Flood Zone Cert

[NC Appraising]

This is the main issue:

I have researched this, called corelogic, called FEMA, called my software provided, etc.

If the dwelling is located outside of the flood zone, but the site is in the flood zone, the flood cert will come back as X and not AE. Your software does the same thing...be careful.

This makes sense from a lending perspective....insures insure the dwelling and not the site. So the lenders need to know this for many reasons....ltv...can the borrower afford the additional flood insurance payments, loss mitigation, etc.

OF COURSE corelogic comes back with we have proprietary products. Not the case. They cert the dwelling, not the site. THEY are trying to sell a product too...….

As always, exceptions to the rule. Old maps, Loma, recent survey, just wrong, etc.

I have recent surveys that states the rear site is in the flood zone, but not the dwelling (so I mark it AE), so the lender sends corelogic cert certificate. Of course corelogic is right (monkey is off the lenders back, so they do not give a rip).

I just have a statement to the fact....a battle not worth competing. The site is, the dwelling is not...see map and flood cert.

 

[NC Appraising]

One more thing.

Appraisers think their software providers Flood IS also correct. They will and their cert provider will also.

As I said above, they are partially correct. I think many appraisers rely on their software, when their software is doing the EXCAT same thing the Flood Cert providers are doing…….only making the subject an AE if the dwelling is located in the flood zone. BUT, where is this reported at in the form??? The site section???

The form asks if the site is located in the flood zone....the Flood Cert is answering if the Dwelling is located in the flood zone? - This is the problem.

 

[Tim Hicks (Texas)]

One more thing.

Appraisers think their software providers Flood IS also correct. They will and their cert provider will also.

As I said above, they are partially correct. I think many appraisers rely on their software, when their software is doing the EXCAT same thing the Flood Cert providers are doing…….only making the subject an AE if the dwelling is located in the flood zone. BUT, where is this reported at in the form??? The site section???

The form asks if the site is located in the flood zone....the Flood Cert is answering if the Dwelling is located in the flood zone? - This is the problem.

Exactly! You are appraising the entire property, not just the dwelling. If any portion of the subject site is in the flood zone you must check "yes." Any comments you make after that is up to you. However, I would not change my report unless you clearly know none of the site is in the flood zone. The only true proof is a survey with site elevations. Almost always the survey shows some part of the lot is in the flood zone and the flood cert is only worried about the dwelling.

 

[Raven59]

If any portion of the subject site is in the flood zone you must check "yes."

Didn't know that. It was my understanding one mark's yes if the improvements fall within. Pretty sure there's an FAQ out there about this. Always safe to say yes but on tracts where the 100-year is some some distance away marking yes does not make sense.

 

[NC Appraising]

Didn't know that. It was my understanding one mark's yes if the improvements fall within. Pretty sure there's an FAQ out there about this. Always safe to say yes but on tracts where the 100-year is some some distance away marking yes does not make sense.

Hillbilly,

Curious, how did you come to that determination if no FAQs or guidelines are out there? Lender pressure, got tired of battling over the issue or was just brain washed (appraisers get brain washed easy....20% GLA rule lol.

I think many appraisers just went along for the ride and agreed with the lender.

To me, it was common sense, since the question was in the site section of the report and not in the improvement section of the report? Based on my research two years ago, the only guidance I found was from FHA on this matter. Sorry, do not have time to look it up.


But.....the answer can be found in the 1004. I think the state should make us read the entire 1004 and then sign something that said we read it before we can get our licensed.

He is the answer: (may have to click to expand).


"any portion of the site". It does not even speak of a dwelling.

 

[Raven59]

Hillbilly,

Curious, how did you come to that determination if no FAQs or guidelines are out there? Lender pressure, got tired of battling over the issue or was just brain washed (appraisers get brain washed easy....20% GLA rule lol.

To me, it was common sense, since the question was in the site section of the report and not in the improvement section of the report? Based on my research two years ago, the only guidance I found was from FHA on this matter. Sorry, do not have time to look it up.


But.....the answer can be found in the 1004. I think the state should make us read the entire 1004 and then sign something that said we read it before we can get our licensed.

He is the answer: (may have to click to expand).
View attachment 38867

"any portion of the site". It does not even speak of a dwelling.

Like I said...thought I saw it in a FAQ. Will dust off the brain cobwebs and see if I can find it. There are many things the forms state that Fannie/Freddie have clarified later.

 

[Raven59]

I'll look in a short while but here is one reference recently published
https://www.fanniemae.com/content/guide/selling/b7/3/07.html

 

[NC Appraising]

Here are two different homes that are located in the same PUD.
1. Both dwellings are located outside of the flood zone.
2. Both of the rear sites are located in the flood zone.
3. I do not have CoreLogic flood cert, but data came from county website and appraisal software provider.

One home is stated at being in the flood zone, one is not. Just an example of how reliable the maps can be.

May have to click to expand:

 

[Mike Kennedy]

Hey Mike..

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

Thank again..

 

[NC Appraising]

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