It appears that a flip-flop of sorts is happening in regard to the FHA and VA programs. During the first-half of fiscal year 2012, the origination of Veterans Affairs-backed home mortgages soared 40% while production of Federal Housing Administration loans fell 24%. What does this tell us? Answer: smart mortgage bankers are taking their clients and moving them over to VA loans where possible. (Not everyone qualifies under VA.) It's no secret that FHA has hiked premiums and now the chickens are coming home to roost. An important question to ask is this: will this reduction in business hurt FHA's ability to recapitalize its depleted fund? Stay tuned.