No, I don't believe it is. The loan servicer for my mortgage is not liable to pay it on my behalf. If they accidentally transferred money to the bond holders for the loan, they would of course be able to retrieve it. I would be shocked if this is not reversed in court, unless there are some significant missing details from the story.
It's not as specious as you believe. Your bank can almost certainly call your mortgage loan at any time. From the other side, prepayment of a loan, even without communication, happens all the time.
It's been a while since I read my mortgage note, but I believe the only condition under which it is callable is a default. Unless I've misunderstood what callable means in this context.
You've got the right of what callable means. After researching more about this, I have learned that some mortgages also have additional callable acceleration provisions to lower the bank's risk - such as when a borrower's credit score falls.
that is how loan servicing works.