RBA close to finalising RMBS reporting arrangements
The Reserve Bank is close to finalising the public disclosure arrangements of its new securitisation industry reporting rules.New RBA reporting guidelines for asset-backed securities took effect in July. The rules require issuers to provide an expanded and more standardised set of information to the RBA and other market participants.RMBS issuers face the biggest change; they must submit monthly reports containing loan-level and security-level data, as well as cashflow waterfall models.Issuers must comply with the new reporting requirements if their asset-backed securities are to be considered eligible for repurchase by the RBA.The rule also requires public reporting on securitised collateral pools.The Australian Securitisation Forum has been concerned that, if all the data currently being supplied to the RBA were made public, it would be possible to "re-identify" 25 to 30 per cent of home loan borrowers.ASF chief Chris Dalton said: "Real estate price points are unique and if you get a price plus a postcode it is not hard to work it out."In May the RBA agreed to redact 13 data fields (out of more than 100 fields) but it is yet to confirm final reporting arrangements.The ASF said that, during September, its RMBS issuer working group continued its liaison with the RBA about what information would be made public.The working group put a proposal to the RBA on fields the RBA has allowed to be temporarily redacted. The ASF has also been working with the Office of the Australian Information Commissioner on the privacy issues involved in the matter.