Lender and FEMA made mistake on flood zoning for required amount of coverage.

I'm with Joe on this one.. in all my years doing loans, I have had less than a handful that required flood insurance, and most of the people involved in the transaction will have even less experience dealing with it.. That being said, There are no guarantees when it comes to how the government determines a flood zone.. Shortly after hurricane Sandy, FEMA has re evaluated the entire country and amended these zones.. There's also rate increases across the board.. Your rate increase has noting to do with your lender or loan servicer.. you might have recourse if the person who sold you your home knew about this potential increase but did not disclose it to you, but you would need to prove it.. Assuming there's nothing you can do, I would shop for the least expensive insurance you an find.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Flood insurance requirements are in a state of change and the requirements are always subject to change based on new laws or a change in the flood maps. I had a somewhat similar situation about 6-7 years ago where the flood certificate we obtained for closing said no insurance was needed but that changed 2 months after closing and the borrower had to obtain flood coverage. Ultimately it is up to FEMA and they determine what the lender must require the borrower to have for insurance. It is a federal law, the loan servicer is simply enforcing the rules as they are required to do.

I've been doing loans for 22-years. I've had maybe 5 deals during that time frame that have required flood insurance. Everyone in the process from the loan officer to processors, to underwriters have little experience. I am also an insurance agent. In general, you can not transfer someone else's insurance to yourself - EXCEPT in the case of flood insurance. Something is screwy. Maybe the new servicer doesn't understand. Keep making phone calls, and keep plugging away. Hopefully you'll figure it out. As for a mistake? I think you are barking up the wrong tree. Lenders are not responsible for your taxes and insurance, which can change over time. The lender didn't get the policy - you did.

If you have a valid flood insurance policy in your name that covers what FEMA requires it should not make a difference whether it was transferred to you or not. First speak to the insurance company and try to verify that the policy is in force, in your name, covers your property per the most recent flood zone maps. The elevation survey will show whether the actual structure of your house is in the flood zone as opposed to just a part of the property with no structure so I would request a copy of that to show the insurance company and to see if it may help you out in what your coverage may need to be or not be. I'm happy to help with the financing or just give you advice. So if you need more information, or a competing rate quote you can go to my web page, call or email. and use my live support button to discuss or get advice on anything at all with me. Web Address is: http://www.loansfromrob.com/quote/ Email is rhanson@gladewaternational.com and direct phone is 240-752-7549. Good Luck -- Rob Hanson