It is trivial to use a secure hash function like SHA-256, and continuing to use MD5 for security is reckless behavior. However, there are some complexities to hash function
Most of the worry about using something like MD4 for a password is related less to currently known attacks, than to the fact that once it has been analyzed to the point that collision generation is easy, it is generally presumed to be considerably more likely that somebody will be able to use that knowledge to create a preimage attack -- and when/if that happens, essentially all possible uses of that hash function become vulnerable.