ssh $line "mount | grep nfs | awk '{print \"$line\", \$1, \$3}'"
Echo is the thing that eats the line breaks in the ssh response. If you absolutely need it, embed the entire sequence in double quotes, but then getting the escapes correct becomes your problem ;-)
And the second part of the problem, the missing server name, is because you get the name only once for each pass through the do loop while the ssh reponse can contain multiple lines. So you either need to process the ssh response locally, or pass the server name to the remote awk (as in the command above.)
Note: I had to escape the escape character to get the line to display correct on ziwethey. In case that somehow gets mangled, there should be one backslash before each of the double quotes inside the awk command and one before $1 and $3.