SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM l0-Q

                   Quarterly Report Under Section 13 or 15(d)
                     of The Securities Exchange Act of 1934

                        For Quarter Ended March 31, 1999

                         Commission file number O-17248


                         OWENS MORTGAGE INVESTMENT FUND,
                        a California Limited Partnership
             (Exact Name of Registrant as specified In Its charter)


             California                                         68-0023931
    (State or other jurisdiction                             (I.R.S. Employer
  of incorporation or organization)                         Identification No.)


       2221 Olympic Boulevard
      Walnut Creek, California                                    94595
(Address of principal executive office)                         (Zip Code)


           (925) 935-3840
   (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_________


<PAGE>




PART I. FINANCIAL INFORMATION


Item 1. Financial Statements

<TABLE>
<CAPTION>


                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                                 BALANCE SHEETS
                      March 31, 1999 and December 31, 1998

                                                                             March 31             December 31
                                                                               1999                  1998
                                                                            (Unaudited)
                                     ASSETS

<S>                                                                       <C>                   <C>           
Cash and cash equivalents                                                 $  16,825,716         $    8,260,599
Certificates of deposit                                                         350,000                434,006
Commercial paper                                                                      -              3,084,044

Loans secured by trust deeds                                                179,834,286            182,721,465
Less:  Allowance for loan losses                                             (3,500,000)            (3,500,000)
                                                                            -----------           ------------
                                                                            176,334,286            179,221,465
Real estate held for sale, net of allowance
  for losses                                                                 10,505,942              9,971,202
Interest receivable                                                           1,589,982              1,380,530
Other receivables                                                                     -                 59,074
                                                                            -----------            -----------
     Total Assets                                                          $205,605,926           $202,410,920
                                                                            ===========            ===========

                        LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
Accrued distributions payable                                           $       537,933         $      522,827
Due to General Partner                                                          349,436                391,098
Accounts payable and accrued liabilities                                        150,660                156,193
                                                                            -----------            -----------

     Total Liabilities                                                        1,038,029              1,070,118
                                                                            -----------            -----------

PARTNERS' CAPITAL:
General partners                                                              2,015,755              1,967,069
Limited partners (Units Subject to Redemption)                              202,552,142            199,373,733
                                                                            -----------            -----------
     Total Partners' Capital                                                204,567,897            201,340,802
                                                                            -----------            -----------
     Total Liabilities and Partners' Capital                               $205,605,926           $202,410,920
                                                                            ===========            ===========
</TABLE>

                 The accompanying notes are an integral part of
                          these financial statements.


<PAGE>

<TABLE>
<CAPTION>


                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                              STATEMENTS OF INCOME
         For the Three Months Ended March 31, 1999 and 1998 (Unaudited)

                                                                                             For the Three Months Ended
                                                                                           March 31              March 31
                                                                                             1999                  1998
                                                                                             ----                  ----
<S>                                                                                     <C>                   <C>  
REVENUES:
     Interest income on loans secured by trust deeds                                    $   4,688,720         $   4,707,266
     Gain on sale of real estate                                                                    -             1,042,704
     Other income                                                                             154,942               112,841
                                                                                         ------------          ------------
     Total revenues                                                                         4,843,662             5,862,811
                                                                                          -----------           -----------

OPERATING EXPENSES:
     Management fees to General Partner                                                       400,171               486,171
     Servicing fees to General Partner                                                        113,027               107,641
     Promotional interest                                                                      24,317                23,969
     Administrative                                                                             7,500                14,129
     Legal and accounting                                                                      86,473                55,786
     Real estate operations, net                                                              (28,882)               49,973
     Other                                                                                     60,452                 3,435
                                                                                        -------------       ---------------
     Total operating expenses                                                                 663,058               741,104
                                                                                         ------------         -------------

     Net income                                                                         $   4,180,604         $   5,121,707
                                                                                            =========           ===========

     Net income allocated to general partner                                          $        41,174       $        50,710
                                                                                          ===========         =============

Net income allocated to limited partners                                                $   4,139,430         $   5,070,997
                                                                                            =========           ===========

Net income allocated to limited partners
    per weighted average limited partnership unit
(203,312,000 and 192,678,000 average units)                                                    $ .020                 $.026
                                                                                                 ====                  ====
</TABLE>

                 The accompanying notes are an integral part of
                          these financial statements.


<PAGE>

<TABLE>
<CAPTION>

   
                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                            STATEMENTS OF CASH FLOWS
         For the Three Months Ended March 31, 1999 and 1998 (Unaudited)

                                                                              March 31                March 31
                                                                                1999                    1998
<S>  <S>                                                                   <C>                    <C> 
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net Income                                                            $   4,180,604          $    5,121,707
Adjustments to reconcile net income
      to net cash provided by operating activities:
     Gain on sale of real estate by limited partnership                                -              (1,017,831)
     Loss on sale of real estate properties                                            -                   2,701
     Changes in operating assets and liabilities:
       Interest receivable                                                      (209,452)               (142,718)
       Other receivables                                                          59,074                  53,509
       Accrued distributions payable                                              15,106                 (15,191)
       Due to General Partner                                                    (41,662)                410,932
       Accounts payable and accrued liabilities                                   (5,533)                      -
                                                                             -----------           ------------
          Net cash provided by operating activities                            3,998,137               4,413,109
                                                                             -----------            ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of loans secured by trust deeds                                (9,788,276)             (8,164,033)
     Principal collected                                                         396,324                 488,794
     Loan payoffs                                                             11,737,965               9,863,394
     Investment in real estate properties                                        (56,544)                (19,127)
     Net proceeds from disposition of real estate properties                      90,331                       -
     Investment in limited partnership                                                 -                (838,419)
     Distributions received from limited partnership                                   -               3,575,910
     Investment in corporate joint venture                                       (27,361)                (26,142)
     Maturity of commercial paper                                              3,084,044                       -
     Maturity of certificate of deposit                                           84,006                       -
                                                                             -----------             -----------
         Net cash provided by investing activities                             5,520,489               4,880,377
                                                                             -----------             -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from sale of partnership Units                                   5,367,556               5,509,894
     Partners' cash distributions                                             (1,593,383)             (1,575,916)
     Partners' capital withdrawals                                            (4,727,682)             (3,275,561)
                                                                             -----------             -----------
         Net cash (used in) provided by financing activities                    (953,509)                658,417
                                                                             -----------             -----------

INCREASE IN CASH AND CASH EQUIVALENTS                                          8,565,117               9,951,903
CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                                          8,260,599               3,073,115
                                                                             -----------             -----------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                                             $ 16,825,716            $ 13,025,018
                                                                             ===========             ===========

See note 3 for supplemental disclosure of non-cash investing activities.
</TABLE>

                 The accompanying notes are an integral part of
                          these financial statements.


<PAGE>



                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 1999



    (1)  Summary of Significant Accounting Policies

         In the opinion of the management of the  Partnership,  the accompanying
         unaudited financial  statements contain all adjustments,  consisting of
         normal,   recurring  adjustments,   necessary  to  present  fairly  the
         financial  information  included  therein.  These financial  statements
         should be read in  conjunction  with the audited  financial  statements
         included  in the  Partnership's  Form 10-K for the  fiscal  year  ended
         December 31, 1998 filed with the  Securities  and Exchange  Commission.
         The results of operations  for the  three-month  period ended March 31,
         1999 are not  necessarily  indicative  of the  operating  results to be
         expected for the full year.

    (2)  Loans Secured by Trust Deeds

         The  Partnership's  investment in loans delinquent  greater than ninety
         days is $9,376,000 and $8,710,000 as of March 31, 1999 and December 31,
         1998, respectively.  As of March 31, 1999, $7,393,000 of the delinquent
         loans has a  specific  related  allowance  for credit  losses  totaling
         approximately $1,965,000.  There is a non-specific allowance for credit
         losses of $1,535,000 for the remaining delinquent balance and for other
         current  loans.  There was no  additional  allowance  for credit losses
         during the three months ended March 31, 1999.

         As of March 31, 1999 and December 31, 1998, loans past maturity totaled
         approximately  $22,059,000 and $23,418,000,  respectively.  Of the past
         maturity loans at March 31, 1999,  $7,436,000 represent loans for which
         interest payments are delinquent more than ninety days.

   (3)    Real Estate Held for Sale

         During the three months ended March 31, 1999, the Partnership  acquired
         through  foreclosure a 91% interest in 92 residential  lots in Lake Don
         Pedro, California, on which it had a trust deed investment of $541,165.

    (4)  Transactions with Affiliates

         The General Partner of the  Partnership,  Owens Financial  Group,  Inc.
         (OFG),  is entitled to receive from the Partnership a management fee of
         up  to  2.75%  per  annum  of  the  average   unpaid   balance  of  the
         Partnership's mortgage loans at the end of each of the preceding twelve
         months for services rendered as manager of the Partnership.

         All of the  Partnership's  loans are serviced by OFG, in  consideration
         for which OFG  receives  up to .25% per annum of the  unpaid  principal
         balance of the loans.




                         OWENS MORTGAGE INVESTMENT FUND
                       (A California Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 1999



    (4)  Transactions with Affiliates, Continued

         OFG,  at its sole  discretion  may,  on a  monthly  basis,  adjust  the
         management  and  servicing  fees as long  as  they  do not  exceed  the
         allowable  limits  calculated on an annual basis.  In  determining  the
         management and servicing  fees and hence the yield to the  Partnership,
         OFG may consider a number of factors, including the then-current market
         yields.  Even though the fees for a month may exceed one-twelfth of the
         maximum  limits,  at the end of the  calendar  year the sum of the fees
         collected  for each of the  twelve  months is equal to or less than the
         stated limits.  Management fees amounted to approximately  $400,000 and
         $486,000   for  the  three  months  ended  March  31,  1999  and  1998,
         respectively.  Service fee  payments to OFG  approximated  $113,000 and
         $108,000   for  the  three  months  ended  March  31,  1999  and  1998,
         respectively.



         .




<PAGE>



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

Results of Operations

Three Months Ended March 31, 1999 Compared to 1998

The net income  decrease of  approximately  $941,000  (18%) for the three months
ended March 31, 1999 as compared to 1998 was due to:

The decrease in gain on sale of real estate of approximately  $1,043,000 (100%).
The gain on sale of real  estate for the three  months  ended March 31, 1998 was
from sales of homes in the WV-OMIF Partners development limited partnership. The
final homes in this limited partnership were sold in 1998. Therefore, there were
no sales and no gain recognized in 1999.

The decrease in gain on sale of real estate was  partially  offset by a decrease
in management  fees paid to the General  Partner of $86,000 (18%) which are paid
pursuant to the Partnership Agreement and net income from real estate operations
of $29,000  for the  quarter  ended  March 31, 1999 as compared to a net loss of
$50,000 for the quarter ended March 31, 1998.

Interest income on loans secured by trust deeds decreased $19,000 (0.4%) for the
three months ended March 31, 1999, as compared to the same period in 1998.  This
decrease  was a result of a decrease in the weighted  average  yield of the loan
portfolio  from  11.09% as of March 31, 1998 to 10.77% as of March 31, 1999 even
though the average loan  portfolio  grew by  approximately  4.0% for the quarter
ended March 31, 1999 as compared to 1998.  The  decrease in interest  income for
the quarter was also due to an increase in delinquent  loans of approximately 8%
as of March 31, 1999 as compared to 1998.

Financial Condition

March 31, 1999 and December 31, 1998

Loan Portfolio

The number of Partnership mortgage investments decreased from 188 to 177 and the
average loan balance increased from  approximately  $972,000 to $1,016,000 as of
December 31, 1998 and March 31, 1999, respectively. These average loan increases
reflect the Partnership's ability to invest in larger mortgage loans meeting the
Partnership's objectives.

Prior to May 1, 1993,  the General  Partner  followed a policy of purchasing all
interest  receivables of delinquent loans.  However,  on loans originated by the
General  Partner on or after May 1, 1993,  and effective  November 1, 1994,  for
certain other loans originated prior to May 1, 1993, the General Partner adopted
the policy not to purchase  delinquent  interest or  principal.  As of March 31,
1999 and December 31, 1998, there were approximately  $8,569,000 and $7,904,000,
respectively,  in loans held by the Partnership on which payments were more than
90 days delinquent and on which such delinquent interest was not being purchased
by the General Partner. The General Partner purchased  approximately $23,000 and
$110,000 in delinquent interest  receivables of the Partnership during the three
months ended March 31, 1999 and the year ended December 31, 1998, respectively.

Approximately  $9,376,000  (5.2%) and $8,710,000 (4.8%) of the loans invested in
by the Partnership  were more than 90 days delinquent in payment as of March 31,
1999 and  December  31,  1998,  respectively.  Of these  amounts,  approximately
$3,111,000  (1.7%) and  $3,657,000  (2.0%) were in the  process of  foreclosure.
Loans more than 90 days  delinquent  increased by $666,000  (7.7%) from December
31,  1998 to March 31,  1999,  primarily  due to one  large  loan  which  became
delinquent  during  the  quarter.  Management  believes  that the loan,  with an
outstanding principal balance of approximately $1,553,000, is adequately secured
and that no additional loan loss reserve for this loan is necessary.

A loan loss reserve in the amount of $3,500,000 was recorded on the books of the
Partnership  as of March 31, 1999 and  December 31,  1998.  The General  Partner
believes that this loan loss reserve is adequate.

As of  March  31,  1999  and  December  31,  1998  approximately  55%  and  48%,
respectively,  of the mortgage loans made or invested in by the  Partnership are
secured by real  property  located in Northern  California.  The increase in the
percentage  of  loans  secured  by real  property  in  Northern  California  has
primarily been due to three new loans originated during the quarter in the total
amount of $2,125,000 which are secured by properties in Northern  California and
the continued funding of construction loans located in Northern  California.  In
addition,  four large loans located outside of Northern  California in the total
amount of approximately $4,350,000 were paid off during the quarter.

The  Partnership's  investment in loans secured by single family  residences has
decreased by 58% since December 31, 1998 primarily due to the foreclosure of one
property located in Lake Don Pedro, California in the amount of $541,000 and the
payoff  of three  loans in the total  amount of  $1,003,000.  In  addition,  the
Partnership's  investment in loans  secured by unimproved  land has increased by
3%. All of the  Partnership's  loans secured by  unimproved  land or land in the
process of being developed are first trust deeds. In addition, only one of these
loans in the amount of $802,200 is more than 90 days delinquent in payment as of
March 31, 1999.






The  following  amount of  delinquent  loans held by the  Partnership  have been
acquired and foreclosed upon by the General Partner from January 1, 1994 through
March 31, 1999:

                                    Delinquent                      Year
             Principal               Interest                    Foreclosed
               58,000                    4,417                      1994
            1,184,223                  252,810                      1995
            2,320,000                   86,981                      1996
              613,400                   50,625                      1997
                   --                       --                      1998
                   --                       --                      1999

The General Partner has purchased from the  Partnership all delinquent  interest
receivable on those loans  foreclosed on in 1994 and 1995,  but did not purchase
the  delinquent  interest on the loans  foreclosed on in 1996 and 1997. Of these
foreclosed  loans,  the  Partnership  held three  mortgages due from the General
Partner totaling $765,332.  In addition,  the Partnership held a mortgage in the
amount of  $1,150,000  secured  by a  property  sold by the  Partnership  to the
General  Partner  during the year ended  December 31, 1998. All loans due to the
Partnership by the General Partner were paid off in full in November 1998.

Real Estate Properties Held for Sale

The Partnership  currently holds title to twelve properties that were foreclosed
on from January 1, 1993 through March 31, 1999 in the amount of $9,673,000,  net
of allowance for losses of $1,184,000.  Since 1993, the Partnership's investment
in real estate held for sale has increased due to the General Partner's decision
to stop acquiring from the Partnership  property subject to foreclosure on which
the  Partnership  has a  trust  deed  investment  on  property  acquired  by the
Partnership  through  foreclosure.  When the  Partnership  acquires  property by
foreclosure,  it typically  earns less income on those  properties than could be
earned on mortgage  loans.  During the three months  ended March 31,  1999,  the
Partnership  acquired through  foreclosure a 91% interest in 92 residential lots
in Lake  Don  Pedro,  California,  on which it had a trust  deed  investment  of
$541,165.

Six of the Partnership's  twelve  properties do not currently  generate revenue.
Expenses from rental  properties have decreased from  approximately  $220,000 to
$151,000 (31%) for the three months ended March 31, 1998 and 1999, respectively,
due to expenses  incurred on the Sonora Vista  property in the first  quarter of
1998  prior  to the sale of the  property  to the  General  Partner  and  legal,
insurance and payroll expenses incurred on the Merced and Oakland  properties in
the first quarter of 1998 which were not incurred in 1999. In addition, revenues
associated  with these  properties  have  increased  from  $170,000  to $180,000
(5.9%),  thus  generating  net income  from real estate held for sale of $29,000
during the three months ended March 31, 1999. The increase in rental revenues is
due to the increased  number of properties held which are generating  income and
to  increased  occupancy  rates on those  properties  as of  March  31,  1999 as
compared to 1998.

Investment in Corporate Joint Venture

In 1995, the  Partnership  foreclosed on a $571,853 loan and obtained title to a
commercial  lot in Los Gatos,  California  that secured the loan.  In 1997,  the
Partnership  contributed  the lot to a limited  liability  company (the Company)
formed with an  unaffiliated  developer to develop and sell a commercial  office
building on the lot. The Partnership is providing  construction financing to the
Company at prime plus two percent.

During the three months ended March 31, 1999 and 1998, the Partnership  advanced
an additional $27,361 and $26,141,  respectively, to the corporate joint venture
for  development.  The total  investment  in the  corporate  joint  venture  was
$832,922 and $805,561 as of March 31, 1999 and December 31, 1998, respectively.

The Company received all development  approvals in the third quarter of 1998 and
expects to begin construction in June of 1999.

Interest Receivable and Due to General Partner

Interest receivable  increased from approximately  $1,381,000 as of December 31,
1998 to  $1,590,000  as of March 31, 1999  ($209,000 or 15%),  due  primarily to
payments on certain  loans  received  from the General  Partner on April 1, 1999
which were accrued as of March 31, 1999.

Due to General Partner decreased from approximately  $391,000 as of December 31,
1998 to  $349,000  as of March 31,  1999  ($42,000  or 11%) due  primarily  to a
decrease  in the  management  fees owed to the  General  Partner for the quarter
ended March 31,  1999.  Management  fees are paid  pursuant  to the  Partnership
Agreement.

Cash and Cash Equivalents, Certificates of Deposit and Commercial Paper

Cash and cash  equivalents,  certificates  of deposit and commercial  paper have
increased from approximately  $11,779,000 as of December 31, 1998 to $17,176,000
as March 31, 1999, respectively  ($5,397,000 or 46%). This increase is primarily
attributable to the rollover of limited  partner income and principal  collected
on loans  (including  loan  payoffs)  during the  quarter  ended  March 31, 1999
without the investment in new loans of the same amount.

Asset Quality

Some losses are normal when lending  money and the amounts of losses vary as the
loan  portfolio  is affected  by  changing  economic  conditions  and  financial
experiences  of borrowers.  There is no precise  method of  predicting  specific
losses or amounts that  ultimately may be charged off on particular  segments of
the loan portfolio.

The conclusion that a Partnership loan may become uncollectible,  in whole or in
part,  is a matter of judgment.  Although  lenders such as banks and savings and
loans are subject to regulations  that require them to perform ongoing  analyses
of  portfolio,  loan to value  ratios,  reserves,  etc.,  and to obtain  current
information regarding its borrowers and the securing properties, the Partnership
is not subject to these regulations and has not adopted these practices. Rather,
management of the General Partner,  in connection with the quarterly  closing of
the accounting  records of the  Partnership and the preparation of the financial
statements, evaluates the Partnership's mortgage loan portfolio. Based upon this
evaluation,  a determination is made as to whether the allowance for loan losses
is adequate to cover potential losses of the  Partnership.  As of March 31, 1999
management  believes  that  the  allowance  for loan  losses  of  $3,500,000  is
adequate.  As of then, loans secured by trust deeds include  $9,376,000 in loans
delinquent over 90 days, of which  $3,111,000 was invested in loans that were in
the process of foreclosure. Due to the loan-to-value criteria established by the
General  Partner,  in its opinion,  the mortgage  loans held by the  Partnership
appear in general to be adequately secured.

The General  Partner's  judgment of the adequacy of loan loss reserves  includes
consideration of:

      economic conditions;

      borrower's financial condition;

      evaluation of industry trends;

      review and evaluation of loans identified as having loss potential; and

      quarterly review by the Board of Directors.

Liquidity and Capital Resources

Purchases  of  Units  and  loan   payoffs   provide  the  capital  for  mortgage
investments. Although general market interest rates have most recently declined,
a  substantial  increase  in such  rates  could  have an  adverse  affect on the
Partnership, because then the Partnership's investment yield could be lower than
other  debt-related  investments.  In that event,  purchases of additional Units
could decline, which, in turn, would reduce the liquidity of the Partnership and
its ability to make additional mortgage investments.  In contrast, a significant
increase in the dollar amount of loan payoffs and/or additional  limited partner
investments  without  the  origination  of new  loans of the same  amount  would
increase the  liquidity of the  Partnership.  This  increase in liquidity  could
result in a decrease in the yield paid to limited  partners  as the  Partnership
would be required to invest the additional  funds in lower yielding,  short term
investments.  The  Partnership  has not and does not intend to borrow  money for
investment purposes.

There has been little  variation in the  percentage  of capital  withdrawals  to
total  capital  invested by the  limited  partners  in recent  years,  excluding
regular  distributions  of net income to limited  partners,  and no  substantial
change is expected.  Withdrawal percentages have been 7.37%, 6.11%, 7.85%, 6.63%
and 7.33% for the years ended December 31, 1994,  1995,  1996, 1997 and 1998 and
9.32%  (annualized) for the three months ended March 31, 1999. These percentages
are the annual  average of the  limited  partners  capital  withdrawals  in each
calendar  quarter  divided by the total limited partner capital as of the end of
each quarter.

The limited partners may withdraw,  or partially withdraw,  from the Partnership
and obtain the return of their  outstanding  capital  accounts at $1.00 per Unit
(book value)  within 61 to 91 days after  written  notices are  delivered to the
General Partner, subject to the following limitations, among others:

     No  withdrawal  of Units can be  requested  or made until at least one year
     from the date of purchase of those Units,  on or after the date of the most
     recent  Prospectus  dated  2/16/99,  other  than Units  received  under the
     Partnership's Reinvested Distribution Plan.

     Any such  payments  are  required  to be made  only from Net  Proceeds  and
     Capital Contributions (as defined) during said 91-day period.

     A maximum of  $100,000  per partner may be  withdrawn  during any  calendar
     quarter.

     The General  Partner is not  required to  establish a reserve  fund for the
     purpose of funding such payments.

     No more than 10% of the  outstanding  limited  partnership  interest may be
     withdrawn   during  any  calendar  year  except  upon  dissolution  of  the
     Partnership.

Contingency Reserves

The Partnership  maintains cash, cash  equivalents and marketable  securities as
contingency  reserves  in an  aggregate  amount of 2% of the  limited  partners'
capital  accounts to cover  expenses  in excess of revenues or other  unforeseen
obligations  of the  Partnership.  Although the General  Partner  believes  that
contingency reserves are adequate, it could become necessary for the Partnership
to  sell or  otherwise  liquidate  certain  of its  investments  to  cover  such
contingencies on terms which might not be favorable to the Partnership.

Current Economic Conditions

Although the current  economic  climate in Northern  California  and the Western
United States is generally  strong,  many areas outside of the San Francisco Bay
Area and throughout the Western United States  continue to experience  depressed
values created by the real estate recession of the early 1990's.  Other than the
loss  incurred  in  February  1998 on the  sale to the  General  Partner  of the
manufactured-home   development   in  Sonora,   California,   acquired   through
foreclosure, the Partnership has not sustained any material losses to date. This
has been due  primarily  to the General  Partner's  pre-May 1, 1993  practice of
purchasing   delinquent  interest  and  loans  from  the  Partnership  prior  to
foreclosure.  The General Partner has ceased such practices,  except as to loans
that  pre-exist  the  change in policy and other very  limited  exceptions.  The
General  Partner  expects  that it will  not  purchase  delinquent  interest  or
principal on delinquent  loans in the future,  and  therefore,  the  Partnership
could  sustain  losses with respect to loans  secured by  properties  located in
areas of declining real estate  values.  This could result in a reduction of the
net income of the Partnership  for a year in which those losses occur.  There is
no way of making a reliable  estimate of these  potential  losses at the present
time.

Despite the  Partnership's  ability to purchase  mortgage loans with  relatively
strong yields during 1997, 1998 and the quarter ended March 31, 1999,  there has
been  competition  from a variety of lenders that has had the effect of reducing
mortgage  yields  over the past two years and could have the effect of  reducing
mortgage yields further in the future. Current loans with relatively high yields
could be replaced with loans with lower  yields,  which in turn could reduce the
net yield paid to the limited partners.  In addition, if there is less demand by
borrowers for loans and, thus,  fewer loans for the Partnership to invest in, it
will invest its excess cash in  shorter-term  alternative  investments  yielding
considerably less than the current investment portfolio.

Year 2000 Readiness

Many computer systems may experience difficulty processing dates beyond the year
1999; as a  consequence,  some computer  hardware and software at most companies
will need to be modified  or replaced  prior to the year 2000 in order to remain
functional.  The General  Partner  depends on the use of  computers  and related
systems to provide timely,  accurate information essential to the management and
operation of the Partnership.  These systems include both information technology
(IT) and non-information  technology (non-IT) systems. For IT and non-IT systems
developed by independent third parties  (externally-developed),  the vendors and
suppliers have represented that these systems are Year 2000 compliant;  however,
internal testing of these systems has not been completed.  The computer programs
used to account for mortgage loan  investments,  investments  in Units and other
items are  internally-developed  IT systems. These IT systems have been reviewed
by  independent  consultants  to determine  whether  these  programs are able to
recognize the year 2000 and all required modifications have been completed.  The
consultants are currently in the process of testing all modifications  that have
been made. The testing is expected to be completed by August of 1999.

Although not anticipated by the General Partner, a failure to adequately address
the Year 2000 issue could result in the  misstatement  of reported  information,
the inability to accurately track mortgage investments and payments due or other
operational  problems.  If IT systems are not  operational in the Year 2000, the
General Partner has determined that they can operate manually for several months
while  correcting  the system  problems  before  experiencing  material  adverse
effects on the Partnership's  and the General Partner's  business and results of
operations.  However,  shifting portions of daily operations to manual processes
may result in time delays and  increased  processing  costs.  Additionally,  the
Partnership  and  General  Partner  may  not be able to  provide  borrowers  and
investors with timely and pertinent  information,  which may  negatively  affect
customer  relations  and lead to the  potential  loss of new loans  and  limited
partner investments.

The General  Partner is in the process of assessing  Year 2000 issues with third
parties,  comprised  primarily  of  certain  financial  institutions  and  other
vendors,  with whom the Partnership has a material business  relationship (Third
Parties).  Currently,  the Partnership believes that if a significant portion of
these financial  institutions is non-compliant for a substantial length of time,
the  Partnership's  operations  and  financial  condition  would  be  materially
adversely  affected.  Non-compliance  by other Third  Parties is not expected to
have a material effect on the Partnership's  results of operations and financial
condition. The General Partner has sent letters to these and other Third Parties
requesting  representations  of  their  Year  2000  readiness  and is  currently
awaiting replies from the Third Parties.

The total costs to remedy Year 2000 issues will be paid by the General  Partner.
None of such costs will be reimbursed by the Partnership.

The  worst  case  scenario  from the  impact of Year 2000  cannot  presently  be
predicted.

Forward Looking Statements and Other Year 2000 Risk Factors

The foregoing analysis of Year 2000 issues includes  forward-looking  statements
and  predictions  about  possible or future  events,  results of operations  and
financial  condition.  As such, this analysis may prove to be inaccurate because
of the  assumptions  made by the General  Partner or the actual  development  of
future  events.  No  assurance  can be given  that any of these  forward-looking
statements  and  predictions  will  ultimately  prove  to  be  correct  or  even
substantially correct.

Various other risks and  uncertainties  could also affect the Year 2000 analysis
causing the effect on the  Partnership to be more severe than  discussed  above.
The General  Partner's Year 2000  compliance  testing cannot  guarantee that all
computer  systems will function  without error beyond the Year 2000.  Risks also
exist with respect to Year 2000  compliance by Third  Parties,  such as the risk
that an external  party,  who may have no relationship to the Partnership or the
General Partner,  but who also has a significant  relationship  with one or more
Third  Parties,   may  have  a  system   failure  that  adversely   affects  the
Partnership's  ability  to  conduct  business.  While  the  General  Partner  is
attempting to identify such external parties,  no assurance can be given that it
will be able to do so. Furthermore, Third Parties with direct relationships with
the  Partnership,  whose systems have been  identified as likely to be Year 2000
compliant,  may suffer a breakdown due to unforeseen  circumstances.  It is also
possible that the  information  collected by the General Partner for these Third
Parties  regarding  their  compliance  with Year 2000  issues may be  incorrect.
Finally,  it should be noted that the  foregoing  discussion of Year 2000 issues
assumes that to the extent the General Partner's  systems fail,  whether because
of unforeseen  complications or because of Third Parties' failure,  switching to
manual  operations  will  allow the  Partnership  to  continue  to  conduct  its
business.  While the General Partner  believes this assumption to be reasonable,
if it is incorrect,  the  Partnership's  results of  operations  would likely be
adversely affected.


<PAGE>


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

The Partnership is not presently involved in any material legal proceedings.


Item 6(b).  Reports on Form 8-K

No reports on Form 8-K have been filed  during the quarter for which this report
is filed.


<PAGE>



                                   SIGNATURES

      Pursuant to the requirements of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
registrant and in the capacities and on the dates indicated.


Dated:  May 12, 1999          OWENS MORTGAGE INVESTMENT FUND,
                              a California Limited Partnership

                               By:  Owens Financial Group, Inc., General Partner


Dated:   May 12, 1999          By: /s/William C. Owens
                                  William C. Owens, President


Dated:   May 12, 1999          By: /s/ Bryan H. Draper
                                   Bryan H. Draper, Chief Financial Officer


Dated:   May 12, 1999          By: /s/ Melina A. Platt
                                   Melina A. Platt, Controller