I am confused and I need your help. I have had this problem thrown at me and I have gotten to the point where I don't know where to go next.

We have a loan on the books (1st and 2nd RE) our original flood cert shows an "A" zone. I noticed that the flood insurance had an "X". So that obviously needed to be addressed. I contacted the insurance company and they stated that they pulled a flood cert from the FEMA website stating that the property is partially in a flood zone, but no structures are in the zone. (they have sent me the certification). I have pulled plat maps and done some additional research and it appears they are correct ... what needs to happen now? Should we attempt to re-do the flood cert? Can we use the determination that the insurance company sent us?

Contact your flood cert vendor and have them look at it again. Ours also provides us with an overlay map that shows what structures they are looking at and where the Zone A is. That has been very helpful.

Our flood vendor reconfirmed their findings, and sent proof. The property is barely in the flood zone and the buildings are in the flood zone.

Our flood cert is what matters right? So, now I have to have the insurance policy changed to reflect what our vendor has found?

Yes, and yes you will need to work with the insurance company to get the policy corrected. Keep in mind that the insurance company pulls their own flood determination, which appears to conflict with yours. You will want to ask them to run a manual determination on their end. If they balk at the request, send them this memo from FEMA (below) and a copy of your determination. And of course, document, document, document your attempts to get the policy corrected.

http://www.nfipiservice.com/pdf/bulletin/w-08021.pdf

Thank you ... I appreciate the help!

"Yes, and yes you will need to work with the insurance company to get the policy corrected."

I would leave that to the borrower and not interject the bank into the middle of this. Tell the borrower what is required and why and let them deal with their agent.