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 June 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 August 14, 2001: 3,707,000 shares.



                              PMCC FINANCIAL CORP.

                                    FORM 10-Q

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                      Page No
                                                                                      -------

Part I - Financial Information

    Item 1.  Condensed Financial Statements:

<S>                                                                                     <C>
              Condensed Consolidated Statements of Operations (Unaudited)
                  Three Months Ended June 30, 2001 and 2000                             3
                  Six Months Ended June 30, 2001 and 2000                               4

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

              Condensed Consolidated Statements of Cash Flows (Unaudited)
                  Six Months Ended June 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>

                         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 June 30,
                                                                              2001              2000
                                                                               ----              ----
Revenues:
<S>                                                                       <C>            <C>
Sales of residential rehabilitation properties ........................   $   269,750    $ 4,528,914
Gains on sale of mortgage loans, net ..................................       682,553        563,448
Loss on sales of delinquent loans .....................................          --         (862,000)
Interest earned .......................................................       198,146        428,266
                                                                          -----------    -----------
     Total Revenues ...................................................     1,150,449      4,658,628
                                                                          -----------    ------------
Expenses:
Costs of sales, residential rehabilitation properties .................       442,520      4,715,422
Compensation and benefits .............................................       546,907      1,458,754
Interest expense ......................................................       218,857        376,225
Expense credit and expenses
     resulting from Investigation (Note 8) ............................      (141,881)       345,644
Other general and administrative ......................................       542,307      1,050,707
                                                                          -----------    -----------
     Total Expenses ...................................................     1,608,710      7,946,752
                                                                          -----------    -----------


Loss before income tax benefit ........................................      (458,261)    (3,288,124)
Income tax benefit ....................................................            --        (52,188)
                                                                          -----------    -----------
         Net  loss ....................................................   $  (458,261)   $(3,235,936)
                                                                          ===========    ===========

Net loss per share of common stock-basic and diluted ..................   $     (0.12)   $     (0.87)
                                                                          ===========    ===========
Weighted average number of shares and
   share equivalents outstanding-basic and diluted ....................     3,707,000      3,707,000
                                                                          ===========    ===========


See accompanying notes to unaudited condensed consolidated financial statements.
</TABLE>


                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                           Six Months Ended June 30,
                                                            2001              2000
                                                            ----              ----
Revenues:
<S>                                                     <C>             <C>
Sales of residential rehabilitation properties ......   $    269,750    $ 14,451,115
Gains on sale of mortgage loans, net ................      1,444,078       1,650,433
Loss on sales of delinquent loans ...................           --          (900,000)
Interest earned .....................................        398,155         999,152
                                                        ------------    ------------
     Total Revenues .................................      2,111,983      16,200,700
                                                        ------------    ------------
Expenses:
Costs of sales, residential rehabilitation properties        442,520      14,188,353
Compensation and benefits ...........................      1,222,759       3,350,558
Interest expense ....................................        496,684       1,072,179
Expense credit and expenses
     resulting from Investigation (Note 8) ..........       (127,286)      1,490,900
Other general and administrative ....................      1,029,411       2,083,665
                                                        ------------    ------------
     Total Expenses .................................      3,064,088      22,185,655
                                                        ------------    ------------


Loss before income tax benefit ......................       (952,105)     (5,984,955)
Income tax benefit ..................................             --      (1,161,435)
                                                        ------------    ------------
         Net  loss ..................................   $   (952,105)   $ (4,823,520)
                                                        ============    ============


Net loss per share of common stock-basic and diluted    $      (0.26)   $      (1.30)
                                                        ============    ============

Weighted average number of shares and
   share equivalents outstanding-basic and diluted ..      3,707,000       3,707,000
                                                        ============    ============



See accompanying notes to unaudited condensed consolidated financial statements.
</TABLE>


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

<TABLE>
<CAPTION>
                                                        (Unaudited)     (Audited)
                                                          June 30,      December 31,
                                                            2001            2000
                                                            ----            ----
Assets
<S>                                                   <C>             <C>
Cash and cash equivalents .........................   $     10,228    $     21,988
Mortgage loans held for sale, net .................     15,357,040      12,590,415
Mortgage loans held for investment, net ...........        205,650         226,650
Accrued interest receivable .......................        120,000         150,000
Other receivables, net ............................        856,239       1,417,611
Residential rehabilitation properties, net ........        430,014         670,395
Furniture, fixtures & equipment, net ..............        412,975         512,718
Prepaid expenses and other assets .................        187,838         210,428
                                                      ------------    ------------
Total assets ......................................   $ 17,579,984    $ 15,800,205
                                                      ============    ============

Liabilities
Notes payable-principally warehouse lines of credit   $ 15,047,020    $ 12,374,111
Accrued expenses and other liabilities ............      1,269,426       1,210,451
                                                      ------------    ------------
Total liabilities .................................     16,316,446      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 ...............................     (9,558,029)     (8,605,924)
Treasury stock, 43,000 shares, at cost ............       (254,471)       (254,471)
                                                      ------------    ------------
Total  shareholders' equity .......................      1,263,538       2,215,643
                                                      ------------    ------------

Total liabilities and shareholders' equity ........   $ 17,579,984    $ 15,800,205
                                                      ============    ============


See accompanying notes to unaudited condensed consolidated financial statements
</TABLE>


                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                      Six months ended June 30,
                                                                                       2001              2000
                                                                                       ----              ----
Cash flows from operating activities:
<S>                                                                               <C>             <C>
Net  loss .....................................................................   $   (952,105)   $ (4,823,520)
    Adjustments to reconcile net loss to net cash (used in)
        provided by operating activities:
         Residential rehabilitation properties (exclusive of cash paid directly
         to/by independent contractors):
           Contractual fees paid (received) ...................................          2,577        (262,762)
           Proceeds from sales of properties and other related costs ..........        269,750      14,451,115
           Costs of properties acquired and other related costs ...............        (31,946)     (1,762,737)
         Depreciation and amortization ........................................         99,743         180,741
         Decrease (increase) in interest and other receivables ................        591,372        (690,158)
         (Increase) decrease in mortgage loans held for sale
                    and investment, net .......................................     (2,745,625)     23,814,209
         Decrease in receivable from sales of loans ...........................           --         4,300,279
         Decrease in prepaid expenses and other assets ........................         22,590          23,056
              Decrease in deferred taxes payable ..............................           --          (333,000)
         Increase (decrease) in accrued expenses and other liabilities ........         58,975        (745,433)
                                                                                  ------------    ------------

Net cash (used in) provided by operating activities ...........................     (2,684,669)     34,151,790
                                                                                  ------------    ------------

Cash flows from investing activities:
         Purchase of furniture and equipment ..................................           --           (41,699)
                                                                                  ------------    ------------

Cash flows from financing activities:
               Net increase (decrease) in notes payable- principally
                     warehouse lines of credit ................................      2,672,909     (34,767,611)
                Net decrease in restricted cash ...............................           --           500,000
                                                                                  ------------    ------------


Net cash provided by (used in) operating activities ...........................      2,672,909     (34,267,611)
                                                                                  ------------    ------------

Net decrease in cash and cash equivalents .....................................        (11,760)       (157,520)

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

Cash and cash equivalents at end of period ....................................   $     10,228    $     57,437
                                                                                  ============    ============

Supplemental disclosures of cash flow information: Cash paid during the period
         for:
           Interest ...........................................................   $    439,218    $  1,758,115
                                                                                  ============    ============
           Income taxes .......................................................   $      1,350    $     11,190
                                                                                  ============    ============
           Loans transferred from mortgage loans held for sale to
           held for investment, net ...........................................   $          0    $    470,100
                                                                                  ============    ============


See accompanying notes to unaudited condensed consolidated financial statements
</TABLE>


                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                  June 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 six months ended
     June 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.

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 six
     months ended June 30, 2001 and 2000.

5. Notes Payable

     At June 30, 2001 and 2000, 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.

     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 August 31, 2001. The balance outstanding on this line at both
     June 30, 2001 and August 8, 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 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 June  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 August 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 June 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  August  8, 2001 is
     $40,000.

     The Company has  amounts  receivable  due from an officer of the Company in
     the  amount  of  $188,782  and  $267,782,   which  is  included  in  "Other
     receivables - net" in the accompanying Condensed Consolidated Statements of
     Financial  Condition at June 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 June 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 June 30, 2001, the subsidiary  owned no remaining  properties.  At
     June 30, 2001,  the Company has an outstanding  receivable  from this rehab
     partner  of  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. Litigation

     The U.S.  Attorney's  Office for the  Eastern  District  of New York ("U.S.
     Attorney") is conducting an investigation  (the  "Investigation")  into the
     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.  On December
     21, 1999, agents of the Office of Inspector General for HUD executed search
     and arrest warrants at the Roslyn offices of the Company. The warrants were
     issued on the basis of a federal criminal  complaint  ("Complaint"),  which
     charged  that  Ronald   Friedman  and  the  loan  officer   knowingly   and
     intentionally  made,  uttered or published  false  statements in connection
     with loans to be insured by HUD.

     In response to the allegations  against the loan officer and Friedman,  the
     Company  engaged  the legal  services  of  Dorsey & Whitney  LLP in 2000 to
     conduct  an  internal  investigation  into the  alleged  misconduct  and to
     prepare a report discussing the findings of the internal investigation.  As
     part of this  internal  investigation,  the Company  worked  closely and in
     cooperation  with HUD and the U.S.  Attorney.  In addition,  key employees,
     including loan officers,  loan processors,  underwriters and managers, were
     interviewed.  An audit also was conducted of over one-third of all 1999 FHA
     loans  in  order  to  assess  whether  the  files  comported  with  the HUD
     guidelines for FHA loans.

     A  preliminary  report  detailing  Dorsey  &  Whitney's  investigation  and
     findings  was  presented to the  Company's  Board of Directors on April 12,
     2000. A written report was issued on April 14, 2000.  The report  concludes
     that while there appears to be support for the  allegations  leveled at the
     loan  officer,  there is no  evidence  that the  misconduct  alleged in the
     complaint  was systemic at the Company.  Rather,  the findings  support the
     conclusion that the alleged misconduct was an isolated  occurrence,  not an
     institutional  practice.  The  available  evidence did not permit  Dorsey &
     Whitney to reach a definitive  conclusion  concerning  the charges  pending
     against Ronald Friedman.  The  investigation,  comprised of interviews with
     PMCC employees and an extensive review of mortgage loan files,  revealed no
     independent  evidence  tending to support the allegations  against Friedman
     contained in the criminal complaint.

     While the Company  believes that it has not committed  any  wrongdoing,  it
     continues to cooperate fully with the U.S.  Attorney's  Office and HUD. The
     Company is  currently  in  negotiation  with HUD 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  reimbursement  is  expected  to be covered  under the
     Company's Errors and Omissions insurance.

     As a result of this  investigation,  the Company  incurred  expenses in the
     aggregate  over $1.5 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.  Also included in these expenses
     are bank fees  relating to granting  amendments  to the Bank United line of
     credit and bonuses paid to the  Company's  officers and  employees.  In the
     quarter ended June 30, 2001, the Company  recorded a credit of $145,000 for
     a reduction of legal fees expected to be paid to the Company's attorneys.

     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 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.


9. Change of Control

     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. According to provisions of the Transaction  agreement,  the
     purchase  price was reduced  because  the  Company's  common  stock was not
     trading on either the Amex or NASDAQ and there was no merger of the Company
     with IBUI or any of its  affiliates  within time  periods  specified by the
     agreement.  At the closing,  all shares  purchased by IBUI from the Sellers
     were deposited in escrow with the Sellers'  attorney.  These shares will 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.  At  this  time,  negotiations  and
     discussions  are  being  held  among  the  involved  parties,  however,  no
     definitive  revised agreement has been reached that would cure the default.
     At June 30, 2001,  the transfer  agent has indicated that IBUI owns 269,230
     shares of PMCC stock or 7.26% of the total shares outstanding.

10. 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. In connection with the Amex review process, the
     Company met with the Amex staff on March 7, 2000 to present  information in
     support of continued  listing.  On September 22, 2000,  PMCC was advised by
     the  Amex  that it was its  intention  to  proceed  with the  filing  of an
     application  with the  Securities  and  Exchange  Commission  to strike the
     Company's common stock from listing and  registration on the Exchange.  The
     Company  exercised  its right to appeal the  decision of the  Exchange.  On
     December  15,  2000,  PMCC was  advised by the Amex that,  after the appeal
     hearing to its Committee on Securities  by Company  management  and outside
     counsel held on November 6, 2000, the Amex Adjudicatory Council agreed with
     and affirmed the Amex's staff decision to strike the Company's common stock
     from listing and  registration on the Exchange.  On December 22, 2000, Amex
     filed an application  with the Securities and Exchange  Commission to do so
     effective  with the opening of the trading  session on January 4, 2001. The
     Company's  common stock is  currently  trading on the Pink Sheets under the
     symbol "PMCF".


11. 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):
<TABLE>
<CAPTION>
                                                                     (Unaudited)
                                                              Six Months Ended June 30,
                                                                  2001         2000
                                                                  ----         ----
Revenues:
<S>                                                            <C>         <C>
   Residential rehabilitation properties ...................   $    270    $ 14,451
   Mortgage banking ........................................      1,842       1,750
                                                               --------    --------
                                                               $  2,112    $ 16,201
                                                               ========    ========
Less: (1)
   Expenses allocable to residential rehabil-
     itation properties (cost of sales, interest
     expense and compensation and benefits) ................        468      15,180
   Expenses allocable to mortgage banking
      (all other) ..........................................      2,596       7,006
                                                               --------    --------
                                                               $  3,064    $ 22,186
                                                               ========    ========

Operating Loss:
     Residential rehabilitation properties .................       (198)       (728)
     Mortgage banking ......................................       (754)     (5,257)
                                                               --------    --------
                                                               $   (952)   $ (5,985)
                                                               ========    ========

Identifiable Assets (at June 30, 2001 and December 31, 2000,
   respectively):
     Residential rehabilitation properties .................   $    689    $  1,070
     Mortgage banking ......................................     16,891      14,730
                                                               --------    --------
                                                               $ 17,580    $ 15,800
<FN>

     (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.
</FN>
</TABLE>

12. 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 June 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 and second quarters 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 July 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  anticipates  earning an additional 100 to
     150 basis  points (100 basis  points  equals one  percent) on loans sold in
     this manner.


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

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

                                                   Quarters Ended June 30,
                                                 --------------------------
                                                     2001          2000
                                                      ----          ----

Sales of residential rehabilitation properties   $   269,750   $ 4,528,914
Gains of sales of mortgage loans, net ........       682,553       563,448
Loss on sales of delinquent loans ............          --        (862,000)
Interest earned ..............................       198,146       428,266
                                                 -----------   -----------
Total revenues ...............................   $ 1,150,449   $ 4,658,628
                                                 ===========   ===========

     Revenues from the sale of residential  rehabilitation  properties decreased
$4.3  million,  or 94%,  for the quarter  ended June 30, 2001 as compared to the
quarter ended June 30, 2000. There were 4 residential  rehab properties sold for
the quarter  ended June 30, 2001  compared to 31 for the quarter  ended June 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 June 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  $120,000,  or 21%, to $683,000
for the quarter ended June 30, 2001 from $563,000 for the quarter ended June 30,
2000.  This increase was primarily due to an increase in the per loan margin for
loans sold into the  secondary  market,  partly offset by a decrease in mortgage
loan origination volume. Mortgage loan originations were $46.8 million and $49.3
million for the  quarters  ended June 30, 2001 and 2000,  respectively.  This 5%
decrease  was  primarily  the result of the  consolidations  made by the Company
during  2000.  For the quarter  ended June 30,  2001,  approximately  10% of the
Company's mortgage originations were derived from its retail mortgage operations
and approximately 90% from its wholesale operations.

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

             Quarters Ended June 30,
                 2001      2000
                 ----      ----

Conventional   $46,805   $45,729
FHA/VA .....      --       3,607
               -------   -------
Total ......   $46,805   $49,336
               =======   =======


     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.  Additionally, the Company expects to increase its gains on
sales of mortgage loans by selling loans through bulk sales,  thereby increasing
gains by 100 to 150 basis points per loan.

     The loss on sale of  delinquent  loans for the three  months ended June 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 six months of 2000. There were no such
loans sold in the three months ended June 30, 2001.

     Interest  earned  decreased  $230,000,  or 54%, to $198,000 for the quarter
ended June 30, 2001 from  $428,000  for the quarter  ended June 30,  2000.  This
decrease was primarily due to lower  mortgage  interest  rates,  a change in the
methodology of shipping loans so that loans are 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 quarter ended June 30, 2001 as compared
to the  quarter  ended June 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>

                                                             Quarters Ended June 30,
                                                              2001          2000
                                                              ----          ----

<S>                                                     <C>            <C>
Cost of sales - residential rehabilitation properties   $   442,520    $ 4,715,422
Compensation and benefits ...........................       546,907      1,458,754
Interest expense ....................................       218,857        376,225
Expense credits and
     expenses resulting from Investigation ..........      (141,881)       345,644
Other general and administrative ....................       542,307      1,050,707
                                                        -----------    -----------
Total expenses ......................................   $ 1,608,710    $ 7,946,752
                                                        ===========    ===========
</TABLE>

     Cost of  sales  -  residential  rehabilitation  properties  decreased  $4.3
million,  or 91%, for the quarter ended June 30, 2001 as compared to the quarter
ended June 30, 2000.  This decrease was the result of the decrease in the number
of  properties  sold in the quarter  ended June 30, 2001 compared to the quarter
ended June 30,  2000.  Additionally,  a reserve of $170,000  was recorded in the
quarter ended June 30, 2001 for amounts due from residential  rehab partners for
uncollected fees and advances.  The Company has decided to temporarily wind down
this segment of its business.

     Compensation and benefits decreased  $912,000,  or 63%, to $547,000 for the
quarter  ended June 30, 2001 from $1.5  million  for the quarter  ended June 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,  most of
which  occurred in the first and second  quarters  of 2000.  There were 43 total
employees at June 30, 2001 compared to 47 at June 30, 2000, 86 at March 31, 2000
and 185 at December 31, 1999.

     Interest expense  decreased  $157,000,  or 42%, to $219,000 for the quarter
ended June 30, 2001 from  $376,000  for the quarter  ended June 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
so that loans are 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  quarter  ended June 30,  2001 as  compared to the quarter
ended  June 30,  2000,  along  with a  decrease  in  residential  rehabilitation
properties funded through the Company's warehouse facility.

     Expenses  resulting from the Investigation  decreased  $488,000 or 141%, to
($142,000)  for the quarter  ended June 30, 2001 from  $346,000  for the quarter
ended June 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 and second  quarters of 2000.  These  expenses
also decreased due to the Company recording in the quarter ended June 30, 2001 a
reduction of $145,000 of fees expected to be paid to the Company's attorneys.

     Other general and  administrative  expense decreased  $509,000,  or 49%, to
$542,000 for the quarter ended June 30, 2001 from $1.051 million for the quarter
ended June 30, 2000.  This decrease was  primarily due to decreased  expenses in
connection with the contraction in the operations of the Company.

     The net loss of $458,000 for the quarter ended June 30, 2001 was a decrease
of $2.7 million or 84%,  from the net loss of $3.2 million for the quarter ended
June 30, 2000.

Six months ended June 30, 2001 Compared to Six months ended June 30, 2000

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

                                                   Six Months Ended June 30,
                                                 ---------------------------
                                                      2001           2000
                                                      ----           ----

Sales of residential rehabilitation properties   $    269,750   $ 14,451,115
Gains of sales of mortgage loans, net ........      1,444,078      1,650,433
Loss on sales of delinquent loans ............           --         (900,000)
Interest earned ..............................        398,155        999,152
                                                 ------------   ------------
Total revenues ...............................   $  2,111,983   $ 16,200,700
                                                 ============   ============

     Revenues from the sale of residential  rehabilitation  properties decreased
$14.2 million, or 98%, for the six months ended June 30, 2001 as compared to the
six months ended June 30, 2000.  There were 4 residential  rehab properties sold
for the six months ended June 30, 2001  compared to 103 for the six months ended
June 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  decreased  $206,000,  or 13%,  to $1.4
million  for the six months  ended June 30,  2001 from $1.7  million for the six
months ended June 30, 2000.  This  decrease was  primarily  due to a decrease in
mortgage loan origination  volume,  partly offset by an increase in the per loan
margin for loans sold into the secondary market. Mortgage loan originations were
$90.3 million and $108.8  million for the quarters ended June 30, 2001 and 2000,
respectively.  This 17% decrease was primarily the result of the  consolidations
made by the  Company  during  2000.  For the six  months  ended  June 30,  2001,
approximately 11% of the Company's  mortgage  originations were derived from its
retail mortgage operations and approximately 89% from its wholesale operations.

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

             Six Months Ended June 30,
                 2001       2000
                 ----       ----

Conventional   $ 90,338   $ 93,847
FHA/VA .....       --       14,980
               --------   --------
Total ......   $ 90,338   $108,827
               ========   ========

     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.  Additionally, the Company expects to increase its gains on
sales of mortgage loans by selling loans through bulk sales,  thereby increasing
gains by 100 to 150 basis points per loan.

     The loss on sale of delinquent loans for the six months ended June 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 six months of 2000. There were no such
loans sold in the six months ended June 30, 2001.

     Interest earned decreased $601,000,  or 60%, to $398,000 for the six months
ended June 30, 2001 from  $999,000 for the six months ended June 30, 2000.  This
decrease was primarily due to lower  mortgage  interest  rates,  a change in the
methodology of shipping loans so that loans are 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 six  months  ended  June 30,  2001 as
compared  to the six  months  ended  June 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>

                                                          Six Months Ended June 30,
                                                             2001          2000
                                                             ----          ----

<S>                                                     <C>            <C>
Cost of sales - residential rehabilitation properties   $   442,520    $14,188,353
Compensation and benefits ...........................     1,222,759      3,350,558
Interest expense ....................................       496,684      1,072,179
Expense credits and
    expenses resulting from Investigation ...........      (127,286)     1,490,900
Other general and administrative ....................     1,029,411      2,083,665
                                                        -----------    -----------
Total expenses ......................................   $ 3,064,088    $22,185,655
                                                        ===========    ===========
</TABLE>

     Cost of  sales -  residential  rehabilitation  properties  decreased  $13.8
million,  or 97%,  for the six months ended June 30, 2001 as compared to the six
months ended June 30, 2000.  This decrease was the result of the decrease in the
number of properties  sold in the six months ended June 30, 2001 compared to the
six months ended June 30, 2000. Additionally, a reserve of $170,000 was recorded
in the six months  ended June 30, 2001 for amounts  due from  residential  rehab
partners  for  uncollected  fees  and  advances.  The  Company  has  decided  to
temporarily wind down this segment of its business.

     Compensation and benefits  decreased $2.2 million,  or 65%, to $1.2 million
for the six months  ended  June 30,  2001 from $3.4  million  for the six months
ended June 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,  most
of which  occurred in the first half of 2000.  There were 43 total  employees at
June 30, 2001  compared to 47 at June 30, 2000,  86 at March 31, 2000 and 185 at
December 31, 1999.

     Interest expense decreased $575,000, or 54%, to $497,000 for the six months
ended June 30, 2001 from $1.072  million for the six months ended June 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 so that loans are 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 six months ended June 30, 2001 as compared to the
six  months  ended  June  30,  2000,   along  with  a  decrease  in  residential
rehabilitation properties funded through the Company's warehouse facility.

     Expenses  resulting from the Investigation  decreased $1.6 million or 107%,
to  $(127,000)  for the six months ended June 30, 2001 from $1.5 million for the
six months ended June 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 in the six months ended
June  30,  2001 a  reduction  of  $145,000  of fees  expected  to be paid to the
Company's attorneys.

     Other general and administrative expense decreased $1.1 million, or 52%, to
$1.0  million for the six months  ended June 30, 2001 from $2.1  million for the
six months ended June 30, 2000.  This  decrease was  primarily  due to decreased
expenses in connection with the contraction in the operations of the Company.

     The net loss of  $952,000  for the six  months  ended  June 30,  2001 was a
decrease of $3.9  million or 81%,  from the net loss of $4.8 million for the six
months ended June 30, 2000.

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 June 30,  2001 was $14.8  million.  The  mortgage  loans and
residential  rehabilitation  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 August 31, 2001.  The balance  outstanding on
the Chase  Line at both  June 30,  2001 and  August  8,  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 $14.7 million on
June 30, 2001 and $14.9 million on August 8, 2001.

     The  Company  currently  expects  that  the  existing  IMPAC  Line  will be
sufficient  to fund all  anticipated  loan  originations  for the  current  year
provided all new loans are sold to investors on a loan by loan basis.  IMPAC has
recently  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 will  increase  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 June 30, 2001 and August 8, 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 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 June 30, 2001 and
August 8, 2001.

     Net cash used in operations for the six months ended June 30, 2001 was $2.7
million.  The Company used cash to increase mortgage loans held for sale by $2.8
million.  The Company was provided cash by increasing the  borrowings  under its
warehouse lines of credit by $2.7 million.

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


Impact of New Accounting Standards

     Goodwill  represents  the excess of the purchase price over the fair market
value of acquired  companies and is amortized on a straight-line  basis over 3-7
years. Beginning in fiscal 2002, goodwill will no longer be amortized due to the
issuance of SFAS No. 142,  "Goodwill  and Other  Intangible  Assets,"  which was
approved for release in July 2001 by the Financial  Accounting  Standards Board.
This pronouncement had no material effect on the Company's financial statements.

Item 3.  Quantitative And Qualitative Disclosures About Market Risk.

                  None.



                            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 8 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.



                                   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: August 14, 2001