Investors in residential mortgage backed securities (RMBS) need to be mindful of when the clock on representations and warranties (R&W) claims starts ticking, and not just how long it runs, according to Standard & Poor’s report.

A report published Friday, S&P looked at two recent New York State Supreme Court decisions regarding claims arising from breaches of R&Ws as to the underwriting standards in RMBS that “significantly differed in their analyses of how the six-year statutes of limitations on R&Ws are applied."

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