Non-conforming lender RedZed has launched an issue of residential mortgage-backed securities, seeking A$150 million of funding.This is RedZed's second RMBS issue; its first was in 2011 and it raised $80 million.RedZed was founded in 2006, it is privately owned and had $320 million of assets at June 30 last year.According to a Standard & Poor's presale report, RedZed specialises in lending to people who are self-employed or who self-certify their income.S&P said 28.3 per cent of the loans in the portfolio were to borrowers with unfavourable credit histories and 2.8 per cent of the pool is currently in arrears by at least one payment.