There was a good article on the current troubles the US economy is having over in the Wall Street Journal the other day. It said this about the role FHA could play in the future:
Another proposed Bush administration regulatory change involves the Federal Housing Administration. The FHA, which insures mortgages, is developing a plan to allow more distressed homeowners to qualify for government-backed loans. That’s important because many borrowers are having a hard time refinancing amid lender worry about potential losses. Government insurance may give lenders more confidence to refinance financially troubled borrowers.