FHA increasing loan limits for 2018

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Apparently as prices are rising, FHA is increasing their limits to government backed mortgages on average by 6.4%: https://themortgagereports.com/34740/fha-loan-limits-are-increasing-thats-good-news-for-borrowers Someone posted another article that as wages aren’t keeping up with the rising price of homes, we could see an uptick in foreclosures. My question is, if these loans are backed by the government, what incentive does a bank have to sell the Note at a discount? How does this all work as I don’t see the benefit to us (maybe Goldman Sachs but not us)? Thanks

In an oversimplified nutshell, a lot of banks like to sell their mortgage loans to free up capital to make more loans. They do not do it to benefit us. They do it to benefit their bottom line and their shareholders.