There were two more innovations over the week in connection with funding options in the mortgage market, and for manufacturers of residential mortgage-backed securities.The RBA moved on Wednesday to relax restrictions on accepting RMBS in repo transactions. Up until then and except in exceptional circumstances, the RBA would accept only RMBS originated by third parties, which meant that the RMBS created in the $61 billion of internal securitisations over the year to date, were for the most part, unusable. The RBA also said that they would now offer six-month and one-year repos each day.The two changes appear to have been hugely successful with more than $6 billion of the now acceptable RMBS apparently repoed on Thursday and Friday with most of it for terms of six months and one year.The Australian Office of Financial Management continued its investigations into how to spend A$4 billion buying RMBS during the week and helped inform another leg of the federal government's response to what even the prime minister's media release terms the global financial crisis.The AOFM will now buy $8 billion in RMBS, with $4 billion reserved for non-ADI funders.This means funders such as Challenger and FirstMac and GE Money can all be certain to share in the funding benefit, as well as some smaller prime funders of home loans.Whether an entity such as RHG, which has $6 billion in warehouse to refinance but is doing no new lending, can make use of the scheme remains unclear.The AOFM seems unsure as to whether it should buy RMBS issues in their entirety or force other institutional investors to participate with them and, in that way, spread its allocated funding a little further. How it could force institutional investor participation is not clear. Another problem with this exercise is who is going to buy the less than AAA rated subordinated tranches of any RMBS issue? Many of the RMBS issuers that are the intended beneficiaries of AOFM's entry into the market cannot hold those tranches themselves. Without a buyer there will be no RMBS issuance anyway.