Flood Zone Cert

[FMV]

Hey AF-

So the AMC/Lender-(really dealing with not-so-bright folks here).. sends me over a one sheet FEMA Flood Zone Cert stating the subject is in Flood Zone AE.. when I have pulled and placed in the report reflecting Flood Zone X-500-(from my appraisal software-so not sure who to rely on with this information).
Already getting less than MINIMUM WAGE on this assignment!!! Plus being an FHA Assignment.
Attempted to locate some good threads online here in the Forum to answer this-but couldn't locate any..

I placed the following comments in the report:
THE SUBJECT STRUCTURE APPEARED TO BE JUST OUTSIDE THE FLOOD HAZARD AREA, AS SUCH, THE APPRAISER IS NOT AN ENGINEERING SPECIALIST AND IS NOT ABLE TO DETERMINE WHETHER THE SUBJECT IS ACTUALLY OUTSIDE THE FLOOD HAZARD AREA.

I understand they want the X-500 changed to AE, but do not want to be "Misleading" in any way here.. I have thought about changing it to make them happy and placing the Flood Cert they sent over in the report.. but idk.. any thoughts?? Any additional good commentary is welcome on this as I am simply trying to put this file to bed!!

 

[Mike Kennedy]

SUGGEST double checking on FEMA >> https://msc.FEMA.gov/portal/home

"The FEMA Flood Map Service Center (MSC) is the official public source for flood hazard information produced in support of the National Flood Insurance Program (NFIP)"

 

[FMV]

Hey Mike..

Thank you, sir.. I was like DUH.. I have that website saved already in my favs.. lol!!

Thank again..

 

[Raven59]

Statement of Assumptions and Limiting Conditions: The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.

The final responsibility to determine whether a property is located in a special flood hazard area is the originating lender.

If the lender provided you the flood cert and unless you know its the wrong location, I would use it maybe note in the report it is inconsistent with the service provided by your software vendor. The Statement of Assumptions and Limiting Conditions should cover you otherwise.

 

[Carnivore]

Statement of Assumptions and Limiting Conditions: The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.

The final responsibility to determine whether a property is located in a special flood hazard area is the originating lender.

If the lender provided you the flood cert and unless you know its the wrong location, I would use it maybe note in the report it is inconsistent with the service provided by your software vendor. The Statement of Assumptions and Limiting Conditions should cover you otherwise.

I had a similar situation: I provided the map and date. The AMC came back and said correct my report and add their flood Cert from some behind the times Flood Cert Company. Problem was the So Called Flood Cert Company was using an older nap date. Mine was the most current. I told them to get their money back from that company.

Didn't matter the AMC insisted i include there cert. I put it in report but did not change the form portion, i kept mine there where it belonged.

Maroon's just Maroon's

Sigh!

 

[ICT RE]

I had a similar situation: I provided the map and date. The AMC came back and said correct my report and add their flood Cert from some behind the times Flood Cert Company. Problem was the So Called Flood Cert Company was using an older nap date. Mine was the most current. I told them to get their money back from that company.

Didn't matter the AMC insisted i include there cert. I put it in report but did not change the form portion, i kept mine there where it belonged.

Maroon's just Maroon's

Sigh!

That’s actually a disconcerting story. Sure sounds like the AMC was trying to... well.

Possibly something I would have at least alerted my state board to.

 

[Raven59]

There was a lawsuit in my area where the third party vendor for the lender selected the wrong improvement location. The correct location was a few houses up the street. The lender did not require flood insurance and six months later the entire house was destroyed by a flood. I learned that courts have universally held neither the National Flood Insurance Act of 1968 nor the Flood Disaster Protection Act of 1973 creates a private right of action for consumers. Basically, the flood insurance was required for protection of the bank and not the consumer. The consumer needs to do their own flood plain check.

There is case law all over the US rejecting the lender liability based on an incorrect flood zone determination. However, the lender can be held responsible in retaining a third party where there is evidence the bank should have known that the report was incorrect. Some of the court findings seem to be in conflict with HUD and GSE statements that it is the lender's responsibility. Again, most consumers believe the flood cert is done for their behalf.

 

[glenn walker]

Hey AF-

So the AMC/Lender-(really dealing with not-so-bright folks here).. sends me over a one sheet FEMA Flood Zone Cert stating the subject is in Flood Zone AE.. when I have pulled and placed in the report reflecting Flood Zone X-500-(from my appraisal software-so not sure who to rely on with this information).
Already getting less than MINIMUM WAGE on this assignment!!! Plus being an FHA Assignment.
Attempted to locate some good threads online here in the Forum to answer this-but couldn't locate any..

I placed the following comments in the report:
THE SUBJECT STRUCTURE APPEARED TO BE JUST OUTSIDE THE FLOOD HAZARD AREA, AS SUCH, THE APPRAISER IS NOT AN ENGINEERING SPECIALIST AND IS NOT ABLE TO DETERMINE WHETHER THE SUBJECT IS ACTUALLY OUTSIDE THE FLOOD HAZARD AREA.

I understand they want the X-500 changed to AE, but do not want to be "Misleading" in any way here.. I have thought about changing it to make them happy and placing the Flood Cert they sent over in the report.. but idk.. any thoughts?? Any additional good commentary is welcome on this as I am simply trying to put this file to bed!!

Yes the flood( cert- is ) your salvation because what most appraisers don't get is a FEMA maps are **** and looking at a large area NOT an-individual parcel of land or a LOT ! A flood Certification is an- insurance company who insures the lender the SUBJECT is not in A FLOOD ZONE - When a lender comes back I am like no problem send me th flood certification and I place it into my report- The Flood Certification is the appraisers best friend LMAO

 

[Carnivore]

Here is what I use. Play with it a little and you can see how helpful this is : Here is a address W. Third St, Lincolnton, NC 28092

This works for me very well...

https://flood.nc.gov/ncflood/


Editorial Comment: This stuff jerks my chain really bad...The house at the end of that street is Clearly in the Flood Zone. These lenders all running around whining about appraisal fee are to high ,,,we want to save the Consumer money nonsense. The annual premium for that house is $407 just a little over a dollar per day ...Our appraisals often point out physical issues that should be repaired before a Buyer signs the BIG Stack of papers to get their loan. All the paper work is just legalize Crap to protect the lender.

Penny Wise and Pound Foolish

 

[Sid Holderly]

Many places also have a LOMA which modifies the flood designation for a particular property. Many properties along a lake have the edge of the property in a flood zone (generally AE) and a LOMA stating the house is above the AE flood line elevation. Most AMC's requires stating the property is in an AE zone, a couple feet of it is, however, the house is on top of the bank many feet above the flood line. In the past local banks knew the area, now when the owners get a new mortgage from a larger lender they have to get an elevation survey (a LOMA is created) stating the house is not in the flood plain. The lender may or may not require insurance. The cost of flood insurance for one year is about 1 to 2x the cost of a flood survey in this area.

Around the local lake the value of waterfront (lake level) home is about the same as one on a high bank with good stairs to the waterfront. One requires flood insurance and the other most likely does not.