The irresponsible? Those with terrible credit scores? What about those who've missed a ton of payments? What about home owners who told fibs on their loan applications? Why should the average tax payer bail them out? ... The mortgage loan itself is made by a bank, a savings and loan association, a mortgage company, a credit union, or any other lender. For it to become an FHA mortgage loan, the lender would have to be approved by the Federal Housing Administration.
