Subject: File No. S7-35-11
From: Pravin Amin
Affiliation: Individual 'dividend income dependent' investor

September 2, 2011

Dear Sir,

With interest rates so low, the retired and income dependent investors are finding it impossible to find risk free or low risk income investments that produce decent yield.

Mortgage REITs are last bastion of hope for many retired folks to reach for higher yields without atleast a 'default' risk (agency backed MBS's).

Please do not change any rule in the 'middle'. i.e. These mREITs were launched and sold to IPO investors based on the information that they will enjoy the 'pass through' tax treatment like REITs have enjoyed for decades.

How can you go back on that after the fact? If you make these mREITs pay taxes like corporates or take their leverage capability away that will literally wipe out these mREITs' value. People will have huge losses.

If any such change in rule is made, it should 'grandfather' all the existing REITs and only apply to any future REITs that come into existence. How can you allow them certain tax status for years and then one day change it in the middle causing huge decline in values?

Hope that in this difficult time for income investors (and people at large) SEC or Govt will not change tax status of REITs including mortgage REITs whether or not they are leveraged.

Can you live off 0.4% interest income?

Thanks and Best Regards,