Recently, FEMA has cancelled and rewritten policies, citing the flood zone changed to X. We contacted FEMA and they stated that as of July/August 2016, they now run their own determinations and review any policies no longer in a flood zone and have underwriting correct them by cancelling their current policy and rewriting it into a zone X.

I'm reaching out to see if anyone else has experienced this issue. If so, how did you handle/reconcile documenting the life of loan determination when your flood determination vendor still shows the property in a high risk flood zone?

Have you checked to see if FEMA is correct? Have they been remapped?

I have two properties with this same situations. Were you able to find out anymore information regarding this?

We recently received several similar letters. What did you find out?

We just had one come up ourselves for a map change in December. A previous flood determination showed that part of the proeprty was within an SFHA; however the structure was not. We're going to do further research.

After doing some digging and making numerous calls, we found that the letter was NOT issued by FEMA, but by the private insurance company, which participates in the WYO Program. The confusion comes from the fact that the letter is on FEMA letterhead and is signed "underwriting department," and never identifies the insurance company.

When we accept an application with proof of payment the policy will come back with either a different flood zone or coverage amount as what was stated (and needed) on the application. Then it takes almost to two months to get it fixed.

FEMA allows for application and proof of payment, but to prevent these issues going forward can we only allow a declaration be in place before closing? Obviously, this will delay closing because the flood insurance is going through underwriting and if there is a issue, like there has been, would delay a closing longer.

If we have discrepancies, we request the overlay from the insurance company and provide it to our vendor for review. 100% of the time the insurance company is incorrect.