I have a status change that indicated the property was now in a flood zone. The customer has flood insurance already, but it lists zone X. What am I required by regulation to send to the borrower? Is there form language for this somewhere?

You have to send them the required notice. There is no exception if flood insurance is already in place.

The zone for rating purposes will be grandfathered providing the insurance was in place prior to the map change.

We add the following statement at the top of the notice:

You are being provided this notice due to requirements under Federal regulations.

We are in possession of the necessary flood insurance documentation for your loan renewal and no action is necessary on your part.

Reading this made we think of another question. If a loan with a property remapped into a flood zone falls under the escrow rules criteria then would be required to escrow? A map change would not be a MIRE event but want to make sure I'm not missing something.

A map change is not a MIRE event. Therefore, you don't have to escrow the flood insurance. You need to notify and require adequate insurance. That's it.

Dan, so would we not need to request the zone be change on the policy?

The next renewal will show it grandfathered.