Historically lenders will screw the consumer if left unsupervised by government. The Bible even acknowledges that the lender will be used to enslave you. (Check out Proverbs).
I looked to see your sign-up date. You've been on a conservative website since 2000 and you really believe that? or am I missing your sarcasm tag?
I have no problems with questioning the voracious greed of some lenders--who will eventually want us taxpayers to bail them out.
But there are two problems, even discounting the anathema of more government intrusion in the marketplace, it seems to me, with leaving it at that:
(1) the consumer is the problem here, as alluded to by others. Not everyone can have a 2500-5000 square foot house as a starter home, and betting on the come, i.e., perpetually rising real estate prices, is bound to produce losers sometime; and
(2) "supervision" by the government, like cigarette taxes versus cigarette smoking propaganda, covers the fact that school districts and local governments have to have an increasing taxable value in order to fund their outlandish projects.
There, fixed it.
The rich rules over the poor, And the borrower becomes the lender's slave.
Hold fast to the Bible as the sheet anchor of your liberties; write its precepts on your hearts and practice them in your lives. To the influence of this Book we are indebted for the progress made, and to this we must look as our guide in the future. - Ulysses S. Grant
A wise person is hungry for truth, while the fool feeds on trash. - Proverbs 15:14
Teach your children to choose the right path, and when they are older, they will remain upon it.- Proverbs 22:6
Wisdom is a tree of life to those who embrace her; happy are those who hold her tightly. - Proverbs 3:18
The sluggard does not plow after the season, so he begs during the harvest and has nothing. - Proverbs 20:4
There is all the regulation needed to keep banks and all other lenders from "screwing" the consumer and plenty of enforcement for rogue operators.
What cannot be done is to legislate, regulate, or adjudicate intelligence, probity, thrift, or common damn sense in consumers.
People will be stupid and act in opposition to their interest and there is nothing that can be done about it.
The Good Book also says that "the man who builds his house on the sand is a foolish man". Doesn't stop people from building houses on the beach and screaming for FEMA to insure it for them.