This always bothers me. I'd much rather have a non-borrowing spouse sign the mortgage to allow the lien rather than deed away their rights to the property. As an alternative, they could also record a subordination of their rights to the mortgage lender. The repeated use, however, by lenders of the quit claim deed in these situations may spell trouble for folks facing estate or divorce issues, etc.
Remember, the non-borrowing spouse is giving away all rights to the property. Do consumers really think this through when they are emotionally charged with the whole prospect of buying a new home.? Sounds like a good time to consult a competent attorney.
BTW- The FHA program is one that our friends at HUD should revisit in this regard. There is some rule in the FHA program that forces lenders to require a quit claim deed rather than allow the non-borrowing spouse to subordinate their rights.