Although people have tried to make the financial system more resilient since the 2008 crisis, it’s really impossible to say how well those measures will hold up until they are really tested, which isn’t a very comforting thought. It’s very unlikely (in my opinion) that things melt down in exactly the same way as last time, but there’s nothing to say they won’t find a new and exciting (slightly) different way to melt down. Financial engineering isn’t the only thing that can cause a financial crisis.
Financial engineering refers to the creation of complex financial products (usually derivatives) using techniques from financial mathematics[1].
Predatory lending is just lending to people who can’t afford to borrow. No engineering of any kind involved.
[1] https://corporatefinanceinstitute.com/resources/financial-mo...
It happened with sub-prime lending that ended with the 1008 crash. I do not know whether it is a significant factor with private credit now.