We received notification from our Life of Loan Vendor that they received a survey which now indicates our customers property is in a flood zone. There has not been a map update. Based on the survey information are we required to have our borrower purchase flood insurance?

How did they receive the survey?

Regardless, since the bank is now in a position to know that the property is in an SFHA and is underinsured (ie no isurance), you will need to send the appropriate flood notice and begin the 45 day forceplacement process.

I am not sure how they received the survey. I thought we would have to send the notice and start the process, but wanted confirmation for the push back I'm anticipating from the lender. Thanks for your prompt response.

In case he asks for "proof". see page 40 of the mandatory purchase guidelines here:

http://www.fema.gov/library/viewRecord.do?id=2954

The Act requires the force placement of
flood insurance if a servicer or lender
determines that the building securing the
loan is not adequately insured.

Thanks, I have tagged it in my book.