<PAGE>

                           Form 10-Q Quarterly Report

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

[x]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT
       OF 1934

                For the quarterly period ended September 30, 2001

                                       OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      ACT OF 1934

                         Commission File Number: 1-7614
                          -----------------------------

                              PMCC FINANCIAL CORP.
             (Exact Name of Registrant as Specified in its Charter)


           Delaware                                    11-3404072
 (State or other Jurisdiction of                    (I.R.S. Employer
Incorporation or Organization)                    Identification Number)


                               1767 Morris Avenue
                                Union, N.J. 07083
              (Address of Principal Executive Offices and Zip Code)

                                 (908) 687-2000
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

         Yes       X                No
              ------------              --------

Number of shares outstanding of the issuer's Common Stock, par value $.01 per
share, as of November 6, 2001: 3,707,000 shares.






<Page>




                              PMCC FINANCIAL CORP.

                                    FORM 10-Q

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                      Page No
                                                                                      -------
<S>                                                                                    <C>
Part I - Financial Information

    Item 1.  Condensed Financial Statements:

             Condensed Consolidated Statements of Operations (Unaudited)
                  Three Months Ended September 30, 2001 and 2000                       3
                  Nine months Ended September 30, 2001 and 2000                        4

              Condensed Consolidated Statements of Financial Condition
                  September 30, 2001 (Unaudited) and December 31, 2000 (Audited)       5

              Condensed Consolidated Statements of Cash Flows (Unaudited)
                  Nine months Ended September 30, 2001 and 2000                        6

              Notes to Condensed Consolidated Financial Statements (Unaudited)         7-13

     Item 2. Management's Discussion and Analysis of Financial Condition               14-21
                and Results of Operations

Part II -  Other Information                                                           22

Signatures                                                                             23
</TABLE>





                                       2







<Page>




                         Part I - FINANCIAL INFORMATION

Item 1.  Condensed Financial Statements


                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                            Three Months Ended
                                                                               September 30,
                                                                          2001              2000
                                                                          ----              ----
<S>                                                                     <C>             <C>
Revenues:
Sales of residential rehabilitation properties                          $       --      $1,692,348
Gains on sale of mortgage loans, net                                     1,205,621         761,840
Interest earned                                                            281,059         232,206
                                                                        ----------      ----------
     Total Revenues                                                      1,486,680       2,686,394
                                                                        ----------      ----------
Expenses:
Costs of sales, residential rehabilitation properties                           --       1,650,645
Compensation and benefits                                                  601,793         963,310
Interest expense                                                           240,669         464,976
Expense credit and expenses
     resulting from Investigation, net (Note 8)                           (188,023)         86,500
Expenses relating to closing Roslyn office                                      --         551,170
Other general and administrative                                           509,836         819,842
                                                                        ----------      ----------
     Total Expenses                                                      1,164,275       4,536,443
                                                                        ----------      ----------


Income (loss) before income taxes                                          322,405      (1,850,049)
Income taxes                                                                    --              --
                                                                        ----------      ----------
         Net income (loss)                                                $322,405     $(1,850,049)
                                                                        ==========     ===========

Net income (loss) per share of common stock
     -basic and diluted                                                      $0.09         $(0.50)
                                                                        ==========     ===========

Weighted average number of shares and
   share equivalents outstanding-basic and diluted                       3,707,000       3,707,000
                                                                        ==========     ===========
</TABLE>



See accompanying notes to unaudited condensed consolidated financial statements.






                                       3







<Page>





                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                           Nine months Ended
                                                                              September 30,
                                                                          2001              2000
                                                                          ----              ----
<S>                                                                      <C>           <C>
Revenues:
Sales of residential rehabilitation properties                           $ 269,750     $16,143,462
Gains on sale of mortgage loans, net                                     2,649,700       2,412,274
Loss on sales of delinquent loans                                               --        (900,000)
Interest earned                                                            679,214       1,231,358
                                                                        ----------     -----------
     Total Revenues                                                      3,598,664      18,887,094
                                                                        ----------     -----------
Expenses:
Costs of sales, residential rehabilitation properties                      442,520      15,838,998
Compensation and benefits                                                1,824,552       4,313,868
Interest expense                                                           737,353       1,537,155
Expense credit and expenses
     resulting from Investigation, net (Note 8)                           (315,309)      1,577,400
Expenses relating to closing Roslyn office                                      --         551,170
Other general and administrative                                         1,539,247       2,903,507
                                                                        ----------     -----------
     Total Expenses                                                      4,228,363      26,722,098
                                                                        ----------     -----------


Loss before income taxes                                                  (629,699)     (7,835,004)
Income tax benefit                                                              --      (1,161,435)
                                                                        ----------     -----------
         Net  loss                                                       $(629,699)    $(6,673,569)
                                                                        ==========     ===========

Net loss per share of common stock-basic and diluted                        $(0.17)         $(1.80)
                                                                        ==========     ===========

Weighted average number of shares and
   share equivalents outstanding-basic and diluted                       3,707,000       3,707,000
                                                                        ==========     ===========
</TABLE>



See accompanying notes to unaudited condensed consolidated financial statements.



                                       4






<Page>




                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
            Condensed Consolidated Statements of Financial Condition


<TABLE>
<CAPTION>
                                                                      (Unaudited)      (Audited)
                                                                     September 30,    December 31,
                                                                         2001             2000
                                                                         ----             ----
<S>                                                                 <C>               <C>
Assets
Cash and cash equivalents                                              $184,598          $21,988
Mortgage loans held for sale, net                                     9,354,950       12,590,415
Mortgage loans held for investment, net                                 179,237          226,650
Accrued interest receivable                                             102,000          150,000
Other receivables, net                                                1,011,349        1,417,611
Residential rehabilitation properties, net                              430,014          670,395
Furniture, fixtures & equipment, net                                    363,628          512,718
Prepaid expenses and other assets                                       142,901          210,428
                                                                    -----------      -----------
Total assets                                                        $11,768,677      $15,800,205
                                                                    ===========      ===========

Liabilities
Notes payable-principally warehouse lines of credit                  $9,002,142      $12,374,111
Accrued expenses and other liabilities                                1,180,591        1,210,451
                                                                     ----------      -----------

Total liabilities                                                    10,182,733       13,584,562
                                                                     ----------      -----------

Shareholders' equity
Common stock, $.01 par value; 40,000,000 shares
     authorized; 3,750,000 shares issued                                 37,500           37,500
Additional paid-in capital                                           11,038,538       11,038,538
Accumulated deficit                                                  (9,235,623)      (8,605,924)
Treasury stock, 43,000 shares, at cost                                 (254,471)        (254,471)
                                                                    -----------      -----------
Total  shareholders' equity                                           1,585,944        2,215,643
                                                                    -----------      -----------

Total liabilities and shareholders' equity                          $11,768,677      $15,800,205
                                                                    ===========      ===========

</TABLE>


See accompanying notes to unaudited condensed consolidated financial statements





                                       5









<Page>




                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                        Nine months ended
                                                                                          September 30,
                                                                                     2001              2000
                                                                                     ----              ----
<S>                                                                               <C>              <C>
Cash flows from operating activities:
Net  loss                                                                         $ (629,699)      $(6,673,569)
    Adjustments to reconcile net loss to net cash
        provided by operating activities:
         Residential rehabilitation properties (exclusive of cash paid directly
         to/by independent contractors):
           Contractual fees paid (received)                                            2,577          (304,464)
           Proceeds from sales of properties and other related costs                 269,750        16,143,462
           Costs of properties acquired and other related costs                      (31,946)       (1,873,491)
         Depreciation and amortization                                               149,089           275,822
         Decrease (increase) in interest and other receivables                       454,262        (1,090,304)
         Decrease in mortgage loans held for sale
                    and investment, net                                            3,282,878        22,546,942
         Decrease in receivable from sales of loans                                       --         4,300,279
         Decrease in prepaid expenses and other assets                                67,526           406,424
         Decrease in deferred taxes payable                                               --          (333,000)
         Decrease in accrued expenses and other liabilities                          (29,858)         (102,201)
                                                                                   ---------        ----------

Net cash provided by operating activities                                          3,534,579        33,295,900
                                                                                   ---------        ----------

Cash flows from investing activities:
         Disposition of furniture and equipment                                           --           264,146
         Purchase of furniture and equipment                                              --           (63,250)
                                                                                   ---------        ----------
Net cash provided by investing activities                                                 --           200,896
                                                                                   ---------        ----------
Cash flows from financing activities:
               Net decrease in notes payable-principally
                     warehouse lines of credit                                    (3,371,969)      (34,210,121)
                Net decrease in restricted cash                                           --           500,000
                Issuance of warrants                                                      --            50,000
                                                                                  ----------       -----------
Net cash used in financing activities                                             (3,371,969)      (33,660,121)
                                                                                  ----------       -----------

Net increase (decrease) in cash and cash equivalents                                 162,610          (163,325)

Cash and cash equivalents at beginning of period                                      21,988           214,957
                                                                                   ---------        ----------

Cash and cash equivalents at end of period                                          $184,598           $51,632
                                                                                   =========        ==========

Supplemental disclosures of cash flow information:

  Cash paid during the period for:
           Interest                                                                 $437,045        $2,179,570
                                                                                    ========        ==========
           Income taxes                                                               $1,350           $11,190
                                                                                      ======           =======
           Loans transferred from mortgage loans held for sale to
               held for investment, net                                                   $0          $470,100
                                                                                          ==          ========
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements



                                       6






<Page>




                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2001
                                   (Unaudited)

1.    Business

      PMCC Financial Corp. (the "Company"), a Delaware corporation, was
      organized in 1998 to own the stock of PMCC Mortgage Corp. ("PMCC")
      (formerly Premier Mortgage Corp.) and its subsidiaries. The Company is a
      mortgage banker operating primarily in New York, New Jersey and Florida.
      Since April 2001 PMCC Mortgage operates under the d/b/a "Geneva Mortgage
      Co." in New York and New Jersey. The Company's principal business
      activities are (i) the origination of residential mortgage loans and the
      sale of such loans in the secondary market on a servicing released basis
      and (ii) the funding of the purchase, rehabilitation and resale of vacant
      residential real estate properties, which the Company is in the process of
      temporarily winding down. Residential mortgage loans are sold on a
      non-recourse basis except for indemnifications or buybacks required for
      certain early payment defaults or other defects.

      The mortgage banking industry is generally subject to seasonal trends.
      These trends reflect the general pattern of resales of homes, which sales
      typically peak during the spring and summer seasons and decline from
      January through March. Refinancings tend to be less seasonal and more
      closely related to changes in interest rates.

2.    Basis of Presentation

      The unaudited condensed consolidated financial statements included herein
      reflect all adjustments, which are, in the opinion of management necessary
      for a fair presentation of the Company's financial condition as of the
      dates indicated and the results of operations for the periods shown. All
      such adjustments are of a normal recurring nature. In preparing the
      accompanying condensed consolidated financial statements, management is
      required to make estimates and assumptions that reflect the reported
      amounts of assets and liabilities as of the date of the condensed
      consolidated statements of financial condition and of income and expenses
      for the periods presented in the condensed consolidated statements of
      operations. The results of operations for the quarter and nine months
      ended September 30, 2001 are not necessarily indicative of the results of
      operations to be expected for the remainder of the year. Certain
      information and note disclosures normally included in financial statements
      prepared in accordance with generally accepted accounting principles have
      been omitted pursuant to rules and regulations of the Securities and
      Exchange Commission.

      These unaudited condensed consolidated financial statements should be read
      in conjunction with the audited consolidated financial statements and
      notes thereto included in the Company's Form 10-K for the year ended
      December 31, 2000.




                                       7






<Page>



3.    Income Taxes

      The Company accounts for income taxes under the liability method as
      required by SFAS No. 109.

4.    Earnings Per Share of Common Stock

      Basic EPS is determined by dividing net income for the period by the
      weighted average number of common shares outstanding during the same
      period. Diluted EPS reflects the potential dilution that could occur if
      securities or other contracts to issue common stock were exercised or
      converted into common stock or resulted in the issuance of common stock
      which would then share in the earnings of the Company. There were no
      outstanding dilutive stock options or warrants for the quarters or nine
      months ended September 30, 2001 and 2000.

5.    Notes Payable

      At September 30, 2001, substantially all of the mortgage loans held for
      sale and investment, receivable from sales of loans and certain
      residential rehabilitation properties were pledged to secure notes payable
      under warehouse lines of credit agreements. The notes are repaid as the
      related mortgage loans or residential rehabilitation properties are sold
      or collected.

      On February 28, 2000, the Company entered into a Master Repurchase
      Agreement that provides the Company with a warehouse facility (the "IMPAC
      Line") through IMPAC Warehouse Lending Group ("IMPAC"). The IMPAC Line
      provides a committed warehouse line of credit of $20 million for the
      Company's mortgage originations only. The IMPAC Line is secured by the
      mortgage loans funded with the proceeds of such borrowings. Interest
      payable is variable based on the Prime Rate as posted by Bank of America,
      N.A. plus 0.50%. The IMPAC Line has no stated expiration date but is
      terminable by either party upon written notice. In November 2001, the
      Company entered into a Supplement Agreement, which amended the warehouse
      agreement, to allow the Company to use up to 75% of the line to warehouse
      loans which can be sold on a bulk basis to non-IMPAC investors.

      The Company's warehouse line of credit with Chase Bank of Texas, National
      Association ("Chase") and PNC Bank ("PNC") is expected to be paid in full
      no later than December 31, 2001. The balance outstanding on this line at
      both September 30, 2001 and November 6, 2001 is approximately $56,000.

6.    Concentrations

      The Company may be exposed to a concentration of credit risk from a
      regional economic standpoint as loans were primarily originated in Florida
      and the New York Metropolitan area.

      The Company currently finances its mortgage banking operations with a
      single warehouse facility (the IMPAC Line - see Note 5). The IMPAC Line
      has no stated expiration date, but is terminable by either party upon
      written notice. Management believes that there are other financial
      institutions that could provide the Company



                                       8






<Page>




      with a similar facility on comparable terms. However, a termination of the
      current warehouse facility without an immediate replacement could cause an
      interruption to the Company's operations and possible loss of revenue,
      which would affect operating results adversely.

 7.   Related-Party Transactions

      On June 8, 2000, the Company borrowed $275,000 from a company wholly-owned
      by Robert Friedman, owner of 14% of the Company's outstanding stock and
      the father of Ronald Friedman, the Company's former President and CEO
      currently a consultant to the Company. This loan is evidenced by a
      promissory note due and payable on demand with a maturity of one year. The
      interest rate on the note is 16% per annum payable monthly. The note is
      secured by properties and a mortgage which the Company owns. Under the
      same note, the Company borrowed an additional $50,000 in July 2000. The
      Company repaid $80,000 in August 2000 and $175,000 in October 2000 when a
      portion of the underlying collateral was sold by the Company. The balance
      due on the note at September 30, 2001 is $70,000 which is included in
      "Notes payable - principally warehouse lines of credit" in the
      accompanying Condensed Consolidated Statements of Financial Condition. The
      balance due on the note at November 8, 2001 is $70,000.

      On April 24, 2001, the Company borrowed $63,125 from a trust controlled by
      Ronald Friedman, owner of 46% of the Company's outstanding stock and a
      consultant to the Company. This loan is evidenced by a promissory note due
      and payable in monthly installments through October 2001. The interest
      rate on the note is 12% per annum payable monthly. The note is secured by
      properties which the Company owns. The balance due on the note at
      September 30, 2001 is $40,000 which is included in "Notes payable -
      principally warehouse lines of credit" in the accompanying Condensed
      Consolidated Statements of Financial Condition. The balance due on the
      note at November 8, 2001 is $40,000. On October 18, 2001, the Company
      borrowed $100,000 from the same trust. This loan is evidenced by a
      promissory note due and payable in November 2001. The interest rate on the
      note is 10% per annum. The note is secured by proceeds from sales of loans
      and insurance proceeds which the Company will receive. The balance due on
      the note at November 8, 2001 is $100,000.

      The Company has amounts receivable due from an officer of the Company in
      the amount of $148,782 and $267,782, which is included in "Other
      receivables - net" in the accompanying Condensed Consolidated Statements
      of Financial Condition at September 30, 2001 and December 31, 2000,
      respectively. These amounts consist of general advances and a non-interest
      bearing note that have undefined repayment terms. In lieu of salary, the
      receivable was reduced by $40,000 in the quarter ended September 30, 2001.

      A relative of Ronald Friedman has an economic interest in a rehab partner
      for the purchase and sale of rehabilitation properties with a subsidiary
      of PMCC. At September 30, 2001, the subsidiary owned no remaining
      properties. At September 30, 2001, the Company has an outstanding
      receivable from this rehab partner of


                                       9






<Page>




      approximately $344,000, substantially all of which has been reserved,
      which is included in "Other receivables - net" in the accompanying
      Condensed Consolidated Statements of Financial Condition.

8.    HUD Investigation and Settlement

      The U.S. Attorney's Office for the Eastern District of New York ("U.S.
      Attorney") has conducted an investigation (the "Investigation") into
      allegations asserted in a criminal complaint against Ronald Friedman, the
      former Chairman of the Board, President and Chief Executive Officer of the
      Company, and a loan officer formerly employed by the Company.

      The Company, the U.S. Attorney and HUD have recently agreed to a Consent
      Decree and Order to resolve the case in a manner in which the Company will
      not be prosecuted and will reimburse HUD $100,000 for certain losses,
      costs and expenses related to the loans under investigation. This amount
      is being reimbursed to the Company under its Errors and Omissions
      insurance. The Consent Decree and Order has been signed by the Company and
      the U. S. Attorney's office, but is awaiting final signature from HUD and
      the subsequent approval of the court.

      As a result of this investigation, the Company incurred expenses in the
      aggregate of approximately $1.3 million since January 2000. These expenses
      include legal and professional fees incurred in connection with the
      internal investigation of the Company, criminal defense attorneys and
      negotiations of warehouse lines of credit amendments. For the quarter and
      nine months ended September 30, 2001, the Company recorded a credit of
      $205,000 for legal fees that are being reimbursed through the Company's
      Directors and Officers Insurance.

9.    Litigation and Contingencies

      Litigation

      In July 2001, the Company was named one of 20 defendants in a class action
      discrimination lawsuit filed in the Eastern District of the United States
      District Court concerning the issuance of HUD mortgages (Maxine Wilson et
      al v. Isaac Toussie et al). The Company vigorously disputes this claim and
      believes it is without merit. The Company's Errors and Omissions insurance
      company has agreed to defend the Company in this matter. The Company is
      unable to predict the outcome of this claim and, accordingly, no
      adjustments regarding this matter have been made in the accompanying
      consolidated financial statements.



      Contingencies

      One of the Company's warehouse banks has indicated that the Company owes
      such bank a total of $250,000 in penalties and fees in relation to its
      line of credit with the



                                       10






<Page>




      bank. The Company vigorously disputes this claim and believes it is
      without merit. The Company is unable to predict the outcome of this claim
      and, accordingly, no adjustments regarding this matter have been made in
      the accompanying consolidated financial statements.

10.   Sale of Stock

      Effective July 28, 2000, PMCC Financial Corp. announced that Internet
      Business's International, Inc. ("IBUI") purchased the 2,460,000 shares of
      the Company held by Ronald Friedman, Robert Friedman and the Ronald
      Friedman 1997 Guarantor Retained Annuity Trust (collectively, the
      "Sellers") in a private transaction (the "Transaction"). This purchase
      represented 66.36% of the 3,707,000 shares of common stock of the Company
      outstanding. IBUI is a holding company with a variety of Internet
      subsidiaries that trades publicly under the symbol IBUI on the NASDAQ
      Bulletin Board. At the closing, all shares purchased by IBUI from the
      Sellers were deposited in escrow with the Sellers' attorney. These shares
      were to be released to IBUI upon receipt of the scheduled installment
      payments.

      The Company has been informed by the Sellers that certain payments due
      under the agreement by IBUI to purchase shares of the Company's stock from
      the Sellers were not made and that an event of default has been declared
      against IBUI under this purchase agreement and the shares held in escrow
      have been returned to the Sellers. On March 2, 2001 IBUI filed an action
      against the Sellers for recission of the purchase of the PMCC stock and
      return of the moneys expended therefor and on August 16, 2001 the Sellers
      filed an action against IBUI for the balance of the amounts due under the
      purchase agreement. At October 15, 2001, the transfer agent has indicated
      that IBUI owns 269,230 shares of PMCC stock or 7.26% of the total shares
      outstanding.

11.   American Stock Exchange

      On December 22, 1999, the American Stock Exchange (the "Amex") suspended
      trading of the Company's Common Stock and commenced a review of the
      listing status of the Common Stock. On January 4, 2001, after a lengthy
      review and appeal process, the Company's common stock was removed from
      listing and registration on the Amex. The Company's common stock is
      currently trading on the Pink Sheets under the symbol "PMCF".


12.   Supplemental Information

      The Company's operations consist of two principal activities (a)
      mortgage banking and (b) funding the purchase, rehabilitation and
      resale of residential real estate. The following table sets forth
      certain information concerning these activities (in thousands):



                                       11






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<TABLE>
<CAPTION>
                                                                                (Unaudited)
                                                                            Nine months Ended
                                                                                September 30,
                                                                          2001            2000
                                                                          ----            ----
<S>                                                                    <C>                <C>
         Revenues:
            Residential rehabilitation properties                      $   270            $16,143
            Mortgage banking                                             3,329              2,744
                                                                       -------          ---------
                                                                       $ 3,599            $18,887
                                                                       =======          =========
         Less: (1)
            Expenses allocable to residential rehabil-
              itation properties (cost of sales, interest
              expense and compensation and benefits)                       478             17,037
            Expenses allocable to mortgage banking
               (all other)                                               3,751              9,685
                                                                        ------            -------
                                                                        $4,229            $26,722
                                                                        ======            =======
         Operating Loss:
              Residential rehabilitation properties                       (208)              (894)
              Mortgage banking                                            (422)            (6,941)
                                                                       -------            -------
                                                                       $  (630)           $(7,835)
                                                                       =======            =======

         Identifiable Assets (at September 30, 2001 and December 31,
            2000, respectively):
              Residential rehabilitation properties                    $   689            $ 1,070
              Mortgage banking                                          11,080             14,730
                                                                       -------            -------
                                                                       $11,769            $15,800
                                                                       =======            =======
</TABLE>

      (1) In managing its business, the Company specifically allocates
      compensation and benefits to its residential rehabilitation segment.
      All other expenses, including corporate overhead, are included in the
      mortgage banking segment.

13.   Management Plans

      In 2001, the Company's management has and will continue to take numerous
      steps to create a positive cash flow for the Company. These include
      selling the remaining rehabilitation properties on hand at September 30,
      2001, changing the methodology whereby the Company prices and sells its
      loans so that a higher per loan gain is recognized and further reducing
      and consolidating operations as required. Certain expense reductions have
      been made in the first six months of 2001 including reducing management
      salaries and consolidating the entire wholesale operation in the Florida
      office. This resulted in a reduction in the number of staff employees
      processing loans as well as other cost reductions. In May 2001, the
      Company was listed on "lendingtree.com" which provides additional leads to
      potential borrowers utilizing the Internet. Additional commission-only
      loan officers have been hired in 2001 in the retail and wholesale areas to
      increase the Company's volume of loan applications and to take advantage
      of current low interest rates. Beginning in August 2001 the Company began
      to sell loans on a bulk basis rather than on an individual flow basis.
      Based on pricing of the initial bulk sales, the Company earned an
      additional 100 to 150 basis points (100 basis points equals one percent)
      on loans sold in this manner. The additional revenue created from selling
      loans on a bulk basis, a higher number of




                                       12






<Page>





      loan applications taken in the third quarter of 2001 as a result of
      lowering mortgage interest rates, and the "lendingtree.com" business have
      resulted in a profitable 3rd quarter and an expectation of future ongoing
      profitability.

14.   In July 2001, the Financial Accounting Standards Board issued SFAS No.
      141, "Business Combinations," and SFAS No. 142, "Goodwill and Other
      Intangible Assets." SFAS No. 141 provides guidance on the accounting for a
      business combination at the date a business combination is completed. The
      statement requires the use of the purchase method of accounting for all
      business combinations initiated after June 30, 2001, thereby eliminating
      use of the pooling-of-interests method. SFAS No. 142 provides guidance on
      how to account for goodwill and intangible assets after an acquisition is
      completed. The most substantive change is that goodwill will no longer be
      amortized, but instead will be tested for impairment periodically. This
      statement will apply to existing goodwill and intangible assets, beginning
      in 2002. Management believes that the adoption will not have a material
      effect on its financial position.

      In October 2001, the FASB issued SFAS No. 144, "Accounting for the
      Impairment or Disposal of Long-Lived Assets". SFAS No. 144 addresses the
      accounting model for long-lived assets to be disposed of by sale and
      resulting implementation issues. This statement requires that those
      long-lived assets be measured at the lower of carrying amount or fair
      value less cost to sell, whether reported in continuing operations or in
      discontinued operations. Therefore, discontinued operations will no longer
      be measured at net realizable value or include amounts for operating
      losses that have not yet occurred. It also broadens the reporting of
      discontinued operations to include all components of an entity with
      operations that can be distinguished from the rest of the entity and that
      will be eliminated from the ongoing operations of the entity in a disposal
      transaction. This statement is effective for financial statements issued
      for fiscal years beginning after December 15, 2001. The company will adopt
      SFAS No. 144 in the fiscal year beginning December 31, 2001 the Company is
      still evaluating the effect on the company's financial position.





                                       13








<Page>




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

Forward-Looking Statements

         The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking statements. This Quarterly Report on Form
10-Q may contain forward-looking statements which reflect the Company's current
views with respect to future events and financial performance. These
forward-looking statements are subject to certain risks and uncertainties,
including those identified below, which could cause actual results to differ
materially from historical results or those anticipated. These forward-looking
statements reflect the Company's current views with respect to future events and
financial performance. The words "believe," "expect," "anticipate," "intend,"
"estimate," and other expressions which indicate future events and trends
identify forward-looking statements. Readers are cautioned not to place undue
reliance upon these forward-looking statements, which speak only as of their
dates. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as the result of new information, future
events or otherwise. The following factors among others, could cause actual
results to differ materially from historical results or those anticipated: (1)
the level of demand for mortgage credit, which is affected by such external
factors as the level of interest rates, the strength of various segments of the
economy and demographics of the Company's lending markets; (2) the direction of
interest rates; (3) the relationship between mortgage interest rates and cost of
funds; (4) federal and state regulation of the Company's mortgage banking
operations; (5) competition within the mortgage banking industry; (6) the
Company's management of cash flow and efforts to modify its prior growth
strategy; (7) the outcome of governmental investigations and the effects
thereof; (8) the Company's efforts to improve quality control; and other risks
and uncertainties described in the Company's Annual Report on Form 10-K and in
PMCC Financial Corp.'s other filings with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual outcomes and events may
vary materially from those indicated.

Results of Operations

Quarter Ended September 30, 2001 Compared to Quarter Ended September 30, 2000

The net income of $322,000 for the quarter ended September 30, 2001 was an
increase of $2.2 million or 117%, from the net loss of $1.9 million for the
quarter ended September 30, 2000.





                                       14






<Page>



Revenues. The following table sets forth the components of the Company's
revenues for the periods indicated:

<TABLE>
<CAPTION>
                                                        Quarters Ended September 30,
                                                    ----------------------------------
                                                         2001                  2000
                                                         ----                  ----
<S>                                                 <C>                   <C>
Sales of residential rehabilitation properties      $       -             $ 1,692 348
Gains of sales of mortgage loans, net                  1,205,621              761,840
Interest earned                                          281,059              232,206
                                                    ------------          ------------
Total revenues                                      $  1,486,680          $  2,686,394
                                                    ============          ============
</TABLE>


         Revenues from the sale of residential rehabilitation properties
decreased $1.7 million, or 100%, for the quarter ended September 30, 2001 as
compared to the quarter ended September 30, 2000. There were no residential
rehab properties sold for the quarter ended September 30, 2001 compared to 13
for the quarter ended September 30, 2000. This decrease was a result of the
Company's initiative to liquidate its properties on hand as quickly as
practicable during the year ended December 31, 2000 and the Company's decision
to temporarily wind down this segment of its business. At September 30, 2001,
the Company owned five remaining properties, substantially all of which are
expected to be sold in 2001.

         Gains on sales of mortgage loans increased $444,000, or 58%, to $1.2
million for the quarter ended September 30, 2001 from $762,000 for the quarter
ended September 30, 2000. This increase was primarily due to an increase in the
per loan margin for loans sold into the secondary market as a result of selling
loans on a bulk basis beginning in August 2001, partly offset by a decrease in
mortgage loan origination volume. Selling loans through bulk sales results in
increased gains on sales of approximately 100 to 150 basis points per loan.
Mortgage loan originations were $46.2 million and $49.4 million for the quarters
ended September 30, 2001 and 2000, respectively. This 7% decrease was primarily
the result of the consolidations made by the Company throughout 2000. For the
quarter ended September 30, 2001, approximately 20% of the Company's mortgage
originations were derived from its retail and internet mortgage operations and
approximately 80% from its wholesale operations.

         The following table summarizes the Company's mortgage originations (in
thousands):

<TABLE>
<CAPTION>
                                                Quarters Ended September 30,
                                                ----------------------------
                                                    2001              2000
                                                    ----              ----
             <S>                                <C>             <C>
             Conventional                         $46,159         $  49,030
             FHA/VA                                  -                  406
                                                 --------         ---------
             Total                               $ 46,159         $  49,436
                                                 ========         =========
</TABLE>


         Although there can be no assurance thereof, the Company expects
mortgage originations to increase and therefore believes its gains on sales of
mortgage loans will increase.

         Interest earned increased $49,000, or 21%, to $281,000 for the quarter
ended September 30, 2001 from $232,000 for the quarter ended September 30, 2000.
This increase was primarily due to a change in the methodology of selling loans
on a bulk basis so that loans are held on the warehouse line for a longer period
of time before they are sold to the secondary market, partly offset by lower
mortgage interest rates and decreased mortgage originations for the quarter
ended September 30, 2001 as compared to the quarter ended September 30, 2000.



                                       15






<Page>





Expenses. The following table sets forth the Company's expenses for the periods
indicated:

<TABLE>
<CAPTION>
                                                           Quarters Ended September 30,
                                                          -----------------------------
                                                              2001                2000
                                                              ----                ----
<S>                                                       <C>              <C>
Cost of sales - residential rehabilitation properties     $     -          $  1,650,645
Compensation and benefits                                    601,793            963,310
Interest expense                                             240,669            464,976
Expense credits and
     expenses resulting from Investigation                  (188,023)            86,500
Expenses related to closing Roslyn office                       -               551,170
Other general and administrative                             509,836            819,842
                                                          ----------       ------------
Total expenses                                            $1,164,275       $  4,536,443
                                                          ==========       ============
</TABLE>


         Cost of sales - residential rehabilitation properties decreased $1.7
million, or 100%, for the quarter ended September 30, 2001 as compared to the
quarter ended September 30, 2000. This decrease was the result of the decrease
in the number of properties sold in the quarter ended September 30, 2001
compared to the quarter ended September 30, 2000.

         Compensation and benefits decreased $361,000, or 37%, to $602,000 for
the quarter ended September 30, 2001 from $963,000 for the quarter ended
September 30, 2000. This decrease was primarily due to decreased sales salaries
and commission, which are based substantially on mortgage loan originations, and
the reductions in staff at the Company's Roslyn and New Jersey locations.

         Interest expense decreased $224,000, or 48%, to $241,000 for the
quarter ended September 30, 2001 from $465,000 for the quarter ended September
30, 2000. This decrease was primarily attributable to a decrease in the interest
rate charged by the warehouse bank. There was also a decrease in mortgage
originations for the quarter ended September 30, 2001 as compared to the quarter
ended September 30, 2000, along with a decrease in residential rehabilitation
properties funded through the Company's warehouse facility.

         Expenses resulting from the Investigation decreased $275,000 to
($188,000) for the quarter ended September 30, 2001 from $87,000 for the quarter
ended September 30, 2000. These expenses decreased due to the Company recording
a credit of $205,000 in the quarter ended September 30, 2001 for legal fees
which are being reimbursed through the Company's Directors and Officers
Insurance.

         Expenses relating to closing the Roslyn office for the quarter ended
September 30, 2000 include termination and broker costs for the settlement with
the landlord to terminate the lease, writeoffs of leasehold improvements and
capitalized costs in relation to the office space, losses on sales of furniture
and equipment and severance costs for terminated employees. No such expenses
were incurred in the quarter ended September 30, 2001.

         Other general and administrative expense decreased $310,000, or 38%, to
$510,000 for the quarter ended September 30, 2001 from $820,000 for the quarter
ended September 30, 2000. This decrease was primarily due to decreased expenses
in connection with the contraction in the operations of the Company.



                                       16






<Page>




Nine months ended September 30, 2001 Compared to Nine months ended September 30,
2000

The net loss of $630,000 for the nine months ended September 30, 2001 was a
decrease of $6.0 million or 91%, from the net loss of $6.7 million for the nine
months ended September 30, 2000.

Revenues. The following table sets forth the components of the Company's
revenues for the periods indicated:

<TABLE>
<CAPTION>
                                                               Nine months Ended September 30,
                                                               -------------------------------
                                                                  2001                  2000
                                                                  ----                  ----
<S>                                                             <C>                <C>
Sales of residential rehabilitation properties                  $    269,750       $ 16,143,462
Gains of sales of mortgage loans, net                              2,649,700          2,412,274
Loss on sales of delinquent loans                                       -              (900,000)
Interest earned                                                      679,214          1,231,358
                                                                ------------       ------------
Total revenues                                                  $  3,598,664       $ 18,887,094
                                                                ============       ============
</TABLE>


         Revenues from the sale of residential rehabilitation properties
decreased $15.9 million, or 98%, for the nine months ended September 30, 2001 as
compared to the nine months ended September 30, 2000. There were 4 residential
rehab properties sold for the nine months ended September 30, 2001 compared to
116 for the nine months ended September 30, 2000. This decrease was a result of
the Company's initiative to liquidate its properties on hand as quickly as
practicable during the year ended December 31, 2000 and the Company's decision
to temporarily wind down this segment of its business.

         Gains on sales of mortgage loans increased $238,000, or 10%, to $2.6
million for the nine months ended September 30, 2001 from $2.4 million for the
nine months ended September 30, 2000. This increase was primarily due to an
increase in the per loan margin for loans sold into the secondary market as a
result of selling loans on a bulk basis beginning in August 2001, partly offset
by a decrease in mortgage loan origination volume. Selling loans through bulk
sales results in increased gains on sales of approximately 100 to 150 basis
points per loan. Mortgage loan originations were $136.5 million and $158.3
million for the nine months ended September 30, 2001 and 2000, respectively.
This 14% decrease was primarily the result of the consolidations made by the
Company during 2000. For the nine months ended September 30, 2001, approximately
14% of the Company's mortgage originations were derived from its retail and
internet mortgage operations and approximately 86% from its wholesale
operations.

         The following table summarizes the Company's mortgage originations (in
thousands):

<TABLE>
<CAPTION>
                                               Nine months Ended September 30,
                                                 2001              2000
                                                 ----              ----
              <S>                             <C>                <C>
              Conventional                    $136,497           $142,877
              FHA/VA                              -                15,386
                                              --------           --------
              Total                           $136,497           $158,263
                                              ========           ========
</TABLE>



                                       17






<Page>




         Although there can be no assurance thereof, the Company expects
mortgage originations to increase and therefore believes its gains on sales of
mortgage loans will increase.

         The loss on sale of delinquent loans for the nine months ended
September 30, 2000 was the result of the Company selling at discounted prices
delinquent and non-performing loans that it would normally maintain in its
portfolio to eventually work out and recover its investment through foreclosure
procedures or refinancing. In prior years, PMCC had warehouse lines where they
could hold these loans throughout the foreclosure process. Bank United
terminated this portion of their line immediately after the Investigation began
in December 1999. In order to fulfill agreements with its lenders, the Company
needed to sell the loans to pay off the warehouse lines as well as to meet the
Company's additional cash requirements in the first nine months of 2000. There
were no such loans sold in the nine months ended September 30, 2001.

         Interest earned decreased $552,000, or 45%, to $679,000 for the nine
months ended September 30, 2001 from $1.2 million for the nine months ended
September 30, 2000. This decrease was primarily due to lower mortgage interest
rates, a change in the methodology of shipping loans from January through August
2001 so that loans were held on the warehouse line for a shorter period of time
before they are sold to the secondary market and decreased mortgage originations
for the nine months ended September 30, 2001 as compared to the nine months
ended September 30, 2000. There was a corresponding decrease in interest expense
for the same period.


Expenses. The following table sets forth the Company's expenses for the periods
indicated:


<TABLE>
<CAPTION>
                                                         Nine months Ended September 30,
                                                         -------------------------------
                                                           2001                 2000
                                                           ----                 ----
<S>                                                   <C>                    <C>
Cost of sales - residential rehabilitation properties $   442,520            $15,838,998
Compensation and benefits                               1,824,552              4,313,868
Interest expense                                          737,353              1,537,155
Expense credits and
    expenses resulting from Investigation                (315,309)             1,577,400
Expenses related to closing Roslyn office                    -                   551,170
Other general and administrative                        1,539,247              2,903,507
                                                      -----------            -----------
Total expenses                                        $ 4,228,363            $26,722,098
                                                      ===========            ===========
</TABLE>


         Cost of sales - residential rehabilitation properties decreased $15.4
million, or 97%, to $443,000 for the nine months ended September 30, 2001 from
$15.8 million for the nine months ended September 30, 2000. This decrease was
the result of the decrease in the number of properties sold in the nine months
ended September 30, 2001 compared to the nine months ended September 30, 2000.
The Company has decided to temporarily wind down this segment of its business.

         Compensation and benefits decreased $2.5 million, or 58%, to $1.8
million for the nine months ended September 30, 2001 from $4.3 million for the
nine months ended




                                       18






<Page>




September 30, 2000. This decrease was primarily due to decreased sales salaries
and commission, which are based substantially on mortgage loan originations, and
the reductions in staff at the Company's Roslyn and New Jersey locations in
2000. There were 43 total employees at September 30, 2001 compared to 44 at
September 30, 2000, 47 at June 30, 2000, 86 at March 31, 2000 and 185 at
December 31, 1999.

         Interest expense decreased $800,000, or 52%, to $737,000 for the nine
months ended September 30, 2001 from $1.5 million for the nine months ended
September 30, 2000. This decrease was primarily attributable to a decrease in
the interest rate charged by the warehouse bank as well as a change in the
methodology of shipping loans from January through August 2001 so that loans
were held on the warehouse line for a shorter period of time before they are
sold to the secondary market. There was also a decrease in mortgage originations
for the nine months ended September 30, 2001 as compared to the nine months
ended September 30, 2000, along with a decrease in residential rehabilitation
properties funded through the Company's warehouse facility.

         Expenses resulting from the Investigation decreased $1.9 million to
$(315,000) for the nine months ended September 30, 2001 from $1.6 million for
the nine months ended September 30, 2000. This decrease was due to a significant
portion of these expenses being incurred immediately after the beginning of the
Investigation, which was primarily in the first six months of 2000. These
expenses also decreased due to the Company recording credits of $350,000 in the
nine months ended September 30, 2001 for legal fees which are being reimbursed
through the Company's Directors and Officers Insurance along with a reduction of
fees expected to be paid to the Company's attorneys.

         Expenses relating to closing the Roslyn office for the nine months
ended September 30, 2000 include termination and broker costs for the settlement
with the landlord to terminate the lease, writeoffs of leasehold improvements
and capitalized costs in relation to the office space, losses on sales of
furniture and equipment and severance costs for terminated employees. No such
expenses were incurred in the nine months ended September 30, 2001.

         Other general and administrative expense decreased $1.4 million, or
47%, to $1.5 million for the nine months ended September 30, 2001 from $2.9
million for the nine months ended September 30, 2000. This decrease was
primarily due to decreased expenses in connection with the contraction in the
operations of the Company.


Liquidity and Capital Resources

         The Company's principal financing needs consist of funding mortgage
loan originations and residential rehabilitation properties. To meet these
needs, the Company currently relies on borrowings under warehouse lines of
credit and cash flow from operations. The amount of outstanding borrowings under
the warehouse lines of credit at September 30, 2001 was $8.7 million. The
mortgage loans and residential rehabilitation




                                       19






<Page>




properties funded with the proceeds from such borrowings secure the warehouse
lines of credit.

         On August 7, 1998, the Company entered into a Senior Secured Credit
Agreement (the "Chase Line") with Chase Bank of Texas, National Association
("Chase") and PNC Bank ("PNC"). The Chase Line provided a warehouse line of
credit of $120 million ($90 million committed at August 11, 1998) for its
mortgage originations and residential rehabilitation purchases. The Chase Line
is secured by the mortgage loans and residential rehabilitation purchases funded
with the proceeds of such borrowings. The Company has also pledged the stock of
its residential rehabilitation subsidiaries as additional collateral. The
Company is required to comply with certain financial covenants and the
borrowings for residential rehabilitation properties are guaranteed by Ronald
Friedman and Robert Friedman. No new loans or properties were added to this line
subsequent to November 8, 1999, when the line was set to expire. Chase and PNC
have agreed to continue to extend the line on a specified declining basis
through a series of short term extensions. The Company anticipates paying down
the entire facility no later than December 31, 2001. The balance outstanding on
the Chase Line at both September 30, 2001 and November 6, 2001 was approximately
$56,000. Interest payable on the Chase Line is variable based LIBOR plus 1.25%
to 3.00% based upon the underlying collateral.

         On February 28, 2000, the Company entered into a Master Repurchase
Agreement that provides the Company with a warehouse facility (the"IMPAC Line")
through IMPAC Warehouse Lending Group ("IMPAC"). The IMPAC Line provides a
committed warehouse line of credit of $20 million for the Company's mortgage
originations only. The IMPAC Line is secured by the mortgage loans funded with
the proceeds of such borrowings. Interest payable on the IMPAC Line is variable
based on the Prime Rate as posted by Bank of America, N.A. plus 0.50%. The IMPAC
Line has no stated expiration date but is terminable by either party upon
written notice. The balance outstanding on the IMPAC Line was $8.7 million on
September 30, 2001 and $17.1 million on November 6, 2001.

         The Company currently expects that the existing IMPAC Line will be
sufficient to fund all anticipated loan originations for the current year. In
July 2001, IMPAC agreed to allow the Company to warehouse loans without a
lock-in agreement from the Company's investors, thereby opening up the Company's
ability to sell loans on a bulk basis. Such sales increased gains on the sales
of mortgage loans by 100 to 150 basis points per loan.

         On June 8, 2000, the Company borrowed $275,000 from a company wholly
owned by Robert Friedman. This loan is evidenced by a promissory note due and
payable in one year. The interest rate on the note is 16% per annum payable
monthly. The note is secured by properties and a mortgage, which the Company
owns. Under the same note, the Company borrowed an additional $50,000 in July
2000. The Company repaid $80,000 in August 2000 and $175,000 in October 2000
when a portion of the underlying collateral was sold by the Company. The balance
due on the note was $70,000 at September 30, 2001 and November 6, 2001.

         On April 24, 2001, the Company borrowed $63,125 from a trust controlled
by Ronald Friedman, owner of 46% of the Company's outstanding stock and a
consultant to the



                                       20






<Page>




Company. This loan is evidenced by a promissory note due and payable in monthly
installments through October 2001. The interest rate on the note is 12% per
annum payable monthly. The note is secured by properties which the Company owns.
The balance due on the note was $40,000 at September 30, 2001 and November 6,
2001. On October 18, 2001, the Company borrowed $100,000 from the same trust.
This loan is evidenced by a promissory note due and payable in November 2001.
The interest rate on the note is 10% per annum. The note is secured by proceeds
from sales of loans and insurance proceeds which the Company will receive. The
balance due on the note at November 8, 2001 is $100,000.

         Net cash provided by operations for the nine months ended September 30,
2001 was $3.6 million. The Company was provided cash by decreasing mortgage
loans held for sale by $3.3 million. The Company used cash in decreasing the
borrowings under its warehouse lines of credit by $3.4 million.

         Management Plans - see Note 12 to the Unaudited Condensed Consolidated
Financial Statements.


Impact of New Accounting Standards

         See Note 14 to the Unaudited Condensed Consolidated Financial
Statements.

Item 3. Quantitative And Qualitative Disclosures About Market Risk.

         None.



                                       21







<Page>




                            PART II-OTHER INFORMATION


Item 1. Legal Proceedings

         The Registrant is a defendant in certain litigation arising in the
normal course of its business. In the opinion of the Registrant, any potential
liability with respect to such legal actions will not, individually or in the
aggregate, be material to the Registrant's financial position, liquidity or
future results of operations.

         See Note 9 to the Unaudited Condensed Consolidated Financial Statements
for additional information.

Item 2. Changes in Securities

         None.

Item 3. Defaults Upon Senior Securities

         None.

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

         None.

Item 5. Other Information

         None.

Item 6. Exhibits and Reports on Form 8-K

         (a) Reports on Form 8-K
                None.




                                       22






<Page>




                                   SIGNATURES


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


                             PMCC FINANCIAL CORP.
                             (Registrant)



                             By /s/ Andrew Soskin
                               ------------------------------------------------
                             Andrew Soskin
                             Interim President and Chief Executive Officer


                             By /s/ Stephen J. Mayer
                               ------------------------------------------------

                             Stephen J. Mayer
                             Chief Financial Officer
                             (Principal Accounting Officer)


Dated: November 14, 2001





                                       23