One way to insure there will be fewer sub-prime lenders is to put more restrictions on them. Most of the people who financed their home purchases using a sub-prime mortgage could not have bought a home otherwise. Lenders need to charge higher rates of interest to sub-prime borrowers because the risk of foreclosure is higher for sub-prime loans. If lenders must charge sub-prime borrowers the same rates as others then they will make no sub-prime loans because it isn't profitable.
