The investigation into sub-prime lending and the industry's predatory tactics will not end with the Ameriquest settlement, reports the Los Angeles Times. Sub-prime lenders write mortgages for customers with poor credit or low incomes.

Bear Stearns has already given documents on loans it has bought to the FTC and the bank's unit is already being targeted in class action lawsuits for not properly crediting payments and otherwise exploiting its borrowers.

Earlier investigations have blamed the industry for deceptive sales tactics and serial refinancings to garner high fees that home owners could not understand. Sub-prime lending has mushroomed to 20 percent of the mortgage market in recent years, growth made possible by risk-analysis software, high investor demand for mortgage-backed bonds and historically low interest rates, reports the Times.

Critics say that those circumstances have brought in operators who are struggling in a fiercely competitive market. That market, say the bankers, will weed out the bad appless. At best, that sounds naive, though. By definition, sub-prime lenders are working with people who are not exactly financial success stories and most people, even those who have regularly bought and sold real estate, still look at the bottom line payment and do not understand the mass of paperwork required in a mortgage.