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 31st, 2001

[ ]      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
of  incorporation  or     organization)        (IRS Employer Identification No.)

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

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


         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 10, 2001: 4,279,310



<PAGE>




                      TRANSNATIONAL FINANCIAL NETWORK, INC.

                                 MARCH 31, 2001

                                    UNAUDITED



         TABLE OF CONTENTS                                          PAGE NUMBER


PART 1   ITEM 1      FINANCIAL INFORMATION


                     Condensed Balance Sheets as of March 31, 2001
                     and December 31, 2000                               2


                     Condensed Statements of Operations
                     For the Three Months Ended
                     March 31, 2001 and 2000                             3

                     Condensed Statements of Cash Flows for the
                     Three Months Ended March 31, 2001 and 2000          4


                     Notes to Condensed Financial Statements             5

         ITEM 2      Management's Discussion and Analysis
                     of Financial Condition and Results of Operations    7


                     SIGNATURES                                          12







                                      -1-
<PAGE>



                         ITEM I - FINANCIAL INFORMATION


                      TRANSNATIONAL FINANCIAL NETWORK, INC.

                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                 March 31,         December 31,
                                                                                    2001              2000
                                                                                -----------------  ---------------
                                                                                  (Unaudited)        (Audited)
ASSETS
<S>                                                                                  <C>            <C>
               Cash and cash equivalents                                             $   595,488    $    892,938
               Mortgage loans held for sale                                            1,681,942      20,307,222
               Accrued interest receivable                                                47,651          41,733
               Due from Shareholders                                                       6,284          11,613
               Receivable from Loan Link, LLC                                            300,000         300,000
               Notes receivable                                                          136,322         136,322
               Goodwill                                                                3,327,601       3,428,321
               Property and equipment, net                                               266,586         296,913
               Other assets                                                            2,392,950       1,477,077
                                                                                     -------------  --------------

TOTAL ASSETS                                                                         $ 8,754,824    $ 26,892,139
                                                                                     =============  ==============


LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:
              Warehouse notes payable                                                $         -    $ 19,645,445
              Accrued interest payable                                                   390,739         219,602
              Accounts payable and accrued liabilities                                   893,429         556,209
              Notes payable                                                              759,491               0
              Subordinated debt                                                        1,327,000         712,000
                                                                                     -------------  --------------

TOTAL LIABILITIES                                                                      3,370,659      21,133,256
                                                                                     -------------  --------------


SHAREHOLDERS' EQUITY:
              Preferred stock, no par value: 2,000,000 shares                                -                 -
                 authorized, no shares issued and outstanding
              Common stock, no par value: 10,000,000 shares
                 authorized: 4,279,310 shares issued and outstanding,
                 as of March 31, 2001 and December 31, 2000                           10,612,155
              Accumulated deficit                                                     (5,227,990)     10,594,450
                                                                                                      (4,835,567)
                                                                                     -------------  --------------

TOTAL SHAREHOLDERS' EQUITY                                                             5,384,165       5,758,883
                                                                                     -------------  --------------


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                           $ 8,754,824    $ 26,892,139
                                                                                     =============  ==============
</TABLE>



            See accompanying notes to condensed financial statements.


                                      -2-
<PAGE>


                      TRANSNATIONAL FINANCIAL NETWORK, INC.

                       CONDENSED STATEMENTS OF OPERATIONS

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                      For the Three
                                                                      Months Ended
                                                                        March 31,
                                                              ------------------------------

                                                                  2001            2000
                                                                  ----            ----
    INCOME

<S>                                                             <C>             <C>
                 Net gain on sale of mortgage loans             $ 1,152,671     $   397,164
                 Production income                                2,004,432       1,302,488
                 Interest Income                                  1,249,883         474,757
                 Other                                              555,134          28,925

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

                                                                  4,962,120       2,203,334
                                                                ------------    ------------


   EXPENSES

                 Interest expense                                 1,665,982         493,807
                 Salaries, benefits and commissions               2,766,226       2,085,717
                 General and administrative                         744,590         790,797
                 Occupancy                                          177,745         179,512
                                                                ------------    ------------

                                                                  5,354,543       3,549,833
                                                                ------------    ------------


LOSS BEFORE INCOME TAXES                                           (392,423)     (1,346,499)


INCOME TAXES                                                              -               -

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

NET LOSS                                                        $  (392,423)    $(1,346,499)
                                                                ============    ============



NET LOSS PER SHARE

                 Basic and diluted                              $    (0.09)     $    (0.31)


WEIGHTED AVERAGE SHARES OUTSTANDING
                  Basic and diluted                               4,279,310       4,279,310
</TABLE>




           See accompanying notes to condensed financial statements.

                                      -3-
<PAGE>


                      TRANSNATIONAL FINANCIAL NETWORK, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS

                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                          For the Three
                                                                                     Months Ended March 31,
                                                                                      2001               2000
                                                                                -----------------   --------------

Cash flows from operating activities:
<S>                                                                                <C>              <C>
            Net loss                                                               $    (392,423)   $  (1,346,499)
            Adjustments to reconcile net loss to net cash provided
            By (used in) operating activities:
                   Gain on sale mortgage loans                                        (1,152,671)        (368,412)
                   Gain on sale of investment in LoanLink, LLC                          (300,000)               -
                   Provision for early payoffs and loan losses                            44,000           28,752
                   Issuance of stock warrants for subordinated debt                       17,705                -
                   Depreciation and amortization                                         149,445          155,010
                   Mortgage loans originated for sale                               (258,330,699)    (152,070,208)
                   Proceeds from sales of mortgage loans                             278,064,650      133,735,137
                   Changes in assets and liabilities:
                        Accrued interest receivable                                       (5,918)          10,148
                        Due from shareholder                                               5,329                -
                        Notes receivable                                                       -           35,819
                        Other assets                                                    (915,873)         279,721
                        Accrued interest payable                                         171,137          (68,449)
                                    Accounts payable and accrued liabilities             337,220          (70,804)
                                                                                   --------------   --------------

            Net cash provided by (used in) operating activities                       17,691,902      (19,679,785)
                                                                                   --------------   --------------


Cash flows from investing activities:
            Purchases of property and equipment                                          (18,398)          (2,967)
            Repayment of advances by Loan Link, LLC                                            -          200,000
            Proceeds from sale of equity interest in LoanLink, LLC                       300,000                -
                                                                                   --------------   --------------

            Net cash provided by (used in) investing activities                          281,602         197,033
                                                                                   --------------   --------------

Cash flows from financing activities:
            Borrowings on warehouse notes payable                                    255,511,594      188,108,591
            Payments on warehouse notes payable                                     (275,157,039)    (167,749,845)
            Payments on real estate mortgage                                                  -              (709)
            Borrowings on subordinated debt                                              615,000                -
            Short-term borrowings                                                        759,491                -
                                                                                   --------------   --------------

            Net cash provided by (used in) financing activities                      (18,270,954)      20,358,037
                                                                                   --------------   --------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                    (297,450)         875,285
                                                                                   --------------   --------------

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                           892,938          862,257
                                                                                   --------------   --------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                           $     595,488    $   1,737,542

                                                                                   ==============   ==============


Cash paid during the period for:

                      Interest paid                                                $   1,569,438    $     562,255

                      Income taxes paid                                            $       1,540    $           -
</TABLE>


           See accompanying notes to condensed financial statements.






                                      -4-
<PAGE>


                      TRANSNATIONAL FINANCIAL NETWORK, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS

                                 MARCH 31, 2001
                                   (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, 2000. 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.

NOTE 2      The results of operations of the Company for the three-month
            periods ended March 31, 2001 and 2000 are not necessarily indicative
            of the results to be expected for the full year.

NOTE 3      Net Loss Per Share -

            Basic net loss per share is computed by dividing net loss by the
            weighted average common shares outstanding during the period.
            Diluted net loss per share is computed based on the weighted average
            number of common shares outstanding adjusted for potentially
            dilutive securities. For the three months ended March 31, 2001 and
            2000, the effect of including potentially dilutive securities in the
            calculation of diluted net loss per share would be antidilutive. As
            a result, the effect of potentially dilutive securities of 703,500
            has not been included in the calculations.

NOTE 4      Warehouse Loans -

            The Company has determined that each of its warehouse financing
            facilities qualifies for sales treatment under SFAS 125.


                                      -5-
<PAGE>


NOTE 5      Subordinated Debt and Notes Payable -

            During the first quarter of 2001, the Company received additional
            subordinated debt in the amount of $615,000. The subordinated debt
            bears interest at 15% and has five-year detachable warrants to
            purchase 35,000 shares of common stock at $.75 per share. The
            maturity dates of this subordinated debt range from March 31, 2003
            to March 31, 2004

            Also during the first quarter of 2001, the Company raised short-term
            borrowings of $759,491 from various members of management and
            shareholders. These short-term borrowings bear interest at 12% and
            have maturity dates ranging from April 30, 2001 to May 15, 2001. As
            of May 10, 2001, all but $109,491 of these amounts had been repaid.

NOTE 6      Significant Events -

            During the first quarter of 2001, the Company was informed by The
            Federal Bureau of Investigation that as part of a Department of
            Justice plea bargain, $230,127 in fraudulent loan losses and
            collection expenses the Company incurred during 1998 and 1999 would
            be paid by the defendant. Accordingly, this amount was recorded as
            "Other Income".

            During the first quarter of 2001, the Company sold 50% of its 19.9%
            interest in Loan Link LLC for $300,000. Since the investment was
            carried at "zero" value on the Company's books, the entire amount
            was recorded as "Other Income".





                                      -6-
<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. ("Transnational Financial
            Network, Inc." 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 principally in the San
            Francisco Bay area, Southern California, and Arizona. Since 1985,
            when the Company was incorporated, it has been engaged in the retail
            origination of mortgage loans, and currently maintains retail
            offices in San Francisco and Campbell, California. In 1995, the
            Company began a wholesale division to close and fund loans
            originated by mortgage brokers as well as those originated through
            the Company's retail division. The Company maintains wholesale
            offices in San Francisco, Campbell, and Tustin, California as well
            as Phoenix, Arizona. The Company operates in one business segment -
            mortgage banking.

                                      -7-
<PAGE>

            The Company's loan production and results of operations are strongly
            affected by mortgage interest rates. Increasing mortgage rates
            raises the qualifying income required of a homebuyer and reduces
            housing affordability. It also causes mortgage refinance activity to
            decline because fewer homeowners can successfully obtain a mortgage
            at a lower interest rate than their original mortgage. Higher
            interest rates increase the cost of home ownership resulting in
            diminished demand for mortgage loans, whether the purpose of the
            mortgage loan was for the purchase of a home, refinancing of a home
            to obtain a lower rate or longer term, home improvement, debt
            consolidation, or obtaining cash. When rates are high, the mortgage
            loan financing that does occur usually takes the form of roll over
            mortgages loans, that is, mortgage loans that have interest rates
            that frequently change and, consequently, lower interest rates than
            that charged on longer term fixed interest rate mortgage loans.

            Throughout 1999 mortgage interest rates increased. In January 1999,
            30-year mortgage interest rates were 6.74%, reaching 7.55% at the
            end of the second quarter and 7.91% at year-end. During the first
            quarter of 2000 the 30-year mortgage rate went up to 8.24%, then
            peaked at 8.54% in the middle of June. Rates dropped steadily over
            the remainder of the year, and as of December 31, 2000 the 30-year
            fixed rate average had dropped to approximately 7.13%. Rates
            remained at these favorable levels during the first quarter of 2001,
            ranging between 6.95% and 7.05%.

            As a consequence, the Company saw its volume of mortgage
            originations pick-up (as rates dropped) during the 4th quarter of
            2000 and into the first quarter of 2001.


            The following table sets forth the wholesale and retail production
            for the periods indicated:

<TABLE>
<CAPTION>
                                1st Qtr-00      2nd Qtr-00      3rd Qtr-00      4th Qtr-00      1st Qtr-01
                                -------------   -------------   -------------   -------------   -------------
<S>                             <C>             <C>             <C>             <C>             <C>
               Wholesale        $ 144,043,724   $ 130,878,546   $ 154,913,511   $ 181,744,512   $ 241,779,524

               Retail              77,405,856      82,928,025      67,973,925      87,598,298     108,326,735

                   Total        $ 221,449,580   $ 213,806,571   $ 222,887,436   $ 269,342,810   $ 350,106,259
</TABLE>




            Overall, the Company's mortgage loan volume increased by $128.7
            million or 58% for the first three months of 2001 when compared to
            the first three months of 2000. Wholesale mortgage loan production
            through March 31st of this year was $97.7 million or 68% greater
            than in the same period in 2000. Retail loan production was $30.9
            million or 40% more compared to the first quarter of 2000.

                                      -8-
<PAGE>


            THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO THREE MONTHS ENDED
            MARCH 31, 2000

            The Company incurred a net loss of $392,423 for the three months
            ended March 31, 2001 compared to a net loss of $1,346,499 during the
            comparable period last year. Overall, the smaller net loss in the
            first quarter of 2001 compared to the same period last year was the
            result of (1) a 58% increase in loan volume, (2) a 24% drop in
            operating costs as a percentage of loan volume, and (3) a $526,209
            increase in other income. These factors offset a $397,049 increase
            in net interest expense over the prior year.

            Net gain on sale of mortgage loans increased $755,507 or 190%. The
            bulk of the increase in net gain on sale arose from higher wholesale
            loan production and better overall prices on loans sold. Total
            wholesale loans closed were $97.7 million or 68% greater than in the
            same period last year.

            Production income increased by $701,944 or 54%. Production income
            increased because of an increase in retail origination fees and
            wholesale "junk" fees posted during the first quarter
            this year. Retail loan production was $30.9 million or 40% greater
            than in the first quarter of 2000.

            Other income was higher by $526,209 or 1,800% for the first quarter
            of 2001 compared to the totals for the same period last year. Other
            income rose because of (1) the sale of a portion of the Company's
            interest in Loan Link, LLC ($300,000) and the recovery of fraudulent
            loan losses and collection expenses ($230,127) that the Company
            incurred during 1998 and 1999 (see Item 1 - Note 5 to the Financial
            Statements).

            During the first quarter of 2001, the Company incurred a net
            interest expense of $416,099 compared to a net interest expense in
            the first quarter of 2000 of $19,050. The unfavorable result in 2001
            reflects (1) greater levels of loans warehoused by the company in
            the first quarter of 2001 - this is a result of increasing business
            volumes and longer dwell times for those loans, and (2) the negative
            gap between the initial interest rates on mortgage loans funded and
            the interest rate on the Company's warehouse lines that increased as
            the Company began using new, higher priced, warehouse lenders
            beginning in the fourth quarter of 2000.

            The Company has taken steps to better manage expenses which it
            started in 2000. These steps include reducing the number of
            support staff, placing account executives on straight commission so
            that compensation will vary with loan production, renegotiating
            vendor contracts, prioritizing technology projects, and managing
            down delivery and fax expenses by limiting distribution of rate
            sheets to only active brokers. The effect of these cost cutting
            measures was to scale down operating expenses (not including
            interest expense) to 1.05% of loan volume during the first quarter
            of 2001 compared to 1.38% during the same period in 2000.

                                      -9-
<PAGE>

            Excluding interest expense, total expenses were $632,535 or 21%
            higher during the first quarter of 2001 compared to the same period
            in 2000. This compares favorably to a 58% increase in loan volumes
            over the same period. Commissions increased by $487,545 or 60% and
            salaries and benefits increased by $192,964 or 15%, as a result of
            higher loan volumes. General and administrative expenses decreased
            by $46,207 or 6%, and occupancy costs decreased by $1,767 or 1%,
            mainly as a result of the previously discussed cost reduction
            efforts.

            LIQUIDITY AND CAPITAL RESOURCES

             The Company's capital resources are substantially provided by
             warehouse lenders that fund (through a purchase as defined under
             SFAS 125) the mortgage loans pending the mortgage loan's final sale
             to investors. The size of the Company's warehouse facilities is
             based on the Company's net worth and cash resources. The Company's
             operating losses have eroded this net worth and cash position. As
             of March 31, 2001 the Company had four financing facilities for a
             total of $70 million. These warehouse facilities have various
             financial and operational covenants with which the Company must
             comply. As of March 31, 2001 the Company was in default under
             certain financial covenants of these lines that require the
             maintenance of minimum levels of net worth and/or the attainment of
             positive earnings.

             On April 17, 2001 the Company was informed by one of its warehouse
             lenders which provided a $20 million facility that as a result of
             certain events of default, the lnder was ceasing further purchases
             under the line. The Company has informed its other warehouse
             lenders of the events of default and each has informally stated
             that although the Company was in violation of certain of their
             covenants, there have been significant operational improvements
             during the quarter and as such the current relationship will
             continue.

             As a result of the above-mentioned freeze on one of its warehouse
             lines, the Company has been forced to reduce its levels of loan
             production.  Wholesale production in April, 2001 totaled $68.1
             million, a 26% decline over February's peak volume of $91.7
             million. Failure to replace this warehouse line will adversely
             affect its financial performance and will limit the Company's
             ability to grow.

             During the first quarter of 2001, the Company raised additional
             subordinated debt in the amount of $615,000. Despite this cash
             infusion, the Company's cash position during the first quarter of
             2001 was strained as a result of: (1) a significant increase in
             mortgage loan originations, (2) an increase in the period of time
             between a mortgage loan's closing and its final sale to investors,
             and (3) operating losses. As of March 31, 2001 the Company had to
             rely on short-term borrowings of $759,491 from various members of
             management and shareholders in order to support its business
             activities. As previously discussed, during April, 2001 the Company
             experienced a reduced level of loan originations and, therefore,
             related cash needs, allowing all but $109,491 of these short-term
             borrowings to be repaid by May 10, 2001.

             In order to fund its business activities over the remainder of
             2001, the Company has undertaken the following operating and
             financing activities:

             1. Strengthened broker pricing policies and procedures to reduce
                price concessions and increase loan margins. As a result,
                the gain on loans sold in the month of April increased
                approximately 15bps over March, 2001.
             2. Restructured underwriting and processing activities involving
                loan applications in order to better match staffing levels with
                loan volumes. As a result, staff levels are 22% lower when
                compared to March 31, 2001 levels, and overtime and temporary
                help expenses have been reduced.
             3. Restructured funding and shipping procedures in order to reduce
                warehouse time. As a result, the period of time between a
                mortgage loan's closing and its final sale to investors has
                decreased from a high of approximately 30 days to current levels
                of 20 days with a target of 15 days; and
             4. Raised an additional $120,000 in subordinated debt as of May 10,
                2001 and received a commitment for an additional $300,000 to be
                infused during the week of May 14, 2001.

             In addition, the Company has been seeking additional equity funds
             that, if received, would both provide additional cash and allow
             the Company to renegotiate the interest rates it pays on current
             warehouse facilities. This would result in a reduction in the
             Company's negative net interest margin that has been a significant
             contributor to operating losses. The Company's net interest
             margin has been improving since the end of the first quarter of
             2001 due to the Federal Reserve Bank's lowering of short-term
             rates without a corresponding drop in fixed rate mortgage yields.

             The Company believes that the result of these activities combined
             with cash flows from operations and continuing efforts to optimize
             on current resources will improve the Company's cash position to
             a level adequate to support its operations through the remainder
             of the year.  However, there are no guarantees that these steps
             will result in a return to profitability.





                                      -11-
<PAGE>


                                   SIGNATURES


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



                                     Transnational Financial Network, Inc.



May 11, 2001                         /s/ Joseph Kristul
                                     -----------------------------------------
                                     Joseph Kristul, Chief Executive Officer
                                     And Principal Financial Officer