We have a loan in process where the borrower is an insurance agent and the collateral is an improvement located in a SFHA. The borrower is saying that the current flood zone, for example, A-E, will no longer appear on declaration pages. Has anyone heard of this and is it permissible to accept a policy without the flood zone stated? We normally review the declarations page to make sure the correct SFHA flood risk rating is stated, and I would not think that would comply.

I have not heard that, but under the new Risk Pricing 2.0, it would not surprise me. Based on the proposed flood FAQs the regulators no longer care about zone mismatches as long as there is coverage.

I would like to tag onto this... we received a flood insurance declarations from a very well known insurance company and it looks completely different from the usual NFIP policy dec page. There is also no flood zone. While that is okay based on the proposed FAQs, they are still just proposed. After we asked for the more standard version dec page, the agent said that the insurance company worked with FEMA and National Flood Services to have the dec page updated and approved, and that this is the only dec page from here on out effective 10/1. Not sure what to do now. I asked for further details or documentation in regards to the communication between the insurance company and FEMA but not sure I will get anything.

The Appendices to the flood insurance manual (page 166) has templates for the declarations page. It appears the flood zone is no longer included. https://www.fema.gov/flood-insurance/work-with-nfip/manuals/current

We also just received a WYO declarations page (very differented looking) without the flood zone and were advised by the insurance agent that as of 10.01.2021, the flood zone is just a small part of of the rating process and no longer appears on the declarations page.

Thank you for that information COMPL101TX!

From the revised flood manual this looks like the regulation has already been changed.
Anyone else reading this the same way?

Oh - yes - those changes are in full effect.

Thanks Randy.

Need to clarify 1 more thing.

My understanding is that the flood zone will still be provided on the SFHD form, but not on the insurance dec page.
Is that correct?

That would be correct. Without the zone on the SFHDF how would you know if flood insurance was required or not?

That would have been the next question...How would we know if they didn't?
But needed to ask. Thanks again.