While it's certainly the case that anything is possible, I'd put the likelihood of this happening at close to zero--the current FHA waiting period is one year post-foreclosure or post-bankruptcy for borrowers who can document that hardship contributed to the bankruptcy and has been resolved (the "Back to Work" program ). The standard waiting period is three years for foreclosure/short sale and two years for bankruptcy, and they've been working to reduce that. Back to Work was just introduced last August and is supposed to be in effect through September 2016, so suddenly shifting to a seven-year waiting period would be jaw-dropping (and, IMO, highly unlikely to happen--at worst, they might abandon the waivers and revert to the standard waiting periods).

Fannie Mae has also been moving to more liberal underwriting standards for foreclosure or short sale histories (and has already announced changes for August 2014--same seven years that they have now for foreclosures, waived to three years if borrower can show extenuating circumstances and has 10% down; four years waived to two for bankruptcies).

Either way, though, I'd expect to see a change like that have minimal impact on the strong seller markets (though it would vary regionally, of course). In our area, over a third of sales are all cash, and many of the financed offers waive the loan contingency. (Nationally, the all-cash sales are even higher--over 40% of sales.) So those sales would be pretty unaffected by any underwriting changes. FHA loans are only a quarter of all mortgages, so again, not a huge impact. Might shift the market a bit in some regions of the country and among some demographic groups, but not to the point of shifting things from a sellers to buyers market, absent other factors.