Does the lender need to review the "Building Description" on the NFIP policy? I have never reviewed the "Building Description", and now we are being questioned, that the description does not match up with the description stated in the appraisal report.

What sort of mismatch are you talking about? On an NFIP policy, the building description is limited to one of 10 available for Residential Buildings and one of 8 available for Non-Residential Buildings. I highly doubt that an appraiser has any such limitations.

Let us know an example, I am curious. Oh, and by the way, who is telling you this?

The subject is a mixed-use building - commercial on the bottom and 3 residential units on the top. The building description shows: "2 RES APARTMENTS, 1 COMMERCIAL".

What is the square feet of the commercial area versus the residential areas. If the building description on the flood policy is 2 RES APARTMENTS, 1 COMMERCIAL, then the agent just made it up, as it does not conform to the Flood Insurance Manual.

Plus, I am not sure why you would care. It would like the policy being rated in the wrong flood zone. As a lender you care about the coverage amount. As far as everything else, that is between the borrower, their insurance agent and the NFIP.