[Brando]

Not to PARF this up (hard to as we migrate to the aspect of banks screwing over people) but it really does come down to the money. A bank would rather have 100 promissory notes over-valued by 200% than 1000 re-written to 'actual value'. It comes from the fact that they can create up to 10 more imaginary dollars on every single over-valued dollar on that mortgage.

So yes, the banks don't care. Their endgame is to own all the property and have almost all the money.

Government(s) could mandate that mortgage principal values must be able to be appraised down (when a property loses value) but only the bank suffers - and I guarantee you they would not allow it.