SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 AMENDMENT NO. 1
                                  FORM 10-QSB/A

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

       For Quarter                                 Ended Commission File
     MARCH 31, 1996                                     NO. 0-18945

                          WESTMARK GROUP HOLDINGS, INC.

        COLORADO                                        84-1055077
(State of Incorporation)                  (I.R.S. Employment Identification No.)

                              355 N.E. Fifth Avenue
                           Delray Beach, Florida 33483
                                  (407)243-8010
                (Address of Principal Executive Offices. Include
                         Zip Code and Telephone Number)

      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 [ ]

      THE NUMBER OF SHARES OUTSTANDING OF THE ISSUER'S COMMON STOCK AS OF MAY
22, 1996 WAS 2,810,478.

                [X] TRADITIONAL SMALL BUSINESS DISCLOSURE FORMAT.
<PAGE>
                          WESTMARK GROUP HOLDINGS, INC.

                            FORM 10-QSB REPORT INDEX

10-QSB PART AND ITEM NO.

    PART I-FINANCIAL INFORMATION

         ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

               Consolidated balance sheet as of
                 March 31, 1996............................................3

               Consolidated statement of operations for the three
                 months ended March 31, 1996 and 1995......................5

               Consolidated statement of cash flows for the three
                 months ended March 31, 1996...............................6

               Notes to consolidated financial statements..................7

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                   CONDITION AND RESULTS OF OPERATIONS.....................8

    PART II-OTHER INFORMATION

         ITEM 1. LEGAL PROCEEDINGS........................................10
         ITEM 2. CHANGES IN SECURITIES....................................11
         ITEM 3. DEFAULTS UPON SENIOR SECURITIES..........................11
         ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS......11
         ITEM 5. OTHER INFORMATION........................................12
         ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.........................12

         SIGNATURES.......................................................13

                                        2
<PAGE>

NOTE 1: BASIS OF PRESENTATION

        The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three month period
ended March 31, 1996 are not necessarily indicative of the results that may be
expected for the year ended December 31, 1996. For further information, refer to
the consolidated financial statements and footnotes thereto included in the
Company's audited annual report on Form 10-K for the year ended December 31,
1995.


NOTE 2: FIRST QUARTER FINANCING ACTIVITY

        The Company received $790,000 in advances from Heart Labs of America,
Inc. ("HLOA") which were used to fund a stock repurchase commitment of $700,000,
as well as for working capital purposes. A total of $700,000 of these advances
were converted to 10% convertible preferred stock, with the remainder in the
form of one-year 10% promissory notes totaling $90,000.


NOTE 3: EARNINGS PER SHARE

        Earnings per share for the three months ended March 31, 1995 take into
effect a reverse of 1 to 30 recorded in July 1995.

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<PAGE>
                          PART I FINANCIAL INFORMATION

                          WESTMARK GROUP HOLDINGS, INC.
                           CONSOLIDATED BALANCE SHEETS

                                                   MARCH 31,       DECEMBER  31,
                                                     1996              1995
                                                  (UNAUDITED)        (AUDITED)
ASSETS
Current Assets:
     Cash and cash equivalent ................    $    263,947     $    311,916
     Accounts receivable,  net of reserve ....           8,664            8,004
     Note receivable - stock sale ............               0          374,222
     Mortgage loans held for sale ............       8,561,959       19,480,029
     Other current  assets ...................          69,800            2,202
                                                  ------------     ------------
Total Current Assets .........................       8,904,370       20,176,373
                                                  ------------     ------------
Fixed Assets:
Property and equipment .......................         820,588          820,588
Equipment under lease ........................          16,477           16,477
                                                  ------------     ------------
                                                       837,065          837,065
     Less Accumulated Depreciation ...........        (482,035)        (434,411)
                                                  ------------     ------------
 Total fixed assets ..........................         378,842          402,654
                                                  ------------     ------------
Other Assets:
      Investment Real Estate .................       2,115,000        2,115,000
      Investment Preferred Stock .............       2,000,000        2,000,000
      Goodwill, net of amortization ..........         761,104          785,833
      Deposits and other assets ..............               0           30,298
                                                  ------------     ------------
Total other assets ...........................       4,876,104        4,931,131

TOTAL ASSETS .................................      14,159,316       25,510,158
                                                  ============     ============

                                        4
<PAGE>
                          WESTMARK GROUP HOLDINGS, INC.
                           CONSOLIDATED BALANCE SHEETS

                                                     MARCH 31,      DECEMBER 31,
                                                       1996            1995
                                                    (UNAUDITED)      (AUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Accounts payable ............................  $    789,856   $  1,234,199
     Warehouse line of credit ....................     8,390,719     18,625,866
     Interest Payable ............................       141,783        227,619
     Settlement liability ........................       419,348        419,348
     Other notes payable .........................       832,318        717,818
     Payroll  taxes payable ......................       224,503        141,329
     Other current liabilities ...................       650,888        854,452
                                                    ------------   ------------
Total  Current Liabilities .......................    11,449,415     22,220,631


Long-Term Liabilities:
      Notes payable ..............................     1,000,000      1,000,000
      Short term debt expected
        to be refinanced
      On a long-term basis .......................       698,323        698,323
                                                    ------------   ------------
Total Long Term Liabilities ......................     1,698,323      1,698,323
                                                    ------------   ------------

Total Liabilities ................................    13,147,738     23,918,954
                                                    ------------   ------------
STOCKHOLDERS EQUITY
Preferred stock, no par value,
    1,000,000 shares authorized;
    200,0000 shares issued and
    outstanding at March 31, 1996 ................       700,000              0
Common  stock, no par value, 3,333,333 shares
    authorized; 2,637,772  shares
    issued and outstanding
    as of December 31, 1995  .....................    22,475,937     23,165,937
Additional Paid in Capital from
    outstanding options and warrants .............     1,153,688      1,153,688

Accumulated deficit ..............................   (23,318,047)   (22,728,421)
                                                    ------------   ------------
Total Stockholder Equity .........................     1,011,578      1,591,204
                                                    ------------   ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .......    14,159,316     25,510,158
                                                    ============   ============

                                        5
<PAGE>
                          Westmark Group Holdings, Inc.
                      Consolidated Statements of Operations

                                                         Three Months Ended

                                                     March 31,        March 31
                                                       1996             1995
                                                    (UNAUDITED)      (UNAUDITED)
REVENUES:

   Loan origination and gain from
     sale of servicing .......................         672,902          662,894
   Other .....................................           4,170            8,825
                                                    ----------       ----------
Total Revenues ...............................         677,072          671,719
                                                    ----------       ----------
Expenses:
   Loan origination costs ....................         373,224          381,090
   Servicing sale adjustments ................         (70,000)               0
   General and administration ................         892,277        1,324,547
   Marketing and advertising .................          22,656           62,474
   Goodwill amortization .....................          24,729           24,729
   Depreciation ..............................          23,812                0

Total Expenses: ..............................       1,266,698        1,792,840

Loss before income taxes .....................        (589,626)      (1,121,121)

Provision for income taxes

Net loss .....................................        (589,626)      (1,121,121)

Net loss per share ...........................           (0.21)           (1.80)

                                        6
<PAGE>
                          WESTMARK GROUP HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                         THREE  MONTHS ENDED
                                                       MARCH 31,     MARCH 31

                                                         1996          1995
                                                      (UNAUDITED)   (UNAUDITED)
OPERATING ACTIVITIES
Consolidated net loss .............................  $   (589,626)  $(1,121,121)
Adjustments to reconcile consolidated net (loss)
      to net cash used by operating activities:
      Depreciation ................................        23,812        26,754
      Stock issued for services ...................             0       203,425
      Stock issued for settlement of litigation ...                     174,250
      Goodwill Amortization .......................        24,729        24,729
                                                     ------------   -----------
Cash used in operations before working
  capital changes .................................      (541,085)     (691,963)
                                                     ============   ===========
   (Increase)/Decrease in accounts receivable .....          (660)      426,085
   (Increase)/Decrease in current assets ..........        37,300      (200,740)
   (Increase)/Decrease in mortgage loans held
      for sale ....................................    10,918,070    (5,960,691)
   (Increase)/Decrease in REO loan ................             0        62,050
   (Increase)/Decrease in Long term assets ........                     314,319
   (Increase)/Decrease in capital lease ...........        (2,345)            0
    Increase/(Decrease)in Accounts payable ........      (444,343)      (53,518)
    Increase/(Decrease)in Interest payable ........       (85,836)       56,196
    Increase/(Decrease)in Other notes payable .....       114,500      (105,000)
    Increase/(Decrease)in Other
      current liabilities .........................      (208,045)      (69,197)
                                                     ------------   -----------
Net cash used after working capital changes .......    10,254,041    (5,644,023)
                                                     ------------   -----------
Cash (used) in operating activities ...............     9,712,956    (6,335,986)

INVESTING ACTIVITIES
    Purchase of fixed assets and improvements .....             0      (144,141)
                                                     ------------   -----------
Cash provided/(used) in investing activities ......             0      (144,141)
                                                     ------------   -----------

FINANCING ACTIVITIES
     Net Increase/(Decrease) in warehouse
       line of credit .............................   (10,235,147)    5,893,118
     Loans from related party .....................       790,000             0
     Payment of notes receivable - sale of stock ..       374,222             0
     Repurchase of stock ..........................      (700,000)            0
     Sale of stock for cash .......................        10,000       371,666
                                                     ------------   -----------
Cash provided/(used) by financing activities ......    (9,760,925)    6,264,784
                                                     ------------   -----------
Net decrease in cash ..............................       (47,969)       85,906
Cash and cash equivalents, beginning period .......       311,916       107,573
Cash and cash equivalent, end of period ...........       263,947        21,667
Cash  paid for interest ...........................       309,770       113,432
                                                     ============   ===========
Cash paid for income tax ..........................             0             0
                                                     ============   ===========

                                        7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

        The following discussion should be read in conjunction with the attached
condensed consolidated financial statements and notes thereto.

FINANCIAL RESULTS OF OPERATIONS

        On a consolidated basis, total revenues increased to $672,902 in the
quarter ended March 31, 1996 from $671,719 in the quarter ended March 31, 1995,
an increase of 2%. The increase is a result of greater profit margins on the
bulk sale of B/C paper along with the flow sales on "A" paper. This increase in
revenue is a combination of the increased marketing efforts in the B/C loan area
along with investor commitments to buy bulk loan packages.

        Expenses for the quarter ended March 31, 1996 decreased 30% to
$1,266,698 from $1,792,840 for the quarter ended March 31, 1995. Loan
origination costs decreased 2% to $373,224 for the current quarter from $381,090
in the comparable prior year quarter ending March 31, 1995. General and
Administrative expenses decreased 33% to $892,777 from $1,324,547 for the
quarter ended March 31, 1995. Marketing and Advertising expense decreased 64% to
$22,656 from $62,474 for the quarter ended March 31, 1995.

        A net loss resulted for the current quarter of $589,626 or $0.21 per
share as compared to a net loss of $1,121,121 or $1.80 per share for the quarter
ended March 31, 1995. This decreased loss is due to significant cost cutting
efforts by management in areas of General and Administrative through salary
reductions, lease termination and operational consolidations, as well as
increased margins on the sale of loans.

BUSINESS OPERATIONS

        During the first quarter of 1996, the Company continued increased loan
volumes in B/C paper. B/C loan fundings increased from $2.75 million in the 3
months ending March 31, 1995 to $4.79 million for the three months ended March
31, 1996, an increase of 74% and the B/C loan pipeline from $7.8 million on
March 31, 1995 to $13.4 million on March 31, 1996. The loan pipeline is a
leading indictor of loan fundings and revenue and management believes that will
increase in the second quarter of 1996.

        The Company officially launched its B/C lending program during the first
quarter of 1995. B/C loans are for borrowers with credit histories that fall
below the guidelines set forth by Fannie Mae and Freddie Mac. Although the B/C
division is only 1 year old, 33% of the Company's loan fundings during the 1st
quarter of 1996 were from B/C loans and over 60% of revenues realized were from
B/C loans. The Company is focusing its marketing efforts in the B/C loan market.
The Company is now registered and/or licensed to lend in 20 states. While the
increase in the B/C loan pipeline has come primarily from an increased market
share in Florida, management intends to

                                        8
<PAGE>
continue its marketing strategy in additional states, including California,
Georgia, Washington, Hawaii, Idaho, Montana, and Missouri.

        The Company continues to sell loan origination's on a
"servicing-released" basis to investors in the normal course of business. The
Company is continuing to seek additional warehouse lines to accommodate
anticipated increase in ordinations. The increase in origination's will be
created by Westmark's geographic expansion and increase in market share. The
Company instituted a bulk sales program for B/C paper in which loans are pooled
and sold in packages ranging from $500,000 to $3,000,000. During the first
quarter, the bulk sales delivery was completed successfully with 3 institutional
investors purchasing Westmark non-conforming originations.

LIQUIDITY AND CAPITAL RESOURCES

        The Company uses its cash flow from whole loan sales, loan origination
fees, net interest income and borrowings under its warehouse line of credit to
meet its working capital needs. The Company's cash requirements include the
funding of loan origination's, purchases, payment of interest expenses,
operating expenses, taxes and capital expenditures.

        On March 31, 1996, total stockholders equity was $1,011,578. Adequate
credit facilities and other sources of funding, including the ability of the
Company to sell loans, are essential to the continuation of the Company's
ability to originate and purchase loans. The Company borrows funds on a short
term basis to support the accumulation of loans prior to sale. These short term
borrowings are made under a warehouse line of credit with Princap Mortgage, Inc.
("Warehouse Facility"). Pursuant to the Warehouse Facility, the Company has
available a secured revolving credit line of $15 million to finance the
Company's origination or purchase of loans, pending sale to investors. The line
of credit, pursuant to the Warehouse Facility, has collateral of the assignment
and pledge of eligible mortgage loans, bears interest at an annual rate of 2%
above prime, payable at the time of purchase by the permanent investor. The
Warehouse Facility provides for a transaction charge of $140 per loan and
requires the Company to possess a minimum net worth of $250,000 an compensating
cash balance on deposit in the amount of $5,000. On March 31, 1996, the balance
outstanding , pursuant to this Warehouse Facility, totaled $8,390,719. The
Company does not have any other external lines of credit for financing.

        Historically, the Company has obtained financing through the issuance of
its common stock and borrowings on a negotiated basis. During the first quarter
of 1996, the Company issued 12,000 shares of Common Stock for services rendered.
During 1995, the Company issued 956,162 shares of common stock for cash and
other consideration. In May and June 1995, the Company raised $600,000 cash
through the issuance of convertible promissory notes in the principal amount of
$600,000 and the warrants entitling holders to purchase certain securities
("Bridge Financing"). In April

                                        9
<PAGE>
1996, the Company and all these investors agreed to restructure the investment
and the Company paid such investors an aggregate amount of $600,000 and issued
such investors 300,000 shares of Series B Preferred Stock ("Series B Preferred
Stock") with a stated value of $600,000. The Series B Preferred Stock has a
liquidation preference of $600,000, plus accrued and unpaid dividends, is
redeemable by the Company at a redemption price of $600,000, plus accrued and
unpaid dividends from the date of redemption, subject to adjustment in the event
of certain circumstances, and is convertible into shares of Common Stock at a
conversion price equal to the lessor of $2.00 or 84% of the closing bid price
prior to the date of conversion (subject to further adjustment). In November
1995, Heart Labs purchased 1,298,000 shares of Company common stock in exchange
for $1,210,000 cash and cash equivalents, which was utilized for working capital
purposes, and the issuance of 200,000 shares of Heart Labs Series B Convertible
Preferred Stock with the stated value of $10 per share.

        In addition, Heart Labs advanced the Company an aggregate amount of
$1,390,000 during the first quarter of 1996 and $653,000 in the 2nd quarter of
1996, primarily to fund outstanding debt obligations along with working capital.
The company is dependent on Hear Labs in order to satisfy certain debt
obligations and working capital needs for the first and second quarter of 1996.
The Company's internally generated cash flows from operations has historically
been and continue to be insufficient for its cash needs. It is expected that
internal sources of liquidity will improve when net cash is provided by
operating activities and, until such time, the Company will rely on external
sources for liquidity. The Company has not established any other lines of credit
or other similar financial arrangements with any lenders, and it continues to
rely on Heart Labs for assistance to meet immediate working capital needs. If it
appears at any time in the future that the Company is again approaching a
condition of cash deficiency, the Company will be required to seek additional
debt or equity financing or bring cash flows in balance. Management does not
anticipate the need for any such action and, therefore, has no specific plans or
commitments with respect thereto for the Company. However, if such action was
required, there is no assurance that the Company will be successful in any such
effort.

PART II-OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

        The Company is a defendant in Robert J. Conover vs. Greentree Mortgage
Co., L.P. and Greentree Management Corporation (collectively, "Greentree"),
Westmark Group Holdings, Inc., Westmark Mortgage Corporation and Michael F.
Morrell, Superior Court of New Jersey, Chancery Division, Burlington County,
filed September 25, 1995. The plaintiff served as president and chief financial
officer of Greentree pursuant to an employment agreement between the plaintiff
and Greentree. Plaintiff was discharged from those positions in September 1995.
Plaintiff brought this action for compensatory damages based upon alleged breach
of such employment agreement. Plaintiff seeks, among other things, damages
against Westmark and Mr. Morrell based upon an allegation of intentional
interference with contractual obligations and a third

                                       10
<PAGE>
party beneficiary claim with respect to the Company. Mr. Morrell is indemnified
by the Company.

        On October 27, 1995, the plaintiff sought a temporary restraining order
and preliminary injunction enjoining the Company from the acquiring Greentree.
Such request was denied as the Court found that, among other things, the
applicable test requiring plaintiff to show a likelihood of success on the
merits was not met. The Company has terminated negotiations with Greentree.
Greentree has agreed to maintain a minimum net worth of $1,000,000. Management
believes that this obligation does not transfer in any way to the Company in
connection with its attempted purchase of certain assets of Greentree. Greentree
disputes the allegations of the complaint. The Company believes that there is
not legal justification for the joinder of the Company and Mr. Morrell as
defendants in the pending dispute between the plaintiff and Greentree, and
intends to vigorously defend this allegation.

        In the matter of Saxon Mortgage v. Westmark, Saxon Mortgage obtained a
judgment in the amount of $469,348 in connection with various repurchase
obligations. An amount of $50,000 has been paid, and the remaining liability of
$419,348 is accrued at December 31, 1995. Negotiations are continuing between
the two parties to settle this matter.

        The Company is a defendant in Conway et al v. Danna, Network Financial
Services, Inc., et al. The suit alleges Unfair Practices, Fraud (Negligent
Misrepresentations; Intentional Misrepresentations; Concealment); Breach of
Written Contract; Breach of Implied Covenant of Good Faith and Fair Dealing;
Common Count; and Breach of California Securities Statutes against Network
Financial Services, Inc. (a.k.a. Westmark Group Holdings, Inc.) and others. The
Company considers the risk of loss in this matter to be remote and,
consequently, no amount has been accrued as of December 31, 1995.

        The Company is plaintiff in Network Financial Services, Inc. v. McCurdy,
Raiche, Ryals, Nash & Moss Land Company, filed March 1993 in Monterey County,
California Superior Court. The plaintiff alleges fraud, negligent
misrepresentation, breach of fiduciary duty, negligence, quiet title, RICO
violations and conversion. Defendant McCurdy initiated a cross-complaint naming,
among others, the Company as a cross defendant. The cross-complaint seeks
damages for breach of a stock option agreement, breach of contract, and
declaratory relief. The Company has finalized a settlement with defendants
Raiche and Ryals, wherein defendants Raiche and Ryals transferred 7,166 shares
to the Company's Common Stock to the Company in addition to one-half (1/2)
interest in certain property. The balance of the pending litigation involving
defendant and cross-complaint McCurdy and others is unaffected by the
Raiche/Ryals settlement. Management intends to vigorously defend this
cross-complaint.

        The Company is defendant in Knight v. Lomas Mortgage U.S.A. and Westmark
Mortgage Corporation. The complaint is based upon a contention by the Plaintiff
that Lomas Mortgage U.S.A. as the servicing agent wrongfully impaired the credit
rating of

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<PAGE>
Plaintiff and breached the written agreement between the parties. A preliminary
determination indicates that the basis for the dispute is between Lomas U.S.A.
and the Plaintiff, but the Company has been named as a party defendant in view
of the original contractual relationship between the Plaintiff and Westmark. The
Company considers the risk of loss in this matter to be remote, and
consequently, no amount has been accrued as of December 31,1995.

        From time to time the Company is a defendant (actual or threatened) in
certain lawsuits encountered in the ordinary course of its business, the
resolution of which, in the opinion of management, should not have a material
adverse affect on the Company's financial position.

ITEM 2. CHANGES IN SECURITIES

        None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

        None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE SECURITY HOLDERS

        None.

ITEM 5. OTHER INFORMATION

        None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        None.

                                       12
<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 hereunto duly authorized.

                            WESTMARK GROUP HOLDINGS, INC.

                            BY:      /s/ DAWN DRELLA
                            DAWN DRELLA, CHIEF FINANCIAL OFFICER
                            (PRINCIPAL ACCOUNTING OFFICER AND DULY
                            AUTHORIZED OFFICER OF THE REGISTRANT)


                            BY:    /s/ NORMAN J. BIRMINGHAM
                            NORMAN J. BIRMINGHAM, DIRECTOR, CHAIRMAN,
                            PRESIDENT & CHIEF EXECUTIVE OFFICER
                            (DULY AUTHORIZED DIRECTOR & OFFICER
                            OF THE REGISTRANT)


                            BY:    /s/ MARK D. SCHAFTLEIN
                            MARK D. SCHAFTLIEN, DIRECTOR & PRESIDENT OF
                            WESTMARK MORTGAGE CORPORATION
                            (DULY AUTHORIZED DIRECTOR & OFFICER OF THE
                            REGISTRANT)

DATED: APRIL 29, 1996

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