Subject: File No. S7-35-11
From: Stephen J Snoha
Affiliation: retired

October 31, 2011

I'm retired and I do my own investing in my IRA account. I recently started to invest in mreits. Of course the main draw is the dividend payout they provide. I understand the business model is essentially playing with money. Borrow cheap money and buy mortgages with with higher interest payments and pocket the difference. Ninety percent of it is payed out to investors as dividends. My contention for leaving this industry alone is that this money is at least getting to investors who then put it back into the system. It is a form of stimulus that gets directly into the hands of the people. This is better then the banks getting it and not doing much with it except to enrich themselves.