“Is a 30-year FRM always the best option for consumers?” asked Sen. Richard Shelby at a hearing held by the Senate Banking, Housing and Urban Affairs Committee this week. The Alabama Republican was raising an issue that lies at the foundation of any new mortgage finance system the government may try to cook up. The 30-year FRM, a staple in the U.S. housing market for generations, has come to rely on the separation of credit risk and interest rate risk that results from a government-backed mortgage securitization system. “Securitization by Fannie and Freddie make them possible,” said John Fenton, president and CEO of Affinity Federal Credit Union. “Without...