• Kevin Hassett, a former top economic adviser, stated there is no confirmation that the Trump administration has decided to pursue 50-year mortgages.
  • The concept is part of broader discussions aimed at addressing the severe housing affordability crisis in the U.S.
  • Such a policy shift would face significant regulatory hurdles and has drawn mixed reactions from housing experts.

Former White House economic adviser Kevin Hassett has cast doubt on the immediate prospects of a 50-year mortgage program, telling reporters that he does not know if former President Donald Trump has decided to move forward with the idea. The proposal, which has been floated in policy circles, aims to lower monthly payments for homebuyers by extending the standard loan term beyond the conventional 30 years.

According to people familiar with the matter, the concept has been part of internal discussions as policymakers grapple with a worsening affordability crunch. Hassett's comments suggest that while the idea is on the table, it has not yet been elevated to a formal policy initiative. A move of this magnitude would require significant adjustments from government-sponsored enterprises like Fannie Mae and Freddie Mac, which dominate the secondary mortgage market.

Efforts to introduce such a product have hit familiar snags, including concerns from consumer advocates about the long-term financial burden on borrowers. While a 50-year term could temporarily ease entry into the housing market, it would drastically increase the total interest paid over the life of the loan and slow the accumulation of home equity. "You're essentially creating a generation of perpetual renters who own their mortgage, not their home," one housing analyst, who asked not to be named, remarked.

The political calculus for such a move remains unclear. Without a clear directive from the top, agencies are unlikely to dedicate resources to developing the complex framework needed to support ultra-long-term loans. A spokesperson for a major housing advocacy group declined to comment on the record but noted that their organization has not been approached for input on any specific proposal.

This is not the first time extended mortgage terms have been proposed. In the mid-2000s, 40-year mortgages gained some traction but were largely abandoned after the 2008 financial crisis due to their association with higher default rates. The current exploration of 50-year loans signals a continued search for solutions to a problem that more conventional tools have failed to solve.

Correction: An earlier version of this article misstated the standard maximum mortgage term in the U.S. It is 30 years.