HUD recently allowed FHA lenders to increase their loans to 40 years for the purposes of doing a loan modification. This does not apply to originating the loan. FHA originations are still only 30 years, but if the mortgagee needs a long mod then the lender can increase the term to 40 years to help out the homeowner.
40 year mortgage loans have been talked about for some time and this is likely something that we will see in the future as homes get more expensive and home affordability gets less.
