I'm trying to find verbiage in the regulation that discusses when we are required to order a flood determination. I'm specifically trying to identify if land only with future intent to build when the proceeds of the funds are not used to build. For example, a customer is purchasing a lot and has future intent to build, but not for many years. So, literally just a land/lot loan, no construction. Is a flood determination required?

From the FRB examination manual:

Standard Flood Hazard Determination Form
When an institution makes, increases, extends, or
renews any loan secured by improved real estate
or by a mobile home, it must use the standard flood
hazard determination form (SFHDF) developed by
FEMA6 to determine whether the building or mobile
home offered as security property is or will be
located in an SFHA in which flood insurance is
available under the federal flood insurance stat-
utes.

FDIC:
Standard Flood Hazard Determination Form
When an institution makes, increases, extends, or renews any loan secured by improved real estate or by a mobile home, it must use the standard flood hazard determination form (SFHDF) developed by FEMA to determine whether the building or mobile home offered as security property is or will be located in an SFHA in which flood insurance is available under the Federal flood insurance statutes.

[quote]'m trying to find verbiage in the regulation that discusses when we are required to order a flood determination. I'm specifically trying to identify if land only with future intent to build when the proceeds of the funds are not used to build. For example, a customer is purchasing a lot and has future intent to build, but not for many years. So, literally just a land/lot loan, no construction. Is a flood determination required?[/i]
No. Look at the definition of "building" in the reg. It classified that is it s walled and roofed structure or one that is under construction. If your loan proceeds are secured by bare land, you don't have a "designated loan".

Are we allowed to pull (and charge for) a flood determination on bare ground? I have some lenders arguing that knowing the flood zone status of a residential lot could significantly impact the value.

Are we allowed to pull (and charge for) a flood determination on bare ground?

Sure have at it, but it should already be considered in the appraisal by the appraiser.

And we would only do this in cases where we are doing an internal evaluation instead of a full appraisal.

Thanks Randy!