The Washington Post reported the HUD Secretary, Steve Preston is worried the mortgage bill could sink the FHA mortgage program. The bill as passed by the House allows subprime and other borrowers to convert their exploding mortgages into FHA mortgages.

Mortgage approvals are getting harder and harder to come by…even for the previous “good” borrower.

Lenders and the automated approval systems they use to approve borrowers underwent a major overhaul this month. On first blush one might think this was a knee-jerk reaction to the credit crunch, but there is more on deeper inspection. I also suspect that this is only the first salvo in an increasing tightening of mortgage lender standards across the board.

FHA home mortgage programs are currently under threat of extinction. The FHA home mortgage could die a needless death if reforms don’t pass Congress quickly and correctly.

Due to a number of reasons, the long-standing govenment FHA home mortgage programs are quickly becoming irrelevant. So much so, on the floor of the US Congress a few years back, their was a proposal to discontinue them altogether. Before we discuss the reasons, let’s refresh your memory on the basics of these mortgage programs.