Brookfield Mortgage Opportunity Income Fund (BOI) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22773

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.

(Exact name of registrant as specified in charter)

BROOKFIELD PLACE

250 VESEY STREET

NEW YORK, NEW YORK 10281-1023

(Address of principal executive offices) (Zip code)

BRIAN F. HURLEY, PRESIDENT

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.

BROOKFIELD PLACE

250 VESEY STREET

NEW YORK, NEW YORK 10281-1023

(Name and address of agent for service)

Registrant’s telephone number, including area code: (855) 777-8001

Date of fiscal year end: June 30, 2015

Date of reporting period: June 30, 2015

Item 1. Reports to Shareholders.

Brookfield Investment Management

2015

ANNUAL REPORT

June 30, 2015

Brookfield Mortgage Opportunity Income Fund Inc.

IN PROFILE

Brookfield Asset Management Inc. is a global alternative asset manager with over $200 billion in assets under management as of June 30, 2015. Brookfield has over a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity. The company offers a range of public and private investment products and services, which leverage its expertise and experience and provide it with a competitive advantage in the markets where it operates. On behalf of its clients, Brookfield is also an active investor in the public securities markets, where its experience extends over 30 years. Over this time, the company has successfully developed several investment operations and built expertise in the management of institutional portfolios, retail mutual funds and various commingled vehicles.

Brookfield’s public market activities are conducted by Brookfield Investment Management, a registered investment adviser. These activities complement Brookfield’s core competencies and include global listed real estate and infrastructure equities, corporate credit and securitized credit strategies. Headquartered in New York, NY, Brookfield Investment Management also maintains offices and investment teams in Toronto, Chicago and Boston and has over $19 billion of assets under management as of June 30, 2015.

Table of Contents

Letter to Stockholders	1
Management Discussion of Fund Performance	2
Portfolio Characteristics	6
Schedule of Investments	7
Statement of Assets and Liabilities	13
Statement of Operations	14
Statements of Changes in Net Assets	15
Statement of Cash Flows	16
Financial Highlights	17
Notes to Financial Statements	18
Report of Independent Registered Public Accounting Firm	30
Tax Information	31
Compliance Certification	32
Information Concerning Directors and Officers	33
Board Considerations Relating to the Investment Advisory Agreement	36
Dividend Reinvestment Plan	38
Joint Notice of Privacy Policy	39

This report is for stockholder information. This is not a prospectus intended for use in the purchase or sale of Fund shares.

NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED

^© Copyright 2015. Brookfield Investment Management Inc.

[THIS PAGE IS INTENTIONALLY LEFT BLANK]

Letter to Stockholders

Dear Stockholders,

I am pleased to provide the Annual Report for Brookfield Mortgage Opportunity Income Fund Inc. (“BOI” or the “Fund”) for the fiscal year ended June 30, 2015.

Global capital markets fluctuated between intervals of optimism and doubt over the last year, as signs of economic growth activity were mixed while geopolitical developments weighed on investor sentiment. Of primary focus toward the end of the period was the potential for Greece to default on its sovereign debt obligations and possibly exit the Eurozone. In addition, decelerating growth in China and recent volatility in the local equity market have raised concerns over the health of the world’s largest economy. The dramatic fall in the price of crude oil continued to have ripple effects as well. While the price per barrel of crude oil rose by more than 10% in the first six months of 2015, prices remain down more than 43% over the trailing twelve month period. While lower oil prices have proved beneficial for consumers in oil-importing countries and regions, the pronounced decline in commodity prices has served to heighten overall market volatility.

Despite these areas of concern, the prospects for growth appeared to brighten in recent months, particularly in U.S. Economic data releases which indicated a re-acceleration of growth from anemic first quarter results, as the U.S. economy created 280,000 jobs in May, higher than the average rate of monthly job creation over the last year. In addition, consumer confidence increased meaningfully in recent months, while new home sales rose to their highest level in seven years during the month of May. While challenges remain, we continue to believe that the U.S. is advancing more quickly through the economic recovery cycle than many other developed markets.

Against this backdrop, the 10-year U.S. Treasury rate declined by 18 basis points over the year, ending the period at 2.35%. As expected, the U.S. Federal Reserve (Fed) did not raise interest rates at its June meeting; however, Fed Chair Janet Yellen indicated that a rate hike was likely to occur later in 2015. Of note, the Fed suggested that interest rate increases would be implemented gradually and over an extended period of time. Looking ahead, we expect monetary policy to remain relatively accommodative for the foreseeable future. Although short-term U.S. interest rates are likely to rise, we believe that quantitative easing activity in Europe and low rates in Japan will, in effect, serve to anchor long-term U.S. interest rates. In our view, such a policy environment will lend support to the asset classes in which we invest.

In addition to performance information, this report provides an overview of market conditions and a discussion of factors affecting the Fund’s investment performance, together with the Fund’s audited financial statements as of June 30, 2015.

We welcome your questions and comments, and encourage you to contact our Investor Relations team at (855) 777-8001 or visit us at www.brookfieldim.com for more information. Thank you for your support.

Sincerely,

Brian F. Hurley

President

2015 Annual Report1

Brookfield Mortgage Opportunity Income Fund Inc.

OBJECTIVE AND STRATEGY

Brookfield Mortgage Opportunity Income Fund Inc. (NYSE: BOI) (the “Fund”) is a diversified, closed-end fund whose primary objective is to provide a high total investment return by providing a high level of current income and the potential for capital appreciation. The Fund pursues this objective by investing and actively managing a portfolio consisting primarily of U.S. Treasury, mortgage-backed, asset-backed and high-yield corporate securities. No assurance can be given that the Fund's investment objectives will be achieved.

Investment Risks: Investors in any bond fund should anticipate fluctuations in price. Bond prices and the value of bond funds decline as interest rates rise. Bonds with longer-term maturities generally are more vulnerable to interest rate risk, which is the risk that the issuer will not make interest or principal payments when due. An economic downturn or period of rising interest rates could adversely affect the ability of issuers, especially issuers of below-investment grade debt, to service their obligations and an unanticipated default could cause the Fund to experience a reduction in value of its shares. The Fund's investments in mortgage-backed or asset-backed securities that are subordinated to other interests in the same pool may increase credit risk to the extent that the Fund as a holder of those securities may only receive payments after the pool's obligations to other investors have been satisfied. Below-investment grade bonds are also subject to greater price volatility and are less liquid, especially during periods of economic uncertainty or change, than higher-rated debt securities. Leverage creates an opportunity for an increased return to common stockholders, but unless the income and capital appreciation, if any, on securities acquired with leverage proceeds exceed the costs of the leverage, the use of leverage will diminish the investment performance of the Fund's shares. Use of leverage may also increase the likelihood that the net asset value of the Fund and market value of its common shares will be more volatile, and the yield and total return to common stockholders will tend to fluctuate more in response to changes in interest rates and creditworthiness.

Management Discussion of Fund Performance

For the fiscal year ended June 30, 2015, Brookfield Mortgage Opportunity Income Fund Inc. (NYSE: BOI) (the “Fund”) had a total return based on net asset value of 2.67% and a total return based on market price of -1.53%, which assumes the reinvestment of dividends and is exclusive of brokerage commissions. Based on the NYSE closing price of $15.81 on June 30, 2015, the Fund’s shares had a distribution rate of 9.65%. The distribution rate is calculated as the annualized amount of the reporting period’s most recent monthly distribution declared, divided by the stated stock price.

The Fund’s NAV performance over the past twelve months was lower than our expectations given some increases in uncertainty and some increase in credit risk premium. The period was punctuated with a sharp decline in the price of oil, the corresponding reduction in inflation expectations, the uncertainties around interest rates and the timing of the initial increase in the Fed funds rate, weaker economic data in the winter. These uncertainties were compounded by continued stimulus in Europe, on-going crises in Greece, and the bubble and decline in the Shanghai Composite. With all of this news, credit spreads widened, and we saw more negative performance in the Fund’s allocation to high yield corporate securities in the fall of 2014. We saw a small widening in credit spreads for U.S. non-Agency RMBS, but with the overall market volatility, we believe securitized products in general exhibited lower volatility than other credit sectors.

We have continued using leverage in a range around 28% of gross assets. We continue to add attractive credit exposures, primarily in the U.S. non-Agency MBS markets, but also in some commercial real estate loan opportunities. We are at our leverage target, and our credit exposure target. While the Fund is focused on mortgage-backed securities, which are fixed income instruments, a substantial portion of the securities earn coupon income that is indexed to LIBOR or other floating-rate indices. This is important as it gives the Fund some protection from the declines in security prices typically seen on fixed-rate securities when interest rates increase. A security with an adjustable-rate coupon payment will see its income rise as interest rates rise, which, all other things equal, allows the price to remain constant. This portfolio positioning will allow us to earn attractive income, and weather the upcoming increases in interest rates better than a similar portfolio of traditional fixed-rate bonds.

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Brookfield Mortgage Opportunity Income Fund Inc.

The Fund is focused on opportunities available in the Residential Mortgage-Backed Securities (“RMBS”) and Commercial Mortgage-Backed Securities (“CMBS”) markets. The current emphasis of the Fund is on non-Agency RMBS, which we believe to be undervalued. We prefer the upside potential in the RMBS market with discount dollar prices to more traditional bonds with prices at, or above, par. With these assets we expect to generate an attractive income, to maintain low duration, and to benefit from improvements in the housing and real estate markets which continue to be recognized in security performance.

MARKET ENVIRONMENT

Real estate markets in the U.S. continue to improve. The aggregate index for commercial property prices is now 11.5% above the peak seen prior to the global financial crisis, as measured by Moody’s CPPI. For commercial real estate, credit is readily available and access to credit is expanding along with the allowed leverage. Within commercial real estate, top tier properties in major markets had significantly outpaced the cumulative recovery of secondary properties in non-major markets. These markets continue to be a safe haven for asset investment for foreign investors, given the relative strength of the U.S. economy and the relative strength of the U.S. dollar. With continued expansions in available financing, including more financing for bridge loans and construction loans, other markets beyond the high-end, top-tier commercial real estate markets have also come back to near peak valuations.

We believe the expansion in credit, combined with somewhat less stringent rating requirements, has created relatively aggressive financing that is securitized in the new issue markets. The Adviser currently does not focus on the credit exposures created in these newer issue multi-borrower commercial securitizations, as we see lower asset quality in the face of potential tightening in credit standards as a material risk. We prefer to focus on single-asset securitizations, where the underlying property is higher in quality and the degree of leverage is lower. Even among our allocation to more seasoned CMBS, issued prior to 2009, we have reduced our exposure as prices have increased and the positive impacts of available credit have been realized. Rather than looking at additional structural leverage within newer or more seasoned securities, we have looked at smaller loans, which we can re-underwrite, as an opportunity to increase yield.

Prices of single family homes are up 6.3% year-over-year as of May 31, 2015 as per CoreLogic HPI data. Many of the fundamental underpinnings for home prices such as inventory levels and delinquency rates are showing marked improvement. Excess inventory has been reduced significantly. Moreover, homeowners’ equity continues to improve. Year to date through June home prices are up nearly 5% as per CoreLogic HPI data, this is in excess of most forecasts for 2015 cumulative price appreciation. According to the Mortgage Banker’s Association, the total delinquency number for the first quarter of 2015 returned to 5.5%, a level last seen in 2007, and close to the pre-2007 average of 4.6%.

When interest rates initially climbed in 2013, as Ben Bernanke commented about tapering the asset purchase program, the percentage of homes purchased by first time home buyers fell. This was not a positive sign for housing, as first time homebuyers, with higher loan-to-value ratios, typically become a harbinger of demand for housing. In 2013, the percent of homes purchased by first time buyers dropped below 30%, well below levels seen in 2009-2012. This number has increased in 2015, to 32%, in part due to slightly better financing being available through the Federal Housing Administration (“FHA”), but mainly due to improved income and an improved jobs outlook for these entry level buyers. We believe this is a good sign of support for housing, in a market that still has fairly strict limits on credit availability.

Access to credit for non-Agency residential borrowers, especially those with weaker credit or higher loan-to-value ratios, remains a notable constraint. Regulation in the residential mortgage market is the primary culprit for more limited credit, and this has also put a damper on housing demand. As a result of regulations, we do not expect much expansion in credit provision. Any expansion in credit would benefit our portfolio, given that we invest in seasoned securities, not in newly issued securities, so if more aggressive financing became available, while that could result in more risk in new securities, it would also make it more likely that the older securities would be benefitted as riskier borrowers are refinanced into new loans. The benefit occurs as a refinance of a loan, a) reduces the potential for that loan to be a future default, as it is paid off, and b) pays off at par which benefits

2015 Annual Report3

Brookfield Mortgage Opportunity Income Fund Inc.

securities that are generally priced at a discount to par. As noted, while we do not expect much in the way of expansion of credit, the resolutions of lawsuits between the Federal Housing Finance Agency (“FHFA”) and several major banks, and the resolution of some issues with representations and warranties certainly leave room for the refinancing of loans that meet the current credit criterion. With time, and improvement in home prices, more borrowers will become eligible to refinance, in particular if income increases. As such, we continue to believe that even absent expansion in non-agency lending, credit curing will likely continue to lead to refinances in seasoned non-agency mortgage pools.

The Home Affordable Modification Program (“HAMP”) has resulted in more than 1.3 million homeowners receiving reductions in their mortgage payments. In 2014, a number of HAMP mortgages saw their modified mortgage rates begin to step-up. A high percentage of borrowers continue to make these higher payments on time, this is also a positive sign for mortgage credit.

With the economy on reasonable track, the Federal Reserve Open Market Committee (“FOMC”) is no longer adding to their purchases through the Asset Purchase Program (“QE”), but they continue to reinvest pay downs on mortgage securities bought through the Asset Purchase Program, these assets are Agency MBS and U.S. Treasury notes. We do not expect the FOMC to stop reinvesting pay downs on these assets until after they raise the Fed Funds rate to a more normal level. We expect to see the first increase in the Fed Funds rate as early as September, but no later than December. If the path of rising rates is well understood by the markets and volatility is contained, we expect the Fund’s assets to perform well, given their floating-rate nature. We also expect Agency MBS could cheapen, as the market begins to expect the end of the FOMC’s reinvestment of pay downs.

Progress has continued with changes to Fannie Mae and Freddie Mac, both Government-Sponsored Enterprises (“GSE”). Since May 2013, when the GSEs began shedding less liquid securities from their balance sheet, sales continue to occur regularly. These GSEs are also actively selling risk or buying insurance protection on some portion of the credit risk in their quarterly production. In August 2015, the first of a new type of transaction, the Freddie Mac Whole Loan Securities (“FWLS”), was unveiled as another form of risk reduction.

We expect as stimulus in the U.S. is reduced, and as interest rates rise, the fund portfolio will benefit from increased coupon and from an increase in demand for securities with more limited interest rate exposure. The fund’s assets continue to have low rate exposure while still maintaining a healthy exposure to credit, such that if credit spreads tighten, the fund should see a positive impact.

Forward-Looking Information

This management discussion contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” “should,” “intend,” or similar terms or variations on those terms or the negative of those terms. Although we believe that the expectations contained in any forward-looking statement are based on reasonable assumptions, we can give no assurance that our expectations will be attained. We do not undertake, and specifically disclaim any obligation, to publicly release any update or supplement to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Disclosure

The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security. There is no assurance that the Fund currently holds these securities.

The Fund may utilize leverage to seek to enhance the yield and net asset value of its common stock, through bank borrowings, issuance of short-term debt securities or shares of preferred stock, or a combination thereof.

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Brookfield Mortgage Opportunity Income Fund Inc.

However, these objectives cannot be achieved in all interest rate environments. While leverage may result in a higher yield for the Fund, the use of leverage involves risk, including the potential for higher volatility of the NAV, fluctuations of dividends and other distributions paid by the Fund and the market price of the Fund’s common stock, among others. The Fund may invest assets in securities of issuers domiciled outside the United States, including issuers from emerging markets. Foreign investing involves special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. Performance data quoted represents past performance results and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.

This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the case, of the results obtained from the use of such content.

THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.

Performance data quoted represents past performance results and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.

These views represent the opinions of Brookfield Investment Management Inc. and are not intended to predict or depict the performance of any investment. These views are as of the close of business on June 30, 2015 and subject to change based on subsequent developments.

2015 Annual Report5

Brookfield Mortgage Opportunity Income Fund Inc.
Portfolio Characteristics(Unaudited)

June 30, 2015

PORTFOLIO STATISTICS
Annualized distribution rate1	9.65%
Weighted average coupon	3.14%
Average portfolio dollar price (excluding interest-only securities)	$ 82.34
Percentage of fixed securities (excluding cash, equities and interest-only securities)2	37.38%
Percentage of floating securities (excluding cash, equities and interest-only securities)2	62.62%
Percentage of leveraged assets	28.22%
Total number of holdings	150

ASSET BY COUPON TYPE DISTRIBUTION2
Residential Mortgage Related Holdings - Fixed Rate	11.3%
Residential Mortgage Related Holdings - Floating Rate	51.3%
Commercial Mortgage Related Holdings - Fixed Rate	14.3%
Commercial Mortgage Related Holdings - Floating Rate	3.6%
Corporate Bonds - Fixed Rate	8.5%
Collateralized Loan Obligation - Floating Rate	0.7%
Loans - Fixed and Floating Rate	3.1%
Equities	2.3%
Cash and Futures	4.9%
Total	100.0%

ASSET ALLOCATION3
Residential Mortgage Related Holdings	90.4%
Commercial Mortgage Related Holdings	26.1%
Interest-Only Securities	0.8%
Corporate Bonds	11.6%
Preferred Stocks	3.2%
Collateralized Loan Obligation	1.0%
Liabilities in Excess of Other Assets	(33.1)%
Total	100.0%

1	The distribution rate referenced above is calculated as the annualized amount of the most recent monthly distribution declared divided by June 30, 2015 stock price. This calculation does not include any non-income items such as loan proceeds or borrowings. The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. Year-to-date through June 30, 2015, 5.59% of the Fund's distributions is a return of capital.
2	Coupon types are expressed as a percentage of total investments (by market value) including cash and the unrealized appreciation (depreciation) on derivatives and will vary over time.
3	Percentages are based on net assets.

6Brookfield Investment Management Inc.

Brookfield Mortgage Opportunity Income Fund Inc.
Schedule of Investments

June 30, 2015

	Interest Rate	Maturity	Principal Amount (000s)	Value
RESIDENTIAL MORTGAGE RELATED HOLDINGS – 90.4%
Non-Agency Mortgage-Backed Securities – 90.4%
ACE Securities Corp. Home Equity Loan Trust
Series 2006-OP1, Class A2D 1,2	0.43%	04/25/36	$ 6,740	$ 4,808,390
Series 2005-ASP1, Class M1 1,2	0.87	09/25/35	10,962	8,736,479
Alternative Loan Trust
Series 2007-OA3, Class 1A1 1,2,3	0.33	04/25/47	10,815	9,010,146
Series 2007-2CB, Class 2A11 1	0.59	03/25/37	7,437	5,118,378
Series 2006-19CB, Class A9 1	0.89	08/25/36	6,190	4,593,900
Series 2005-50CB, Class 1A1 3	5.50	11/25/35	4,521	4,358,350
Series 2007-15CB, Class A5	5.75	07/25/37	2,402	2,206,963
Series 2007-15CB, Class A2	5.75	07/25/37	2,609	2,397,619
Series 2006-45T1, Class 2A5 3	6.00	02/25/37	5,244	4,398,506
Series 2006-29T1, Class 2A6	6.50	10/25/36	5,372	4,891,448
Series 2006-23CB, Class 2A7 1,4	27.65	08/25/36	2,565	4,071,092
Asset-Backed Securities Corporation Home Equity Loan Trust
Series 2007-HE1, Class A4 1,2	0.32	12/25/36	5,587	4,760,017
Banc of America Funding Trust
Series 2006-G, Class 3A2 1	5.75	07/20/36	6,699	6,640,055
BCAP LLC Trust
Series 2010-RR5, Class 5A10 1,2,5	0.51	11/26/35	6,733	4,618,373
Series 2010-RR6, Class 1910 1,2,5	0.51	11/26/35	8,440	5,830,943
Series 2012-RR4, Class 5A6 1,5	2.38	05/26/36	3,867	2,757,551
Series 2009-RR11, Class 3A2 1,5	4.56	01/26/36	3,959	3,550,748
Series 2013-RR2, Class 3A2 1,5	6.30	03/26/36	7,350	7,382,340
BXHTL Mortgage Trust
Series 2015-JWRZ, Class DR2 1,5	3.89	05/15/29	3,750	3,640,380
Carefree Portfolio Trust
Series 2014-CARE, Class F 1,2,5	2.77	11/15/19	5,580	5,290,471
CHL Mortgage Pass-Through Trust
Series 2006-OA5, Class 2A1 1,2,3	0.39	04/25/46	10,118	8,162,228
Series 2006-HYB5, Class 3A1B 1	2.57	09/20/36	6,522	5,578,535
Series 2006-HYB5, Class 3A1A 1	2.57	09/20/36	1,417	1,212,000
Citigroup Mortgage Loan Trust
Series 2007-AR5, Class 1A2A 1,3	2.74	04/25/37	4,026	3,629,268
Series 2009-6, Class 19A2 5	6.00	03/25/36	4,724	3,307,058
Countrywide Home Loan Mortgage Pass-Through Trust
Series 2006-OA17, Class 1A1A 1,2,3	0.38	12/20/46	5,741	4,364,987
Series 2006-OA1, Class 2A1 1,2,3	0.40	03/20/46	7,186	5,661,636
Series 2006-OA2, Class A1 1,2,3	0.40	05/20/46	5,987	4,266,411
Credit Suisse Mortgage Trust
Series 2011-10R, Class 3A2 1,5	2.63	09/27/36	5,226	4,278,416
Series 2010-19R, Class 5A4 5	3.25	08/27/36	11,120	10,812,777
First Horizon Alternative Mortgage Securities Trust
Series 2005-FA8, Class 1A6 1	0.84	11/25/35	4,469	3,341,812
Series 2005-FA9, Class A1 1,3	0.89	12/25/35	4,103	2,988,689
GMACM Home Equity Loan Trust
Series 2007-HE2, Class A3	6.19	12/25/37	5,327	5,304,204
GSAMP Trust
Series 2006-NC2, Class A2C 1,2	0.34	06/25/36	938	583,328

^{See Notes to Financial Statements.}

2015 Annual Report7

Brookfield Mortgage Opportunity Income Fund Inc.
Schedule of Investments(continued)

June 30, 2015

	Interest Rate	Maturity	Principal Amount (000s)	Value
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued)
Series 2006-HE8, Class A2C 1,2	0.36%	01/25/37	$ 9,417	$ 7,858,374
Home Equity Asset Trust
Series 2006-7, Class 2A3 1	0.34	01/25/37	10,084	7,830,125
Hyatt Hotel Portfolio Trust
Series 2015-HYT, Class E 1,2,3,5	3.99	11/15/29	4,000	3,980,180
IndyMac INDA Mortgage Loan Trust
Series 2007-AR1, Class 1A1 1,3	2.85	03/25/37	4,015	3,714,911
Series 2007-AR3, Class 1A1 1,3	2.94	07/25/37	5,700	5,027,687
IXIS Real Estate Capital Trust
Series 2007-HE1, Class A1 1,2	0.25	05/25/37	2,383	1,141,791
Series 2007-HE1, Class A2 1,2	0.30	05/25/37	5,303	2,552,900
Series 2006-HE2, Class A3 1,2	0.35	08/25/36	8,377	3,498,976
Series 2007-HE1, Class A3 1,2	0.35	05/25/37	1,635	792,471
Series 2007-HE1, Class A4 1,2	0.42	05/25/37	3,100	1,516,852
Series 2006-HE1, Class A4 1,2	0.49	03/25/36	733	457,839
JP Morgan Alternative Loan Trust
Series 2007-A1, Class 2A1 1	2.45	03/25/37	5,367	4,308,933
JP Morgan Resecuritization Trust
Series 2012-2, Class 1A8 1,5	2.45	03/26/37	5,822	4,850,400
Lehman ABS Manufactured Housing Contract Trust
Series 2001-B, Class M1	6.63	04/15/40	5,300	5,788,803
Master Asset Backed Securities Trust
Series 2006-NC3, Class A3 1,2	0.29	10/25/36	2,411	1,489,301
Series 2006-NC2, Class A4 1,2	0.34	08/25/36	10,906	5,872,443
Series 2006-NC3, Class A4 1,2	0.35	10/25/36	8,417	5,247,861
Series 2006-HE5, Class A3 1,2	0.35	11/25/36	15,278	10,488,574
Series 2005-NC2, Class A4 1,2	0.54	11/25/35	7,941	5,361,620
Mid-State Trust X
Series 10, Class B	7.54	02/15/36	3,381	3,619,919
Nomura Resecuritization Trust
Series 2013-1R, Class 3A12 1,2,5	0.34	10/26/36	16,637	13,261,781
Series 2014-1R, Class 2A11 1,5	0.38	02/26/37	15,734	8,133,335
Series 2015-4R, Class 3A8 5	2.47	01/26/36	10,146	7,203,399
Series 2014-6R, Class 5A7 1,5	2.51	04/26/37	5,183	3,397,985
Series 2015-1R, Class 4A7 1,5	2.57	12/26/37	2,933	1,524,943
Series 2014-2R, Class 1A7 1,5	2.70	01/26/36	3,380	2,481,929
Series 2015-1R, Class 3A7 1,5	2.71	03/26/37	6,268	3,619,662
Series 2015-6R, Class 2A4 6	8.00	01/26/37	8,311	6,664,339
RALI Trust
Series 2007-QO3, Class A1 1,2,3	0.35	03/25/47	4,841	3,993,691
Series 2006-QO7, Class 2A1 1,3	1.01	09/25/46	9,801	7,025,191
RBSSP Resecuritization Trust
Series 2009-13, Class 7A2 5	5.75	01/26/36	1,500	1,525,967
Residential Asset Securitization Trust
Series 2005-A13, Class 1A1 1	0.89	10/25/35	4,292	3,372,661
RFMSI Trust
Series 2007-S3, Class 1A5 3	5.50	03/25/37	5,457	4,828,417
Securitized Asset Backed Receivables LLC Trust
Series 2006-HE2, Class A2C 1,2	0.34	07/25/36	8,742	4,973,331

^{See Notes to Financial Statements.}

8Brookfield Investment Management Inc.

Brookfield Mortgage Opportunity Income Fund Inc.
Schedule of Investments(continued)

June 30, 2015

	Interest Rate	Maturity	Principal Amount (000s)	Value
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued)
Series 2006-NC3, Class A2B 1,2	0.34%	09/25/36	$ 8,659	$ 4,490,657
Series 2007-NC1, Class A2B 1,2	0.34	12/25/36	811	450,740
Series 2007-BR4, Class A2B 1,2	0.39	05/25/37	6,591	4,378,852
Series 2007-NC1, Class A2C 1,2	0.40	12/25/36	259	145,324
Series 2007-BR4, Class A2C 1,2	0.48	05/25/37	7,395	4,966,838
Washington Mutual Mortgage Pass-Through Certificates Trust
Series 2007-OA1, Class A1A 1,3	0.86	02/25/47	5,638	4,510,681
Series 2006-AR17, Class 1A 1	0.97	12/25/46	7,307	5,831,786
Series 2006-AR8, Class 2A 1	1.01	10/25/46	7,835	5,581,122
Series 2007-HY6, Class 2A1 1,3	2.23	06/25/37	7,105	6,236,519
Series 2006-AR10, Class 1A2	2.25	09/25/36	3,017	2,716,151
Series 2007-HY5, Class 3A1 1	4.47	05/25/37	2,324	2,176,004
Wells Fargo Mortgage Backed Securities Trust
Series 2005-2, Class 1B1	5.50	04/25/35	6,871	5,575,909
Series 2007-8, Class 1A22	6.00	07/25/37	6,017	6,084,974
Total Non-Agency Mortgage-Backed Securities				373,105,646
Total RESIDENTIAL MORTGAGE RELATED HOLDINGS (Cost $376,863,234)				373,105,646
COMMERCIAL MORTGAGE RELATED HOLDINGS – 26.1%
Class B Notes – 0.6%
Cedar Park 7	11.00	06/01/19	600	600,000
Holiday Inn 7	10.08	07/01/20	2,000	2,000,000
Total Class B Notes				2,600,000
Commercial Mortgage-Backed Securities – 23.8%
Banc of America Commercial Mortgage Trust
Series 2006-6, Class AJ 3	5.42	10/10/45	14,010	14,434,854
Series 2007-3, Class AJ 3	5.75	06/10/49	10,600	10,989,179
Commercial Mortgage Trust
Series 2014-KYO, Class F 1,3,5	3.69	06/11/27	7,620	7,627,186
Series 2007-GG11, Class AJ	6.25	12/10/49	10,642	11,069,734
Series 2007-GG11, Class B	6.35	12/10/49	3,724	3,419,678
Series 2007-GG11, Class C	6.35	12/10/49	7,380	5,854,111
Del Coronado Trust
Series 2013-HDMZ, Class M 1,5	5.19	03/15/18	8,500	8,502,550
LB-UBS Commercial Mortgage Trust
Series 2007-C7, Class AJ 3	6.46	09/15/45	10,000	10,572,390
Morgan Stanley Capital I, Inc.
Series 1998-HF1, Class K 5	6.19	03/15/30	3,308	3,252,627
Wachovia Bank Commercial Mortgage Trust
Series 2007-C30, Class AJ 3	5.41	12/15/43	11,500	11,760,544
Series 2007-C33, Class AJ 3	6.15	02/15/51	10,250	10,596,747
Total Commercial Mortgage-Backed Securities				98,079,600

^{See Notes to Financial Statements.}

2015 Annual Report9

Brookfield Mortgage Opportunity Income Fund Inc.
Schedule of Investments(continued)

June 30, 2015

	Interest Rate	Maturity	Principal Amount (000s)	Value
COMMERCIAL MORTGAGE RELATED HOLDINGS (continued)
Mezzanine Loan – 1.7%
BOCA Mezzanine	8.17%	08/15/15	$ 7,107	$ 7,106,802
Total Mezzanine Loan				7,106,802
Total COMMERCIAL MORTGAGE RELATED HOLDINGS (Cost $105,820,990)				107,786,402
INTEREST-ONLY SECURITIES – 0.8%
Federal Home Loan Mortgage Corporation Strips
Series 304, Class C60 8	3.50	12/15/42	8,464	1,976,018
Federal National Mortgage Association REMICS
Series 2013-32, Class IG 8	3.50	04/25/33	7,418	1,174,612
Total INTEREST-ONLY SECURITIES (Cost $3,511,965)				3,150,630
CORPORATE BONDS – 11.6%
Automotive – 0.3%
American Axle & Manufacturing, Inc. 3	6.63	10/15/22	1,300	1,365,000
Basic Industry – 1.3%
Alpha Natural Resources, Inc.	6.25	06/01/21	1,650	115,500
Arch Coal, Inc.	7.25	06/15/21	1,750	245,000
Hexion, Inc. 3	9.00	11/15/20	1,350	972,000
INEOS Group Holdings SA 3,5,9	6.13	08/15/18	1,350	1,378,688
PulteGroup, Inc. 3	6.38	05/15/33	1,000	1,012,500
Xerium Technologies, Inc. 3	8.88	06/15/18	1,400	1,449,000
Total Basic Industry				5,172,688
Consumer Goods – 0.7%
ACCO Brands Corp. 3	6.75	04/30/20	1,350	1,417,500
Post Holdings, Inc. 3	7.38	02/15/22	1,300	1,322,750
Total Consumer Goods				2,740,250
Energy – 1.7%
BreitBurn Energy Partners LP	7.88	04/15/22	1,325	1,099,750
Calfrac Holdings LP 3,5	7.50	12/01/20	1,350	1,246,590
EV Energy Partners LP 3	8.00	04/15/19	1,250	1,162,500
Ferrellgas Partners LP 3	8.63	06/15/20	700	724,500
Global Partners LP 3	6.25	07/15/22	500	480,000
ION Geophysical Corp.	8.13	05/15/18	500	350,000
Linn Energy LLC	7.75	02/01/21	1,000	777,500
RKI Exploration & Production LLC 5	8.50	08/01/21	450	445,500
W&T Offshore, Inc.	8.50	06/15/19	1,250	867,187
Total Energy				7,153,527
Healthcare – 1.4%
CHS/Community Health Systems, Inc. 3	7.13	07/15/20	1,300	1,377,350
HCA, Inc. 3	5.88	05/01/23	1,350	1,434,375
inVentiv Health, Inc. 3,5	11.00	08/15/18	335	323,275
Kindred Healthcare, Inc. 3	6.38	04/15/22	1,150	1,148,562
Service Corporation International 3	8.00	11/15/21	1,200	1,398,000
Total Healthcare				5,681,562

^{See Notes to Financial Statements.}

10Brookfield Investment Management Inc.

Brookfield Mortgage Opportunity Income Fund Inc.
Schedule of Investments(continued)

June 30, 2015

	Interest Rate	Maturity	Principal Amount (000s)	Value
CORPORATE BONDS (continued)
Leisure – 1.6%
Boyd Gaming Corp. 3	9.00%	07/01/20	$ 1,300	$ 1,410,500
Chester Downs & Marina LLC 5	9.25	02/01/20	1,050	819,000
Isle of Capri Casinos, Inc. 3	5.88	03/15/21	850	873,375
MGM Resorts International 3	7.75	03/15/22	1,250	1,375,000
MTR Gaming Group, Inc. 3	11.50	08/01/19	925	983,969
Palace Entertainment Holdings LLC 5	8.88	04/15/17	1,250	1,250,000
Total Leisure				6,711,844
Media – 1.2%
Cumulus Media Holdings, Inc. 3	7.75	05/01/19	850	779,875
Lamar Media Corp. 3	5.38	01/15/24	1,350	1,365,188
Mediacom Broadband LLC 3	6.38	04/01/23	1,300	1,300,000
National CineMedia LLC 3	6.00	04/15/22	1,325	1,372,965
Total Media				4,818,028
Retail – 0.6%
L Brands, Inc. 3	7.60	07/15/37	900	1,014,750
New Albertsons, Inc.	7.75	06/15/26	850	828,750
Roundy's Supermarkets, Inc. 3,5	10.25	12/15/20	500	425,000
Total Retail				2,268,500
Services – 0.9%
Avis Budget Car Rental LLC 3	5.50	04/01/23	1,400	1,382,500
Casella Waste Systems, Inc. 3	7.75	02/15/19	1,000	1,010,000
Iron Mountain, Inc. 3	6.00	08/15/23	1,350	1,410,750
Total Services				3,803,250
Technology & Electronics – 0.2%
First Data Corp. 3	11.25	01/15/21	878	974,580
Telecommunications – 1.7%
CenturyLink, Inc.	7.65	03/15/42	1,000	905,000
Fairpoint Communications, Inc. 3,5	8.75	08/15/19	925	962,000
Frontier Communications Corp. 3	7.13	01/15/23	1,350	1,198,125
Intelsat Luxembourg SA	7.75	06/01/21	650	542,750
Level 3 Financing, Inc. 3	8.63	07/15/20	950	1,015,265
Qwest Capital Funding, Inc.	6.88	07/15/28	250	245,625
T-Mobile USA, Inc. 3	6.63	04/01/23	1,350	1,402,312
Windstream Corp.	7.50	06/01/22	1,000	878,750
Total Telecommunications				7,149,827
Total CORPORATE BONDS (Cost $53,010,327)				47,839,056

	Shares	Value
PREFERRED STOCKS – 3.2%
Finance & Investment – 3.1%
Ally Financial, Inc., 7.00% 5	3,750	$ 3,808,008
Kimco Realty Corp., 6.00%	157,837	3,887,526

^{See Notes to Financial Statements.}

2015 Annual Report11

Brookfield Mortgage Opportunity Income Fund Inc.
Schedule of Investments(continued)

June 30, 2015

	Shares	Value
PREFERRED STOCKS – 3.2%
Public Storage, 6.00%	200,000	$ 5,016,000
Total Finance & Investment		12,711,534
Telecommunications – 0.1%
Regency Centers Corp., 6.63%	21,213	541,992
Total PREFERRED STOCKS (Cost $13,275,836)		13,253,526

	Interest Rate	Maturity	Principal Amount (000s)	Value
COLLATERALIZED LOAN OBLIGATION – 1.0%
Collateralized Loan Obligation – 1.0%
1776 CLO Ltd. 1,5,9	4.78%	05/08/20	$ 4,000	$ 3,955,200
Total COLLATERALIZED LOAN OBLIGATION (Cost $3,970,000)				3,955,200
Total Investments – 133.1% (Cost $556,452,352)				549,090,460
Liabilities in Excess of Other Assets – (33.1)%				(136,529,493)
TOTAL NET ASSETS – 100.0%				$ 412,560,967

The following notes should be read in conjunction with the accompanying Schedule of Investments.
1	—Variable rate security – Interest rate shown is the rate in effect as of June 30, 2015.
2	—Security is a “step up” bond where the coupon increases or steps up at a predetermined date.
3	—Portion or entire principal amount delivered as collateral for reverse repurchase agreements.
4	—Security is an inverse floating rate bond.
5	—Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2015, the total value of all such securities was $135,444,262 or 32.8% of net assets.
6	—Private Placement.
7	—Security fair valued in good faith pursuant to the fair value procedures adopted by the Board of Directors. As of June 30, 2015, the total value of all such securities was $2,600,000 or 0.6% of net assets.
8	—Interest rate is based on the notional amount of the underlying mortgage pools.
9	—Foreign security or a U.S. security of a foreign company.

^{See Notes to Financial Statements.}

12Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Statement of Assets and Liabilities

June 30, 2015

Assets:
Investments in securities, at value (cost $556,452,352)	$549,090,460
Cash	17,863,045
Cash on deposit with brokers for futures and reverse repurchase agreements	7,370,479
Interest and dividend receivable	2,180,874
Principal paydown receivable	275,808
Receivable for variation margin	28,343
Prepaid expenses	7,741
Total assets	576,816,750
Liabilities:
Reverse repurchase agreements (Note 6)	162,769,000
Interest payable for reverse repurchase agreements (Note 6)	762,620
Investment advisory fee payable (Note 4)	474,927
Administration fee payable (Note 4)	71,239
Directors' fee payable	10,639
Accrued expenses	167,358
Total liabilities	164,255,783
Commitments and contingencies (Note 10)
Net Assets	$412,560,967
Composition of Net Assets:
Capital stock, at par value ($0.001 par value, 1,000,000,000 shares authorized) (Note 7)	$ 22,714
Additional paid-in capital (Note 7)	424,879,883
Distributions in excess of net investment income	(65,492)
Accumulated net realized loss on investment and futures transactions	(4,858,549)
Net unrealized depreciation on investments and futures	(7,417,589)
Net assets applicable to capital stock outstanding	$412,560,967
Shares Outstanding and Net Asset Value Per Share:
Common shares outstanding	22,713,931
Net asset value per share	$ 18.16

^{See Notes to Financial Statements.}

2015 Annual Report13

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Statement of Operations

For the Fiscal Year Ended June 30, 2015

Investment Income (Note 2):
Interest	$ 41,228,488
Dividends	956,653
Total income	42,185,141
Expenses:
Investment advisory fees (Note 4)	5,913,699
Administration fees (Note 4)	887,055
Fund accounting servicing fees	125,870
Directors' fees	107,324
Legal fees	88,336
Audit and tax services	69,705
Reports to stockholders	53,900
Insurance	47,903
Custodian fees	28,337
Miscellaneous	28,084
Registration fees	24,905
Transfer agent fees	16,797
Total operating expenses	7,391,915
Interest expense on reverse repurchase agreements (Note 6)	2,457,168
Total expenses	9,849,083
Net investment income	32,336,058
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on:
Investment transactions	222,022
Futures transactions	(2,393,944)
Net realized loss	(2,171,922)
Net change in unrealized depreciation on:
Investments	(18,482,748)
Futures	(460,805)
Net change in unrealized depreciation	(18,943,553)
Net realized and unrealized loss	(21,115,475)
Net increase in net assets resulting from operations	$ 11,220,583

^{See Notes to Financial Statements.}

14Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Statements of Changes in Net Assets

	For the Fiscal Year Ended June 30, 2015	For the Fiscal Year Ended June 30, 2014
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income	$ 32,336,058	$ 29,958,316
Net realized loss on investment and futures transactions	(2,171,922)	(1,793,277)
Net change in unrealized appreciation (depreciation) on investments and futures	(18,943,553)	26,173,063
Net increase in net assets resulting from operations	11,220,583	54,338,102
Distributions to Stockholders:
Net investment income	(32,705,299)	(29,997,494)
Return of capital	(1,937,989)	(4,645,794)
Total distributions paid	(34,643,288)	(34,643,288)
Total increase (decrease) in net assets	(23,422,705)	19,694,814
Net Assets:
Beginning of year	435,983,672	416,288,858
End of year	$412,560,967	$435,983,672
Distributions in excess of net investment income	$ (65,492)	$ (70,629)

^{See Notes to Financial Statements.}

2015 Annual Report15

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Statement of Cash Flows

For the Fiscal Year Ended June 30, 2015

Increase (Decrease) in Cash:
Cash flows provided by (used for) operating activities:
Net increase in net assets resulting from operations	$ 11,220,583
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
Purchases of long-term portfolio investments and principal payups	(179,524,857)
Proceeds from disposition of long-term portfolio investments and principal paydowns	211,242,561
Increase in cash on deposit with brokers for futures and reverse repurchase agreements	(6,421,479)
Decrease in interest and dividend receivable	371,662
Increase in principal paydown receivable	(275,808)
Increase in receivable for variation margin	(28,343)
Decrease in prepaid expenses	14,807
Decrease in payable for investments purchased	(3,650,977)
Increase in interest payable for reverse repurchase agreements	178,083
Decrease in payable for variation margin	(77,051)
Decrease in investment advisory fee payable	(8,917)
Decrease in administration fee payable	(1,338)
Increase in directors' fee payable	14
Increase in accrued expenses	19,623
Net accretion on investments and paydown gains or losses on investments	(24,510,467)
Unrealized depreciation on investments	18,482,748
Net realized gain on investment transactions	(222,022)
Net cash provided by operating activities	26,808,822
Cash flows provided by (used for) financing activities:
Net cash provided by reverse repurchase agreements	10,187,000
Distributions paid to stockholders	(34,643,288)
Net cash used for financing activities	(24,456,288)
Net increase in cash	2,352,534
Cash at beginning of year	15,510,511
Cash at end of year	$ 17,863,045
Supplemental Disclosure of Cash Flow Information:
Interest payments on reverse repurchase agreements for the fiscal year ended June 30, 2015 totaled $2,279,085.

^{See Notes to Financial Statements.}

16Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Financial Highlights

	For the Fiscal Year Ended June 30		Period from March 26, 20131 through June 30
	2015	2014	2013
Per Share Operating Performance:
Net asset value, beginning of period	$ 19.19	$ 18.33	$ 19.102
Net investment income	1.42 3	1.32	0.17
Net realized and unrealized gain (loss) on investment transactions and futures	(0.92)	1.07	(0.69)
Net increase (decrease) in net asset value resulting from operations	0.50	2.39	(0.52)
Distributions from net investment income	(1.44)	(1.32)	(0.18)
Return of capital distributions	(0.09)	(0.21)	(0.07)
Total distributions paid	(1.53)	(1.53)	(0.25)
Net asset value, end of period	$ 18.16	$ 19.19	$ 18.33
Market price, end of period	$ 15.81	$ 17.60	$ 18.46
Total Investment Return†	-1.53%	4.32%	-6.44% 4
Ratios to Average Net Assets/Supplementary Data:
Net assets, end of period (000s)	$412,561	$435,984	$416,289
Operating expenses excluding interest expense	1.74%	1.48%	1.44% 5
Interest expense	0.58%	0.22%	0.00% 5,6
Total expenses	2.32%	1.70%	1.44% 5
Net investment income	7.59%	7.10%	3.36% 5
Portfolio turnover rate	32%	41%	2% 4
Reverse repurchase agreements, end of period (000s)	$162,769	$152,582	$ 4,438
Asset Coverage per $1,000 unit of senior indebtedness7	$ 3,535	$ 3,857	$94,801

†	Total investment return is computed based upon the New York Stock Exchange market price of the Fund's shares and excludes the effect of broker commissions. Distributions are assumed to be reinvested at the prices obtained under the Fund's dividend reinvestment plan.
1	Commencement of operations.
2	Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from the initial public offering price of $20.00 per share.
3	Per share amounts presented are based on average shares outstanding throughout the period indicated.
4	Not annualized.
5	Annualized.
6	Interest expense ratio was less than 0.01%.
7	Calculated by subtracting the Fund's total liabilities (not including borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness.

^{See Notes to Financial Statements.}

2015 Annual Report17

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements

June 30, 2015

1.Organization

Brookfield Mortgage Opportunity Income Fund Inc. (the “Fund”) was incorporated under the laws of the State of Maryland on November 26, 2012. The Fund is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company which invests primarily in mortgage-related securities. The Fund commenced operations on March 26, 2013.

Brookfield Investment Management Inc. (“BIM” or “Adviser”), a wholly-owned subsidiary of Brookfield Asset Management Inc., is registered as an investment adviser under the Investment Advisers Act of 1940, as amended, and serves as investment adviser to the Fund.

The investment objective of the Fund is to provide a high total investment return by providing a high level of current income and the potential for capital appreciation. The investment objective is not fundamental and may be changed by the Board of Directors (the “Board”) without stockholder approval, upon not less than 60 days prior notice to stockholders. No assurances can be given that the Fund’s investment objective will be achieved.

2.Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies.

Valuation of Investments: Debt securities, including U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities, are generally valued at the bid prices furnished by an independent pricing service or, if not valued by an independent pricing service, using bid prices obtained from active and reliable market makers in any such security or a broker-dealer. The broker-dealers or pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the broker-dealers or pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the broker-dealers or pricing services also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or market characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon-rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair values. Short-term debt securities with remaining maturities of sixty days or less are valued at cost with interest accrued or discount accreted to the date of maturity, unless such valuation, in the judgment of the Adviser’s Valuation Committee, does not represent market value.

Investments in equity securities listed or traded on any securities exchange or traded in the over-the-counter market are valued at the last trade price as of the close of business on the valuation date. Investments in open-end registered investment companies, if any, are valued at the net asset value (“NAV”) as reported by those investment companies.

Fair valuation procedures may be used to value a substantial portion of the assets of the Fund. The Fund may use the fair value of a security to calculate its NAV when, for example, (1) a portfolio security is not traded in a public market or the principal market in which the security trades is closed, (2) trading in a portfolio security is suspended and not resumed prior to the normal market close, (3) a portfolio security is not traded in significant volume for a substantial period, or (4) the Adviser determines that the quotation or price for a portfolio security provided by a broker-dealer or an independent pricing service is inaccurate.

18Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

The fair value of securities may be difficult to determine and thus judgment plays a greater role in the valuation process. The fair valuation methodology may include or consider the following guidelines, as appropriate: (1) evaluation of all relevant factors, including but not limited to, pricing history, current market level, supply and demand of the respective security; (2) comparison to the values and current pricing of securities that have comparable characteristics; (3) knowledge of historical market information with respect to the security; (4) other factors relevant to the security which would include, but not be limited to, duration, yield, fundamental analytical data, the Treasury yield curve, and credit quality.

The values assigned to fair valued investments are based on available information and do not necessarily represent amounts that might ultimately be realized, since such amounts depend on future developments inherent in long-term investments. Changes in the fair valuation of portfolio securities may be less frequent and of greater magnitude than changes in the price of portfolio securities valued at their last sale price, by an independent pricing service, or based on market quotations. Imprecision in estimating fair value can also impact the amount of unrealized appreciation or depreciation recorded for a particular portfolio security and differences in the assumptions used could result in a different determination of fair value, and those differences could be material.

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities. The Adviser oversees the day to day responsibilities for valuation determinations under these procedures. The Board regularly reviews the application of these procedures to the securities in the Fund’s portfolio. Pursuant to the procedures, securities in the Fund are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers. However, if (i) a market value or price is not readily available, (ii) the available quotations are not believed to be reflective of market value by the Adviser, or (iii) a significant event has occurred that would materially affect the value of the security, the security is fair valued, as determined in good faith, by the Adviser’s Valuation Committee. The Adviser’s Valuation Committee is comprised of senior members of the Adviser’s management team. There can be no assurance that the Fund could purchase or sell a portfolio security at the price used to calculate the Fund’s NAV.

The Fund has established methods of fair value measurements in accordance with GAAP. Fair value denotes the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy has been established to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 -	quoted prices in active markets for identical assets or liabilities
Level 2 -	quoted prices in markets that are not active or other significant observable inputs (including, but not limited to: quoted prices for similar assets or liabilities, quoted prices based on recently executed transactions, interest rates, prepayment speeds, credit risk, etc.)
Level 3 -	significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets or liabilities)

The Adviser’s valuation policy, as previously stated, establishes parameters for the sources and types of valuation analysis, as well as, the methodologies and inputs the Adviser uses in determining fair value, including the use of

2015 Annual Report19

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

the Adviser’s Valuation Committee. If the Valuation Committee determines that additional techniques, sources or inputs are appropriate or necessary in a given situation, such additional work will be undertaken.

Significant increases or decreases in any of the unobservable inputs in isolation may result in a lower or higher fair value measurement.

To assess the continuing appropriateness of security valuations, the Adviser (or its third party service provider who is subject to oversight by the Adviser), compares daily its prior day prices, prices on comparable securities and sales prices and challenges those prices that either remain unchanged or exceeds certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of June 30, 2015:

Valuation Inputs	Level 1	Level 2	Level 3(1)	Total
Residential Mortgage Related Holdings	$ —	$ —	$ 373,105,646	$ 373,105,646
Commercial Mortgage Related Holdings	—	—	107,786,402	107,786,402
Interest-Only Securities	—	—	3,150,630	3,150,630
Corporate Bonds	—	47,839,056	—	47,839,056
Preferred Stocks	9,445,518	3,808,008	—	13,253,526
Collateralized Loan Obligation	—	—	3,955,200	3,955,200
Total	$ 9,445,518	$ 51,647,064	$ 487,997,878	$ 549,090,460

Assets:	Level 1	Level 2	Level 3	Total
Other Financial Instruments(2)	$ 100,000	$ —	$ —	$ 100,000
Total Assets - Other Financial Instruments	$ 100,000	$ —	$ —	$ 100,000

Liabilities:	Level 1	Level 2	Level 3	Total
Other Financial Instruments(2)	$ (155,697)	$ —	$ —	$ (155,697)
Total Liabilities - Other Financial Instruments	$ (155,697)	$ —	$ —	$ (155,697)

⁽¹⁾ The Fund generally uses evaluated bid prices provided by an independent pricing service on the valuation date as the primary basis for the fair value determinations. These evaluated bid prices are based on unobservable inputs. A significant change in third party information inputs could result in a significantly lower or higher value of such Level 3 investments.

⁽²⁾ Other financial instruments include exchange traded futures contracts which are reflected at the unrealized appreciation (depreciation) on the instrument.

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BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

Investments in Securities	Residential Mortgage Related Holdings	Commercial Mortgage Related Holdings	Interest-Only Securities	Collateralized Loan Obligation	Total
Balance as of June 30, 2014	$334,726,856	$142,858,321	$ —	$ —	$ 477,585,177
Accrued Discounts (Premiums)	13,990,123	192,209	—	—	14,182,332
Realized Gain (Loss)	8,178,204	3,759,950	—	—	11,938,154
Change in Unrealized Appreciation (Depreciation)	(6,989,707)	(4,568,293)	—	(14,800)	(11,572,800)
Purchases at cost	118,236,098	21,908,397	—	3,970,000	144,114,495
Sales proceeds	(95,035,928)	(56,364,182)	—	—	(151,400,110)
Transfers into Level 3	—	—	3,150,630	—	3,150,630 (a)
Balance as of June 30, 2015	$373,105,646	$107,786,402	$3,150,630	$3,955,200	$ 487,997,878
Change in unrealized gains or losses relating to assets still held at the reporting date	$ (5,703,149)	$ (643,043)	$ —	$ (14,800)	$ (6,360,992)

^(a) Transferred due to a decrease of observable market data for these securities.

The fair value of the Fund’s reverse repurchase agreements, which qualify as financial instruments under FASB Accounting Standards Codification (“ASC”) 820 “Disclosures about Fair Values of Financial Instruments”, approximates the carrying amounts presented in the Statement of Assets and Liabilities. As of June 30, 2015, this financial instrument is categorized as a Level 2 within the disclosure hierarchy.

During the fiscal year ended June 30, 2015, transfers from Level 1 to Level 2 were $3,808,008, which represents a security that was previously priced using the market close price and currently priced using mean of the bid and ask price. The transfers were due to lack of trading volume. The basis for recognizing and valuing transfers is as of the end of the period in which the transfers occur. There have been no additional transfers between the Levels.

Investment Transactions and Investment Income: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are calculated on the identified cost basis. Interest income is recorded on the accrual basis. Discounts and premiums on securities are accreted and amortized, respectively, on a daily basis, using the effective yield method. Dividend income is recorded on the ex-dividend date.

Taxes: The Fund intends to continue to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its stockholders. Therefore, no federal income or excise tax provision is required. The Fund may incur an excise tax to the extent it has not distributed all of its taxable income on a calendar year basis.

GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. An evaluation of tax positions taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the taxing authority is required. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of a deferred tax asset; an increase in a deferred tax liability; or a combination thereof. As of June 30, 2015, the Fund has determined that there are no uncertain tax positions or tax liabilities required to be accrued.

The Fund has reviewed all taxable years that are open for examination (i.e., not barred by the applicable statute of limitations) by taxing authorities of all major jurisdictions, including the Internal Revenue Service. As of June 30, 2015, open taxable years consisted of the taxable period March 26, 2013 (commencement of operations) through June 30, 2013 and the taxable years ended June 30, 2014 through June 30, 2015. No examination of the Fund’s tax returns is currently in progress.

2015 Annual Report21

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

Expenses: Expenses directly attributable to the Fund are charged directly to the Fund, while expenses which are attributable to the Fund and other investment companies advised by the Adviser are allocated among the respective investment companies, including the Fund, based either upon relative average net assets, evenly or a combination of both.

Distributions: The Fund declares and pays dividends monthly from net investment income. To the extent these distributions exceed net investment income, they may be classified as return of capital. The Fund also pays distributions at least annually from its net realized capital gains, if any. Dividends and distributions are recorded on the ex-dividend date. All common shares have equal dividend and other distribution rights.

Dividends from net investment income and distributions from realized gains from investment transactions have been determined in accordance with Federal income tax regulations and may differ from net investment income and realized gains recorded by the Fund for financial reporting purposes. These differences, which could be temporary or permanent in nature, may result in reclassification of distributions; however, net investment income, net realized gains and losses and net assets are not affected.

When-Issued Purchases and Forward Commitments: The Fund may purchase securities on a “when-issued” basis and may purchase or sell securities on a “forward commitment” basis in order to hedge against anticipated changes in interest rates and prices and secure a favorable rate of return. When such transactions are negotiated, the price, which is generally expressed in yield terms, is fixed at the time the commitment is made, but delivery and payment for the securities takes place at a later date, which can be a month or more after the date of the transaction. At the time the Fund makes the commitment to purchase securities on a when-issued or forward commitment basis, the Fund will record the transactions and thereafter reflect the values of such securities in determining its net asset value. At the time the Fund enters into a transaction on a when-issued or forward commitment basis, the Adviser will identify collateral consisting of cash or liquid securities equal to the value of the when-issued or forward commitment securities and will monitor the adequacy of such collateral on a daily basis. On the delivery date, the Fund will meet its obligations from securities that are then maturing or sales of the securities identified as collateral by the Adviser and/or from then available cash flow. When-issued securities and forward commitments may be sold prior to the settlement date. If the Fund disposes of the right to acquire a when-issued security prior to its acquisition or disposes of the right to deliver or receive against a forward commitment, it can incur a gain or loss due to market fluctuation. There is always a risk that the securities may not be delivered and that the Fund may incur a loss. Settlements in the ordinary course are not treated by the Fund as when-issued or forward commitment transactions and, accordingly, are not subject to the foregoing limitations even though some of the risks described above may be present in such transactions.

TBA Transactions: The Fund may enter into to-be-announced (“TBA”) transactions to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. A TBA transaction is a purchase or sale of a U.S. government agency mortgage pass-through security for future settlement at an agreed upon date. The term “U.S. government agency mortgage pass-through security” refers to a category of pass-through securities backed by pools of mortgages and issued by one of several U.S. government-sponsored enterprises: the Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), or Federal Home Loan Mortgage Corporation (Freddie Mac). In the basic pass-through structure, mortgages with similar issuer, term and coupon characteristics are collected and aggregated into a pool. The pool is assigned a CUSIP number and undivided interests in the pool are traded and sold as pass-through securities. The holder of the security is entitled to a pro rata share of principal and interest payments (including unscheduled prepayments) from the pool of mortgage loans. TBA transactions increase the liquidity and pricing efficiency of transactions in such mortgage-backed securities since they permit similar mortgage-backed securities to be traded interchangeably pursuant to commonly observed settlement and delivery requirements. Proceeds of TBA transactions are not received until the contractual settlement date. The Fund may use TBA transactions to acquire and maintain exposure to mortgage-backed securities in either of two ways. Typically, the Fund will enter into TBA agreements and “roll over” such agreements prior to the settlement date stipulated in such agreements. This type of TBA transaction is commonly known as a “TBA roll.” In a “TBA roll,” the Fund generally will sell the obligation to purchase the pools stipulated in the TBA agreement prior to the stipulated settlement date and will enter into a

22Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

new TBA agreement for future delivery of pools of mortgage pass-through securities. Alternatively, the Fund will enter into TBA agreements and settle such transactions on the stipulated settlement date by actual receipt or delivery of the pools of mortgage pass-through securities stipulated in the TBA agreement. Unsettled TBA agreements are valued at the current market value of the underlying securities, according to the procedures described above under “Valuation of Investments.” Each TBA position is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss.

Cash Flow Information: The Fund invests in securities and distributes dividends and distributions which are paid in cash or are reinvested at the discretion of stockholders. These activities are reported in the Statements of Changes in Net Assets. Additional information on cash receipts and cash payments is presented in the Statement of Cash Flows.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.

The Fund invests in financial futures contracts to hedge against fluctuations in the value of portfolio securities caused by changes in prevailing market interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets.

The following table sets forth the effect of derivative instruments on the Statements of Assets and Liabilities as of June 30, 2015:

Derivatives	Statement of Assets and Liabilities	Fair Value as of June 30, 2015
Futures contracts	Receivable for variation margin (assets)	$28,343

The following table sets forth the effect of derivative instruments on the Statement of Operations for the fiscal year ended June 30, 2015:

Derivatives	Location of Gains (Losses) on Derivatives Recognized in Income	Net Realized Loss on Futures Transactions	Net Change in Unrealized Depreciation on Futures
Futures contracts	Futures transactions	$(2,393,944)	$(460,805)

3.Risks of Investing in Asset-Backed Securities and Below-Investment Grade Securities

The value of asset-backed securities may be affected by, among other factors, changes in: interest rates, the market’s assessment of the quality of the underlying assets, the creditworthiness of the servicer for the underlying assets, information concerning the originator of the underlying assets, or the creditworthiness or rating of the entities that provide any supporting letters of credit, surety bonds, derivative instruments or other credit enhancement.

The value of asset-backed securities also will be affected by the exhaustion, termination or expiration of any credit enhancement. The Fund has investments in below-investment grade debt securities, including mortgage-backed and asset-backed securities. Below-investment grade securities involve a higher degree of credit risk than

2015 Annual Report23

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

investment grade debt securities. In the event of an unanticipated default, the Fund would experience a reduction in its income, a decline in the market value of the securities so affected and a decline in the NAV of its shares. During an economic downturn or period of rising interest rates, highly leveraged and other below-investment grade issuers frequently experience financial stress that could adversely affect its ability to service principal and interest payment obligations, to meet projected business goals and to obtain additional financing.

The market prices of below-investment grade debt securities are generally less sensitive to interest rate changes than higher-rated investments but are more sensitive to adverse economic or political changes or individual developments specific to the issuer than higher-rated investments. Periods of economic or political uncertainty and change can be expected to result in significant volatility of prices for these securities. Rating services consider these securities to be speculative in nature.

Below-investment grade securities may be subject to market conditions, events of default or other circumstances which cause them to be considered “distressed securities.” Distressed securities frequently do not produce income while they are outstanding. The Fund may be required to bear certain extraordinary expenses in order to protect and recover its investments in certain distressed securities. Therefore, to the extent the Fund seeks capital growth through investment in such securities, the Fund’s ability to achieve current income for its stockholders may be diminished. The Fund is also subject to significant uncertainty as to when and in what manner and for what value the obligations evidenced by distressed securities will eventually be satisfied (e.g., through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the securities or a payment of some amount in satisfaction of the obligation). In addition, even if an exchange offer is made or a plan of reorganization is adopted with respect to distressed securities held by the Fund, there can be no assurance that the securities or other assets received by the Fund in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made. Moreover, any securities received by the Fund upon completion of an exchange offer or plan of reorganization may be restricted as to resale. As a result of the Fund’s participation in negotiations with respect to any exchange offer or plan of reorganization with respect to an issuer of such securities, the Fund may be restricted from disposing of distressed securities.

4.Investment Advisory Agreement and Related Party Transactions

The Fund has entered into an Investment Advisory Agreement (the “Advisory Agreement”) with the Adviser under which the Adviser is responsible for the management of the Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. The Advisory Agreement provides that the Fund shall pay the Adviser a monthly fee for its services at an annual rate of 1.00% of the Fund’s average daily net assets (plus the amount of borrowing for investment purposes) (“Managed Assets”).

The Fund has entered into an Administration Agreement with the Adviser. The Adviser has entered into a sub-administration agreement with U.S. Bancorp Fund Services, LLC (“Sub-Administrator”). The Adviser and Sub-Administrator perform administrative services necessary for the operation of the Fund, including maintaining certain books and records of the Fund and preparing reports and other documents required by federal, state, and other applicable laws and regulations, and providing the Fund with administrative office facilities. For these services, the Fund pays to the Adviser a monthly fee at an annual rate of 0.15% of the Fund’s average daily Managed Assets. The Adviser is responsible for any fees due to the Sub-Administrator.

Certain officers and/or directors of the Fund are officers and/or employees of the Adviser.

5.Purchases and Sales of Investments

For the fiscal year ended June 30, 2015, purchases and sales of investments, excluding short-term securities, reverse repurchase agreements, and U.S. Government securities were $179,524,857 and $211,242,561,

24Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

respectively. The Fund did not have any purchases or sales of U.S. Government securities for the fiscal year ended June 30, 2015.

6.Borrowings

The Fund may enter into reverse repurchase agreements. In a reverse repurchase agreement, the Fund delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. The Fund is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Fund to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Fund to counterparties are recorded as a component of interest expense on the Statement of Operations. The Fund will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

Reverse repurchase agreements involve the risk that the market value of the securities retained in lieu of sale by the Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the Fund’s obligation to repurchase the securities, and the Fund’s use of the proceeds of the reverse repurchase agreement may effectively be restricted pending such decision. Also, the Fund would bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement are less than the value of the securities subject to such agreements.

At June 30, 2015, the Fund had the following reverse repurchase agreements outstanding:

Counterparty	Borrowing Rate	Borrowing Date	Maturity Date	Amount Borrowed(1)	Payable for Reverse Repurchase Agreements
RBC Capital Markets	0.90%	04/02/15	07/02/15	$ 8,714,000	$ 8,733,514
RBC Capital Markets	0.91%	05/27/15	08/27/15	10,484,000	10,493,270
RBC Capital Markets	0.91%	06/12/15	09/14/15	13,870,000	13,876,682
RBC Capital Markets	1.52%	04/02/15	07/02/15	12,277,000	12,323,676
RBC Capital Markets	1.53%	05/11/15	08/11/15	9,481,000	9,501,535
RBC Capital Markets	1.53%	05/19/15	08/19/15	8,812,000	8,828,067
RBC Capital Markets	1.56%	01/05/15	07/06/15	8,563,000	8,628,796
RBC Capital Markets	1.58%	06/26/15	09/25/15	8,663,000	8,664,902
RBC Capital Markets	1.59%	06/15/15	08/19/15	1,399,000	1,399,991
RBC Capital Markets	1.63%	04/20/15	07/20/15	21,200,000	21,268,904
RBC Capital Markets	1.63%	05/19/15	08/19/15	3,928,000	3,935,631
RBC Capital Markets	1.66%	01/05/15	07/06/15	8,986,000	9,059,464
RBC Capital Markets	1.68%	06/03/15	09/03/15	2,788,000	2,791,648
RBC Capital Markets	1.71%	03/20/15	09/24/15	1,037,000	1,042,071
RBC Capital Markets	1.74%	02/26/15	08/26/15	23,984,000	24,128,499
RBC Capital Markets	1.88%	09/24/14	09/24/15	18,583,000	18,854,970
Total				$162,769,000	$163,531,620

⁽¹⁾The average daily balance of reverse repurchase agreements outstanding for the Fund during the fiscal year ended June 30, 2015, was $166,587,620 at a weighted average daily interest rate of 1.48%.

2015 Annual Report25

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

Below is the gross and net information about instruments and transactions eligible for offset in the Statement of Assets and Liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement:

				Gross Amounts not offset in the Statement of Assets and Liabilities
	Gross Amounts of Recognized Liabilities	Gross Amounts Offset in the Statement of Assets and Liabilities	Net Amounts Presented in the Statement of Assets and Liabilities	Financial Instruments	Collateral Pledged (Received)*	Net Amount
Description
Reverse Repurchase Agreements	$162,769,000	$—	$162,769,000	$(162,769,000)	$—	$—

* Excess of collateral pledged to the individual counterparty may not be shown for financial purposes.

Reverse repurchase transactions are entered into by the Fund under Master Repurchase Agreements (“MRA”) which permit the Fund, under certain circumstances, including an event of default of the Fund (such as bankruptcy or insolvency), to offset payables under the MRA with collateral held with the counterparty and create one single net payment from the Fund. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed. In the event the buyer of securities (i.e. the MRA counterparty) under a MRA files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Fund’s obligation to repurchase the securities.

7.Capital Stock

The Fund has 1,000,000,000 shares of $0.001 par value common stock authorized. Of the 22,713,931 shares outstanding at June 30, 2015 for the Fund, the Adviser owns 5,240 shares. The Fund’s Board is authorized to classify and reclassify any unissued shares of capital stock. The common shares have no preemptive, conversion, exchange or redemption rights. All common shares have equal voting, dividend, distribution and liquidation rights. The common shares are fully paid and non-assessable. Common stockholders are entitled to one vote per share and all voting rights for the election of directors are non-cumulative.

8.Financial Instruments

The Fund regularly trades in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. During the fiscal year ended June 30, 2015, the Fund had segregated sufficient cash and/or securities to cover any commitments under these contracts.

26Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

As of June 30, 2015, the following futures contracts were outstanding:

Short:

Contracts	Type	Expiration Date	Value at June 30, 2015	Unrealized Appreciation/(Depreciation)
228	2 Year U.S. Treasury Note	September 2015	$ 49,917,750	$(87,333)
428	5 Year U.S. Treasury Note	September 2015	51,042,344	(63,922)
95	10 Year U.S. Treasury Note	September 2015	11,986,328	100,000
	Total		$112,946,422	$(51,255)

Long:

Contracts	Type	Expiration Date	Value at June 30, 2015	Unrealized Depreciation
1	U.S. Treasury Long Bond	September 2015	$150,844	$(4,442)
	Total		$150,844	$(4,442)

The average notional value of futures contracts outstanding during the fiscal year ended June 30, 2015 was $76,083,288, which represents the volume activity during the fiscal year.

9.Federal Income Tax Information

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

The tax character of distributions paid for the fiscal years ended were as follows:

	2015	2014
Ordinary income (including short-term capital gains)	32,705,299	$29,997,494
Return of capital	1,937,989	4,645,794
Total distributions	$34,643,288	$34,643,288

A notice disclosing the source(s) of a distribution is provided after a payment is made from any source other than net investment income. Any such notice is provided only for informational purposes in order to comply with the requirements of Section 19(a) of the 1940 Act and not for tax reporting purposes. The tax composition of the Fund’s distributions for each calendar year is reported on IRS Form 1099-DIV.

At June 30, 2015, the Fund’s most recently completed tax year-end, the components of distributable earnings on a tax basis were as follows:

Other accumulated losses	$ (65,492)
Capital loss carryforward(1)	(2,085,839)
Post-October capital loss deferral	(2,828,407)
Tax basis unrealized depreciation on investments	(7,361,892)
Total tax basis net accumulated losses	$(12,341,630)

⁽¹⁾ To the extent that future capital gains are offset by capital loss carryforwards, such gains will not be distributed.

2015 Annual Report27

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

As of June 30, 2015, the Fund’s capital loss carryforward was $2,085,839 from short-term capital gains which will not expire.

Federal Income Tax Basis: The federal income tax basis of the Fund's investments at June 30, 2015 was as follows:

Cost of Investments	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Depreciation
$556,452,352	$8,392,836	$(15,754,728)	$(7,361,892)

Capital Account Reclassifications: Because federal income tax regulations differ in certain respects from GAAP, income and capital gain distributions, if any, determined in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. These differences are primarily due to differing treatments for paydown adjustments. Permanent book and tax differences, if any, will result in reclassifications to paid-in-capital or to undistributed capital gains. These reclassifications have no effect on net assets or NAV per share. Any undistributed net income and realized gain remaining at fiscal year end is distributed in the following year.

At June 30, 2015, the Fund's most recently completed tax year-end, the Fund's components of net assets were increased or (decreased) by the amounts shown in the table below:

Additional paid-in capital	Distributions in excess of net investment income	Accumulated net realized loss
$22,729	$374,378	$(397,107)

10.Indemnification

Under the Fund’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for indemnification. The Fund’s maximum exposure under these arrangements is unknown, since this would involve the resolution of certain claims, as well as future claims that may be made, against the Fund. Thus, an estimate of the financial impact, if any, of these arrangements cannot be made at this time. However, based on experience, the Fund expects the risk of loss due to these warranties and indemnities to be unlikely.

11.New Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2014-11 “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” Accounting Standards Update (“ASU”) No. 2014-11 makes limited changes to the accounting for repurchase agreements, clarifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, and requires additional disclosures regarding these types of transactions. The effective date of this ASU is for fiscal years beginning on or after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund's financial statement disclosure.

12.Subsequent Events

GAAP requires recognition in the financial statements of the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made.

Dividends: The Fund’s Board declared the following monthly dividends:

28Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Notes to Financial Statements(continued)

June 30, 2015

Dividend Per Share	Record Date	Payable Date
$0.1271	July 23, 2015	July 30, 2015
$0.1271	August 20, 2015	August 27, 2015

Management has evaluated subsequent events in the preparation of the Fund’s financial statements and has determined that other than the items listed herein, there are no events that require recognition or disclosure in the financial statements.

2015 Annual Report29

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Report of Independent Registered Public Accounting Firm

June 30, 2015

To the Board of Directors and Stockholders of

Brookfield Mortgage Opportunity Income Fund Inc.

We have audited the accompanying statement of assets and liabilities of Brookfield Mortgage Opportunity Income Inc. (the “Fund”), including the schedule of investments, as of June 30, 2015, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2015, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Brookfield Mortgage Opportunity Income Inc. as of June 30, 2015, and the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Philadelphia, Pennsylvania

August 19, 2015

30Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Tax Information(Unaudited)

June 30, 2015

The Fund is required by subchapter M of the Internal Revenue Code of 1986, as amended, to advise you within 60 days of the Fund’s fiscal year end (June 30, 2015) as to the federal tax status of distributions received by stockholders during such fiscal period. Accordingly, we are advising you that 5.59% of the distributions paid was from net investment income for the Fund was reclassified as return of capital and is reflected as such in the Fund’s Statements of Changes in Net Assets and Financial Highlights.

Because the Fund’s fiscal year is not a calendar year, another notification will be sent with respect to calendar year 2015. The second notification, which will reflect the amount to be used by calendar year taxpayers on their federal, state and local income tax returns, will be made in conjunction with Form 1099-DIV and will be mailed in January 2016. Stockholders are advised to consult their own tax advisors with respect to the tax consequences of their investments in the Fund.

For the fiscal year ended June 30, 2015, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from ordinary income designated as qualified dividend income was 1.49%.

For corporate stockholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended June 30, 2015 was 1.41%.

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) was 0.00%.

2015 Annual Report31

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Compliance Certification(Unaudited)

June 30, 2015

On November 20, 2014, the Fund submitted a CEO annual certification to the New York Stock Exchange (“NYSE”) on which the Fund’s principal executive officer certified that he was not aware, as of that date, of any violation by the Fund of the NYSE’s Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund’s principal executive and principal financial officers have made quarterly certifications, included in filings with the SEC on Forms N-Q relating to, among other things, the Fund’s disclosure controls and procedures and internal control over financial reporting, as applicable.

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BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Information Concerning Directors and Officers(Unaudited)

The following tables provide information concerning the directors and officers of the Fund.

Directors of the Fund

Name, Address and Year of Birth	Position(s) Held with Funds	Principal Occupation(s) During Past 5 Years and Other Directorships Held by Director	Number of Portfolios in Fund Complex
Independent Director Class I Director to serve until 2017 Annual Meeting of Stockholders:
Heather Goldman c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1967	Director, Member of the Audit Committee, Member of the Nominating and Compensation Committee   Served Since 2013	Director/ Trustee of several investment companies advised by the Adviser (2013-Present); Global Head of Marketing and Business Development of the Adviser (2011-2013); Managing Partner of Brookfield Financial (2009-2011); Head of Investor Relations of Starwood Capital Group Global (2007-2009); Director and immediate past Board Chair of University Settlement House (2003-2013); Member of the Honorary Board of University Settlement House (2014-Present); Chair, Co-Founder & President of Capstak, Inc. (2014-Present).	9
Independent Directors Class II Directors to serve until 2015 Annual Meeting of Stockholders:
Edward A. Kuczmarski c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1949	Director, Chairman of the Board, Member of the Audit Committee, Chairman of the Nominating and Compensation Committee   Served Since 2013	Director/ Trustee of several investment companies advised by the Adviser (2011-Present); Certified Public Accountant and Retired Partner of Crowe Horwath LLP (1980-2013); Trustee of the Empire Builder Tax Free Bond Fund (1984-2013); Director of ISI Funds (2007-2015); Trustee of the Daily Income Fund (2006-Present); Director of the California Daily Tax Free Income Fund, Inc. (2006-Present); Trustee of the Stralem Funds (2014-Present).	9
Stuart A. McFarland c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1947	Director, Member of the Audit Committee, Member of the Nominating and Compensation Committee   Served Since 2013	Director/ Trustee of several investment companies advised by the Adviser (2006-Present); Director of United Guaranty Corporation (2011-Present); Director of Brandywine Funds (2003-2013); Director of New Castle Investment Corp. (2000-Present); Managing Partner of Federal City Capital Advisors (1997-Present); Director of New America High Income Fund (2013-Present); Director of New Senior Investment Group, Inc. (2014-Present).	9

2015 Annual Report33

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.

Information Concerning Directors and Officers(Unaudited)(continued)

Directors of the Fund(continued)

Name, Address and Year of Birth	Position(s) Held with Funds	Principal Occupation(s) During Past 5 Years and Other Directorships Held by Director	Number of Portfolios in Fund Complex
Independent Director Class III Director to serve until 2016 Annual Meeting of Stockholders:
Louis P. Salvatore c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1946	Director, Chairman of the Audit Committee, Member of the Nominating and Compensation Committee   Served Since 2013	Director/ Trustee of several investment companies advised by the Adviser (2005-Present); Director of SP Fiber Technologies, Inc. (2012-Present); Director of Chambers Street Properties (2012-Present); Director of Crystal River Capital, Inc. (2005-2010); Director of Turner Corp. (2003-Present); Director of Jackson Hewitt Tax Services, Inc. (2004-2011); Employee of Arthur Andersen LLP (2002-Present).	9
Interested Director Class III Director to serve until 2016 Annual Meeting of Stockholders:
Jonathan C. Tyras c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1968	Director   Served Since 2014	Managing Director and Chief Financial Officer of the Adviser (2010-Present); General Counsel and Secretary of the Adviser (2006-Present); Director/Trustee of several investment companies advised by the Adviser (2014-Present); Secretary of several investment companies advised by the Adviser (2006-2014); Vice President of Brookfield Investment Funds (2011-2014); Vice President and General Counsel (2006-2010) and Secretary (2007-2010) of Crystal River Capital, Inc.; Chief Financial Officer of Brookfield Investment Management (UK) Limited (2011-Present); Director of Brookfield Investment Management (UK) Limited (2013-Present); Chief Financial Officer of Brookfield Investment Management (Canada) Inc. (2011-Present); Director of Brookfield Investment Management (Canada) Inc. (2015-Present); Chief Executive Officer of Brookfield Investment Management (US) LLC (2011-Present); Managing Director of AMP Capital Brookfield Pty Limited (2011-2012); Chairman of Brookfield Soundvest Capital Management (2015-Present).	9

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BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.

Information Concerning Directors and Officers(Unaudited)(continued)

Officers of the Fund

Name, Address and Year of Birth	Position(s) Held with Funds	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
Brian F. Hurley* c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1977	President	Since 2014	Managing Director (2014-present) and Assistant General Counsel (2010-present) of the Adviser; Director of the Adviser (2010-2014); Secretary of Brookfield Investment Funds (2011-2014); Associate at Paul Hastings LLP (2002-2010); Director of Brookfield Soundvest Capital Management (2015-Present).
Angela W. Ghantous* c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1975	Treasurer	Since 2013	Treasurer of several investment companies advised by the Adviser (2012-Present); Director of the Adviser (2012-Present); Vice President of the Adviser (2009-2012); Controller of Brookfield Redding LLC (2006-2009).
Alexis I. Rieger* c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1980	Secretary	Since 2014	Vice President and Associate General Counsel of the Adviser (2011-present); Associate at Kleinberg, Kaplan, Wolff & Cohen P.C. (2009-2011); Associate at Alston & Bird LLP (2007-2009).
Seth Gelman* c/o Brookfield Place, 250 Vesey Street, New York, New York 10281-1023   Born: 1975	Chief Compliance Officer (“CCO”)	Since 2013	CCO of several investment companies advised by the Adviser (2009-Present); CCO of the Adviser (2009-Present); Vice President of Oppenheimer Funds, Inc. (2004-2009).

* Interested person as defined by the Investment Company Act of 1940, as amended (the “1940 Act”) because of affiliations with Brookfield Investment Management Inc., Adviser of the Fund.

The Fund’s Statement of Additional Information includes additional information about the directors, and is available, without charge, upon request by calling 1-855-777-8001.

2015 Annual Report35

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Board Considerations Relating to the Investment Advisory Agreement(Unaudited)

June 30, 2015

At a meeting held on May 14, 2015, the Board, including a majority of the Independent Directors, considered and approved the continuation of the investment advisory agreement (the "Advisory Agreement") between Brookfield Investment Management Inc. (the "Adviser") and the Fund. In approving the Advisory Agreement, the Board, including a majority of the Independent Directors, determined that the fee structure was fair and reasonable and that approval of the Advisory Agreement was in the best interests of the Fund and its shareholders. The Board of Directors considered a wide range of information, including information regularly received from the Adviser at the quarterly Board meetings. While attention was given to all information furnished, the following discusses the primary factors relevant to the Board's decision.

THE NATURE, EXTENT AND QUALITY OF THE SERVICES. The Board considered the level and depth of knowledge of the Adviser. In evaluating the quality of services provided by the Adviser, the Board took into account its familiarity with the Adviser’s management through board meetings, conversations and reports. The Board noted that the Adviser is responsible for managing the Fund's investment program, the general operations and the day-to-day management of the Fund and for compliance with applicable laws, regulations, policies and procedures. The Board concluded that the nature, extent and quality of the overall services provided by the Adviser and its affiliates are satisfactory. The Board's conclusion was based, in part, upon services provided to the Fund such as quarterly reports provided by the Adviser: 1) comparing the performance of the Fund with a peer group, 2) showing that the investment policies and restrictions for the Fund were followed, and 3) covering matters such as the compliance of investment personnel and other access persons with the Adviser's and the Fund's codes of ethics, the adherence to fair value pricing procedures established by the Board, the monitoring of portfolio compliance and presentations regarding the economic environment. The Board also considered the experience of the Adviser as an investment adviser and the experience of the team of portfolio managers that manages the Fund, and its current experience in acting as investment advisor to other investment funds and institutional clients.

INVESTMENT PERFORMANCE. The Board placed significant emphasis on the investment performance of the Fund in view of its importance to shareholders. While consideration was given to performance reports and discussions at Board meetings throughout the year, particular attention in assessing the performance was given to a presentation that compared the Fund’s performance with its peer universe and its Morningstar category peers for the one year and year-to-date periods ending March 31, 2015. The Board noted that the Fund performed below the median of its Morningstar category peers for the one year and year-to-date periods, while it performed above the median for the one year period and at the median of its peer universe for the year-to-date period. Based on the Adviser’s explanation of the current market, the Board concluded that the Fund's performance was satisfactory.

PROFITABILITY. The Board also considered the level of profits expected to be realized by the Adviser and its affiliates in connection with the operation of the Fund. In this regard, the Board reviewed the Fund profitability analysis addressing the overall profitability of the Adviser for its management of the Brookfield fund family, as well as its expected profits and that of its affiliates for providing administrative support for the Fund. The Board further noted that the methodology followed in allocating costs to the Fund appeared reasonable, while also recognizing that allocation methodologies are inherently subjective. The Board concluded that the expected profitability to the Adviser from the Fund was reasonable.

MANAGEMENT FEES AND TOTAL EXPENSES. The Board also placed significant emphasis on the review of the Fund’s expenses. The Board compared the advisory fees and total expense ratio of the Fund with various comparative data that it had been provided. The Board noted that the Fund’s net total expenses and the Fund’s total advisory and administrative fee were higher than the median of its peer universe, while net total expenses were below the median and total advisory and administrative fee were higher than the median of its Morningstar category peers. The Board also noted that the fees and expenses payable by the Fund were comparable to those payable by other client accounts managed by the Adviser and concluded that the Fund's management fee and total expenses were reasonable.

ECONOMIES OF SCALE. The Board considered the potential economies of scale that may be realized if the assets of the Fund grow. The Board noted that shareholders might benefit from lower operating expenses as a

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BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Board Considerations Relating to the Investment Advisory Agreement(Unaudited)(continued)

June 30, 2015

result of an increasing amount of assets being spread over the fixed expenses of the Fund, but noted that, as a closed-end fund, the Fund was unlikely to grow significantly.

In considering the approval of the Advisory Agreement, the Board, including the Independent Directors, did not identify any single factor as controlling. Based on the Board’s evaluation of all factors that it deemed to be relevant, the Board, including the Independent Directors, concluded that the Adviser has demonstrated that it possesses the capability and resources necessary to perform the duties required of it under the Advisory Agreement; performance of the Fund is satisfactory; and the proposed Advisory fees are fair and reasonable, given the nature, extent and quality of the services to be rendered by the Adviser.

After carefully reviewing all of these factors, the Board, including the Independent Directors, unanimously approved the continuation of the Advisory Agreement.

2015 Annual Report37

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Dividend Reinvestment Plan(Unaudited)

The Fund has adopted a Dividend Reinvestment Plan (the “Plan’’) that provides that unless you elect to receive your distributions in cash, they will be automatically reinvested by the Plan Administrator, U.S. Bancorp Fund Services, LLC (“USBFS”), in additional shares of common stock. If you elect to receive distributions in cash, you will receive them paid by check mailed directly to you by the Plan Administrator.

No action is required on the part of a stockholder to have their cash distribution reinvested in shares of the Fund’s common stock. Unless you or your brokerage firm decides to opt out of the Plan, the number of shares of common stock you will receive will be determined as follows:

(1) The number of shares to be issued to a stockholder shall be based on share price equal to 95% of the closing price of the Fund’s common stock on the distribution payment date.

(2) The Board of Directors may, in its sole discretion, instruct the Fund to purchase shares of its common stock in the open market in connection with the implementation of the Plan as follows: if the Fund’s common stock is trading below net asset value at the time of valuation, upon notice from the Fund, the Plan Administrator will receive the distribution in cash and will purchase common stock in the open market, on the NYSE or elsewhere, for the participants’ accounts, except that the Plan Administrator will endeavor to terminate purchases in the open market and cause the Fund to issue the remaining shares if, following the commencement of the purchases, the market value of the shares, including brokerage commissions, exceeds the net asset value at the time of valuation. Provided the Plan Administrator can terminate purchases on the open market, the remaining shares will be issued by the Fund at a price equal to the greater of (i) the net asset value at the time of valuation or (ii) 95% of the then-current market price. It is possible that the average purchase price per share paid by the Plan Administrator may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the distribution had been paid entirely in common stock issued by the Fund.

You may withdraw from the Plan at any time by giving written notice to the Plan Administrator, or by telephone in accordance with such reasonable requirements as the Fund and the Plan Administrator may agree upon. Such withdrawal will be effective the next business day. If you withdraw or the Plan is terminated, the Plan Administrator will sell your shares and send you the proceeds, minus brokerage commissions.

The Plan Administrator maintains all common stockholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Common stock in your account will be held by the Plan Administrator in non-certificated form. The Plan Administrator, or the Fund’s appointed agent, will forward to each participant any proxy solicitation material and will vote any shares so held only in accordance with proxies returned to the Fund. Any proxy you receive will include all common stock you have received under the Plan. There is no brokerage charge for reinvestment of your distributions in common stock. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Administrator when it makes open market purchases.

Automatically reinvesting distributions does not avoid a taxable event or the requirement to pay income taxes due upon receiving distributions, even though you have not received any cash with which to pay the resulting tax.

If you hold common stock with a brokerage firm that does not participate in the Plan, you will not be able to participate in the Plan and any distribution reinvestment may be effected on different terms than those described above. Consult your financial advisor for more information.

The Plan Administrator’s fees under the Plan will be borne by the Fund. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend or terminate the Plan, including amending the Plan to include a service charge payable by the participants, if in the judgment of the Board of Directors the change is warranted. Any amendment to the Plan, except amendments necessary or appropriate to comply with applicable law or the rules and policies of the Commission or any other regulatory authority, require the Fund to provide at least 30 days written notice to each participant. Additional information about the Plan may be obtained from U.S. Bancorp Fund Services, LLC at 615 East Michigan Street, Milwaukee, Wisconsin 53202.

38Brookfield Investment Management Inc.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
Joint Notice of Privacy Policy(Unaudited)

Brookfield Investment Management Inc. (“BIM”), on its own behalf and on behalf of the funds managed by BIM and its affiliates, recognizes and appreciates the importance of respecting the privacy of our clients and shareholders. Our relationships are based on integrity and trust and we maintain high standards to safeguard your non-public personal information (“Personal Information”) at all times. This privacy policy (“Policy”) describes the types of Personal Information we collect about you, the steps we take to safeguard that information and the circumstances in which it may be disclosed.

If you hold shares of a Fund through a financial intermediary, such as a broker, investment adviser, bank or trust company, the privacy policy of your financial intermediary will also govern how your Personal Information will be shared with other parties.

WHAT INFORMATION DO WE COLLECT?

We collect the following Personal Information about you:

• Information we receive from you in applications or other forms, correspondence or conversations, including but not limited to name, address, phone number, social security number, assets, income and date of birth.

• Information about transactions with us, our affiliates, or others, including but not limited to account number, balance and payment history, parties to transactions, cost basis information, and other financial information.

• Information we may receive from our due diligence, such as your creditworthiness and your credit history.

WHAT IS OUR PRIVACY POLICY?

We may share your Personal Information with our affiliates in order to provide products or services to you or to support our business needs. We will not disclose your Personal Information to nonaffiliated third parties unless 1) we have received proper consent from you; 2) we are legally permitted to do so; or 3) we reasonably believe, in good faith, that we are legally required to do so. For example, we may disclose your Personal Information with the following in order to assist us with various aspects of conducting our business, to comply with laws or industry regulations, and/or to effect any transaction on your behalf;

• Unaffiliated service providers (e.g. transfer agents, securities broker-dealers, administrators, investment advisors or other firms that assist us in maintaining and supporting financial products and services provided to you);

• Government agencies, other regulatory bodies and law enforcement officials (e.g. for reporting suspicious transactions);

• Other organizations, with your consent or as directed by you; and

• Other organizations, as permitted or required by law (e.g. for fraud protection)

When we share your Personal Information, the information is made available for limited purposes and under controlled circumstances designed to protect your privacy. We require third parties to comply with our standards for security and confidentiality.

HOW DO WE PROTECT CLIENT INFORMATION?

We restrict access to your Personal Information to those persons who require such information to assist us with providing products or services to you. It is our practice to maintain and monitor physical, electronic, and procedural safeguards that comply with federal standards to guard client nonpublic personal information. We regularly train our employees on privacy and information security and on their obligations to protect client information.

CONTACT INFORMATION

For questions concerning our Privacy Policy, please contact our client services representative at 1-855-777-8001.

2015 Annual Report39

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Corporate Information

Investment Adviser and Administrator

Brookfield Investment Management Inc.

Brookfield Place

250 Vesey Street, 15th Floor

New York, New York 10281-1023

www.brookfieldim.com

Please direct your inquiries to:

Investor Relations

Phone: 1-855-777-8001

E-mail: funds@brookfield.com

Transfer Agent

Stockholder inquiries relating to distributions, address changes and stockholder account information should be directed to the Fund’s transfer agent:

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

1-800-282-0429

Fund Accounting Agent

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

Sub-Administrator

U.S. Bancorp Fund Services, LLC

1201 South Alma School Road, Suite 3000

Mesa, Arizona 85210

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

1700 Market Street

Philadelphia, Pennsylvania 19103

Legal Counsel

Paul Hastings LLP

75 East 55th Street

New York, New York 10022

Custodian

U.S. Bank National Association

1555 North River Center Drive, Suite 302

Milwaukee, Wisconsin 53212

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q are available on the SEC’s website at www.sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

You may obtain a description of the Fund’s proxy voting policies and procedures, information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request by calling 1-855-777-8001, or go to the SEC’s website at www.sec.gov.

Brookfield Investment Management Inc.

Brookfield Place

250 Vesey Street, 15th Floor

New York, New York 10281-1023

1-855-777-8001

www.brookfieldim.com

Item 2. Code of Ethics.

As of the end of the period covered by this report, the Registrant had adopted a Code of Ethics for Principal Executive and Principal Financial Officers (the “Code”). There were no amendments to or waivers from the Code during the period covered by this report. A copy of the Registrant’s Code will be provided upon request to any person without charge by contacting Investor Relations at (855) 777-8001 or by writing to Secretary, Brookfield Mortgage Opportunity Income Fund Inc., Brookfield Place, 250 Vesey Street, 15^th Floor, New York, NY 10281-1023.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that four members serving on the Registrant’s audit committee are audit committee financial experts. Their names are Stuart A. McFarland, Edward A. Kuczmarski, Louis P. Salvatore and Heather S. Goldman. Messrs. McFarland, Kuczmarski, Salvatore and Mme. Goldman are each independent.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees

The aggregate fees billed by the Fund’s independent registered public accounting firm, Deloitte & Touche LLP (“Deloitte”), to the Funds for the Fund’s two most recent fiscal years for professional services rendered for the audit of the Registrant’s annual financial statements and the review of financial statements that are included in the Registrant’s annual and semi-annual reports to shareholders (“Audit Fees”) were $63,650 and $62,000 for the fiscal years ended June 30, 2015 and June 30, 2014, respectively.

(b) Audit-Related Fees

There were no fees billed by Deloitte to the Fund in its two recent fiscal years for services rendered for assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements, but are not reported as Audit Fees (“Audit-Related Fees”).

For the Fund’s two most recent fiscal years, there were no Audit-Related Fees billed by Deloitte for engagements related directly to the operations and financial reporting of one or more Funds by a Fund Service Provider. A Fund Service Provider is (a) any investment adviser to the Fund (not including any Subadvisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) or (b) any entity that provides ongoing services to the Fund and is controlling, controlled by or under common control with a Fund investment adviser described in (a).

(c) Tax Fees

For the fiscal years ended June 30, 2015 and June 30, 2014, Deloitte billed the Registrant aggregate fees of $8,200 and $8,000, respectively. Each bill is for professional services rendered for tax compliance, tax advice and tax planning. The nature of the services comprising the Tax Fees was the review of the Registrant’s income tax returns and tax distribution requirements.

For the Fund’s two most recent fiscal years, Tax Fees billed by Deloitte for engagements by Fund Service Providers that related directly to the operations and financial reporting of the Funds were $0 for fiscal 2015 and $0 for fiscal 2014, respectively.

The services for which Tax Fees were charged comprise all services performed by professional staff in Deloitte’s tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d) All Other Fees

There were no other fees billed by Deloitte to the Fund for all other non-audit services (“Other Fees”) for the fiscal years ended June 30, 2015 and June 30, 2014. During the same period, there were no Other Fees billed by Deloitte for engagements by Fund Service Providers that related directly to the operations and financial reporting of the Fund.

(e) (1) According to policies adopted by the Audit Committee, services provided by Deloitte to the Funds must be pre-approved by the Audit Committee. On an annual basis, the Audit Committee reviews and pre-approves various types of services that Deloitte may perform for the Funds without specific approval of each engagement, subject to specified budget limitations. As contemplated by the Sarbanes-Oxley Act of 2002 and related SEC rules, the Audit Committee also pre-approves non-audit services provided by Deloitte to any Fund Service Provider for any engagement that relates directly to the operations and financial reporting of the Funds. Any engagement that is not already pre-approved or that will exceed a pre-approved budget must be submitted to the Audit Committee for pre-approval.

(e) (2) None.

(f) Not applicable.

(g) The aggregate fees billed by Deloitte in 2015 and 2014 for non-audit services rendered to the Fund and Fund Service Providers were $258,200 and $163,000, respectively. For the fiscal year ended June 30, 2015, this amount reflects the amounts disclosed above in Item 4(b),(c),(d), plus $250,000 in fees billed to the Fund Service Providers for non-audit services that did not relate directly to the operations and financial reporting of the Fund. For the fiscal year ended June 30, 2014, this amount reflects the amounts disclosed above in Item 4(b),(c),(d), plus $155,000 in fees billed to the Fund Service Providers for non-audit services that did not relate directly to the operations and financial reporting of the Fund.

(h) The Fund’s Audit Committee has considered whether the provision of non-audit services by registrant’s independent registered public accounting firm to the registrant’s investment advisor, and any entity controlling, controlled, or under common control with the investment advisor that provided ongoing services to the registrant that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the registrant) was compatible with maintaining the independence of the independent registered public accounting firm.

Item 5. Audit Committee of Listed Registrants.

The Registrant has a separately-designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The Registrant’s Audit Committee members include Stuart A. McFarland, Edward A. Kuczmarski, Louis P. Salvatore and Heather S. Goldman.

Item 6. Schedule of Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

BROOKFIELD INVESTMENT MANAGEMENT INC.

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES

May 2012

The Portfolio Proxy Voting Policies and Procedures (the “Policies and Procedures”) set forth the proxy voting policies, procedures and guidelines to be followed by Brookfield Investment Management Inc. and its subsidiaries and affiliates (collectively, “BIM”) in voting portfolio proxies relating to securities that are held in the portfolios of the investment companies or other clients (“Clients”) for which BIM has been delegated such proxy voting authority.

A.   Proxy Voting Committee

BIM’s internal proxy voting committee (the “Committee”) is responsible for overseeing the proxy voting process and ensuring that BIM meets its regulatory and corporate governance obligations in voting of portfolio proxies.

The Committee shall oversee the proxy voting agent’s compliance with these Policies and Procedures, including any deviations by the proxy voting agent from the proxy voting guidelines (“Guidelines”).

B.   Administration and Voting of Portfolio Proxies

1.   Fiduciary Duty and Objective

As an investment adviser that has been granted the authority to vote on portfolio proxies, BIM owes a fiduciary duty to its Clients to monitor corporate events and to vote portfolio proxies consistent with the best interests of its Clients. In this regard, BIM seeks to ensure that all votes are free from unwarranted and inappropriate influences. Accordingly, BIM generally votes portfolio proxies in a uniform manner for its Clients and in accordance with these Policies and Procedures and the Guidelines.

In meeting its fiduciary duty, BIM generally view proxy voting as a way to enhance the value of the company’s stock held by the Clients. Similarly, when voting on matters for which the Guidelines dictate a vote be decided on a case-by-case basis, BIM’s primary consideration is the economic interests its Clients.

2.   Proxy Voting Agent

BIM may retain an independent third party proxy voting agent to assist BIM in its proxy voting responsibilities in accordance with these Policies and Procedures and in particular, with the Guidelines. As discussed above, the Committee is responsible for monitoring the proxy voting agent.

In general, BIM may consider the proxy voting agent’s research and analysis as part of BIM’s own review of a proxy proposal in which the Guidelines recommend that the vote be considered on a case-by-case basis. BIM bears ultimate responsibility for how portfolio proxies are voted. Unless instructed otherwise by BIM, the proxy voting agent, when retained, will vote each portfolio proxy in accordance with the Guidelines. The proxy voting agent also will assist BIM in maintaining records of BIM’s portfolio proxy votes, including the appropriate records necessary for registered investment companies to meet their regulatory obligations regarding the annual filing of proxy voting records on Form N-PX with the Securities and Exchange Commission (“SEC”).

3.   Material Conflicts of Interest

BIM votes portfolio proxies without regard to any other business relationship between BIM and the company to which the portfolio proxy relates. To this end, BIM must identify material conflicts of interest that may arise between a Client and BIM, such as the following relationships:

• BIM provides significant investment advisory or other services to a portfolio company or its affiliates (the “Company”) whose management is soliciting proxies or BIM is seeking to provide such services;

• BIM serves as an investment adviser to the pension or other investment account of the Company or BIM is seeking to serve in that capacity; or

• BIM and the Company have a lending or other financial-related relationship.

In each of these situations, voting against the Company management’s recommendation may cause BIM a loss of revenue or other benefit.

BIM generally seeks to avoid such material conflicts of interest by maintaining separate investment decision-making and proxy voting decision-making processes. To further minimize possible conflicts of interest, BIM and the Committee employ the following procedures, as long as BIM determines that the course of action is consistent with the best interests of the Clients:

• If the proposal that gives rise to a material conflict is specifically addressed in the Guidelines, BIM will vote the portfolio proxy in accordance with the Guidelines, provided that the Guidelines do not provide discretion to BIM on how to vote on the matter (i.e., case-by-case); or

• If the previous procedure does not provide an appropriate voting recommendation, BIM may retain an independent fiduciary for advice on how to vote the proposal or the Committee may direct BIM to abstain from voting because voting on the particular proposal is impracticable and/or is outweighed by the cost of voting.

4.   Certain Foreign Securities

Portfolio proxies relating to foreign securities held by Clients are subject to these Policies and Procedures. In certain foreign jurisdictions, however, the voting of portfolio proxies can result in additional restrictions that have an economic impact to the security, such as “share-blocking.” If BIM votes on the portfolio proxy, share-blocking may prevent BIM from selling the shares of the foreign security for a period of time. In determining whether to vote portfolio proxies subject to such restrictions, BIM, in consultation with the Committee, considers whether the vote, either in itself or together with the votes of other shareholders, is expected to affect the value of the security that outweighs the cost of voting. If BIM votes on a portfolio proxy and during the “share-blocking period,” BIM would like to sell the affected foreign security, BIM, in consultation with the Committee, will attempt to recall the shares (as allowable within the market time-frame and practices).

C.   Fund Board Reporting and Recordkeeping

BIM will prepare periodic reports for submission to the Boards of Directors of its affiliated funds (the “Funds”) describing:

• any issues arising under these Policies and Procedures since the last report to the Funds’ Boards of Directors/Trustees and the resolution of such issues, including but not limited to, information about conflicts of interest not addressed in the Policies and Procedures; and

• any proxy votes taken by BIM on behalf of the Funds since the last report to such Funds’ Boards of Directors/Trustees that deviated from these Policies and Procedures, with reasons for any such deviations.

In addition, no less frequently than annually, BIM will provide the Boards of Directors/Trustees of the Funds with a written report of any recommended changes based upon BIM’s experience under these Policies and Procedures, evolving industry practices and developments in the applicable laws or regulations.

BIM will maintain all records that are required under, and in accordance with, all applicable regulations, including the Investment Company Act of 1940, as amended, and the Investment Advisers Act of 1940, which include, but not limited to:

• these Policies and Procedures, as amended from time to time;

• records of votes cast with respect to portfolio proxies, reflecting the information required to be included in Form N-PX, as applicable;

• records of written client requests for proxy voting information and any written responses of BIM to such requests; and

• any written materials prepared by BIM that were material to making a decision in how to vote, or that memorialized the basis for the decision.

D.   Amendments to these Procedures

The Committee shall periodically review and update these Policies and Procedures as necessary. Any amendments to these Procedures and Policies (including the Guidelines) shall be provided to the Board of Directors of BIM and to the Boards of Directors of the Funds for review and approval.

E.   Proxy Voting Guidelines

Guidelines are available upon request.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Investment Team – Portfolio Managers

Ms. Michelle Russell-Dowe – Managing Director, Head of Securitized Products Investment Team

Ms. Russell-Dowe is the lead Portfolio Manager and Head of the Securitized Products Investment Team. She is responsible for the firm’s securitized credit strategies and exposures. Ms. Russell-Dowe has personally built her investment team, which averages 13 years of industry experience. Ms. Russell-Dowe has 20 years of investment experience in securitized products, including 16 years with the firm, which she joined in 1999 from Duff & Phelps. She earned a Bachelor of Arts degree in Economics from Princeton University and holds an MBA from the Graduate School of Business at Columbia University, where she graduated as valedictorian.

Jeffrey Williams, CFA – Managing Director

Mr. Williams is a Portfolio Manager on the Securitized Products Investment team. Mr. Williams maintains responsibility for portfolio management for the firm’s securitized product strategies, with a particular focus on CMBS and related assets. Mr. Williams has 26 years of experience as a commercial real estate portfolio manager, specializing in subordinate CMBS, investment grade CMBS, mezzanine loans, B-Notes, CDOs, derivatives and REITs. Mr. Williams holds the Chartered Financial Analyst designation and has an MBA from Georgia State University and a BA in Finance from the University of South Florida.

Anthony A. Breaks, CFA – Senior Director

Mr. Breaks is a Portfolio Manager on the Securitized Products Investments team. Mr. Breaks is a team leader in MBS/ABS and is a member of the team’s securities analysis committee. Mr. Breaks has experience in managing securitized product vehicles, such as SIV, ABCP, CDOs, CLOs and TRUPPS as well as insurance company asset management experience. Mr. Breaks earned a Bachelor of Science degree in Electrical Engineering from the Massachusetts Institute of Technology. He holds the Chartered Financial Analyst designation.

Ms. Russell-Dowe leads the management of the Fund and Messrs. Williams and Breaks share equally the day-to-day portfolio management responsibilities.

Management of Other Accounts

Ms. Russell-Dowe manages other investment companies and/or investment vehicles and accounts in addition to the Registrant. The tables below show the number of other accounts managed by Ms. Russell-Dowe as of July 31, 2015 and the total assets in each of the following categories: (a) registered investment companies; (b) other pooled investment vehicles; and (c) other accounts. For each category, the table also shows the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on account performance.

	Registered Investment Companies	Other Pooled Investment Vehicles	Other Accounts
Number of Accounts Managed	4	8	11
Number of Accounts Managed with Performance-Based Advisory Fees	0	1	1
Assets Managed	$1,137 million	$920 million	$2,541 million
Assets Managed with Performance-Based Advisory Fees	$0	$33 million	$760 million

The following table provides information about the accounts managed by Jeffrey Williams, Co-Portfolio Manager for the Registrant, as of July 31, 2015:

	Registered Investment Companies	Other Pooled Investment Vehicles	Other Accounts
Number of Accounts Managed	4	8	11
Number of Accounts Managed with Performance-Based Advisory Fees	0	1	1
Assets Managed	$1,137 million	$920 million	$2,541 million
Assets Managed with Performance-Based Advisory Fees	$0	$33 million	$760 million

The following table provides information about the accounts managed by Anthony A. Breaks, Co-Portfolio Manager for the Registrant, as of July 31, 2015:

	Registered Investment Companies	Other Pooled Investment Vehicles	Other Accounts
Number of Accounts Managed	4	8	11
Number of Accounts Managed with Performance-Based Advisory Fees	0	1	1
Assets Managed	$1,137 million	$920 million	$2,541 million
Assets Managed with Performance-Based Advisory Fees	$0	$33 million	$760 million

Share Ownership

The following table indicates the dollar range of securities of the Registrant owned by the Registrant’s portfolio managers as July 31, 2015.

	Dollar Range of Securities Owned
Michelle Russell-Dowe Jeffrey Williams Anthony A. Breaks	Over $100,000 $10,001 – $50,000. $0

Portfolio Manager Material Conflict of Interest

Potential conflicts of interest may arise when a fund’s portfolio manager has day-to-day management responsibilities with respect to one or more other funds or other accounts, as is the case for the portfolio managers of the Registrant.

These potential conflicts include:

Allocation of Limited Time and Attention. A portfolio manager who is responsible for managing multiple funds and/or accounts may devote unequal time and attention to the management of those funds and/or accounts. As a result, the portfolio manager may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those accounts as the case may be if he or she were to devote substantially more attention to the management of a single fund. The effects of this potential conflict may be more pronounced where funds and/or accounts overseen by a particular portfolio manager have different investment strategies.

Allocation of Limited Investment Opportunities. If a portfolio manager identifies a limited investment opportunity that may be suitable for multiple funds and/or accounts, the opportunity may be allocated among these several funds or accounts, which may limit a fund’s ability to take full advantage of the investment opportunity.

Pursuit of Differing Strategies. At times, a portfolio manager may determine that an investment opportunity may be appropriate for only some of the funds and/or accounts for which he or she exercises investment responsibility, or may decide that certain of the funds and/or accounts should take differing positions with respect to a particular security. In these cases, the portfolio manager may place separate transactions for one or more funds or accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment or benefit of one or more other funds and/or accounts.

Variation in Compensation. A conflict of interest may arise where the financial or other benefits available to the portfolio manager differ among the funds and/or accounts that he or she manages. If the structure of the investment adviser’s management fee and/or the portfolio manager’s compensation differs among funds and/or accounts (such as where certain funds or accounts pay higher management fees or performance-based management fees), the portfolio manager might be motivated to help certain funds and/or accounts over others. The portfolio manager might be motivated to favor funds and/or accounts in which he or she has an interest or in which the investment adviser and/or its affiliates have interests. Similarly, the desire to maintain or raise assets under management or to enhance the portfolio manager’s performance record or to derive other rewards, financial or otherwise, could influence the portfolio manager to lend preferential treatment to those funds and/or accounts that could most significantly benefit the portfolio manager.

Related Business Opportunities. The investment adviser or its affiliates may provide more services (such as distribution or recordkeeping) for some types of funds or accounts than for others. In such cases, a portfolio manager may benefit, either directly or indirectly, by devoting disproportionate attention to the management of fund and/or accounts that provide greater overall returns to the investment manager and its affiliates.

The Adviser and the Registrants have adopted compliance policies and procedures that are designed to address the various conflicts of interest that may arise for the Adviser and the individuals that it employs. For example, the Adviser seeks to minimize the effects of competing interests for the time and attention of portfolio managers by assigning portfolio managers to manage funds and accounts that share a similar investment style. The Adviser has also adopted trade allocation procedures that are designed to facilitate the fair allocation of limited investment opportunities among multiple funds and accounts. There is, however, no guarantee that such policies and procedures will be able to detect and prevent every situation in which an actual or potential conflict may appear.

Portfolio Manager Compensation

The Registrant’s portfolio manager is compensated by the Adviser. The compensation structure of the Adviser’s portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) if applicable, long-term stock-based compensation consisting generally of restricted stock units of the Adviser’s indirect parent company, Brookfield Asset Management, Inc. The portfolio managers also receive certain retirement, insurance and other benefits that are broadly available to all of the Adviser’s employees. Compensation of the portfolio managers is reviewed on an annual basis by senior management.

The Adviser compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities, the total return performance of funds and accounts managed by the portfolio manager on an absolute basis and versus appropriate peer groups of similar size and strategy, as well as the management skills displayed in managing their subordinates and the teamwork displayed in working with other members of the firm. Since the portfolio managers are responsible for multiple funds and accounts, investment performance is evaluated on an aggregate basis almost equally weighted among performance, management and teamwork. Base compensation for the Adviser’s portfolio managers varies in line with the portfolio manager’s seniority and position. The compensation of portfolio managers with other job responsibilities (such as acting as an executive officer of the Adviser and supervising various departments) will include consideration of the scope of such responsibilities and the portfolio manager’s performance in meeting them. The Adviser seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment management industry. Salaries, bonuses and stock-based compensation are also influenced by the operating performance of the Adviser and its indirect parent. While the salaries of the Adviser’s portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in the portfolio manager’s performance and other factors as described herein.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

Item 10. Submission of Matters to a Vote of Security Holders.

The registrant’s nominating committee charter does not contain any procedure by which shareholders may recommend nominees to the registrant’s board of directors.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s Disclosure Controls and Procedures are effective, based on their evaluation of such Disclosure Controls and Procedures as of a date within 90 days of the filing of this report on Form N-CSR.

(b) As of the date of filing this Form N-CSR, the Registrant’s principal executive officer and principal financial officer are aware of no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected or is reasonably likely to materially affect the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) None.

(2) A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 is attached as an exhibit to this Form N-CSR.

(3) None.

(b) A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 is attached as an exhibit to this Form N-CSR.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.

By:	/s/ Brian F. Hurley
	Brian F. Hurley
	President and Principal Executive Officer

Date: August 27, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Brian F. Hurley
	Brian F. Hurley
	President and Principal Executive Officer

Date: August 27, 2015

By:	/s/ Angela W. Ghantous
	Angela W. Ghantous
	Treasurer and Principal Financial Officer

Date: August 27, 2015