I need some help! We have a loan that is being secured by the land; however, there are two mobile homes and a shed on the property. We were told that the customer is removing the two mobile homes as they will be constructing a new primary residence and for the time being the shed will remain on the property. Our flood determination shows the property to be located in a flood zone A* with multiple structures in multiple zones on parcel; however, the appraisal reflects that the property is located in zone X. The appraisal states that it appears that a portion of the property is located in a FEMA Special Flood Hazard Area and another portion of the property is located outside of the FEMA Special Flood Area. Based on the software, the current building site is outside of the FEMA Special Flood Hazard Area.

I have two different department arguing over whether or not this customer will be required to obtain flood insurance. Can you please advise us of what to do in this instance?

You are responsible for making the determination. You have 2 conflicting sources. It's likely the determination company is only looking at the entire property ("Yep, that property is in a SFHA") while the appraiser is looking at the location of the improvements. I would forward the appraiser's info to your flood vendor and have them prove they are right (or determine they are wrong). The vendor should be able to do map overlays and see the buildings. You can also look at the map online and locate the buildings in comparison to the SFHA.

Thank you David for your feedback!