Subject: File No. S7-34-11
From: Steve Perricone
Affiliation: Mortgage Banking

September 15, 2011

It would appear that on the surface that any negative changes that impact the appeal as an investment of mortgage Reits would constrain capital for mortgages and therefore raise rates while altering underwriting. This would be counter to the housing and overall economic recovery.
M Reits are not too big to fail and do not appear to be an issue with repsect to systemic risk. Investors in the M Reits elect to invest and have their capital at risk like in any other investment.