The Australian Office of Financial Management plans to take a more flexible approach with its second round of government funding to support RMBS issuance.AOFM RMBS portfolio manager David Ziegler told the Australian Securitisation Conference yesterday that the improvement in securitisation market conditions meant that the AOFM would need to look at its approach. Last month the Treasurer announced that the AOFM would receive up to another $8 billion to support competition in the mortgage market.Treasurer Wayne Swan said he would direct the AOFM to extend eligibility to AAA rated RMBS, backed by a higher proportion of mortgages used by small business owners to fund their businesses.He also directed the AOFM and Treasury to consult with industry on the merits and commercial feasibility of delivering part of its support through a fee-based liquidity facility rather than direct investment.Ziegler said the AOFM had not received its final directions from the Treasurer.He said: "The AOFM needs to take a more flexible approach. That may involve allowing issuers to come to market according to their own timetables, rather than running a tender as we did in the first round. "We may move to a traditional reverse inquiry process."