   Company's Texas operation affected the results of operations
                   until end-March 2000. The Company closed the Reno branch in
                   December, and these operations did not affect the Company's
                   revenue or expenses in the first quarter of 2000.

                   Net gain on the sale of mortgage loans during the first
                   quarter of 2000 decreased by $1,076,287 or 73.1% compared to
                   the same period last year. Lower production volume and the
                   narrower profit margins on loan sales as a result of greater
                   competition caused this decline.

                   Production income increased by $366,216 or 39.1% because of
                   increased retail production described earlier. Production
                   income is primarily derived from loan fees from both
                   wholesale and retail production.

                   Interest income is derived from payments received on mortgage
                   loans during the period prior to the mortgage loan being sold
                   by the Company. Interest expense is incurred under the
                   Company's warehouse line of credit when the Company is
                   required to borrow to fund mortgage loans. During the first
                   quarter of 2000, the cost of borrowing exceeded the interest
                   received by the Company on the mortgage loans funded by the
                   Company resulting in a net interest expense of $19,049 in
                   contrast to a net interest income of $29,373 during the first
                   quarter of 1999. While the Company lowered interest costs by
                   changing to another warehouse line provider at the beginning
                   of this year, the change in loan mix, dictated by the market,
                   accounts for the negative interest spread this year compared
                   to 1999. As interest rates rose, competition increased and
                   the Company offered extremely low rates during the initial
                   loan period for certain variable rate mortgage loans. While
                   successfully attracting business, these rates are
                   significantly below the rates the Company pays for its
                   warehouse line until the loan is sold.

                   Salaries and benefits, general and administrative, and
                   occupancy expenses were all higher during the first three
                   months of 2000 compared to the first quarter of 1999 due to
                   expenses for the new loan production offices in Houston and
                   Phoenix which opened mid-June 1999 and most significantly due
                   to the addition of general overhead for the acquired LRS,
                   Inc. starting August 1999. The Company also paid a higher
                   combined rent when it consolidated its retail and wholesale
                   offices as well as its Accounting Department in one building
                   in San Francisco in July of 1999. Excluding interest expense,
                   other expenses combined increased by 57.1%, with salaries and
                   benefits up 45.8%, general and administrative expenses by 87%
                   and occupancy costs by 96.0%.

 LIQUIDITY AND CAPITAL RESOURCES


                   The Company's funding resources consist principally of a
                   warehouse line provided by a lender who fund mortgage loans
                   pending resale of the loans to investors. Until termination
                   on December 30, 1999, Guaranty Federal Bank provided this
                   facility. Beginning January 1, 2000 Residential Funding
                   Corporation replaced this facility. The Company's present
                   warehouse line with Residential Funding Corporation is for
                   $40 Million.

                   The Company also has a $10 Million Quick Sale Master Loan
                   Participation and Custodian Agreement with Gateway Bank. The
                   line terminates only upon written notice from either party.
                   The Company also had a Gestation Repurchase Line with Gateway
                   Bank for $15 Million which expired March 31, 2000 and which
                   is being renegotiated. There is also a whole loan Purchase
                   and Sales Agreement (Gestation Repurchase Line) with
                   Greenwich Capital for $30 Million. The line terminates only
                   upon written notice from either party. These lines provide
                   for the sale of mortgage loans pending final resale.

                   The Company believes that funds provided through these
                   facilities combined with cash flows from operations,are
                   sufficient to support its operations.in accordance with the
                   Year 2000 budget.

                   The acquisition of LRS, Inc. increased capital stock to
                   $10,558,709, or by $2,105,650 on July 31, 1999 which
                   increased the Company's capital and leveraged borrowing
                   capacity. The Company recorded goodwill of $3,944,425, which
                   is solely attributable to the acquisition of LRS, Inc. As
                   previously stated, this goodwill is being amortized over ten
                   years.

                                   SIGNATURES

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

                                   Transnational Financial Corporation


May 22, 2000                       /s/ Joseph Kristul


                                   --------------------------------------------
                                   Joseph Kristul, Chief Executive Officer
                                   And Principal Financial Officer