FORM 3
        
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

LB Merchant PSMH-3, LLC

2. Date of Event Requiring Statement (MM/DD/YYYY)
11/24/2014 

3. Issuer Name and Ticker or Trading Symbol

PSM HOLDINGS INC [PSMH]

(Last)        (First)        (Middle)

455 NE 5TH AVENUE, D-337

4. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                            ___ X ___ 10% Owner
_____ Officer (give title below)          _____ Other (specify below)

(Street)

DELRAY BEACH, FL 33483       

(City)              (State)              (Zip)
5. If Amendment, Date Original Filed (MM/DD/YYYY)

 

6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person


Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(MM/DD/YYYY)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Preferred Series E   11/24/2014     (1) Common Stock   61250000   (2)   (2) D    
Preferred Series E   12/15/2014     (1) Common Stock   21000000   (3)   (3) D    

Explanation of Responses:
( 1)  No Expiration Date.
( 2)  The 612.5 shares of Series E Convertible Preferred Stock are convertible at a rate of 100,000 common shares of Common Stock for each share of preferred stock converted, at the times and under the circumstances described in the Certificate of Designations, Preferences, and Rights for the Series E Convertible Preferred Stock. The Series E Convertible Preferred Stock has no expiration date.
( 3)  The 210 shares of Series E Convertible Preferred Stock are convertible at a rate of 100,000 common shares of Common Stock for each share of preferred stock converted, at the times and under the circumstances described in the Certificate of Designations, Preferences, and Rights for the Series E Convertible Preferred Stock. The Series E Convertible Preferred Stock has no expiration date.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
LB Merchant PSMH-3, LLC
455 NE 5TH AVENUE, D-337
DELRAY BEACH, FL 33483

X


Signatures
/s/ Michael Margolies 6/26/2015
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** 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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