AOFM allocates final RMBS

By BN | 01 Oct 2009

The last of the AOFM's $8bn investment into RMBS has been gobbled up by FirstMac, Resimac and Liberty.

The government's debt agency announced yesterday the three recipients will split $600 m leftover in the scheme, according to a report in the AFR.

The question now remains what will the AOFM do next?

Various proposals have been discussed, with some smaller lenders urging government to extend the program in order to regain some balance in the lending market.

Perceived flight to brand quality and lending power has helped the major banks dominate the lending market, writing as much as 90% of new loans.

Related stories:
Govt RMBS funding dries up - what now? - The AOFM's $8bn funding program has almost dried up with nothing remaining for second-tier ADIs and not much left for non-bank lenders, begging the question, what happens now?

 

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