To date the Australian Office of Financial Management (AOFM) has invested a total of $1.996 billion into residential mortgage-backed securities (RMBS) to stimulate competition in the mortgage market. The majority of the investment has gone into non-approved deposit-taking institutions (non-ADIs).

The Rock Building Society’s Managing Director, Derek Lightfoot strongly supports the Federal Government initiated objective but is frustrated that small ADIs like The Rock, which has been submitting proposals since the inception of the program in November, appear to be being overlooked in favour of generally large non-ADI financial institutions.
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Yes Home Loans’ CEO Lee Boueri is not a happy camper. He says the Federal Government’s $8 billion residential mortgage backed securities (RMBS) scheme, which is being implemented by the Australian Office of Financial Management (AOFM), is not targeting the correct group.

“It should be addressing the real basis of the suffering, which is distributors such as us,” Boueri exclaims maintaining that judging from what has been set in place the government didn’t understand the securitisation model properly.
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