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#1533925 - 04/11/11 12:55 PM Flood Zone A13 - policy zone AE
cle Online
100 Club

Registered: 01/27/04
Posts: 104
Is there a problem with a property located in Zone A13 and the flood policy written for Zone AE?

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Flood Compliance
#1534013 - 04/11/11 03:16 PM Re: Flood Zone A13 - policy zone AE [Re: cle]
elcinoca Online
Platinum Poster

Registered: 01/08/02
Posts: 525
Loc: Elizabeth City, NC
From the Interagency Questions and Answers Regarding Flood Insurance:

XIV. Flood Zone Discrepancies

71. What should a lender do when there is a discrepancy between the flood hazard zone designation on the flood determination form and the flood insurance policy?

A lender should only be concerned about a discrepancy on the Standard Flood Hazard Determination Form (the SFHDF) and the one on the flood insurance policy if the discrepancy is between a high-risk zone (A or V) and a low- or moderate-risk zone (B, C, D, or X). In other words, a lender need not be concerned about subcategory differences between flood zones on these two documents.

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#1534115 - 04/11/11 08:01 PM Re: Flood Zone A13 - policy zone AE [Re: elcinoca]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13799
Loc: Central City, NE
A1 thru A30 is equivalent to Zone AE. This is NOT a discrepancy.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1534538 - 04/12/11 02:58 PM Re: Flood Zone A13 - policy zone AE [Re: David Dickinson]
elcinoca Online
Platinum Poster

Registered: 01/08/02
Posts: 525
Loc: Elizabeth City, NC
Quote:
This is NOT a discrepancy.


Isn't that exactly what question 71 is saying?

MarkB

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#1534880 - 04/13/11 10:48 AM Re: Flood Zone A13 - policy zone AE [Re: elcinoca]
arye23 Online
Gold Star

Registered: 03/09/11
Posts: 294
Question 71 is saying that as long as you have an A or V on the determination, and the policy is written for A3, A30, V21, there is no discrepancy.

The question says to be concerned with the letter, which is the actual zone category. If the determination says A (high risk zone) and the policy being written for zone C (low/moderate risk zone).
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CRCM

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#1534889 - 04/13/11 10:57 AM Re: Flood Zone A13 - policy zone AE [Re: arye23]
elcinoca Online
Platinum Poster

Registered: 01/08/02
Posts: 525
Loc: Elizabeth City, NC
My point exactly.

cle's question was "Is there a problem with a property located in Zone A13 and the flood policy written for Zone AE?"

The Agencies stated in their answer "In other words, a lender need not be concerned about subcategory differences between flood zones on these two documents."

Whether one calls it a "discrepancy", a "difference", a "variation" or a "sub-category" the end result is the same. There's nothing for cle to worry about.

MarkB

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#1534924 - 04/13/11 11:23 AM Re: Flood Zone A13 - policy zone AE [Re: elcinoca]
arye23 Online
Gold Star

Registered: 03/09/11
Posts: 294
My fault MarkB; I mis-read your response to David (thought you were the original poster AND that you said "what exactly is question 71 saying"). I totally concur with your response.

My eyes must have been crossing during a break from typing up a presentation for next week's Board meeting.
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CRCM

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