During a hearing before the New York Supreme Court, John Doherty, partner in Alston & Bird’s Financial Services Litigation Group, argued that a lawsuit against Barclays PLC related to residential mortgage-backed securities lacked merit because it was filed too late and because Barclays only made limited guarantees about the deal.
Doherty noted that the statute of limitations on representations and warranties made by former Barclays units Equifirst Corp. and Equifirst Mortgage Corp. began to run when a mortgage loan purchasing agreement took effect in April 2007 and not when the securitization closed in June 2007.
“As of the closing date of the securitization, the trustee had a full set of representations and warranties from Equifirst and a very narrow set of representations and warranties from Barclays,” Doherty said.
Doherty noted that the statute of limitations on representations and warranties made by former Barclays units Equifirst Corp. and Equifirst Mortgage Corp. began to run when a mortgage loan purchasing agreement took effect in April 2007 and not when the securitization closed in June 2007.
“As of the closing date of the securitization, the trustee had a full set of representations and warranties from Equifirst and a very narrow set of representations and warranties from Barclays,” Doherty said.