Are conditions improving in the structured finance sector or not? There seems to be a lot of conflicting evidence around of late, as has been reported here over the last few weeks. Last week, news emerged that ME Bank was considering a residential mortgage-backed debt issue without backing from the Australian Office of Financial Management. A fair bit of detail has been leaked about the deal, which suggests that there is some substance to the reports.The issue will comprise three tranches: A$255.3 million of Class A1 notes, rated 'AAA' with a weighted average life of 2.2 years; A$15.6 million of Class A2 notes, rated 'AAA' with a weighted average life of 6.4 years; and A$5 million of Class B notes, rated 'AA-'. The pricing on the Class A1 notes was originally being put at 175 bps over bank bills but by the end of the week, this had come in to 170 bps over. At this level, who cares! It will be a great deal for everyone, if it gets done.In the meantime, AOFM made its final invitation for the submission of proposals for RMBS issues. This round is restricted to non-ADI mortgage originators and AOFM has A$647 million left to invest in RMBS issues from such issuers. The transactions are expected to be priced by the end of October.  Also, a correction: Two weeks ago we reported on an ABS issue from Rural Bank (formerly Elders Rural Bank). The issue was a A$520 million internal securitisation of rural mortgages, via Agri Trust 2009-1.Reports emerged last week, incorrectly suggesting that the securitised notes would be sold down to investors. That is not the case and the notes will continue to be held on Rural Bank's balance sheet.