Short answer for why banks like home loans is because they’re a long and, unless you’re doing that shady 2008 sub prime shit, a very safe revenue stream
Sure
If not comparing them to student loans…
Running all that background on mortgages isn’t a positive to them, it means fewer mortgages.
Meanwhile they can give any 18/19 year old tens of thousands of dollars that they’ll make double off interest.
And nothing except death makes them dischargeable. Even if the loan is never paid back, their return probably beats mortgages because the interest keeps racking up.