The servicer must release the borrower from liability for any deficiency associated with the Fannie Mae mortgage loan upon successful completion of a Fannie Mae short sale for the following mortgage loans:
mortgage loans that do not have MI; and
mortgage loans that have MI, but the mortgage insurer has granted Fannie Mae delegation of authority (see Processing a Fannie Mae Short Sale for a Mortgage Loan With Mortgage Insurance).
The servicer must provide a deficiency waiver to the borrower at the closing, if applicable.
While use of the Deficiency Waiver Agreement (Form 189) is optional, it reflects a minimum level of information that the servicer must include.
For more information please see: D2-3.3-01, Fannie Mae Short Sale.