On October 11, 2017, United Mortgage Trust consented to an administrative order purposed by the Securities and Exchange Commission (“SEC”) revoking the registration of the Trust’s securities, because the Trust has been unable to file any periodic reports with the SEC sincethe period ended September 30, 2015. The Trust had not listed its securities for trading on any exchange. The Trust may apply for theregistration of the shares upon meeting all periodic report filing requirements.

As has been communicated to our shareholders, UMT is being slowly liquidated as capital is returned to shareholders. We have accomplished this primarily through the sale of non-performing assets, distribution of cash received from deficiency notes and recourse obligation payments from affiliates and revenue from the UMT Home Finance programs. These cash sources allowed us to sustain our distribution rate as our investment portfolio and associated earnings declined. Most of the non-performing assets have been sold, so the primary sources of cash available for distributions are payments from deficiency notes and revenue from our UMT Home Finance programs. Prior to March 2016, we made distributions on a monthly basis.  The Recent Events presented above have interrupted the normal course of operations, making it difficult to predict future cash flow and ascertain the amount and timing of any future distributions. The trustees will make a determination of cash available for distribution each calendar quarter going forward and, if appropriate, may declare a distribution.