UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 20132016
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _____ to _______________ from ____________________
Commission file number of the issuing entity: 333-172143-03
Central Index Key Number of the issuing entity: 0001543042
COMM 2012-LC4 Mortgage Trust
(Exact(exact name of the issuing entity as specified in its Charter)charter)
Central Index Key Number of the depositor: 0001013454
Deutsche Mortgage & Asset Receiving Corporation
(Exact(exact name of the depositor as specified in its Charter)charter)
Central Index Key Number of the sponsor: 0001541294
German American Capital Corporation
(exact name of the sponsor as specified in its charter)
Central Index Key Number of the sponsor: 0001541468
Ladder Capital Finance LLC
(exact name of the sponsor as specified in its charter)
Central Index Key Number of the sponsor: 0001547562
Guggenheim Life and Annuity Company
(Exact names(exact name of the sponsorssponsor as specified in their Charters)
45-4704011
45-5035640
45-5035612its charter)
New York 45-6874157
(State or other jurisdiction of
incorporation or organization of
the issuing entity)
45-4704011
45-5035640
45-5035612
45-6874157
(I.R.S. Employer
incorporation or organization) Identification No.)Numbers)
c/o Deutsche Bank Trust Company Americas
as Certificate Administrator
1761 East St. Andrew Place
Santa Ana, CA
92705
(Address of principal executive offices)offices of the issuing entity)
92705
(Zip Code)
Registrant's telephone number, including area code:
(212) 250-2500
Securities registered pursuant to Section 12(b) of the Act: None.
Securities registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark if the registrant is a well-known seasoned issuer,
as defined in Rule 405 of the Securities Act. [ ] Yes ___[X] No X
Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. [ ] Yes ___[X] No X
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. [X] Yes X[ ] No ___
Indicate by check mark whether the registrant has submitted electronically
and posted on its corporate Website,Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T
(Section 232.405 of this chapter) during the preceding 12 months (or for
such shorter period that the registrant was required to submit and post
such files).
Not Applicable.applicable.
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K (Section 229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Not applicable.
Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, a non-accelerated filer, or a smaller reporting company.
See definitions of "large accelerated filer,"filer", "accelerated filer" and
"smaller reporting company" in Rule 12b-2 of the Exchange Act.
(Check One):
Large accelerated filer ___[ ] Accelerated Filer ___filer [ ]
Non-accelerated Filer Xfiler [X] (Do not Checkcheck if a smaller reporting company)
Smaller reporting company ___[ ]
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Act). [ ] Yes ___[X] No X
State the aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the price at which the common
equity was last sold, or the average bid and asked price of such common
equity, as of the of the last business day of the registrant's most recently
completed second fiscal quarter.
Not Applicable.applicable.
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court. [ ] Yes [ ] No
Not Applicable.applicable.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
Not Applicable.applicable.
DOCUMENTS INCORPORATED BY REFERENCE
List hereunder the following documents if incorporated by reference and the
Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document
is incorporated: (1) Any annual report to security holders; (2) Any proxy or
information statement; and (3) Any prospectus filed pursuant to Rule 424(b)
or (c) under the Securities Act of 1933. The listed documents should be
clearly described for identification purposes (e.g., annual report to
security holders for fiscal year ended December 24, 1980).
Not applicable.
EXPLANATORY NOTES
Wells Fargo Bank, National Association, as Master Servicer of the subject
transaction did not provide an assessment of compliance with respect to Item
1122(d)(3)(iii). At the time the poolingPooling and servicing agreementServicing Agreement was
entered into, it was intended that either the master servicer or the certificate
administrator would perform this servicing function. In fact, Item
1122(d)(3)(iii) of Regulation AB was performed by the certificate
administrator, and is included in the assessment of compliance with
applicable servicing criteria and accountants' attestation report of the
certificate administrator for the subject transaction.
U. S.U.S. Bank National Association acts as Trusteetrustee of the issuing entity.mortgage loans
serviced under the Pooling and Servicing Agreement. Pursuant to the
Pooling and Servicing Agreement, the Trusteetrustee is required to provide an
assessment of compliance with applicable servicing criteria solely with
respect to Item 1122(d)(2)(iii) of Regulation AB (regarding advances of
funds or guarantees regarding collections, cash flows or distributions, and
any interest or other fees charged for such advances, are made, reviewed and
approved as specified in the transaction agreements). However, during the
Trustee isreporting period, the trustee did not perform any servicing function with
respect to the servicing criteria specified in Item 1122(d)(2)(iii) of
Regulation AB. The master servicer or the special servicer, to the extent
required, performed the servicing function identified with respect to deliverItem
1122(d)(2)(iii) of Regulation AB, and each such party included Item
1122(d)(2)(iii) of Regulation AB in the assessment of compliance with
applicable servicing criteria with respect
to any reporting period during which there was no servicing criteria
applicable toand accountant's attestation report for the
Trustee, as was the case during the reporting period
covered by this Annual Report on Form 10-K.subject transaction. As a result, this Annual Report on Form 10-K does not
include an assessment of compliance with applicable servicing criteria of the
Trustee. The assessmenttrustee. One or more other servicers of the mortgage loans serviced under the
Pooling and Servicing Agreement have delivered one or more assessments of
compliance with applicable servicing criteria of the Master Servicer
coversrespect to Item 1122(d)(2)(iii) of Regulation AB.
This Annual Report on Form 10-K includes assessments of compliance with
applicable servicing criteria and accountant'saccountants' attestation reports from
CoreLogic Commercial Real Estate Services, Inc. and National Tax Search,
LLC. These entities were engaged by the master servicer under the Pooling
and Servicing Agreement to remit tax payments received from the escrow
accounts of borrowers to local taxing authorities, to report tax amounts due,
to verify tax parcel information, and to verify non-escrow tax payments.
These servicesservicing functions are included within the servicing criteria set forth
in Items 1122(d)(4)(xi) and 1122(d)(4)(xii). of Regulation AB. Therefore,
under the principles-based definition of "servicer" set forth in Item 1101(j),
of Regulation AB that looks to the functions that an entity performs, these
vendors are "servicers" for the purposes of Item 1122.1122 of Regulation AB. See
Manual of Publicly Available
TelephoneCompliance and Disclosure Interpretations, Section 3, Item301.01 (Item 1101(j)).
In August and September 2016, actions were taken intended to terminate Rialto
Capital Advisors, LLC ("Rialto") as special servicer and to appoint
KeyBank National Association ("KeyBank") as successor special servicer
under the Pooling and Servicing Agreement. On September 13, 2016,
Rialto received notice from the Trustee that it had been terminated as
special servicer and that KeyBank had been appointed as replacement
special servicer, effective as of September 12, 2016. Consistent with that
notice, the name of the special servicer was changed by the Certificate
Administrator from Rialto to KeyBank on the monthly distribution date
statements attached to the monthly Asset-Backed Issuer Distribution
Reports on Form 10-D for the months of October, November and December 2016
and January 2017. While conducting its due diligence in connection with the
preparation of this Annual Report on Form 10-K for the 2016 reporting period,
the registrant determined that certain of the documents required for such
termination and appointment, including notices, legal opinions and
disclosures, were, in fact, missing, defective or otherwise failed to
satisfy the requirements of the Pooling and Servicing Agreement.
On February 9, 2017, Rialto was advised that, through no fault of Rialto,
the requirements of the Pooling and Servicing Agreement relating to its
replacement had not been satisfied. Rialto was, and has been, Special
Servicer under the Pooling and Servicing Agreement since replacing
CWCapital Asset Management LLC as Special Servicer on October 7, 2014.
Accordingly, the monthly distribution date statement attached to the
monthly Asset-Backed Issuer Distribution Reports on Form 10-D for February
2017 indicated that Rialto, not KeyBank, was the special servicer of
the issuing entity. On March 8, 2017, the registrant and the other relevant
parties executed a Notice and Acknowledgement acknowledging that
any attempted termination of Rialto as special servicer and appointment of
KeyBank as successor special servicing failed to satisfy the requirements
of the Pooling and Servicing Agreement, and thus no such termination and
appointment occurred. On March 24, 2017, the Trustee delivered a notice of
rescission of notice of special servicer replacement rescinding its
September 13, 2016 notice. The registrant subsequently filed amended
monthly Asset-Backed Issuer Distribution Reports on Form 10-D/As for the
months of October, November, and December 2016 and January 2017 indicating
that Rialto, not KeyBank was the special servicer during those monthly
reporting periods.
Rialto's report on assessment of compliance with servicing criteria for
asset-backed securities, and servicer compliance statement, and the
attestation report on assessment of compliance with servicing criteria for
asset-backed securities of Rialto's accountants for the reporting period are
included in this Annual Report on Form 10-K as Exhibits 33.2, 35.2 and 34.2,
respectively. As indicated in such exhibits, Rialto took such actions as
were necessary to provide such exhibits. No Servicing Transfer Events
occurred during the period September 12, 2016 through December 31,
2016; there were no Specially Serviced Loans included in the issuing
entity at the commencement of, or during such period. KeyBank has advised
the registrant that during such period, the only action taken by KeyBank
as purported Special Servicer was a consent to a lease amendment
respecting a J.C. Penney Lease relating to the Plaza de Sol Loan. KeyBank
did not receive any compensation under the Pooling and Servicing
Agreement for giving such consent. KeyBank provided Rialto with the
relevant materials applicable to such consent. On March 29, 2017, the
registrant delivered a notice, acknowledged by Rialto, to the Master
Servicer, informing the Master Servicer that Rialto concurred in and
ratified the consent action taken by KeyBank.
To ensure compliance with the applicable reporting requirements of the
Securities Exchange Act of 1934, as amended, with respect to future
transfers of special servicing, the Certificate Administrator has agreed
with the registrant (i) that the Certificate Administrator will forward to
the registrant any notices it receives regarding any transfer or proposed
transfer of special servicing, including notices from a directing holder,
and (ii) to expand and clearly define the roles of the personnel at the
Certificate Administrator who receive information relating to transfers
or proposed transfers of special servicing, and instruct them how and
when to forward any such information to the registrant.
PART I
ITEMItem 1. Business.
Omitted.
ITEMItem 1A. Risk Factors.
Omitted.
ITEMItem 1B. Unresolved Staff Comments.
None.
ITEMItem 2. Properties.
Omitted.
ITEMItem 3. Legal Proceedings.
Omitted.
ITEMItem 4. Mine Safety Disclosures.
Not Applicable.applicable.
PART II
ITEMItem 5. Market for Registrant's Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities.
Omitted.
ITEMItem 6. Selected Financial Data.
Omitted.
ITEMItem 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Omitted.
ITEMItem 7A. Quantitative and Qualitative Disclosures About Market Risk.
Omitted.
ITEMItem 8. Financial Statements and Supplementary Data.
Omitted.
ITEMItem 9. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure.
Omitted.
ITEMItem 9A. Controls and Procedures.
Omitted.
ITEMItem 9B. Other Information.
None.
PART III
ITEMItem 10. Directors, Executive Officers and Corporate Governance.
Omitted.
ITEMItem 11. Executive Compensation.
Omitted.
ITEMItem 12. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters.
Omitted.
ITEMItem 13. Certain Relationships and Related Transactions, and Director
Independence.
Omitted.
ITEMItem 14. Principal Accounting Fees and Services.
Omitted.
ADDITIONAL DISCLOSURE ITEMS FOR REGULATION AB
Item 1112(b) of Regulation AB, Significant Obligor Financial Information.
The Square One Mall Mortgage Loan (Loan Number 1 on Annex AA-1 of the
prospectus supplement of the Registrantregistrant relating to the issuing entity
filed on March 19, 2012 pursuant to Rule 424(b)(5)) constitutes a
significant obligor within the meaning of Item 1101(k)(2) of Regulation
AB.AB as disclosed in the prospectus supplement. In accordance with Item
1112(b) of Regulation AB, the most recent unaudited net operating income
of the significant obligor was $16,114,489.00$14,329,623.00 for the twelve-monthtwelve- month
period ended December 31, 2013.2016.
Item 1114(b)(2) of Regulation AB, Significant Enhancement Provider Financial
Information.
No entity or group of affiliated entities provides any external credit
enhancement or other support for the certificates within this transaction
as described under Item 1114 (a)1114(a) of Regulation AB.
Item 1115(b) of Regulation AB, Certain DerivativeDerivatives Instruments (Financial
Incorporation)Information).
No entity or group of affiliated entities provides any derivative
instruments or other support for the certificates within this transaction
as described under Item 1115 of Regulation AB.
Item 1117 of Regulation AB, Legal Proceedings.
The registrant knows of no material pending legal proceeding involving the
trust or any party related to the trust, other than routine litigation
incidental to the duties of those respective parties.parties, and the following, with
respect to Deutsche Bank Trust Company Americas, as Certificate Administrator
and Custodian:
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. 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. 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. 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 Certificate Administrator and Custodian under the Pooling
and Servicing Agreement for this transaction.
Item 1119 of Regulation AB, Affiliations and Certain Relationships and
Related Transactions.
The information regarding this Item has been previously provided in a
prospectus supplement of the Registrant relating to the issuing entity
filed on March 19, 2012 pursuant to Rule 424(b)(5).
Item 1122 of Regulation AB, Compliance with Applicable Servicing Criteria.
The reports on assessments of compliance with the servicing criteria for
asset-backed securities and related attestation reports on such
assessments of compliance with respect to the mortgage loans are attached
hereto under Item 15 to this Annual Report on Form 10-K. Attached as
Schedule II to the Pooling and Servicing Agreement incorporated by
reference as Exhibit 4 to this Annual Report on Form 10-K is a chart
identifying the entities participating in a servicing function for the
transaction responsible for each applicable servicing criteria set forth
in Item 1122(d).
The assessment of compliance with applicable servicing criteria for the
twelve months ended December 31, 2013, furnished pursuant to Item 1122 of
Regulation AB by National Tax Search, LLC (the "2013 NTS Assessment") for
its commercial real estate mortgage loans platform, discloses that material
instances of noncompliance occurred with respect to the servicing criterion
described in Item 1122(d)(2)(vii) of Regulation AB. The 2013 NTS Assessment
is attached to this Form 10-K as Exhibit 33.6. The material instances of
noncompliance disclosed in the 2013 NTS Assessment are as follows:
Material Instances of Noncompliance by National Tax Search, LLC
1122(d)(2)(vii): Reconciliations are prepared on a monthly basis for all
asset-backed securities related to bank accounts, including custodial
accounts and related clearing accounts. These reconciliations (B) Are
prepared within 30 calendar days after the bank statement cutoff date,
or such other number of days Specificied (sic) in the transaction
agreement and (D) Contain explanations for reconciling items. These
reconciling items are resolved within 90 calendar days of their original
identification, or such other number of days specificied (sic) in
transaction agreements.
Noncompliance
During the reporting period, certain reconciliations were not
completed within 30 calendar days after the bank statement
cutoff date. Certain reconciling items lacked proper
explanations and were not resolved within 90 day (sic) calendar
days of their original identification.
Remediation
Management corrected the timeliness of reconciliations within
the Period and Plante Moran auditors have reviewed, under an
agreed-upon procedures engagement, the compliance with the
servicing criteria of section 1122(d)(2)(vii), attributes
B & D, as defined above, as of January 31, 2014, noting no
matters of concern.
In the first quarter of 2014 Management will also complete installation
of a Treasury Workstation system, which allows for the automation of
daily reconciliation allowing for review and research throughout the
month instead of the days after a bank statement cutoff date. This
daily reconciliation will be accompanied by proper explanation of all
reconciling items. Management will review any items that require
resolution and reporting will provide aging of items at 30, 45 and 60
day levels to prevent exceeding the 90 calendar day requirement.
The assessment of compliance with applicable servicing criteria furnished
pursuant to Item 1122 of Regulation AB by CWCapital Asset Management LLC
("CWAM") is attached to this Annual Report on Form 10-K as Exhibit 33.2.
The material instances of noncompliance disclosed in the CWAM assessment
are as follows:
Material Instance of Noncompliance by CWAM
CWAM's assessment of compliance with the Applicable Servicing Criteria set
forth by the Securities and Exchange Commission in paragraph (d) of Item
1122 of Regulation AB as of December 31, 2013 and for the Reporting
Period, disclosed that a material instance of noncompliance occurred with
respect to the servicing criterion set forth in Item 1122(d)(4)(vii), as
follows:
With respect to servicing criterion 1122(d)(4)(vii), certain loss
mitigation or recovery actions (e.g., forbearance plans,
modifications and deeds in lieu of foreclosure, foreclosures
and repossessions, as applicable) were not initiated, conducted
mitigation or recovery actions (e.g., forbearance plans,
and concluded in accordance with the timeframes or other
mitigation or recovery actions (e.g., forbearance plans,
requirements established by the transaction agreements.
Management's Discussion on Material Instance of Noncompliance by CWAM
1122(d)(4)(vii): Loss mitigation or recovery actions (e.g., forbearance
plans, modifications and deeds in lieu of foreclosure, foreclosures and
repossessions, as applicable) are initiated, conducted and concluded in
accordance with the time frames or other requirements established by the
transaction agreements.
Noncompliance:
CWAM has identified a material instance of non-compliance as of
December 31, 2013 and for the Reporting Period as a result of
misappropriations of funds from certain securitization
transactions included in the Platform by a single CWAM employee
(the "Misappropriations"). The Misappropriations started in 2012
and were detected and ceased in September 2013, and included an
aggregate amount of approximately $6,000,000. The
Misappropriations were limited to certain securitization
transactions in the Platform.
Remediation:
Promptly upon discovery of the Misappropriations in September
2013, CWAM terminated the offending employee and filed a civil
action to recover the misappropriated funds . As of December 31,
2013, all of the affected securitization transactions in the
Platform have been fully reimbursed. CWAM has also promptly
notified rating agencies and criminal authorities of the
Misappropriations and the former employee was arrested on
October 2, 2013. Adjustments have been made to CWAM's policies
and procedures to minimize the risk of future misappropriation
or errors.
CWAM has advised counsel to the registrant that the reported instance of
material instance of noncompliance did not affect this issuing entity.
Item 1123 of Regulation AB, Servicer Compliance Statement.
The servicer compliance statements are attached as Exhibits to this Annual
Report on Form 10-K.
PART IV
ITEMItem 15. Exhibits, Financial Statement Schedules.Schedules
(a) The following is a list of documents filed as a part of this annual
reportAnnual Report
on Form 10-K:
(1) Not Applicableapplicable
(2) Not Applicableapplicable
(3) See below
4 Pooling and Servicing Agreement, dated as of March 1, 2012, by and
among Deutsche Mortgage & Asset Receiving Corporation, as Depositor,
Wells Fargo Bank, National Association, as Master Servicer,
CWCapital Asset Management LLC, as Special Servicer, U.S. Bank
National Association, as Trustee, Deutsche Bank Trust Company
Americas, as Certificate Administrator, Paying Agent and Custodian,
and Park Bridge Lender Services LLC, as Operating Advisor (filed as
Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on
August 14, 2012 under Commission File No. 333-172143-03 and
incorporated by reference herein).
31 Rule 13a-14(d)/15d-14(d) Certification.Certifications.
33 Reports on assessment of compliance with servicing criteria for asset-backedasset-
backed securities.
33.1 Wells Fargo Bank, National Association, as Master Servicer
33.2 CWCapital Asset ManagementRialto Capital Advisors, LLC, as Special Servicer
33.3 U.S. Bank National Association, as Trustee (Omitted. See Explanatory
Notes.)
33.4 Deutsche Bank Trust Company Americas, as Certificate Administrator
and Custodian
33.433.5 Park Bridge Lender Services LLC, as Operating Advisor
33.533.6 CoreLogic Commercial Real Estate Services, Inc., as Servicing Function
Participant
33.633.7 National Tax Search, LLC, as Servicing Function Participant
34 Attestation reports on assessment of compliance with servicing criteria
for asset-backed securities.
34.1 Wells Fargo Bank, National Association, as Master Servicer
34.2 CWCapital Asset ManagementRialto Capital Advisors, LLC, as Special Servicer
34.3 U.S. Bank National Association, as Trustee (Omitted. See Explanatory
Notes.)
34.4 Deutsche Bank Trust Company Americas, as Certificate Administrator
and Custodian
34.434.5 Park Bridge Lender Services LLC, as Operating Advisor
34.534.6 CoreLogic Commercial Real Estate Services, Inc., as Servicing Function
Participant
34.634.7 National Tax Search, LLC, as Servicing Function Participant
35 Servicer compliance statement.statements.
35.1 Wells Fargo Bank, National Association, as Master Servicer
35.2 CWCapital Asset ManagementRialto Capital Advisors, LLC, as Special Servicer
35.3 Deutsche Bank Trust Company Americas, as Certificate Administrator
99.1 Mortgage Loan Purchase Agreement, dated as of March 20, 2012, between
German American Capital Corporation and Deutsche Mortgage & Asset
Receiving Corporation and German American
Capital Corporation (filed as Exhibit 99.1 to the registrant's
Current Report on Form 8-K filed on August 14, 2012 under Commission
File No. 333-172143-03 and incorporated by reference herein).
99.2 Mortgage Loan Purchase Agreement, dated as of March 20, 2012, betweenamong
Ladder Capital Finance LLC, Ladder Capital Finance Holdings LLLP and
Deutsche Mortgage & Asset Receiving Corporation (filed as Exhibit
99.2 to the registrant's Current Report on Form 8-K filed on
August 14, 2012 under Commission File No. 333-172143-03 and
incorporated by reference herein)
99.3 Mortgage Loan Purchase Agreement, dated as of March 20, 2012, between
Guggenheim Life and Annuity Company and Deutsche Mortgage & Asset
Receiving Corporation (filed as Exhibit 99.3 to the registrant's
Current Report on Form 8-K filed on August 14, 2012 under Commission
File No. 333-172143-03 and incorporated by reference herein).
99.3 Mortgage Loan Purchase Agreement, dated as of March 20, 2012, between
Deutsche Mortgage & Asset Receiving Corporation, Ladder Capital Finance
LLC and Ladder Capital Finance Holdings LLLP (filed as Exhibit 99.2 to
the registrant's Current Report on Form 8-K on August 14, 2012 and
incorporated by reference herein).
(b) The exhibits required to be filed by the Registrant pursuant to
Item 601 of Regulation S-K are listed above and in the Exhibit Index
that immediately follows the signature page hereof.
(c) Not Applicable.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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
Helaine M. Kaplan, President
(senior officer in charge of securitization of the depositor)
Date: March 27, 201431, 2017
/s/ Natalie D. Grainger
Natalie D. Grainger, Vice PresidentDirector
Date: March 27, 2014
EXHIBIT INDEX
Exhibit No.
4 Pooling and Servicing Agreement, dated as of March 1, 2012, by and
among Deutsche Mortgage & Asset Receiving Corporation, as Depositor,
Wells Fargo Bank, National Association, as Master Servicer, CWCapital
Asset Management LLC, as Special Servicer, U.S. Bank National
Association, as Trustee, Deutsche Bank Trust Company Americas, as
Certificate Administrator, Paying Agent and Custodian, and Park
Bridge Lender Services LLC, as Operating Advisor (filed as Exhibit 4.1
to the registrant's Current Report on Form 8-K on August 14, 2012 and
incorporated by reference herein).
31, Rule 13a-14(d)/15d-14(d) Certification.
33 Reports on assessment of compliance with servicing criteria for
asset-backed securities.
33.1 Wells Fargo Bank, National Association, as Master Servicer
33.2 CWCapital Asset Management LLC, as Special Servicer
33.3 Deutsche Bank Trust Company Americas, as Certificate Administrator
and Custodian
33.4 Park Bridge Lender Services LLC, as Operating Advisor
33.5 CoreLogic Commercial Real Estate Services, Inc., as Servicing
Function Participant
33.6 National Tax Search, LLC, as Servicing Function Participant
34 Attestation reports on assessment of compliance with servicing criteria
for asset-backed securities.
34.1 Wells Fargo Bank, National Association, as Master Servicer
34.2 CWCapital Asset Management LLC, as Special Servicer
34.3 Deutsche Bank Trust Company Americas, as Certificate Administrator
and Custodian
34.4 Park Bridge Lender Services LLC, as Operating Advisor
34.5 CoreLogic Commercial Real Estate Services, Inc., as Servicing
Function Participant
34.6 National Tax Search, LLC, as Servicing Function Participant
35 Servicer compliance statement.
35.1 Wells Fargo Bank, National Association, as Master Servicer
35.2 CWCapital Asset Management LLC, as Special Servicer
35.3 Deutsche Bank Trust Company Americas, as Certificate Administrator
99.1 Mortgage Loan Purchase Agreement, dated as of March 20, 2012, between
Deutsche Mortgage & Asset Receiving Corporation and German American
Capital Corporation (filed as Exhibit 99.1 to the registrant's Current
Report on Form 8-K on August 14, 2012 and incorporated by reference
herein).
99.2 Mortgage Loan Purchase Agreement, dated as of March 20, 2012, between
Deutsche Mortgage & Asset Receiving Corporation and Guggenheim Life and
Annuity Company (filed as Exhibit 99.3 to the registrant's Current
Report on Form 8-K on August 14, 2012 and incorporated by reference
herein).
99.3 Mortgage Loan Purchase Agreement, dated as of March 20, 2012, between
Deutsche Mortgage & Asset Receiving Corporation, Ladder Capital Finance
LLC and Ladder Capital Finance Holdings LLLP (filed as Exhibit 99.2 to
the registrant's Current Report on Form 8-K on August 14, 2012 and
incorporated by reference herein).2017