10-D 1 comm16dc2_10d_23.htm FORM 10-D Form 10-D


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM 10-D

ASSET-BACKED ISSUER
DISTRIBUTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the monthly distribution period from:
January 13, 2018 to February 12, 2018

Commission File Number of issuing entity: 333-206705-02
Central Index Key Number of issuing entity: 0001663244

COMM 2016-DC2 Mortgage Trust
(Exact name of issuing entity as specified in its charter)

Commission File Number of depositor: 333-193376
Central Index Key Number of depositor: 0001013454

Deutsche Mortgage & Asset Receiving Corporation
(Exact name of depositor as specified in its charter)

Central Index Key Number of sponsor (if applicable): 0001541294
German American Capital Corporation
(Exact name of sponsor as specified in its charter)

Central Index Key Number of sponsor (if applicable): 0001089877
KeyBank National Association
(Exact name of sponsor as specified in its charter)

Central Index Key Number of sponsor (if applicable): 0001555524
Jefferies LoanCore LLC
(Exact name of sponsor as specified in its charter)

Lainie Kaye (212) 250-2500
(Name and telephone number, including area code, of the person to
contact in connection with this filing)

New York
(State or other jurisdiction of incorporation or organization
of the issuing entity)

Lower Tier Remic  81-1634426
Upper Tier Remic  81-1758688
Grantor Trust  81-6375604
(I.R.S. Employer Identification No.)

c/o Deutsche Bank Trust Company Americas as Certificate Administrator
1761 East St. Andrew Place, Santa Ana CA
(Address of principal executive offices of the issuing entity)

92705
(Zip Code)

(212) 250-2500
(Telephone number, including area code)

NONE
(Former name, former address, if changed since last report)

Registered / reporting pursuant to (check one)
Title of Class  Section 12(b)  Section 12(g)  Section 15(d)  Name of Exchange
(if Section 12(b))
Class A-1           [ ]             [ ]             [X]        Not Applicable
Class A-2           [ ]             [ ]             [X]        Not Applicable
Class A-3           [ ]             [ ]             [X]        Not Applicable
Class A-SB          [ ]             [ ]             [X]        Not Applicable
Class A-4           [ ]             [ ]             [X]        Not Applicable
Class A-5           [ ]             [ ]             [X]        Not Applicable
Class X-A           [ ]             [ ]             [X]        Not Applicable
Class A-M           [ ]             [ ]             [X]        Not Applicable
Class B             [ ]             [ ]             [X]        Not Applicable
Class C             [ ]             [ ]             [X]        Not Applicable

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes _X_   No ____


Part I - DISTRIBUTION INFORMATION

Item 1.  Distribution and Pool Performance Information.
On  February 12, 2018 a distribution was made to holders of the
certificates issued by COMM 2016-DC2 Mortgage Trust.  The
distribution report is attached as Exhibit 99.1 to this Form 10-D.

During the distribution period from January 13, 2018 to February 12, 2018
no assets securitized by Deutsche Mortgage & Asset Receiving
Corporation (the "Depositor") and held by COMM 2016-DC2 Mortgage
Trust were the subject of a demand to repurchase or replace for breach
of the representations and warranties contained in the underlying
transaction documents.

The Depositor filed a Form ABS-15G pursuant to Rule 15Ga-1 under the
Securities Exchange Act of 1934 on February 13, 2018.  The CIK number
of the Depositor is 0001013454.

German American Capital Corporation ("GACC"), one of the sponsors and
mortgage loan sellers, filed a Form ABS-15G pursuant to Rule 15Ga-1
under the Securities Exchange Act of 1934 on February 13, 2018.  The
CIK number of GACC is 0001541294.

KeyBank National Association ("KeyBank"), one of the sponsors
and mortgage loan sellers, filed a Form ABS-15G pursuant
to Rule 15Ga-1 under the Securities Exchange Act of 1934 on
February 06, 2018.  The CIK number of KeyBank is 0001089877.

Jefferies LoanCore LLC ("Jefferies"), one of the sponsors and
mortgage loan sellers, filed a Form ABS-15G pursuant to  Rule 15Ga-1
under the Securities Exchange Act of 1934 on February 02, 2018.
The CIK number for Jefferies is 0001555524.


Part II - OTHER INFORMATION

Item 2.  Legal Proceedings.
Deutsche Bank Trust Company Americas ("DBTCA") and Deutsche Bank National Trust Company
("DBNTC") have been sued by investors in civil litigation concerning their role as trustees of certain
RMBS trusts.

On June 18, 2014, a group of investors, including funds managed by Blackrock Advisors, LLC, PIMCO-
Advisors, L.P., and others, filed a derivative action against DBNTC and DBTCA in New York State Supreme
Court purportedly on behalf of and for the benefit of 544 private-label RMBS trusts asserting claims for
alleged violations of the U.S. Trust Indenture Act of 1939 (TIA), breach of contract, breach of fiduciary
duty and negligence based on DBNTC and DBTCA's alleged failure to perform their duties as trustees for
the trusts. Plaintiffs subsequently dismissed their state court complaint and filed a derivative and class
action complaint in the U.S. District Court for the Southern District of New York on behalf of and for the
benefit of 564 private-label RMBS trusts, which substantially overlapped with the trusts at issue in the
state court action. The complaint alleges that the trusts at issue have suffered total realized collateral
losses of U.S. $89.4 billion, but the complaint does not include a demand for money damages in a sum
certain. DBNTC and DBTCA filed a motion to dismiss, and on January 19, 2016, the court partially
granted the motion on procedural grounds: as to the 500 trusts that are governed by Pooling and
Servicing Agreements, the court declined to exercise jurisdiction. The court did not rule on substantive
defenses asserted in the motion to dismiss.  On March 22, 2016, plaintiffs filed an amended complaint in
federal court.  In the amended complaint, in connection with 62 trusts governed by indenture
agreements, plaintiffs assert claims for breach of contract, violation of the TIA, breach of fiduciary duty,
and breach of duty to avoid conflicts of interest.   The amended complaint alleges that the trusts at issue
have suffered total realized collateral losses of U.S. $9.8 billion, but the complaint does not include a
demand for money damages in a sum certain.  On July 15, 2016, DBNTC and DBTCA filed a motion to
dismiss the amended complaint.  On January 23, 2017, the court granted in part and denied in part
DBNTC and DBTCA's motion to dismiss.  The court granted the motion to dismiss with respect to
plaintiffs' conflict-of-interest claim, thereby dismissing it, and denied the motion to dismiss with respect
to plaintiffs' breach of contract claim (except as noted below) and claim for violation of the TIA, thereby
allowing those claims to proceed.  On January 26, 2017, the parties filed a joint stipulation and proposed
order dismissing plaintiffs' claim for breach of fiduciary duty.  On January 27, 2017, the court entered
the parties' joint stipulation and ordered that plaintiffs' claim for breach of fiduciary duty be dismissed.
On February 3, 2017, following a hearing concerning DBNTC and DBTCA's motion to dismiss on February
2, 2017, the court issued a short form order dismissing (i) plaintiffs' representation and warranty claims
as to 21 trusts whose originators and/or sponsors had entered bankruptcy and the deadline for
asserting claims against such originators and/or sponsors had passed as of 2009 and (ii) plaintiffs' claims
to the extent they were premised upon any alleged pre-Event of Default duty to terminate servicers.  On
March 27, 2017, DBNTC and DBTCA filed an answer to the amended complaint.  On January 26, 2018,
Plaintiffs filed a motion for class certification.  DBNTC and DBTCA's opposition to Plaintiffs' motion is due
on March 12, 2018, and Plaintiffs' reply is due on April 2, 2018.  Discovery is ongoing.

On March 25, 2016, the BlackRock plaintiffs filed a state court action against DBTCA in the Superior
Court of California, Orange County with respect to 513 trusts.  On May 18, 2016, plaintiffs filed an
amended complaint with respect to 465 trusts, and included DBNTC as an additional defendant.  The
amended complaint asserts three causes of action:  breach of contract; breach of fiduciary duty; and
breach of the duty to avoid conflicts of interest.  Plaintiffs purport to bring the action on behalf of
themselves and all other current owners of certificates in the 465 trusts.  The amended complaint
alleges that the trusts at issue have suffered total realized collateral losses of U.S. $75.7 billion, but does
not include a demand for money damages in a sum certain.  On August 22, 2016, DBNTC and DBTCA
filed a demurrer as to Plaintiffs' breach of fiduciary duty cause of action and breach of the duty to avoid
conflicts of interest cause of action and motion to strike as to Plaintiffs' breach of contract cause of
action.  On October 18, 2016, the court granted DBNTC and DBTCA's demurrer, providing Plaintiffs with
thirty days' leave to amend, and denied DBNTC and DBTCA's motion to strike.  Plaintiffs did not further
amend their complaint and, on December 19, 2016, DBNTC and DBTCA filed an answer to the amended
complaint.  On January 17, 2018, Plaintiffs filed a motion for class certification.  DBNTC and DBTCA's
opposition to Plaintiffs' motion is due on March 16, 2018, and Plaintiffs' reply is due on April 16, 2018.
Discovery is ongoing.

On September 27, 2017, DBTCA was added as a defendant to a case brought by certain special purpose
entities including Phoenix Light SF Limited in the U.S. District Court for the Southern District of New
York, in which the plaintiffs previously alleged incorrectly that DBNTC served as trustee for all 43 of the
trusts at issue.  On September 27, 2017, plaintiffs filed a third amended complaint that names DBTCA as
a defendant in addition to DBNTC.  DBTCA serves as trustee for one of the 43 trusts at issue.  DBNTC
serves as trustee for the other 42 trusts at issue.  Plaintiffs' third amended complaint brings claims for
violation of the TIA; breach of contract; breach of fiduciary duty; negligence and gross negligence;
violation of the Streit Act; and breach of the covenant of good faith.  However, in the third amended
complaint, plaintiffs acknowledge that, before DBTCA was added to the case, the court dismissed
plaintiffs' TIA Act claims, negligence and gross negligence claims, Streit Act claims, claims for breach of
the covenant of good faith, and certain theories of plaintiffs' breach of contract claims, and plaintiffs
only include these claims to preserve any rights on appeal.  Plaintiffs allege damages of "hundreds of
millions of dollars."  On November 13, 2017, DBNTC and DBTCA filed an answer to the third amended
complaint.  Discovery is ongoing.

On November 30, 2017, DBTCA was added as a defendant to a case brought by Commerzbank AG
("Commerzbank") in the U.S. District Court for the Southern District of New York, in which
Commerzbank previously alleged incorrectly that DBNTC served as trustee for all 50 of the trusts at
issue.  On November 30, 2017, Commerzbank filed a second amended complaint that names DBTCA as a
defendant in addition to DBNTC.  DBTCA serves as trustee for 1 of the 50 trusts at issue.  DBNTC serves
as trustee for the other 49 trusts at issue.  Commerzbank's second amended complaint brings claims for
violation of the TIA; breach of contract; breach of fiduciary duty; negligence; violation of the Streit Act;
and breach of the covenant of good faith.  However, in the second amended complaint, Commerzbank
acknowledges that, before DBTCA was added to the case, the court dismissed Commerzbank's TIA
claims for the trusts governed by pooling and servicing agreements, as well as its Streit Act claims and
claims for breach of the covenant of good faith, and Commerzbank only includes these claims to
preserve any rights on appeal.  The second amended complaint alleges that DBNTC and DBTCA caused
Commerzbank to suffer "hundreds of millions of dollars in losses," but the complaint does not include a
demand for money damages in a sum certain.  On January 29, 2018, DBNTC and DBTCA filed an answer
to the second amended complaint.  Discovery is ongoing.

On December 30, 2015, IKB International, S.A. in Liquidation and IKB Deutsche Industriebank A.G.
(collectively, "IKB"), as an investor in 37 RMBS trusts, filed a summons with notice in the Supreme Court
of the State of New York, New York County, against DBNTC and DBTCA as trustees of the trusts.  On May
27, 2016, IKB served its complaint asserting claims for breach of contract, breach of fiduciary duty,
breach of duty to avoid conflicts of interest, violation of New York's Streit Act, violation of the Trust
Indenture Act, violation of Regulation AB, and violation of Section 9 of the Uniform Commercial
Code.  IKB alleges that DBNTC and DBTCA are liable for over U.S. $268 million in damages.  On October
5, 2016, DBNTC and DBTCA, together with several other trustees defending lawsuits by IKB, filed a joint
motion to dismiss.  On January 6, 2017, IKB filed a notice of discontinuance, voluntarily dismissing with
prejudice all claims as to three trusts.  As of January 17, 2017, DBNTC and DBTCA's motion to dismiss has
been briefed and is awaiting decision by the court.  On June 20, 2017, the parties filed a stipulation,
voluntarily dismissing with prejudice all claims as to four additional trusts.  Certain limited discovery is
permitted to go forward while the motion to dismiss is pending.

It is DBTCA's belief that it has no pending legal proceedings (including,
based on DBTCA's present evaluation, the litigation disclosed in the
foregoing paragraphs) that would materially affect its ability to perform its
duties as Trustee under the Pooling and Servicing Agreement for this transaction.

Item 10.  Exhibits.
(a) The following is a list of documents filed as part
    of this Report on Form 10-D:

(99.1)   Monthly Report distributed to holders of the
         certificates issued by COMM 2016-DC2 Mortgage Trust,
         relating to the February 12, 2018 distribution.

(b) The exhibits required to be filed by the Registrant
    pursuant to this Form are listed above and in the Exhibit Index
    that immediately follows the signature page hereof.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Deutsche Mortgage & Asset Receiving Corporation
(Depositor)


/s/ Helaine M. Kaplan
Name:  Helaine M. Kaplan
Title: President


/s/ Andrew Mullin
Name:  Andrew Mullin
Title: Vice President, Treasurer,
       Chief Financial Officer and
       Chief Accounting Officer

Date:    February 23, 2018


EXHIBIT INDEX

Exhibit Number     Description

EX-99.1            Monthly Report distributed to holders of the certificates
                   issued by COMM 2016-DC2 Mortgage Trust, relating to
                   the February 12, 2018 distribution.