Subject: File No. S7-34-11
From: Daniel o Gorman
Affiliation: retired municipal attorney

September 2, 2011

Mortgage REITS such as NLY And AGNC provide individual investors opportunity for income in a leveraged environment. Leverage is usually 6 to 9 times capital. In a good market the REIT can raise capital. the forced change to either lower leverage or to a regular corporation would destroy the market for this type of competitive vehicle. REITS buy mortgages and this helps the market to provide lower mortgage rates. Full disclosure of leverage ratios and appropriate disclosure of compensation are important issues. There is huge risk investing in America today. My IRA is down 35%, my Citybank is below 1980 levels. Please adopt regulations that protect my investment not kill it. If you are seriously considering limiting current leverage of mortgage reits to below 9x please grandfather currents investments so that my current investment will not be adversely impacted and keep me informed.