Banks don't care though, as they are not holding the mortgage, they are just servicing it. The mortgage itself is held by Freddy-Mac/Fanny-Mae, and sold on to bond holders. The bank is just charging a fee to service the loan, but the loan itself is on someone else's books.
The above isn't 100% true, some banks do hold onto their own mortgages. However it is sill reasonable accurate.
The above isn't 100% true, some banks do hold onto their own mortgages. However it is sill reasonable accurate.