6.OMB 4.APPROVAL 5.OMB ~~Owner~~Number: 3235-0287 ~~Securities Acquired (A) or Amount of ship 3. Disposed of (D) Securities Form~~Expires: 7.January ~~Transaction (Instr. 3~~31, 42005 ~~and~~Estimated 5)average ~~Beneficially~~burdenhours ~~Direct~~per ~~Nature of 2~~response. ~~Code ------------------------------- Owned at End (D) or Indirect 1~~. ~~Transaction (Instr~~. ~~8) (A) of Month Indirect Beneficial Title of Security Date ------------ Amount or Price (Instr~~0. 3 (I) Ownership (Instr. 3) (Month/Day/Year) Code V (D) and 4) (Instr.4) (Instr. 4) ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Common Stock 4/15/02 x 8,000 A 4.625 8,000 D ------------------------------------------------------------------------------------------------------------------------------------ 5/20/02 S 5,000 D 9.90 3,000 D ------------------------------------------------------------------------------------------------------------------------------------ 5/20/02 x 3,334 A 3.875 6,334 D ------------------------------------------------------------------------------------------------------------------------------------ 5/21/02 S 3,000 S 10.00 3,334 D ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================

~~10.~~UNITED 9.STATES SECURITIES ~~Owner-~~AND ~~Number~~EXCHANGE ship of Form 2. Deriv- of Conver- 5. 7. ative Deriv- 11. sion Number of Title and Amount Secur- ative Nature or Derivative 6. of Underlying 8. ities Secur- of Exer- 4. Securities Date Securities Price Bene- ity: In- cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene- 1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial Title of Deriv- Date (Instr. (Instr. 3COMMISSION Washington, ~~----------------~~DC or Secur- of direct Owner- Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr. (Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4) ------------------------------------------------------------------------------------------------------------------------------------ Stock Option (rights to Common acquire) 3.875 * * Stock 3,444 D ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== Explanation of Responses: * Grant of options excercisable as follows: 1/3 on or after 5/18/01, 1/3 on or after 5/18/02, 1/3 on or after 5/18/03, expire on 5/17/10. ** Grant of options excercisable as follows. 1/3 at 8/29/00, 1/3 at 8/29/01, 1/3 at 8/29/02 and shall expire one day less than ten years from grant date.20549

FORM 4

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935
or Section 30(h) of the Investment Company Act of 1940

o	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Name and Address of Reporting
Person* (Last, First, Middle)

Issuer Name and Ticker or
Trading Symbol

I.R.S. Identification Number of Reporting
Person, if an entity (voluntary)

Martinelli, Richard

Hanover Capital Mortgage Holdings, Inc. HCM

955 South Springfield Avenue, Unit 607

Statement for Month/Year

If Amendment, Date of Original (Mo/Year)

8/16/02 8/20/02

(Street)

Relationship of Reporting Person(s)
to Issuer (Check All Applicable)

Individual or Joint/Group Filing
(Check Applicable Line)

Springfield, NJ 07081

(City) (State) (Zip)

Director

10% Owner

Form filed by One Reporting Person

Officer (give title below)

Form filed by More than One Reporting Person

Other (specify below)

Managing Director

If the form is filed by more than one reporting person, see instruction 4(b)(v).

Table I — Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

Title of Security
(Instr. 3)

Transaction Date
(Mo/Day/Year)

2a.

Deemed Execution
Date, if any.
(Mo/Day/Year)

Transaction Code
(Instr. 8)

Securities Acquired (A)
or Disposed of (D)
(Instr. 3, 4 and 5)

Amount of Securities
Beneficially Owned
Following Reported
Transactions(s)
(Instr. 3 and 4)

Ownership
Form:
Direct (D) or
Indirect (I)
(Instr. 4)

Nature of
Indirect
Beneficial
Ownership
(Instr. 4)

Code

Amount

(A)
or
(D)

Price

Common Stock

8/16/02

4,000

4.625

7,334

Common Stock

8/20/02

7,334

8.15

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Table II — Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

Title of Derivative
Security
(Instr. 3)

Conversion or Exercise
Price of Derivative
Security

Transaction
Date
(Mo/Day/Year)

3a.

Deemed Execution Date, if any.
(Mo/Day/Year)

Transaction
Code
(Instr. 8)

Number of Derivative Securities
Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)

Code

(A)

(D)

* Options

4.625

8/16/02

** Options

3.875

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Table II — Derivative Securities Acquired, Disposed of, or Beneficially Owned — Continued
(e.g., puts, calls, warrants, options, convertible securities)

Date Exercisable and
Expiration Date
(Mo/Day/Year)

Title and Amount
of Underlying Securities
(Instr. 3 and 4)

Price of Derivative
Security
(Instr. 5)

Number of Derivative
Securities Beneficially Owned
Following Reported Transaction(s)
(Instr. 4)

10.

Ownership Form of
Derivative Securities
Beneficially Owned
at End of Month
(Instr. 4)

11.

Nature of
Indirect
Beneficial
Ownership
(Instr. 4)

Date
Exercisable

Expiration
Date

Title

Amount or
Number of
Shares

Common Stock

4,000

Common Stock

3,333

Explanation of Responses:

* Grant of options exercisable as follows: one-third on 7/29/00, one-third on 7/29/01 and one-third on 7/29/02 and expire 7/28/09.

** Grant of options exercisable as follows: one-third on 5/18/01, one-third on 5/18/02 and one-third on 5/18/03 and expire 5/17/10.

/s/ Richard Martinelli		September 10, 2002
**Signature of Reporting Person		Date

Reminder:		Report on a separate line for each class of securities beneficially owned directly or indirectly.

**		Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note:		File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

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Filing Compare · MARTINELLI RICHARD