Learning to Love the 30-Year FRM
In this report, we assess an in-depth GAO analysis released last week in response to a 2016 request from Sen. Shelby to evaluate alternative mortgage products and resulting benefits to wealth accumulation by LMI households. The question was then germane to Shelby’s GSE-reform thinking and of course will be revisited if Congress somehow advances legislation this year to redefine the GSEs. Bad news for Hensarling and others trying to restart a private-sector market for products akin to the 30-year FRM: GAO finds few of them anywhere as good for long-term home-equity building.