When it doesn’t seem right to charge

Answered by:

Question:

If we know property securing a loan is not in a flood zone, isn’t it unfair for the borrower to be charged a fee for a flood hazard determination?

Answer:

No, because you aren’t deemed to legally “know” the flood hazard status of property until that status has been properly documented on the Standard Flood Hazard Determination Form. Think of it as good news for the borrower if the property is not in a flood zone. And think of the SFDHF as a safeguard against faulty informal opinions about flood status.
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