No, banks can issue real estate loans and mortgages but Hard Money Lenders usually have higher interest rates. Hard Money Lending should always be a last resort given their higher interest rate and lower loan to value rates
Hard money lenders are much different then soft money lenders. They typically ARE NOT commercial banks or deposit institutions, charging a lot more interest.
A Private hard money lender is what is considered to be a loan shark. This should be your very last resort in obtaining a loan. It is a very risky entitity to get involved with a loan shark.
Hard Money Lenders offer loans that are backed by real estate holdings. They offer a unique opportunity because they typically provide loans to owners of property whose loan request does not fit in...
Private, hard money lenders can be a benefit in that they may be able to provide you a loan if you have credit so low that mainstream lenders won't take a risk on you.
You would make a lot of money because the interest would be very high since they lend a lot of cash and the interest is high so that people are encouraged to pay back right away.