They sold the loans and don’t own them.
I hope the current owners of the loans take the banks to the cleaners and the people that signed the loans wind up on the street.
The banks and financial institution that agreed to this, do own the loans or run the funds that do own the loans. Now if they did something that is not in the best interest of the investors who invested in those funds, those investors might have the issue. But I can't see how getting the most money back possible is not in their best interest.