United Mortgage Trust is a Maryland real estate investment trust formed on July 12, 1996. Our management team seeks to provide our shareholders with the highest stable, secure and predictable dividend consistent with maintaining shareholder value. We acquire mortgage investments from several sources, including from affiliates. The amount of mortgage investments acquired depends upon the mortgage investments available at the time we have funds to invest.

To achieve the stated objective above, we invest exclusively in:

  • lines of credit and secured loans for the acquisition and development of single-family home lots, referred to as “Land Development Loans;”
  • lines of credit and loans secured by developed single-family lots, referred to as “Finished Lot Loans;”
  • lines of credit and loans, with terms of 18 months or less, secured by single family lots and homes constructed thereon, referred to as “Construction Loans;” and
  • lines of credit and loans secured by completed model homes, referred to as “Model Home Loans;”

We no longer invest in Interim Loans or Residential Mortgages. We plan to continue to invest in Land Development Loans, Finished Lot Loans, Construction Loans and Model Home Loans because, 1) Land Development Loans and Finished Lot Loans have provided us with suitable collateral positions, well capitalized borrowers and attractive yields; and, 2) Model Home Loans and Construction Loans are expected to provide us with suitable collateral positions, well capitalized borrowers and attractive yields. Model Home and Construction Loans are expected to produce higher yields commensurate with Land Development Loans, Finished Lot. As we phased out of Interim Loans we increased the percentage of our portfolio invested in Land Development Loans, Finished Lot Loans, Model Home Loans, and Construction Loans.

We seek to produce net interest income from our mortgage investments while maintaining strict cost controls in order to generate net income for monthly distribution to our shareholders. We intend to continue to operate in a manner that will permit us to qualify as a Real Estate Investment Trust (“REIT”) for federal income tax purposes. As a result of that REIT status, we are permitted to deduct dividend distributions to shareholders, thereby effectively eliminating the “double taxation” that generally results when a corporation earns income (upon which the corporation is taxed) and distributes that income to shareholders in the form of dividends (upon which the shareholders are taxed).

The overall management of our business is vested in our Board of Trustees. UMTH General Services, L.P., a Delaware limited partnership and a subsidiary of UMT Holdings, L.P., has been retained to manage our day-to-day operations and to use its best efforts to seek out and present, whether through its own efforts or those of third parties retained by it, investment opportunities that are consistent with our investment policies and objectives and consistent with the investment programs the trustees may adopt from time to time in conformity with our Declaration of Trust.