> it doesn't cost them anything to just leave the loans sit and not collect interest. The insolvency case would be if everyone stopped paying their mortgage fo

> it doesn't cost them anything to just leave the loans sit and not collect interest. The insolvency case would be if everyone stopped paying their mortgage for a few months because there's no penalty or filtering process. They'd borrow money, but there's no "making it back up" because now they're servicing the loan for a longer period of time and have to pay salaries, rent, etc. If they deferred, they'd still need to float that money for ~15 years until those deferred payments were made. Any extra interest would go towards paying the costs of servicing the loan for longer. I'm not opposed to freezing, but it does cost the bank something.