Subject: File No. S7-35-11
From: Harry Ng

September 5, 2011

I am an investor in mortgage REIT's. e.g. Annaly Capital Management, NLY. The company has been providing relatively safe stable income to investors for many years and does not need more regulation. Just the uncertainty that SEC may further regulate the mortgage REIT caused the security to drop more than 3% the next day. Imagine what will happen if the rules are changed. The SEC is supposed to protect investors (especially small investors), not hurt investors.
Any change in rule, e.g. not allowing the mortgage REIT's to use high leverage, will cause them to significantly drop in value. I am near retirement, need the income and cannot afford to have my supposedly safe investment drop in value like this. Please do not change the rules.