SEC Grants No-Action Relief Relating to Status of Certain Mortgage Servicing Rights and Cash Proceeds Under Section 3(c)(5)(C) of the Investment Company Act

This article discusses a no-action letter issued by the U.S. Securities and Exchange Commission to a mortgage finance real estate investment trust, which may make it easier for certain entities to satisfy the asset composition test required by the Commission staff in its interpretation of Section 3(c)(5)(C) under the Investment Company Act of 1940 in respect of their holdings of certain mortgage servicing rights and cash proceeds.