FREQUENTLY ASKED QUESTIONS
Prior to the Letter of Final Determination (LFD), which is issued six (6) months in advance of the map revision date, FEMA coordinates with communities to provide an extensive campaign of public meetings to introduce the proposed changes and review any challenges brought forth by residents and business owners. FEMA also provides online resources, such as their communication toolkit for communities, which is available for download from their website. Within a few months after the LFD is issued, the new maps are posted to FEMA’s Map Service Center, which is publicly accessible.
Example: Mohave County Flood Control just did a very similar thing as well - our maps will be changing mid- to late-2025, and we recently held multiple 'Open Houses' for residents and others to advise them of the changes and receive feedback.
FEMA has no process for notifying individual property owners who are impacted by the issuance of new Flood Insurance Rate Maps (FIRMs). FEMA does provide support to affected communities in communicating the changes via public meetings and other media, as described in the prior answer.
There is no regulatory timeline for lenders to notify borrowers of a change to their flood insurance requirement; however, Fannie Mae and Freddie Mac have a standard notification period of 120 days from the effective date of the map revision. Flood Zone Determination (FZD) companies have established service level agreements with their lender customers for delivery of updated Life of Loan determinations that will still give the lenders sufficient time to carry out their borrower notification processes, based upon their internal compliance procedures. The industry standard for Life of Loan update notifications to lenders is within 60 days of the effective date of the map revision (so in the case of Fannie’s and Freddie’s 120-day standard, they would then have 60 days left to notify borrowers). Note that the 60-day “industry standard” is just that, but individual contractual agreements may vary.
Each mapped community has their mapped area broken down into segments called “panels”. Each panel is numbered and is one of several parts that, when stitched together, form the entire mapped area for that subject community. The Standard Flood Hazard Determination Form (SFHDF), which is provided to lenders to record the flood hazard information for each individual property serving as collateral for a federally backed loan, includes indication of the FIRM panel on which the subject property is located.
Here is an example of a FEMA flood panel:
Since the implementation of FEMA’s new rating program, Risk Rating 2.0, Grandfathering and Preferred Risk Policies (PRPs) are no longer offered. Risk Rating 2.0 does provide a discount for risks newly mapped to the SFHA; however, the ultimate amount of the discount is unclear, as discounts are capped and aren’t fully shown in the premium information returned from the NFIP’s Pivot System (the system utilized by Write Your Own insurers and their vendors to administer the NFIP program).
Here is a link to the FEMA-provided guidance -
https://www.fema.gov/sites/default/files/documents/fema_discount-Explanation-Guide.pdf
NFA’s members agree that access to survey data and inclusion of annotated maps with each LOMR would be beneficial. The reason that they are not always included likely stems from budgetary and/or procedural constraints within FEMA. NFA’s Data & Mapping Committee continues to work with FEMA to share perspective on the usability of their flood products and encourage improvements to make better data (such as this type of LOMC) more accessible to end users.
Prior to the Letter of Final Determination (LFD), there is a 90-day public appeal and comment period. During that time, residents and businesses with supporting technical and scientific information, such as detailed hydraulic or hydrologic data, can appeal the revised flood hazard information on the preliminary maps. Generally, once the maps reach the LFD stage, they are final; however, there have been rare occasions when FEMA has rescinded a planned map revision within the 6-month window between the LFD and the effective revision date.
It is difficult to answer this definitively, as there are a variety of reasons why individual communities may not have DFIRMs, including the results of FEMA’s cost/benefit analysis and individual community budget constraints.
More information on the process for revising flood maps can be found here:
https://www.fema.gov/flood-maps/change-your-flood-zone/revision-process
Borrowers disputing their revised flood zone designations need to discuss the changes and new requirements with their lenders. All Flood Zone Determination (FZD) companies support a dispute process and will provide a full review of contested determinations upon their lender customer’s request. Dispute services are included in the flood determination product and FZD companies are happy to take a second look to ensure accuracy and potentially offer solutions through LOMAs for the borrowers.
FEMA’s rating methodology considers specific characteristics of a building – the Where, How, and What – to provide a more modern, individualized, and equitable flood insurance rate – which likely wouldn’t change in 2 years. However, FEMA updates the various data elements and models used in the rating methodology to develop the rates, so the premium quoted today is likely to be different than the premium quoted 2 years from now. There is a statutory cap on annual premium increases that also comes into play, which is currently capped at 18%.
Here is a link to the FEMA-provided guidance -
https://www.fema.gov/sites/default/files/documents/fema_rate-explanation-guide.pdf
Industry believes that the guidance on this matter within the Interagency Questions and Answers Regarding Flood Insurance are not entirely clear. As a result, NFA and others have asked the Interagency Regulators to opine on this topic the next time they update the document. At present, they have not indicated that an update is forthcoming.
The closest they come to answering the question is in Force Placement 16, which also cross-references Force Placement 1 within the Interagency Q&A, linked here:
https://www.fdic.gov/sites/default/files/2024-03/pr22040a.pdf
This type of LOMR-F must include a description of the portion being removed. The metes and bounds coordinates will then have to be plotted onto the map to determine what portion of the property is actually affected. Flood Zone Determination (FZD) companies have the ability to order the full application file that allows them to accurately determine the intent of the LOMR when the metes and bounds alone are unclear. This type of support service is commonly provided by FZD companies and their clients have come to consider these companies a valuable resource for such challenging analyses.
It is possible that two FZD providers may have differing results as they may use different research methodologies. A recheck of the FZD should be requested in order to seek a resolution to a discrepancy between two conflicting FZDs. In most cases, a resolution can be found if additional information is provided and/or a second review is performed.
Federal law does not allow for an Elevation Certificate alone to be used to remove a structure from the SFHA. This is stated as such on the instructions for the Elevation Certificate. An FZD must be based solely on the currently effective FIRM or any official FEMA revisions to said FIRM. However, an Elevation Certificate can be used to support a Letter of Map Change (LOMC) request to FEMA. Only a LOMC approved by FEMA can remove a structure from the SFHA.
As is the case with an Elevation Certificate, federal law, supported by regulatory guidance, is very clear that an FZD is to be completed using only the flood information shown on the current, applicable Flood Insurance Rate Map (FIRM). If a surveyor, engineer, or local floodplain manager has provided their opinion or elevation data that shows the property to be above the 100-year floodplain, this data can be used in support of a recheck and possibly other remedies, e.g. a LOMC, but cannot be used to overturn an FZD.
No. The 500-year floodplain (Zone X500/Zone B) is a higher risk zone than Zone C/X. However, the mandatory purchase of flood insurance requirement only applies to zones beginning with A or V.
The Standard Flood Hazard Determination Form (SFHDF) is a compliance document designated to facilitate compliance with the flood insurance purchase requirements of the National Flood Insurance Reform Act of 1994. The SFHDF is intended to report the flood status of the structure(s) on a property in order to comply with the lender’s regulatory compliance requirements. An FZD is not a due diligence document, and is provided solely for the use and benefit of the entity named in Section 1, Box 1 in order to comply with the 1994 Flood Insurance Reform Act and may not be used or relied upon by any other entity or individual for any purpose, including, but not limited to, deciding whether to purchase a property or determining the value of a property.
No. All FZDs provided with the same service level (for example, Life of Loan coverage) are priced the same, regardless of whether the structure(s) is determined to be in the SFHA.
Per NFIP rules, a building must be rated using the more hazardous flood zone even though the portion of the building located in the more hazardous zone may not be covered under the NFIP, such as a deck attached to a building. If any portion of an attached deck foundation extends into the SFHA, then the entire building is subject to the SFHA.
Special Flood Hazard Areas that require flood insurance are shown on the FEMA maps as zones beginning with the letters “A” or “V”. Moderate to low-risk areas are shown on the FEMA maps as zones beginning with the letters “B”, “C”, or “X” (or shaded X). Zone D is shown on flood maps in areas with possible flood hazards, but because no flood hazard analysis has been conducted on the area to determine probability, the flood risk in these areas is undetermined. Insurance rates are based on the uncertainty of the flood risk. Although some federally backed lenders may still require it, there are no mandatory flood insurance requirements in a Zone D.
Whenever there is a FEMA Map Panel Revision, all previously issued LOMCs issued on the retired map panel are superseded by the new FIRM unless they are listed on a FEMA Revalidation Letter, which is a FEMA document typically issued with an effective date one day after the date of the new FIRM.
CBRAs (Coastal Barrier Resource Areas) and OPAs (Otherwise Protected Areas) prohibit or limit new development in certain areas. The Coastal Barrier Resources Act (CBRA) was passed by Congress in 1982 to encourage conservation of hurricane-prone, biologically rich coastal barriers. Most new or substantially improved residences, businesses, or other developments in the Coastal Barrier Resources System (CBRS) are not eligible for federal funding and financial assistance, including coverage under the National Flood Insurance Program (NFIP). Development can still occur within the CBRS, as long as private developers or other non–federal parties bear the full cost. CBRS boundaries are shown on maps that were originally adopted by Congress, and with few exceptions, only Congress can change the CBRS boundaries. The official CBRS maps are maintained by the U.S. Fish and Wildlife Service (USFWS). OPAs are established under federal, state or local law or by a qualified organization, primarily for wildlife refuge, sanctuary, recreational or natural resource conservation purposes. The only federal spending prohibition within OPAs is federal flood insurance.