Small-balance commercial loans generally have a minor impact on overall securitization production, but the sector came out with a couple of significant developments last week. Not only did Lehman Brothers market a $500 million transaction; a rating agency added categories of small-balance commercial servicers, acknowledging the growth of the sector.

Lehman Brothers Small Balance Commercial, Series 2007-2, is the second such transaction this year and securitizes fixed- and floating-rate loans on 900 commercial and multifamily properties originated by Lehman subsidiary GreenPoint Mortgage Funding, according to Fitch Ratings, which rated the bonds between triple-A and triple-B-minus.

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