Appeals

Property owners may appeal a lender's flood zone determination through a LODR. The borrower and lender must jointly submit the request to FEMA within 45 days of the lender's notice to borrower stating the building is located within the SFHAs. The LODR review process enables FEMA to verify whether the building’s location was correctly identified on the applicable FIRM.

A successful LODR releases the lender from the statutory obligation of requiring the purchase of flood insurance and identifies the building as being in a low-to moderate flood risk area. However, lenders retain the prerogative to require flood insurance as a regulatory safety and soundness measure even without the federal requirement.

Borrowers who have reason to dispute the flood hazard determination of a lender may request, jointly with the lender, that FEMA review that determination. FEMA will make its determination within 45 days of receipt of all necessary data. If the request for review is related to a loan and the loan closing occurs before the end of the 45-day window for FEMA’s response, the purchase of flood insurance is required as outlined in NCUA regulation § 760.3(a), in general.

If the lender determines the structure is not located in a SFHA through the review process, and if the lender waives the flood insurance purchase requirement, a borrower may obtain a premium refund if no claim on the policy has been made.

The Flood Hazard Determination Review process does not consider the elevation of the structure above the flood level. It considers only the location of the structure relative to the SFHA shown on the effective FIRM.

Last updated on December 01, 2022