Subject: File No. S7-35-11
From: Paul Beam
Affiliation: n/a

September 23, 2011

If you essentially "throttle" back the mREITS by effectively restricting their leverage you will absolutely kill the mortgage industry. As Fannie and Freddie de-leverage, and get new more-restrictive mandates from Congress, it's the mREITS that will be picking up the slack -- unless you prevent that with these rule changes.