The result will be much higher down payment requirements and some form of prepayment on the loan (if the bank already has the money it’s harder to get it back).
They really don’t understand that there WILL be a reaction from the lenders.
If you’re going to tell me that the gov’t can interfere with a contract that I’m making with a borrower, to my detriment, I WILL take steps up front to minimize my risk, including NOT LENDING to some people at all.