MFA Submits Letter in Response to SEC Proposal to Implement JOBS Act

MFA submitted a comment letter to the SEC in response to its proposed implementation of Section 201 of the Jumpstart Our Business Startups Act (the “JOBS Act”). In the letter, MFA generally supported the proposed approach for an issuer to take reasonable steps to verify that a purchaser is an accredited investor by conducting a facts and circumstances analysis. We recommended, however, that the Commission include a safe harbor in the final version of Rule 506(c) that would deem an issuer to have complied with the verification requirement if a purchaser provided certifications that it is an accredited investor and has not obtained financing for the transaction, and the purchaser meets a certain minimum investment level as determined by the SEC.