Name:   Osms - Subject:   FEMA didn't get you, mortgage company did. Date:   5/1/2014 4:52:47 PM

We've been aware of this problem for lake folks for about three years and I've just gone through it so let me offer a few points for all.

Mortgage companies have used a new FEMA regulation to profit off of mortgagees for a few years now nationwide.  FEMA directed FannyMae and FreddieMac to make sure conforming mortgages had flood insurance if the dwelling was in a flood zone.  An enterprising mortgage industry has developed this requirement into a scam.  If you get a letter from your mortgage company requiring flood insurance, you can pretty well bet the letter is from a contracted company that handles the flood issue for the mortgage company.  These contracted companies are either owned by crooked insurance companies, or they are partnered.  Anyway, the letter typically gives you 45 days to buy flood insurance or they will buy it for you and will be added to your escrow.  They do not tell you that they are buying commercial flood insurance at a rate up to 10 times the cost of FEMA flood.  AND, even if you prove you're not in the flood zone, you can't get your premium money back from a commercial company, but you can if you buy FEMA flood insurance.

If you get the letter, go ahead and call a surveyor and get your Elevation Certificate, which the surveyor can provide within 24 hours.  I paid $230.  Take your Elevation Certificare to a reputable insurance agent who sells FEMA Flood.  Buy a one year policy, sent a copy to your mortgage company to get them off your back.  Then file for an exemption (LOMA) with FEMA-it's on their website.  You'll get the LOMA back in about 6 weeks, then take that to your insurance agent, and FEMA will give you a total refund.

It's a pain, but once you're done, it's a lifetime of no mo flood issues.

BTW, APCo and AL State FEMA office have decreed that the base flood elevation of Lake Martin is one foot above full pool (490') or 491' Martin Datum.  A letter is available from the FEMA state office.

What about the "new maps".  The contour interval lines of the new maps is 20 feet.  If the coutour line starts at 490' the next one is at 510' and most houses fall within that 20', however, the house only has to be above 491'-which you have to have a surveyor prove.

Last word is:  Buy FEMA flood temporarily, don't fall into the mortgage company scam..