It is important that regulators carefully consider their responses to market inefficiencies. Predatory lending is an issue that clearly needs to be addressed, but in a way that preserves the incentives for responsible subprime lenders to continue making home ownership possible for worthy borrowers who may have some credit problems.
Not only is home ownership an integral part of what many refer to as the "American dream," it also strengthens communities by turning mere residents into investors with an ownership interest in the places they live. Moreover, in our society, home equity, built up over time, is one of the most important means of accumulating wealth.