On November 20, the Federal Deposit Insurance Corporation (FDIC) announced the release of an extensive packet of information for loan servicers and financial institutions. Known as the “Mod in a Box” guide, the packet is designed to help servicers and institutions effectuate a thorough and streamlined approach to modifying loans through the FDIC’s Loan Modification Program. The program is designed to both lower mortgage payments for distressed borrowers and to increase the value of distressed mortgages by modifying them to become performing loans. Under the program, borrowers receive a loan modification with a 31% to 38% housing-to-income ratio through the use of interest rate reduction, amortization term extension, and, in some cases, principal deferment. The FDIC implemented this loan modification approach on August 20, 2008.