Under the June 2020 Fannie Mae Appraiser Update guidance for the legacy Site SFHA checkbox, part of the lot is mapped SFHA but the dwelling is entirely outside. What reporting action follows?
Correct Answer
A) Check Yes when any part of the site is in an SFHA, and explain; the lender decides insurance
For the specified legacy Site checkbox, report Yes when any part of the site is in the mapped SFHA and explain that improvements are outside if so. The lender’s insurance determination uses the relevant building/loan requirements and does not follow solely from the land checkbox.
Why This Is the Correct Answer
Option A is correct because the guidance states the appraiser must check Yes when any portion of the site is in a FEMA Special Flood Hazard Area. The appraiser can explain that the dwelling is outside the mapped area. The lender ultimately decides whether flood insurance is needed, using resources beyond the appraisal.
Why the Other Options Are Wrong
Option B: Check No, because the improvements are outside the flood zone, and omit any flood comment
Option B is wrong because it says to check No because the improvements are outside the flood zone and to omit any flood comment. The checkbox reflects whether any part of the site is in an SFHA, so Yes is required here, and an explanation helps the lender.
Option C: Leave the SFHA field blank and attach the lender’s certification about the improvements
Option C is wrong because it says to leave the SFHA field blank and attach the lender's certification. The appraiser must complete the field, and the guidance calls for checking Yes when any part of the site is mapped in an SFHA.
Option D: Check Yes if the whole site and the improvements are in Zone AE, but not for Zone A or V
Option D is wrong because it limits Yes to cases where the whole site and improvements are in Zone AE, excluding Zone A or V. The guidance turns on any portion of the site being in an SFHA, not on a particular zone or the whole site being affected.
Any part of site, check Yes
For the legacy Site SFHA box, if any slice of the lot is mapped in the SFHA, the answer is Yes, and the comment explains the details.
How to use: Use this when a question describes a lot that is only partly in a flood zone.
Exam Tip
Separate the appraiser's reporting duty from the lender's insurance decision.
Common Mistakes to Avoid
- -Checking No because the house itself is outside the flood zone
- -Leaving the flood field blank
- -Assuming the appraiser decides whether flood insurance is required
Concept Deep Dive
Analysis
This question tests how the legacy Site section SFHA checkbox is completed under the June 2020 Fannie Mae Appraiser Update. The checkbox is about the site, not just the dwelling. If any portion of the site is in a FEMA Special Flood Hazard Area, the appraiser checks Yes and can explain where the improvements sit.
Background Knowledge
Special Flood Hazard Areas are areas mapped by FEMA as subject to flooding in a base flood event. The appraisal reports the site's flood zone status, while the lender determines flood insurance requirements using flood determination resources and the building's location. Clear commentary about where the improvements sit helps users of the report.
Real-World Application
An appraiser finds that the back edge of a lot along a creek is mapped in an SFHA while the house sits on higher ground. The appraiser checks Yes, comments that the dwelling appears outside the mapped area, and leaves the insurance determination to the lender.
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