10-D 1 comm16dc2_10d_33.htm 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:
November 14, 2018 to December 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  December 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 November 14, 2018 to December 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
residential mortgage-backed securities ("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 (the "Trust
Indenture Act"), 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 alleged that the trusts at issue had suffered
total realized collateral losses of U.S. $89.4 billion, but the complaint did not include a
demand for money damages in a sum certain. 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 asserted claims for breach of contract, violation of the Trust
Indenture Act, breach of fiduciary duty, and breach of duty to avoid conflicts of interest. The
amended complaint alleged that the trusts at issue had suffered total realized collateral losses
of U.S. $9.8 billion, but the complaint did not include a demand for money damages in a sum
certain. On December 6, 2018, the court entered the parties' stipulation voluntarily dismissing
the action with prejudice.

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 January 17, 2018, plaintiffs filed a motion for class certification. On
May 30, 2018, the court denied that motion. On June 8, 2018, plaintiffs filed a notice of appeal
from the denial of that motion. On December 6, 2018, the court entered the parties' stipulation
voluntarily dismissing plaintiffs' appeal.  On December 13, 2018, plaintiffs submitted a notice
of settlement and a request for dismissal.  The court has yet to dismiss the case.

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 Trust Indenture Act;
breach of contract; breach of fiduciary duty; negligence and gross negligence; violation of
New York's Streit Act (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' Trust Indenture 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. On December 7, 2018, DBNTC and DBTCA filed a motion for summary judgment.  Also on
December 7, 2018, plaintiffs, jointly with Commerzbank AG (see description of Commerzbank case
below), filed a motion for partial summary judgment.  Both motions are being briefed by the
parties.  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 one 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 Trust Indenture Act; 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 Trust Indenture Act 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. On December 7, 2018, DBNTC and DBTCA filed a motion for summary judgment.
Also on December 7, 2018, Commerzbank, jointly with the Phoenix Light plaintiffs, filed a motion
for partial summary judgment.  Both motions are being briefed by the parties.  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 the 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 December 12, 2018 distribution.

(b) The exhibits required to be filed by the Registrant
    pursuant to this Form are listed above.


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:    December 21, 2018