RBNZ update on RMO policy and framework

RBNZ update on RMO policy and framework

RBNZ update on RMO policy and framework

Dec 20 2019

The publication of the Reserve Bank of New Zealand’s RMO policy has been delayed and will not be released in December as foreshadowed.  Please see the latest update received from the RBNZ today:

Dear all,
 
Thank you for your patience while we develop the Residential Mortgage Obligations (RMO) policy and framework.
 
Our focus is on achieving accurate and effective policy documentation that provides market participants with the highest possible certainty around the RMO key features and implementation process. To achieve this, we will need longer than originally expected to finalise the RMO policy. We will communicate in 2020 once we have more clarity on our timeline for the policy and implementation plan. 
 
You may have noted the Reserve Bank’s update to internal RMBS on 21 October 2019. We continue to engage with industry on amendments that have been made to the acceptability criteria. There are some further refinements to be made to the criteria, which we will communicate to the industry in the new year.
 
On 18 October 2019, the Reserve Bank distributed the Loan Level Data template for the reporting of RMO issuances. Work is underway on the loan level data repository to accommodate this reporting standard. The Reserve Bank believes the introduction of this repository will allow us to better understand the underlying risk for RMO products and other asset backed securitisations.
 
Thank you again for your valued feedback and engagement throughout the year on the RMO policy.
 
Kind regards,
Vanessa
 
Vanessa Rayner
Head of Financial Markets | Reserve Bank of New Zealand | Te PÅ«tea Matua
2 The Terrace, Wellington 6011 | P O Box 2498, Wellington 6140
T + 64 4 471 3835    M + 64 27 2000 329
Email: vanessa.rayner@rbnz.govt.nz  | www.rbnz.govt.nz