With appropriate props and a firm push towards more efficient industry practices the home loan funding mechanism of securitisation could re-establish a secure footing, Nick Gruen argues in his Whitlam Institute paper.This form of funding already enjoys temporary government support in the form of an investment program from the Australian Office of Financial Management, which has invested A$12 billion, out of an agreed $16 billion, to date, across 64 transactions over the last two years.The AOFM has been a cornerstone investor in practically all securitisations over the last year, and continues to be so, though there are signs of organic demand from investors wanting to buy into loan pools without this support (such as the planned sale by Commonwealth Bank of a pool of BankWest loans).Treasury pointed out in a briefing note yesterday that private investors, on average, provided more than $2 for every $1 of public money invested by AOFM in the September 2010 quarter. Gruen argues that the "organic incentives for securitisation remain largely intact" and also notes that the financing technique is one "built for external scrutiny".In this context, Gruen favours the secondary trading of RMBS transactions on a public exchange, more disclosure by lenders of details of their loans pools and efforts to persuade potential borrowers to allow credit reference agencies to compile more detailed profiles of their ability to pay.Gruen also supports mechanisms to support easy switching of home loans to new lenders along the lines of the portability of bank account numbers also being discussed.