FDIC FAQs – What should a bank do if there are discrepancies in the flood zone determinations?

Compliance > Lending > Flood > FAQs
Q:  What should a bank do if there are discrepancies in the flood zone determinations?
 
A:    Federal Emergency Management Agency (FEMA) has instructed insurance companies to use the more hazardous flood zone for rating the policy unless the policy qualifies for the “grandfather rule”.
 
 A bank should ensure the discrepancy hasn’t resulted from a simple mistake, such as an incorrect street address on the determination.
 
 
 
ADDITIONAL INFORMATION:
This Q&A was included in the FDIC’s Flood Insurance Videos, which were updated in 2016, which may be found here:   https://www.fdic.gov/news/news/financial/2016/fil16018.html
 

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