Makes perfect sense for the banks. Loan out fake money that doesnt exist and when they dont pay it back you get to confiscate real property. Turn absolutely nothing into something.
I bought my property from the previous owner, owner financed, and the seller's lawyer advised me, "George will work with you any way he can, within reason, but if you don't/can't pay, he will foreclose..." So I asked the lawyer what the difference was in George and any other bank...