As long as you've got a reasonable downpayment (or paid for some sort of default insurance), or you at least paid on the mortgage for a few years, the bank has

As long as you've got a reasonable downpayment (or paid for some sort of default insurance), or you at least paid on the mortgage for a few years, the bank has little chance of losing their money. It's YOUR money at risk, not theirs. If you default and your property value has dropped 20% due to rising seas - but you had a 20% downpayment - the bank will end up whole, only you will be wiped out. In a well-constructed mortgage, the bank has essentially zero risk of loss.