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Net Present Value (NPV) Calculator Background and Disclaimer
This NPV calculator (Calculator) is being made available to the public by the Federal Deposit Insurance Corporation (FDIC) based on the agency's use of the tool during the resolution of IndyMac Federal Bank, a large mortgage lender. An NPV calculation may assist in evaluating the costs of loan modification compared to foreclosure.
The FDIC has taken reasonable measures to ensure that the Calculator accurately implements certain widely-accepted formulas for calculating net present value. However, the FDIC makes no express or implied warranty regarding such formulas, any information or data used in the Calculator, or any output generated through use of the Calculator, and hereby expressly disclaims all legal liability and responsibility to persons or entities that use or access this Calculator and its content. When properly used, the FDIC NPV Calculator can provide useful information to anyone faced with a decision about whether modification of a loan or foreclosure is the least loss option. Nevertheless, any decision concerning the relative cost of the two options must be based on the particular circumstances of each borrower and any applicable laws and regulations.
Thus, while the FDIC provides the Calculator itself, it provides neither the specific numbers needed for application to a particular case, nor the assumptions underlying the choice of appropriate numbers to input. Those choices are left to the particular user, and the usefulness of the Calculator as a decision-making aid depends on the reasonableness of those choices. The validity of the result is dependent on the accuracy and completeness of the information input into the calculator by the user. The usefulness is also dependent on the applicable law and regulations, and the Calculator does not incorporate those variables. Accordingly, the FDIC IS NOT RESPONSIBLE FOR ANY RESULTS THAT THE CALCULATOR MAY PROVIDE IN A PARTICULAR CASE OR ANY DECISION BASED ON THOSE RESULTS.
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