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 March 31, 1999

                                       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)


                               3 Expressway Plaza
                           Roslyn Heights, N.Y. 11577
              (Address of Principal Executive Offices and Zip Code)

                                 (516) 625-3000
              (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 May 7, 1999: 3,724,800 shares.


<PAGE>


                              PMCC FINANCIAL CORP.

                                    FORM 10-Q

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S>                                                                                     <C>

                                                                                        Page No

Part I - Financial Information

Item 1.  Financial Statements:

         Condensed Consolidated Statements of Operations (Unaudited)                    3
                  Three Months Ended March 31, 1999 and 1998

         Condensed Consolidated Statements of Financial Condition (Unaudited)           4
                  March 31, 1999 and December 31, 1998

         Condensed Consolidated Statements of Cash Flows (Unaudited)                    5
                  Three Months Ended March 31, 1999 and 1998

         Notes to Condensed Consolidated Financial Statements (Unaudited)               6


Item 2.  Management's Discussion and Analysis of Financial Condition                    9
         and Results of Operations

Part II -  Other Information                                                            13

Signatures                                                                              14
</TABLE>

<PAGE>


                         Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements


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

<TABLE>
<CAPTION>

                                                                      Three Months Ended March 31,
                                                                         1999              1998
<S>                                                                    <C>             <C>
Revenues:
Sales of residential rehabilitation properties                         $8,544,978      $8,212,677
Gains on sale of mortgage loans, net                                    3,807,903       3,085,390
Interest earned                                                         1,319,435         859,824
                                                                       ----------      ----------
                                                                       13,672,316      12,157,891
Expenses:
Costs of sales, residential rehabilitation properties                   7,804,194       7,589,176
Compensation and benefits                                               2,730,631       2,189,078
Interest expense                                                        1,179,956         900,525
Other general and administrative                                        1,155,644         720,313
                                                                       ----------      ----------
                                                                       12,870,425      11,399,092


Income before income tax expense                                          801,891         758,799
Income tax expense (1)                                                    329,000       1,128,000
                                                                          -------       ---------
         Net  income (loss)                                              $472,891      $(369,201)
                                                                         ========      ==========

Pro forma information:
Historical income before income tax                                                      $758,799
Provision for pro forma income taxes                                                    (311,000)
                                                                                        ---------
Pro forma net income                                                                     $447,799
                                                                                         ========




Net income/pro forma net income per share of common stock-basic             $0.13           $0.15
                                                                            =====           =====

Net income/pro forma net income per share of common stock-diluted           $0.13           $0.14
                                                                            =====           =====            
                                                                                           
Weighted average number of shares and
  share equivalents outstanding-basic                                   3,724,800        3,083,333
                                                                        =========        =========

Weighted average number of shares and
  share equivalents outstanding-diluted                                 3,756,571        3,176,668
                                                                        =========        =========

</TABLE>

     See  accompanying  notes  to  unaudited  condensed  consolidated  financial
statements.

     (1) Income tax expense for the three months ended March 31, 1998 includes a
provision for deferred income tax expense of $1,081,000 related to the change in
tax  status  of  the  Company's   subsidiaries   from  S   corporation's   to  C
corporation's.


<PAGE>


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

<TABLE>
<CAPTION>

                                                                      March 31,      December 31,
                                                                         1999            1998
<S>                                                                     <C>             <C>
Assets
Cash and cash equivalents                                               $1,585,491      $3,596,002
Receivable from sales of loans                                           4,531,981      20,789,470
Mortgage loans held for sale, net                                       53,066,212      67,676,679
Mortgage loans held for investment                                       1,746,877       1,717,228
Interest and other receivables, net                                      1,126,977       1,208,454
Residential rehabilitation properties                                   17,965,858      16,491,514
Furniture & equipment, net                                                 817,982         828,226
Prepaid expenses and other assets                                          574,471         501,587
                                                                        ----------      ----------

Total assets                                                           $81,415,849    $112,809,160
                                                                       ===========    ============


Liabilities and shareholders' equity Liabilities:
 Notes payable-principally warehouse lines of credit                   $64,324,891     $94,673,739
 Due to affiliates                                                              --       1,187,998
 Distribution payable                                                           --         277,700
 Accrued expenses and other liabilities                                  3,567,493       3,637,149
                                                                         ---------       ---------
Total liabilities                                                       67,892,384      99,776,586
                                                                        ----------      ----------

Shareholders' equity
Common stock                                                                37,500          37,500
Additional paid-in capital                                              10,864,033      10,846,033
Retained earnings                                                        2,783,578       2,310,687
Treasury stock                                                           (161,646)       (161,646)
                                                                         ---------       ---------
Total  shareholders' equity                                             13,523,465      13,032,574
                                                                        ----------      ----------

Total liabilities and shareholders' equity                             $81,415,849    $112,809,160
                                                                       ===========    ============
</TABLE>

     See  accompanying  notes  to  unaudited  condensed  consolidated  financial
statements


<PAGE>


                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                            Three months ended March 31,
                                                                               1999             1998
<S>                                                                             <C>              <C>
Cash flows from operating activities:
Net  income (loss)                                                              $472,891         $(369,201)
    Adjustments to reconcile net income (loss) to net cash used in
    operating activities:
         Residential  rehabilitation properties (exclusive of cash paid directly
         to/by independent contractors):
           Contractual fees received                                           (740,784)          (623,501)
           Proceeds from sales of properties                                   8,544,978          8,212,677
           Costs of properties acquired                                      (9,278,538)        (8,964,016)
         Depreciation and amortization                                            61,032             15,500
         Decrease (increase) in interest and other receivables                    81,477          (230,203)
         Decrease (increase) in mortgage loans held for sale                  14,580,818       (20,666,495)
         Decrease in receivable from sales of loans                           16,257,489         10,344,538
         (Increase) decrease in prepaid expenses and other assets               (72,884)          (113,908)
         (Decrease) increase in accrued expenses and other liabilities          (69,656)          1,539,152
                                                                              ----------        -----------

         Net cash provided by (used in) operating activities                  29,836,823       (10,855,457)
                                                                              ----------       ------------

Cash flows from investing activities:
         Purchase of furniture and equipment                                    (32,788)           (46,902)
                                                                                --------           --------
Net cash used in investing activities                                           (32,788)           (46,902)
                                                                                --------           --------
                                                                           

Cash flows from financing activities:
               Distributions to S corporation shareholders                     (277,700)        (1,919,991)
         Net proceeds from sale of common stock                                       --          9,183,325
               Net (decrease) increase in due to affiliates                  (1,187,998)            219,347
         Net decrease in notes payable-shareholder                                    --          (293,163)
         Net (decrease) increase in notes payable-warehouse lines of credit (30,348,848)          3,654,929
                                                                            ------------        -----------

Net cash (used in) provided by financing activities                         (31,814,546)         10,844,447
                                                                            ------------         ----------

Net decrease in cash and cash equivalents                                    (2,010,511)           (57,912)

Cash and cash equivalents at beginning of period                              3,596,002           1,713,405
                                                                             -----------          ---------

Cash and cash equivalents at end of period                                    $1,585,491         $1,655,493
                                                                              ==========         ==========

Supplemental  disclosures  of cash flow  information:  
     Cash paid during the year for:
           Interest                                                           $1,297,371           $483,248
                                                                              ==========           ========
           Income taxes                                                          $55,000            $13,651
                                                                                 =======            =======
           Loans transferred from mortgage loans held for sale to held for 
               investment, net                                                   $29,649                  -
                                                                                 =======            =======
          
</TABLE>

     See  accompanying  notes  to  unaudited  condensed  consolidated  financial
statements


<PAGE>


                      PMCC FINANCIAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 1999
                                   (Unaudited)

     1. 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.  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 three  months  ended March 31, 1999 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
condensed or 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,
1998.

     Certain  reclassifications  have been made to  conform  the prior  period's
presentation to the current presentation.

     2. Initial Public Offering

     On February 18, 1998 the shareholders of Premier Mortgage Corp. ("Premier")
exchanged all of their outstanding shares of common stock for 2.5 million shares
of the Company. Following this exchange, the Company completed an initial public
offering of 1.25  million new shares of common stock at a price of $9 per share.
The  Company  received  gross  proceeds of $11.25  million  and net  proceeds of
approximately $9.2 million.

     At the time of the exchange, the Company agreed to make a cash distribution
to its existing  shareholders  of $2.7 million,  which was equal to a portion of
the Company's  undistributed S corporation earnings.  Approximately $1.9 million
of this  distribution was paid during the quarter ended March 31, 1998, of which
$1 million was from the proceeds of the initial public offering.  The balance of
the  distribution  was  paid  in   installments,   including   interest  on  the
undistributed balance at 10% per annum, through February 18, 1999. The remaining
undistributed  subchapter S corporation  earnings of approximately  $1.0 million
were reclassified from retained earnings to additional paid in capital.


     3. Income Taxes

     Prior to February  18,  1998,  certain of the  Company's  subsidiaries  had
elected to be treated as S  corporations  for both  federal and state income tax
purposes.  As a result, the income of the subsidiaries through February 18, 1998
was taxed  directly to the  individual  shareholders.  On February 18, 1998,  in
conjunction  with the  Company's  initial  public  offering,  the S  corporation
elections were terminated and the Company's  subsidiaries  became C corporations
for federal  and state  income tax  purposes  and,  as such,  became  subject to
federal and state income  taxes on their  taxable  income for the periods  after
February  18,  1998.  Therefore,  the  provision  for income taxes for the three
months ended March 31, 1998  includes a provision  for deferred  income taxes of
$1,081,000 related to the temporary  differences  existing at the termination of
the S corporation elections, and pro forma net income for the three months ended
March 31, 1998  include pro forma  income taxes as if the Company had been taxed
as a C corporation throughout the periods.

     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.  The  additional  number  of shares  included  in the
calculation  of diluted EPS arising from issued  stock  options and warrants was
31,771 shares and 93,335 shares, respectively,  for the three months ended March
31, 1999 and 1998.

     Actual  earnings per share data for periods prior to February 18, 1998 have
not  been  presented  in  the  accompanying   unaudited  condensed  consolidated
statement of  operations  because the Company was not a public  company.  Actual
earnings per share data for the period  February 18, 1998 to March 31, 1998 have
not  been  presented  in  the  accompanying   unaudited  condensed  consolidated
statement of operations because management  believes that such data would not be
meaningful  given  the  relatively  short  time  period  and the  impact  of the
recognition  of a deferred tax  liability in  connection  with the change in tax
status.  Therefore,  the earnings per share data  presented for the three months
ended March 31, 1998 is based on pro forma net income.


     5. 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>

                                                                       Quarter Ended March 31,
                                                                           1999        1998
         <S>                                                            <C>            <C>
         Revenues:
            Residential rehabilitation properties                       $8,545         $ 8,213
            Mortgage banking                                             5,127           3,945
                                                                       -------           -----
                                                                       $13,672         $12,158
         Less: (1)
            Expenses allocable to residential rehabil-
              itation properties (cost of sales, interest
              expense and compensation and benefits)                     8,265           7,918
            Expenses allocable to mortgage banking
               (all other)                                               4,605           3,481
                                                                         -----           -----
                                                                       $12,870         $11,399

         Operating Profit:
              Residential rehabilitation properties                        280             295
              Mortgage banking                                             522             464
                                                                          ----             ---
                                                                          $802            $759
                                                                          ====            ====

         Identifiable   Assets  (at  March  31,  1999  and
            December  31,  1998, respectively):
              Residential rehabilitation properties                    $17,966         $16,492
              Mortgage banking                                          63,450          96,317
                                                                       -------        --------
                                                                       $81,416        $112,809
                                                                       =======        ========
</TABLE>

     (1) In managing  its  business,  the Company  does not  allocate  corporate
expenses  other than  interest  and  compensation  and  benefits  to its various
activities.

<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.  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 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 and (6) the Company's management of rapid growth and expansion.

     Results of Operations

     Quarter Ended March 31, 1999 Compared to Quarter Ended March 31, 1998

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

                                                                Quarters Ended  March 31,            
                                                              1999                      1998

<S>                                                           <C>                        <C>        
Sales of residential rehabilitation properties                $8,544,978                 $8,212,677
Gains of sales of mortgage loans, net                          3,807,903                  3,085,390
Interest earned                                                1,319,435                    859.824
                                                               ---------                 ----------
Total revenues                                               $13,672,316                $12,157,891
                                                             ===========                ===========
</TABLE>

     Revenues from the sale of residential  rehabilitation  properties increased
$332,000,  or 4%, to $8.5 million for the quarter ended March 31, 1999 from $8.2
million  for the  quarter  ended  March 31,  1998.  The  number  of  residential
rehabilitation  properties  sold was 52 for the  quarter  ended  March 31,  1999
compared to 53 for the quarter ended March 31, 1998.


     Gains  on sales of  mortgage  loans  increased  $723,000,  or 23%,  to $3.8
million for the quarter  ended March 31, 1999 from $3.1  million for the quarter
ended  March 31,  1998.  This  increase  was  primarily  due to  increased  loan
originations and loan sales from the Company's  existing offices.  Mortgage loan
originations were $133.9 million and $100.5 million for the quarters ended March
31,  1999  and  1998,  respectively.  For the  quarter  ended  March  31,  1999,
approximately 57% of the Company's  mortgage  originations were derived from its
retail mortgage operations and approximately 43% from its wholesale  operations.
The  following  table  summarizes  the  Company's   mortgage   originations  (in
millions):

                                            Quarters Ended March 31,
                                            1999              1998
           Conventional                   $88,734          $62,382
           FHA/VA                          38,832           21,527
           Subprime                         6,334           16,627 
                                          -------          -------
           Total                         $133,900         $100,536
                                         ========         ========


     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 $460,000, or 53%, to $1.3 million for the quarter
ended March 31, 1999 from  $860,000 for the quarter  ended March 31, 1998.  This
increase was primarily due to increased  mortgage  originations  for the quarter
ended March 31,  1999 as  compared  to the quarter  ended March 31, 1998 and sub
prime  mortgage  originations  which  generally  are held for sale  longer  than
conventional mortgage originations.

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

                                                                   Quarters Ended March 31,    
                                                                   1999                1998

<S>                                                                <C>               <C>        
Cost of sales - residential rehabilitation properties              $7,804,194        $ 7,589,176
Compensation and benefits                                           2,730,631          2,189,078
Interest expense                                                    1,179,956            900,525
Other general and administrative                                    1,155,644            720,313
                                                                  -----------        -----------
Total expenses                                                    $12,870,425        $11,399,092
                                                                  ===========        ===========
</TABLE>

     Cost of sales - residential  rehabilitation  properties increased $215,000,
or 3%, to $7.8  million for the quarter  ended March 31, 1999 from $7.6  million
for the quarter ended March 31, 1998.

     Compensation and benefits increased  $542,000,  or 25%, to $2.7 million for
the quarter  ended March 31, 1999 from $2.2 million for the quarter  ended March
31,1998.  This  increase  was  primarily  due to  increased  sales  salaries and
commission,  which are based substantially on mortgage loan originations and the
costs  associated  with  the  Company's  expansion  campaign.   Total  personnel
increased to 155 employees at March 31, 1999 from 107 at March 31, 1998.

     Interest expense increased $279,000, or 31% to $1.2 million, for the period
ended March 31, 1999 from  $901,000 for the quarter  ended March 31, 1998.  This
increase  was   attributable  to  the  funding  of  residential   rehabilitation
properties  and  the  increase  in  mortgage  originations  funded  through  the
Company's warehouse lines of credit.

     Other general and  administrative  expense increased  $435,000,  or 60%, to
$1.2 million for the quarter  ended March 31, 1999 from $720,000 for the quarter
ended March 31, 1998.  This  increase was  primarily  due to increased  expenses
incurred  in  connection  with  the  growth  in the  operations  of the  Company
including rent and facilities expense, telephone and marketing.

     Although there can be no assurance  thereof,  the Company believes that the
expected increase in mortgage origination volume and residential  rehabilitation
activities will result in increased expenses.

     Income before income taxes  increased  $43,000,  or 6%, to $802,000 for the
quarter ended March 31, 1999 from $759,000 for the quarter ended March 31, 1998.
Net income  increased  $842,000 to $473,000 for the quarter ended March 31, 1999
from a net loss of  ($369,000)  primarily as a result of a provision  for income
tax expense of $1,081,000  for the quarter ended March 31, 1998 which  reflected
the change in tax status to a C corporation  from an S  corporation.  Net income
increased $25,000,  or 6%, to $473,000 for the quarter ended March 31, 1999 from
pro forma net income of $448,000 for the quarter ended March 31, 1998.

     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 March  31,  1999 was  $64.3million.  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  with  Chase  Bank of Texas,  National  Association  and PNC Bank (the
"Warehouse  Line").  The Warehouse  Line provides a warehouse  line of credit of
$120 million ($90  committed)  for its mortgage  originations  and  residential
rehabilitation  purchases.  The Warehouse  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. Borrowings for residential
rehabilitation  purchases are guaranteed by Ronald  Friedman  (President,  Chief
Executive  Officer and a Director of the Company) and Robert Friedman  (Chairman
of the Board of Directors,  Chief Operating Officer,  Secretary and Treasurer of
the Company).  The interest rate charged for borrowings under the Warehouse Line
     is LIBOR  plus 1 1/4% - 2 1/4,  depending  upon the  collateral  type.  The
Warehouse
Line expires on August 6, 1999.

     The  warehouse   lines  of  credit  contain  certain   covenants   limiting
indebtedness,  liens,  mergers,  changes  in  control  and sales of  assets  and
requires the Company to maintain  minimum net worth and other financial  ratios.
The Company  expects to be able to renew or replace the  Warehouse  Line and the
other warehouse lines when the current terms expire.

     On February 18, 1998, the Company  completed an initial public  offering of
new shares of common  stock at a price of $9 per  share.  The  Company  received
gross proceeds of $11.25 million and net proceeds of approximately  $9.2 million
from this  offering.  The  proceeds  from the  offering  were  used for  funding
mortgage originations and residential rehabilitation properties, working capital
and an S Corporation distribution.

     Net cash  provided by  operations  for the quarter ended March 31, 1999 was
$29.8 million.  The Company  generated  cash from the $30.8 million  decrease in
mortgage loans held for sale and  receivable  from sales of loans offset in part
by a $1.5 million net increase in  residential  rehabilitation  properties.  The
Company used cash to reduce  borrowings  under its warehouse  lines of credit by
$30.3 million.

     Impact of New Accounting Standards

     In June 1998, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standards ("SFAS") No. 133,  "Accounting for
Derivative  Instruments  and  Hedging  Activities".  SFAS  No.  133  establishes
accounting and reporting  standards for derivative  instruments  and for hedging
activities.  It requires  that an entity  recognize  all  derivatives  as either
assets or liabilities in the statement of financial  condition and measure those
instruments  at fair  value.  The  accounting  for  changes  in fair  value of a
derivative  (that  is,  gain  and  loss)  depends  on  the  intended  use of the
derivative and the resulting  designation.  SFAS No. 133 is effective for fiscal
years  beginning  after June 15, 1999 and does not require  restatement of prior
periods.  Management  is currently  assessing  the impact of SFAS No. 133 on its
financial condition and results of operations.


     In  October  1998,  the  FASB  issued  Statement  of  Financial  Accounting
Standards No. 134, "Accounting for Mortgage-Backed Securities Retained after the
Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise"
("SFAS No. 134").  SFAS No. 134 confirms the accounting for securities  retained
after the securitization of mortgage loans by a mortgage banking enterprise with
the accounting for securities  retained after the  securitization of other types
of assets by a non-mortgage  banking  enterprise.  SFAS No. 134 is effective for
the first fiscal quarter  beginning  after December 15, 1998.  Management of the
Company  believes  the  implementation  of SFAS No. 134 will not have a material
impact on the Company's financial condition or results of operations.

     Year 2000 Compliance

     The Company is  currently  in the  process of  evaluating  its  information
technology infrastructure for the Year 2000 ("Y2000") compliant. The company has
contacted  the vendors of its  information  systems and has been  informed  that
these systems are Y2000  compliant.  The  Company's  existing  workstations  and
fileservers are  substantially  Y2000 compliant and those  workstations that are
not Y2000  compliant will be replaced  during 1999. The Company does not believe
that the cost to modify its information technology infrastructure to be material
to its  financial  condition  or  results  of  operations  nor does the  Company
anticipate any material disruption of its operations as a result of a failure by
the Company to be compliant.  However, there can be no assurance that there will
not be a delay in, or increased costs associated with, the need to address Y2000
issues. The Company also relies, directly and indirectly, on the businesses such
as  third  party  service  providers,   creditors,  financial  institutions  and
governmental entities. Even if the Company's computer systems are not materially
adversely  affected by the Y2000 issues,  the Company's  business and operations
could be materially adversely affected by disruptions in the operations of other
entities with which the Company interacts.



<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.

 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

     None.



<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/ Ronald Friedman
                                           -------------------                
                                           Ronald Friedman
                                           President and Chief Executive Officer



                                        By /s/ Timothy J. Mayette
                                           ----------------------            
                                           Timothy J. Mayette
                                           Chief Financial Officer
                                           (Principal Accounting Officer)

Dated: May 13, 1999