If you've ever wondered about interest-only and payment-option ARM mortgages, here is a great little report from the GAO (Government Accountability Office) entitled "Alternative Mortgage Products: Impact On Defaults Remains Unclear, But Disclosure Of Risks To Borrowers Could Be Improved". The government is a great source of insider information on the mortgage industry but sometimes finding it can be extremely difficult. While researching the background of the 4-pay option loans, typically referred to as option arms, I unearthed this little gem. I guess it helps that in a former life I worked in Washington, D.C. and have a political science degree. At least I found it useful for something! Enjoy this report because it's gives a nice overview on these types of loan products and some of the changes about to come down the pike. This resource is in Adobe PDF format.