Moody's Eyes Mortgage Cap CMBS Classes

Classes E and F of Mortgage Capital Funding Inc. multifamily/commercial mortgage pass-through certificates, series 1998-MC3, have been placed on review for possible downgrade by Moody's Investors Service. The actions were attributed to interest shortfalls related to the Comfort Inn--Marietta Loan that are expected to begin with the May 2008 payment date. The loan has been in special servicing since October 2001. "The master servicer, Capmark Finance Inc., has advanced approximately $2.0 million on this loan and intends to begin recovering its advances commencing with the May 2008 payment date," Moody's reported.

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