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Sam · Posted: Tue Apr 06, 2004 11:51 pm Post subject: Flood Certification

Flood Certification is an inspection carried out by the Federal government in order to find out if a property is located in a flood prone area.

Flood certification helps mortgage lenders and companies decide if borrowers are required to purchase flood insurance policy along with their mortgages. Generally, lenders engage a flood determination company in order to analyze a property and its neighboring areas to find out if it is a flood prone zone.

The findings of the company are submitted on a Standard Flood Hazard Determination Form. The fee required for flood certification is regarded as a third party fee paid by the borrower. But the lender often does not demand this fee from the borrower.

In accordance with Section 524 of the National Flood Insurance Reform Act of 1994, borrowers willing to dispute the flood determination put forward by the lender can get together and request the Federal Emergency Management Agency (FEMA) of the United States Department of Homeland Security (DHS) in order to review the determination. Every borrower needs to purchase flood insurance policy if the closing occurs prior to the end of 45 days allotted for response from the FEMA.

The FEMA review process does not consider the elevation of the structure of the property above the flood level. Rather, it considers only the location of the structure relative to the special flood hazard area shown on the National Flood Insurance Program map.

Guest

When we refinanced our house in 2005 a flood certificate was issued for the lender that we paid for. How can we get a copy of it?

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