The Reserve Bank is today announcing the decision to not introduce a new mortgage bond standard in the form of Residential Mortgage Obligations (RMO). This decision follows the announcement in 2021 that the Reserve Bank would defer development of the standards, due to the Funding for Lending Programme (FLP) window running through to December 2022. The decision not to pursue an RMO draws on the Reserve Bank’s 2019 consultation on the review of mortgage bond collateral standards, as well as a more recent internal review of existing collateral frameworks. Since the external consultation, the Reserve Bank has made ... (full story)