Freddie Mac Optigo | 2026-09-22

Freddie Mac UCC Search Exceptions Need a Closing Owner

Freddie Mac's current Guide connects public-record searches, exception explanations, termination evidence, and final delivery.

Freddie Mac's Multifamily Seller/Servicer Guide, Chapter 29, makes the Seller/Servicer responsible for ensuring a first-lien security interest in fixtures, borrower personal property at or used with the property, and other collateral described in the UCC financing statement. The required public-record work includes UCC searches in every office where a financing statement would be filed under Revised Article 9.

A search result should not wait for the closing table. Before the Origination Date, the Guide requires an explanation in an amended Legal Issues Analysis for any identified financing statement other than a filing by the current lender that will be released at origination. That creates a practical deadline for determining whether each result belongs to the borrower, covers relevant collateral, will terminate, or needs Freddie Mac review.

The issue continues into final delivery. The Guide calls for a Seller's Counsel's Certification stating that the UCC searches reveal only financing statements that have been or will be terminated in connection with the origination, or that Freddie Mac has approved. Search review, payoff and termination arrangements, approval status, and counsel's final certification therefore need to tell the same story.

For borrower-side counsel, one person should own a UCC exception log from intake through delivery. The log should identify the debtor name searched, filing office, secured party, collateral description, resolution, responsible party, and evidence still needed. Any unexplained result should be raised early enough for lender's counsel to complete the required analysis before origination. This note is informational only and is not legal advice for any specific transaction.