Can a lending institution use a flood zone determination that was completed for a previous transaction?
A lender may only rely on a previous flood zone determination when increasing, extending, renewing or purchasing a loan, not when a lender originates or makes a loan. The previous determination must have been completed within seven years on the same property and recorded on the Standard Flood Hazard Determination Form. Furthermore, the lender must confirm that no map revisions or updates since the original determination have placed the property into the Special Flood Hazard Area or affected the area of the property. 11. If a prior flood zone determination stated that a property was not in the Special Flood Hazard Area (SFHA,) but a more recent determination based upon a revised flood map states that it is now within an SFHA, can the property be Grandfathered out of the flood zone, thereby waiving the flood insurance requirement? The mandatory purchase of flood insurance decision must be based on the current Flood Insurance Rate Map for the propertys community. The effective flood map s
Related Questions
- How long before the loan closing should a lending institution complete or obtain a Standard Flood Hazard Determination Form?
- Can a lending institution use a flood zone determination that was completed for a previous transaction?
- When is a lending institution required to make or obtain a flood zone determination?
