Briefs: CBA launches RMBS, AMP Bank cuts mortgage rates, ME clarification

Commonwealth Bank has launched its second issue of residential mortgage-backed securities for the year, seeking A$1 billion of funds. Medallion Trust Series 2015-2 is backed by a pool of loans with an average loan size of $257,400 and an average loan-to-valuation ratio of 58.4 per cent. Investment loans make up 24 per cent of the portfolio and interest-only loans make up 19.2 per cent.
AMP Bank has cut its variable and fixed home loan rates for new owner-occupier customers. The AMP Essential Home Loan rate has been cut 11 basis points to 4.09 per cent and the basic variable rate has been cut 21 bps to 4.19 per cent. The two-year fixed rate on the basic loan has been cut 37 bps to 4.18 per cent.
An item on interest rate changes published yesterday gave a confused account of changes being made by ME. It should have read: ME has increased its basic variable rate for new investor borrowers by 40 bps, its package rate for new investor borrowers by 36 bps and its existing investor loan rate by 41 bps. A corrected version of the story appears on the Banking Day website.