Reserve Bank releases summary of submissions on proposal
The Reserve Bank of New Zealand has published a summary of submissions following consultation on its review of mortgage bond collateral standards.
On November 2017, RBNZ proposed an enhanced mortgage bond standard aimed at reviewing mortgage loan securitization standard in the New Zealand market. It then sought feedback on the proposal.
Following its three-month consultation, RBNZ said it received 14 responses from investors, banks, non-bank lenders and agencies.
“The feedback has provided useful insights into the terms under which the Reserve Bank should accept mortgage bonds as collateral and the proposed new standard in Residential Mortgage Obligations,”
Deputy Governor Geoff Bascand said.
“The Reserve Bank plans to follow up with stakeholders on the key issues raised.”
RBNZ said it will consult on a revised proposal and expects to finalise the policy review by the end of the year.
