Prices for autos and other vehicles are expected to increase due to tariffs set by the Trump administration. That will likely lead to worse performance for securitizations, according to Moody’s Ratings.
The conventional-conforming share of first-lien originations declined from 59.2% in 2023 to 56.5% in 2024. Both government-insured products and nonconforming loans gained share. (Includes two data tables.)
Economists caution that forecasts for interest rates on mortgages come with more uncertainty than usual due to Trump administration policies on tariffs and other issues.
Trump’s election win stalled the Biden administration’s effort to impose tougher capital requirements for banks. Federal regulators are likely to continue to work on the reforms, but in a more bank-friendly way.