Are FHA Loans "Government Backed" Subprime Loans?

FHA loans that were originally intended to give first-time buyers easy access to mortgages are being compared to the very loans that contributed to the housing crisis. Kevin Watters, CEO of Chase Mortgage Banking told CNBC, "FHA requirements are down to a 520 FICO (credit score) and you only have to put 3.5 percent down. That's subprime lending, and we're not in the subprime lending business."