Freddie Mac Optigo | 2026-10-19

Freddie Mac Title Exception Requests Must Make the Case

The current Guide requires more than the exception document: the analysis must identify the trigger, address mitigation, recommend acceptability, and preserve approval for delivery.

Freddie Mac's current Multifamily Seller/Servicer Guide, Chapter 29, requires the Seller/Servicer or its counsel to obtain, read, and analyze each document that creates an exception to title insurance coverage. Section 29.2 identifies eight categories that can require written analysis and express approval, including risks to property use or operation, mortgage enforcement or lien priority, Seller/Servicer representations and warranties, safety or environmental concerns, material adverse effects, certain transfer rights, and matters separately requiring analysis under the Guide or Legal Issues Analysis.

Timing is part of the approval request. If the required analysis was not included in the Legal Issues Analysis or other required legal analysis submitted before the Commitment became effective, the Guide requires submission no later than two business days before the anticipated Origination Date. The written request must go by email to the applicable Multifamily Attorney and Legal Analyst, identify the anticipated closing date and pool name when applicable in the subject line, and be uploaded to DMS.

The analysis must identify the applicable title-exception category, recommend a way to mitigate the risk or explain why mitigation is unnecessary or unavailable, and recommend whether the exception is acceptable. The recommendation must expressly state why Freddie Mac should consider accepting the exception and provide enough detail for a decision without requiring the reviewer to read the underlying document. Delivering that document alone does not satisfy the written-analysis requirement.

For borrower-side counsel, one title-exception log should track the source document, exception number, Guide category, risk, proposed mitigation, approval deadline, analysis owner, submission evidence, and express approval. At final delivery, copies of approval emails for submitted exceptions must accompany the Title Insurance Policy Certification, final title policy, and required endorsements. This note is informational only and is not legal advice for any specific transaction.