🟢 At a Glance
The latest 10-D/A amendment for Wells Fargo Commercial Mortgage Trust 2022-C62 just exposed a rare CMBS twist: a $1.18 million overpayment to Class A-2 bondholders in March, now being clawed back. As a result, April and May distributions were underpaid for multiple tranches. The fix? Ask nicely for the money back… and hope nobody spends it.
🧾 Quick Recap: What Happened?
- Trust Name: Wells Fargo Commercial Mortgage Trust 2022-C62
- Report Type: 10-D/A (Amendment to April 2025 distribution filing)
- Period Covered: March 18, 2025 to April 17, 2025
- Filed: June 2, 2025
The amendment revises Exhibit 99.1 to correct payment information due to a misreported unscheduled principal repayment.
💥 What Went Wrong
- The trust received $3.68M in unscheduled principal repayment from Midtown Central Square Loan (#3) in March.
- Turns out, only $2.5M should’ve been distributed.
- That means a $1,184,682.74 overpayment was made to Class A-2 bondholders in March.
👎 Oops.
🔁 Clawback Fallout: April & May Interest Disruption
Due to the March mispayment, the trust underpaid interest in:
| Distribution Month | Underpaid Amount | Affected Classes |
|---|---|---|
| April 2025 | $4,903.76 | A-2, A-S, B, C, G-RR, H-RR, X-A, X-D, X-F |
| May 2025 | $4,745.59 | Same as above |
A small number, but significant in a CMBS where tranches live on knife-thin waterfalls.
💸 Recovery Plan
The Certificate Administrator has:
- Issued a formal claim to recover the $1.18M from A-2 holders
- Once recovered, will distribute the missing interest to affected tranches
- Any leftover funds go to the Special Servicer
Until then, this trust is basically functioning on IOUs.
📉 Trust Performance Snapshot (as of April 17, 2025)
| Metric | Value |
| Loans 30+ Days Delinquent | 3 |
| Delinquency % (by Pool Balance) | 8.75% |
| Loans/REOs with Losses | 0 |
| Average Net Loss | N/A |
So while there’s no default yet, delinquency is ticking up.
🧠 EduInvesting Take: CMBS is Quietly Messy
This isn’t fraud. It’s not Enron. But it’s messy:
- Payment errors in senior tranches = major risk perception hit
- Clawbacks show structural fragility in CRE-backed securitizations
- Even small hiccups like $5K of underpaid interest mean rating agencies watch closely
This trust has:
- A rising delinquency trend
- An administrative error involving $1.18M
- A weird moment where A-2 bondholders are expected to voluntarily return money
It’s all very… 2006 pre-GFC vibes.
📬 Who Filed What & When?
| Entity | CIK | Last ABS-15G Filing |
| Depositor: Wells Fargo CMSI | 0000850779 | Feb 6, 2025 |
| Sponsor: LMF Commercial | 0001592182 | Feb 3, 2025 |
| Sponsor: Argentic RE Finance | 0001624053 | Jan 28, 2025 |
| Sponsor: BSPRT CMBS Finance | 0001722518 | Feb 14, 2025 |
| Sponsor: UBS AG (NY branch) | 0001685185 | Feb 12, 2025 |
| Sponsor: Wells Fargo Bank NA | 0000740906 | Feb 6, 2025 |
🏛️ Key Account Updates
| Account | 03/17/25 | 04/17/25 |
| Distribution Account | $5,661.00 | $6,251.11 |
| Collection / REO / Interest Reserve | $0.00 | $0.00 |
So no new reserves, no gain-on-sale deposits. Just basic waterfall functioning — disrupted.
📁 Exhibits
- 99.1: Revised distribution report
- 102: ABS Data file (Filed in April 2025 under ABS-EE)
- 103: Asset Related Document (Filed in April 2025)
🏷️ Tags
wells fargo cmbs trust 10-d/a, 2022-c62 amendment, clawback overpayment, april 2025 cmbs report, cmbs interest shortfall, trust waterfall error, commercial mortgage-backed securities news, sec filing june 2025
Author: Prashant Marathe
Date: June 3, 2025
