Welcome to the RBA Securitisations Industry Forum

The RBA Securitisations Industry Forum has been set up to facilitate communication between the RBA and information providers to help ensure a smooth transition to the RBA's new repo eligibility criteria for asset-backed securities.

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Notification of Validation Rules update

Updates to the validation rules will be applied to the Securitisation System effective Wednesday, 1 November 2017.

A number of loan-level rules have been introduced this month to help Information Providers (IPs) adhere to the updated guidance around the use of ND5 – data not applicable – that was published in July 2017. Following feedback from IPs, the RBA is investigating the feasibility of applying a tolerance to these rules, so that a passing submission is still achievable when there is data missing for a small number of loans. As a result, a ‘Rule Severity Set to Fail’ date has not been nominated and these rules will remain at a ‘warning’ severity (with no tolerance) for the time being.

Information regarding the activation of validation rules can be viewed from the Securitisation System Active Rules [XLSX] document located in the Validation Rules section of the Securitisation Industry Forum.

Any queries on the above should be directed to the Securitisation Support Centre.

Upcoming Changes to the RMBS Reporting Guidance

The RBA will publish an update to the RMBS reporting guidance in early 2018 to bring the definition of loan-level fields into line with those in the Economic and Financial Statistics (EFS) collection, following the publication of the EFS reporting requirements in August 2017. This is to ensure consistency in the data reported under these two reporting regimes and streamline reporting requirements for financial institutions.

The changes are expected to be fairly minor and concentrated in a small number of fields, with two possible exceptions:

  • Property purpose. The RMBS reporting guidance currently defines property purpose in terms of the usage of the property posted as the main security for the loan (i.e. investment, owner-occupied or other). However, the EFS Collection requires property purpose to be reported according to the usage of the funds that have been borrowed. For example, a loan that is used to purchase or renovate a property would be classified as an owner-occupier loan if the property to be purchased or renovated meets the definition of owner-occupied (and would be classified as an investor loan otherwise). If funds are borrowed for purposes other than housing (e.g. travel, business), the purpose would be classified as ‘other’ even if the loan is secured against a property. In addition, the definition of owner-occupied in EFS has been clarified to strictly relate to the borrower's principal place of residence, which may be narrower than the definition currently being used for reporting purposes by financial institutions.
  • First home buyer flag. The EFS collection clarifies that institutions must not rely solely on first home owner grants to identify first home buyers (i.e. they must also capture investor first home buyers). The RMBS reporting guidance currently allows for information providers (IPs) to rely on first home owner grant data. This allowance will be removed.

Information providers (IPs) will be expected to adhere to the new definitions for all loans originated from March 2019 onwards, when ADIs and registered financial institutions will commence reporting to APRA under the updated EFS requirements. However, institutions are strongly encouraged to report all loans according to these new definitions where feasible and may transition to the new definitions prior to March 2019. Submissions made prior to the change will not need to be revised.

For further information on the EFS reporting requirements see the ‘Definitions standard and guidance’ published on APRA's website.

Please contact the Securitisation Support Centre as ssc@rba.gov.au or 1800 919 211 if you have any concerns with the proposed changes or to suggest fields where further clarification may be useful.