2. Why would I need FTISs services?
The Flood Disaster Protection Act of 1973 requires mortgage lenders to secure mortgage loans with a National Flood Insurance Program policy if the property is within a federally designated Special Flood Hazard area.
3. What services does FTIS offer?
We provide lenders with:
one-time flood zone determinations
census tract data
life-of-loan flood zone determinations
4. Can a lender be penalized for not having flood insurance?
The landmark decision in Small vs Norwalk held the lender liable to the homeowner for damages in excess of actual flood damages. According to the Community Development Act of 1994, lenders are responsible for compliance with mandatory flood insurance purchase requirements for the life of the loan.
5. How does FTIS come up with flood zone determinations?
By using a complete hand-mapping procedure which includes Flood Insurance Rate Maps (FIRM), digital street data, census tract data, US Postal Service address and zip code data, aerial photography, and current tax appraisal maps.
6. How are these maps kept current?
We update our inventory of maps and computer data on a daily basis. We obtain and utilize the most recent flood maps electronically from the
Federal Emergency Management Agency (FEMA) Flood Map Distribution Center.
7. How long does it take to get a flood zone determination?
The majority of our flood determinations are returned within 30 minutes. There are no additional fees for Rush requests.
8. What data do I need to provide to get a flood zone determination?
A valid street address is required, If a valid street address is not available data that includes legal description is neccasary. When a valid street address is present, data that includes legal description, survey, or tax parcel number is optional but very helpfull information to guarentee the best determination.
9. How do I request a flood zone determination?
Use the Place Order online service. See the Place Order link.
10. Is life-of-loan coverage available? If so,
a. Does it cover changes that do not result in new map panels, such as those made by LOMAs or LOMRs?
b. How and how often are changes communicated?
c. How are servicing transfers handled?
FTIS offers a fully transferable Life-of-Loan service. If a loan is covered with FTIS Flood’s Life-of-Loan service, FTIS Flood guarantees to notify the servicer of the loan within 60 days of any changes in the flood zone status. These changes may be due to revised FIRMs, LOMAs or LOMRs.
11. Is there a guarantee of accuracy for a flood zone determination and an indemnification backing the guarantee? If so,
a. Does it provide for, at a minimum, refunding all paid flood insurance premiums for inaccurately placing a dwelling "in SFHAs"?
b. Does it provide for compensation for incurred damages at least equal to compensation claimable under a flood insurance policy for inaccurately placing a dwelling "out of SFHA"?
First Track guarantees every FZD with a $1 million Errors and Omissions insurance policy. First Track Flood will refund all paid flood insurance premiums for inaccurately placing a dwelling "in SFHA". If First Track inaccurately places a dwelling "out of SFHA" and flood damage occurs First Track will compensate what the NFIP would have covered had a NFIP policy been in place. (First Track has not had one claim for an inaccurate FZD and maintains an accuracy rate in excess of 99.5%.)