The flood act of 1994 provides a very specific process to help resolve borrower disputes on flood zone determinations.

In theory the area on a map should accurately reflect it's susceptibility to flooding, yet in practice, flood maps cannot reflect every rise in terrain in the physical geography of a specific area. There will be instances of "natural islands" of high ground that are inadvertently included in the special flood hazard areas. (SFHA's)

Occasionally a flood map will show a property as clearly in a SFHA, even though the building on the property is above the base flood elevation. However lenders (and flood zone determination companies) are bound by the information shown on FEMA maps unless a valid Letter of Map Amendment (LOMA) exists for the property.

If a LOMA does not exist a mechanism is available for resolving such a situation. A property owner can submit a elevation certificate in support of a request for a LOMA removing the property from a special flood hazard area. This process is between the property owner and FEMA

America's Flood Services will help your borrowers through any dispute process . Upon request we will talk directly with your borrowers to get additional documentation on the exact structure location. If a LOMA/LOMR is the answer, we provide them with specific instructions and send them a detailed information package containing all of the forms that they need to submit their request.

Once the borrower has obtained a LOMA he or she may submit the letter to the lender, and the property will be released from the statutory obligation to be covered by flood insurance.

However, lenders still have a discretionary right to continue to require flood insurance in accordance with their lending documents. Further lenders are encouraged to advise LOMA recipients that floods more severe than the 100-year flood do occur and that they should consider the preferred risk flood insurance policy.

We hope you found this short summary helpful. If you would like to find out more information, of if you’d like a free copy of the most recent FEMA publication "Mandatory Purchase of Flood Insurance Guidelines" please call 1-800-933-5663 ext. 100.

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