What is the FDIC Net Present Value tool?
Mediators are required by statute to use the Net Present Value tool developed by the FDIC. This tool is sometimes referred to as “mod in a box.” The Net Present Value tool will not compel any result during mediation, rather, it will calculate for the homeowner the amount of an affordable mortgage payment and for the lender, it will calculate whether modifying the mortgage loan is in its financial interest. More information about the tool can be found at the FDIC’s web site.
