On May 8, 2024 our flood determination company sent an alert that there had been a FEMA flood map change and we were provided a list of properties that were affected. This map change would have affected many financials in our area and not just Farmers State Bank.
The flood map tells you if your property is in an area that would require flood insurance or not, meaning you have a risk of flooding to various degrees. If you are in a flood zone, and the property is financed at the bank, it is required by regulation to obtain and carry flood insurance.
The list of properties was narrowed down to 16 that needed action of obtaining flood insurance, having FSB force place insurance, or getting the property released from our collateral pool. We also had 3 properties that were able to be removed from the flood zone, and the customers were alerted they no longer were regulatory required to carry flood insurance.
All customers affected have been contacted and Onbase has been extensively documented.
The standard operating procedure for the back office related to flood determinations, insurance, and tracking is available on SharePoint for anyone to review.
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