The residential mortgage-backed securities market continues to be a ready source of funding for non-bank lenders, with A$1.1 billion of new deals in the market this week.Liberty Financial has raised $300 million through an RMBS issue that priced yesterday, while AFG launched a $300 million issue and Pepper launched a $500 million issue.Liberty Series 2014-1 RMBS is backed by a mixture of prime and non-prime mortgages. Pricing on the $201 million A1 tranche, which has a weighted average life of 2.2 years, was 115 basis points over the one-month swap rate.Pricing on the $41.4 million A2 tranche, which has a weighted average life of 2.2 years, was 155 bps over the swap rate.Liberty issued securities in the RMBS market twice last year, raising $200 million in March and $500 million in April.Mortgage aggregator AFG, which made its entry into the mortgage securitisation market last year, launched its third RMBS issue yesterday.AFG is seeking $300 million of funding through an issue of floating-rate notes backed by a portfolio of prime loans that have an average loan-to-valuation ratio of 64.2 per cent.AFG services a network of more than 1950 mortgage brokers. It also originates loans under the AFG brand.The company entered the RMBS market in March last year, when it raised $275 million. It paid 120 bps over the swap rate on the A tranche of that deal.In September it raised another $300 million of RMBS funding, paying 115 bps over the swap rate on the A tranche.Pepper's latest issue, Pepper Residential Securities Trust No 12, is backed by a pool of non-conforming mortgages. Close to half the loans are to borrowers with impaired credit histories and the rest are low doc.Last year about $31 billion of asset-backed securities was issued by Australian lenders ($25 billion of it RMBS), making it the best year for the securitisation market since the pre-crisis peak in 2007.The market has maintained its momentum this year. Last month AMP Bank upsized an RMBS issue to $1 billion from the $500 million it was seeking at the launch, and priced at tighter margins than its previous issue, last September. The bank will pay 95 bps over the one-month bank bill swap rate on the $920 million A tranche of the transaction. Last September, the bank paid 100 bps over swap on the equivalent tranche.Macquarie Bank and Bendigo and Adelaide Bank have been able to improve on the pricing of RMBS deals they did last year, with the margins on top tranches coming in by between five and 10 bps. Heritage Bank priced an issue last month, returning to the RMBS market for the first time since 2011 with a $400 million transaction. Heritage Bank will pay 95 bps over swap on the $368 million A tranche of the issue.JP Morgan banking analyst Scott Manning said that with top tranches of RMBS issues pricing at 80 to 95 bps over the bank bill swap rate, margins were well inside what he considered the break-even point for issuers of 120