When and why did banks start owning houses and land? When did mortgages start?
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Banks have pretty much always been in the business of giving people money upfront in exchange for getting more money back slowly over time. In the case of a mortgage, it is a very large loan, so they get to collect intrest for a long time and it’s not like that investment can go anywhere; if the person doesn’t pay, it’s very easy for the bank to come and take the house and sell it to recoup their losses. It’s easy money.
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