RMBS holders in court battle over breaches of reps and warranties

Courting trouble

Courting trouble: US RMBS investors are pushing for put-backs

Some battles are harder to win than others. In the case of attempts by bondholders to force put-backs of private label US residential mortgage-backed securities to bank originators, the battle is all relentlessly uphill. Despite that, investors are continuing to join forces in a bid to recoup losses on their RMBS investments, with growing numbers of bondholders adding their names to action groups.

Their case rests on showing that mortgage originators violated representations and warranties when