What caught my attention is that the original issuer of the bond is responsible for the payments on the bond. I think that would be an incentive to avoid junk

What caught my attention is that the original issuer of the bond is responsible for the payments on the bond. I think that would be an incentive to avoid junk mortgages because they will come back to haunt the original bank. OTOH the repeated bank crises over the past 30 years indicate that their view is too short sighted to care.