We have loans against a property that in the past has been determined to be in a flood zone. We have coverage on past loans. With the most recent applications (on the same property) the vendor states the property is not in a flood zone. They're using the same map from the original loan. What do we do with conflicting determinations, and what happens with loans that already have coverage?

I would discuss the discrepancy with the company that completed the Flood Zone Determination - Find out why the difference. Remember the company performing the flood zone determination is guarantying that specific determination.

I agree with anon. Ask the vendor, has it changed, is this based on a survey where part is in and part is out, were they checking the map manually or is this a computer generated result, and finally, triple check, is it in or out?

I'm sure that if you wanted to verify their third determination, you could shop any other flood vendor and they'd be happy to give you a freebie for talking to them about their product. While no guarantee would be in place without an agreement, you'd fell better about the whole deal. When I was shopping for a potential new vendor, we duplicated all requests for a period of time to compare results, response time, service, etc.

Another question to ask your vendor, if they give you life of loan service, is why weren't notified if the determination did change? When did it change, have you been requiring your customer to have flood insurance when they were not required to?

I would ask the vendor why my institution did not receive a notice of the change in flood status of the property. How do you know that they are even keeping up with the changes? You might want to look at other flood vendors.

Also, it is not against regulation for you to require flood insurance on a property that is not in a designated flood area. If you are in doubt, put the insurance on. If you want to drop the requirement for flood insurance after the discrepancy has been settled, that is also acceptable.

I don't think I made myself completely clear on this one. We used two different vendors. The one we were using several years ago stated the property was in a flood zone, and now the vendor we've been using most recently states it is not. Same map number and date though.

You didn't indicate that. But the same response may apply. But the bottom line is, it is either in or out.

Did the vendors use different systems? Ask that it be checked by hand and possibly using a survey if necessary. Part of the property may cross into a SFHA and it depends on whether structures are in that part.

If you give me the specifics, I can use my demo account with DPSI to get a third opinion.

You won't get the actual certificate, but you will have the answer, in or out.

After speaking with Vicky (and with her approval), here's the situation.

The property is in Sandusky, OH. In the late 80s, a major flood determination service said the property was IN a flood zone, and provided life of loan guarantee.

A different service recently determined that the property is OUT.

DPSI, QuestSoft's partner service, says OUT, and provided the answer in less than a minute.

Hope this helps.

Regarding conflicting map readings, will map amendments be involved in these situations? Will the companies providing this life of loan service have map amendments available to them during their review from the legal descriptions?