The appraisal states property is in flood zone and the Flood Determination says No. This is 117 AG land with a movable cabin. There is a creek that runs through the land and according to the appraiser's map part of the land is in a flood zone. Anyway I told the LO that this should be resolved. The LO is wanting to know what regulations says this needs to be addressed. Can someone please help me with this.

Thanks.

Per the flood requirements, you aren't required to have flood info on the appraisal, but since it has conflicting info, it would cause me to dig deeper - like you've done. Here's what I would tell the loan officer:

"The regulation requires us to complete a SFHDF. The Flood Insurance Act says that if we outsource this we are still responsible for the accuracy. The appraisal indicates our outsourced SFHDF may not be accurate. Therefore, we should have it verified."

I would send the appraisal info to the flood vendor and ask them to re-verify their determination.

Movable cabin?? This isn't a flood issue unless you are taking the cabin as collateral and then they could no longer move it around in the flood zone. Having a movable cabin in a flood zone would be a violation of flood plain ordinances.

Thanks David and rlcarey.

We see similar situations all the time where a portion of the land is in a flood zone (which causes the appraiser to say the property is in a flood zone), but the building isn't in a flood zone, and that is causing the discrepancy between the appraisal and SFHDF.