It’s because the government is only buying mortgage backed securities right now for conventional residential loans that don’t include HELOCs which the bank woul

It’s because the government is only buying mortgage backed securities right now for conventional residential loans that don’t include HELOCs which the bank would shoulder all the credit risk for. If the government is guaranteeing one type of residential real estate loan and not the other it makes no sense for a bank to offer the one that isn’t guaranteed when they can just pursue practically risk free lending.