What can be done when a lender and insurer have differing flood zone determinations?
In some cases, a lender determines that a property is in the Special Flood Hazard Area (SFHA), but the insurer provides a conflicting determination. It is important for the flood zone designation to be accurate in the event of a flood claim and for the purpose of compliance exams conducted by the particular Federal regulatory entity. A regulatory entity may deem the “two flood zone designations” as a violation of the Act. Therefore, FEMA recommends that the two parties talk and discuss the information used by each (perhaps one company is privy to information that the other is not) in an attempt to reach an agreement on the flood zone designation. If the companies are not able to reach an agreement, then the property owner may wish to request that FEMA make a final determination through the Letter of Determination Review (LODR). If you are a property owner, within the 45 days following the date your lender notified you that your property is in the SFHA shown on the FIRM for your communi
Related Questions
- can a flood zone certification company examine a lenders existing loan portfolio for free or at a reduced rate, in exchange for the lender sending the company future business?
- an a flood zone certification company examine a lenders existing loan portfolio for free or at a reduced rate, in exchange for the lender sending the company future business?
- What can be done when a lender and insurer have differing flood zone determinations?
