A particular type of mortgage REIT has attracted the attention of investors (and the SEC) because of their extraordinary dividend yields (some well into the teens) and their business model. The fundamental business model of these mREITs has been to

1. Borrow short term and invest in long-term assets
2. Use debt leverage well above the leverage ratio utilized by equity REITs
3. Both (a) and (b)
4. None of the above.