FHA The New Subprime?

As most of you know our company does a great job with mortgage financing! I guess you could say we are one of the good guys in the mortgage industry. We have helped numerous clients get financing when no other could get the job done. We also pride our self on the way we write our book of business. So I was a bit miffed when a rep from a large bank was in our shop the other day preaching to us on how we need to use their FHA service. Normally this would not be a concern to me but the thing that caught me off guard was when she was telling us how FHA is the new sub prime... I was a bit floored by this since if indeed FHA is the new subprime, than is FHA going to be plagued by mass foreclosures in 2 years. It seems like ever mortgage person I have been talking too is touting FHA like this magical elixir, the cure for all ills. All I have to say is stop. Take a look at what we are doing. We as an industry are taking bad loans and forcing them in to a service that was designed by the government to help folks who deserved home ownership but had credit or income issues. When I look at most to the loans that I tried to help out of foreclosure they typical look like this; Bought the house at a great deal, racked the credit cards up, bought a new Hummer (or other 900 per month type of car), added 150K to the mortgage balance to pay off the bad debt, racked it all up again and again and are now fighting foreclosure. My thought are that these loans are being approved by FHA as a glitch since FHA was NOT setup to bail folks out of a BAD decision that they made. At what point do we hold the home owner accountable for their actions. I find myself twisted up on this, as I want to help as many folks out as I can, both for my financial needs and theirs, but are we building a platform for failure in the very near future?