I can't decide if you really believe this and you're incredibly naive or you're trying to blow pink smoke. The loans are NOT profitable if they're defaulted. That is why prior to the government forcing the banks into making bad risk loans the banks wouldn't make loans to worthless thieves like the two in this article (and btw did you look at the furnishings in the picture?)
So just to clarify your position, you think that these two crooks in this article were forced by the banks into borrowing more than they could afford and never had any intention of paying back, and that the banks consider defaulted loans to be highly profitable?
“The loans are NOT profitable if they’re defaulted. “
If I sell the risk to someone else then it certainly is profitable for me. They made the loans, reaped thousands in closing costs. Then sold the loans AND the risk to someone else. They made a lot of money with no risk.