Subject: File No. S7-35-11
From: Forrest Netzel

September 2, 2011

To whom it may concern,

As weak as the housing market is, It seems foolhardy to make it more difficult or costly for mortgage REITs to do business. They are providing a valuable service by buying and holding these mortgages, thereby shoring up the value and demand for these investments in a very fragile and uncertain economy. As bad of shape as the housing market is, I would suggest not making any radical changes at this time.

If these companies stop buying these mortgages, who will? The government? Leave well enough alone.

Thank you for considering my comments.