FHA is losing money. They are in the red by billions. 10% of EVERY FHA is delinquent over 30 days. So it's no surprise that FHA has increased mortgage insurance premiums. They do this not just to cure deficiencies in the ole' P&L but to force private money to take it's place. But not all FHA borrowers should be in FHA loans. There are many loan origintors that run from conventional when the LTV reached 90%+. But not so fast. Many borrowers where loans are at 95-97% LTV on purchase transactions would be better suited if they took a look at conventional with MI. MI isn't that bad when compared to FHA. So when someone recommends FHA they better have a very good reason why conventional is not an option.
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