Presenter: James D. Nadeau
P.L.S., C.F.M., C.F.S.
Session 1: 8:45-10:00 AM
Mortgage Loan Inspections vs. Boundary Surveys
Session 2: 1:30-3:00 PM
Understanding Flood Zones
Session 1: 8:45 – 10:00 AM
Mortgage Loan Inspections
vs. Boundary Surveys
 Differences between MLIs and Boundary Surveys
 Common misconceptions about their use
 Breakdown of a Boundary Survey
MLIs vs. Boundary Surveys
What they do
Mortgage Loan Inspections
• Determine if dwelling or on-site
improvements are in compliance
with municipal/local building set
back requirements at the time of
construction.
Boundary Surveys
• Determine a parcel’s property lines
based on original record
documents which created the
parcel & abutting parcels.
• Show property/lot corners, record
• Determine if on-site improvements
rights of way and easements,
used as loan collateral, horizontally
encroachments, applicable
scale in or out of a Special Flood
appurtenances, lines of occupation,
Hazard Area (SHFA), according to
and area.
FEMA’s Flood Insurance Rate Maps
(FIRMS).
MLIs vs. Boundary Surveys
How determinations are made
Mortgage Loan Inspections
• Use the current locus parcel
reference
• Horizontal scaling of Flood
Insurance Rate Maps indicate
initial flood risk elevation.
Boundary Surveys
• Determine applicable operative
deeds of the locus parcel and
pertinent abutters, to create a
chain of title to determine
junior/senior rights, original
sequencing, and original called for
monumentation.
Inspections vs. Surveys
Definitions
from Black’s Law Dictionary, 6th edition
Inspection
To examine, scrutinize, investigate, look
into, check over, or view for …
Surveys
The process by which a parcel of land is
measured and …
MLI Sketch
• They’re called “Inspections” for a
reason
• No evidence is shown
• No records research performed
• Measurements not necessarily
performed
• Determination is made by
provided deed or reference from
the title company, Realtor, or
lending institution
Boundary
Survey
• Research to determine
order of lot sequence
• Identify evidence in
operative documents
• Perform accurate
measurements
• Perform precise
computations
• Document preparation
MLIs vs. Boundary Surveys
Who should use them
Mortgage Loan Inspections
Boundary Surveys
• Lenders, title companies, and title • Homeowners, business owners,
insurance companies representing
planners, developers, engineers,
a mortgage transaction, and
architects, and other design
investors.
professionals.
• NOT for private homeowner use.
• NOT for contractor use.
MLIs vs. Boundary Surveys
How they are used
Mortgage Loan Inspections
• Used as tools for understanding
and determining loan investment
risk.
Boundary Surveys
• Used to identify property/lot
corners
• Calculate accurate area for parcel
• The title insurer will provide
coverage for the lender (not for
the homeowner).
• Findings are not recorded at
county registries of deeds.
• Create metes and bounds
descriptions
• Create a Surveyor’s report
• Generate final plans that meet
county registry recording
requirements
Mortgage Loan Inspection should ONLY be used
for these 2 things:
•
Determine if dwelling (improvements to be used as collateral) was in
compliance with municipal setback requirements at the time of
construction.
•
Determine if dwelling is located within a Special
Flood Hazard Area, based solely on horizontal
scaling, no elevations are used.
Statements often found on a Mortgage Loan
Inspection, qualifying the product
Mortgage Loan Inspections
Common Misconceptions
 A Mortgage Loan
Inspection has never been
called a Class D Survey.
 A Class D Survey pertains
to Positional Accuracy of
Field Measurements.
 Also called a plot plan, site
plan, mortgage survey.
 Closing statement
Mortgage Loan Inspections
MLIs SHOULD NOT be used for:
 Land Divisions/Subdivisions
 Land Feasibility
 Acreage Calculations
 Site Plans
 Building Permits
Mortgage Loan Inspections
MLIs DO NOT identify:
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Deed overlaps
Junior/Senior rights
Easements and Rights of Way not in current deed
Any land conveyance not in current deed
Typographical errors in current deed
Encroachments
Original boundary evidence
POP QUIZ 2!
 Q: What is the area of
a 100' x 200' parcel of
land?
POP QUIZ! Answer…
Boundary Surveys
The Breakdown
Boundary Surveys
Private & Public Records Research
 Collect information NOT recorded at the Registry of
Deeds
 Municipal offices
 Abutters
 Other land surveyors
 Registry of Probate
 County commissioner’s office
 State agencies
 Historical societies
Boundary Surveys
Registry Research
 Perform chains of title at registry of deeds
 Determine:
 Sequence of conveyance
 Original called for boundary line or corner evidence
 Easements/rights of way
 Typographical errors
Boundary Surveys
Preparation of Deed Sketch
 Worksheet that identifies the various record calls along each
boundary line
 Original deed used to identify the intent of the original
grantor
 Evidence found relative to locative information within the
deeds
 Differing surveyor opinions
Boundary Surveys
Chain of Title
Locus Chain of Title for our office
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1899 - Present: Portland
1871 - 1899: Deering
1814 - 1871: Westbrook
Pre – 1814: Falmouth
 From 1814 – 1820 Westbrook was part of Massachusetts
 Prior to 1760 records would be located in York County.
 Cumberland County was not established until November
1, 1760. Also, both counties were still within the
boundaries of Massachusetts until 1820.
Significant Dates in
Cumberland County History
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Portland was part of Falmouth until 1786.
Yarmouth was part of North Yarmouth until 1849.
Scarborough - July 14, 1658
Falmouth - November 12, 1718
North Yarmouth - 1732
Brunswick - January 26, 1739
Harpswell - January 25, 1758
Cumberland County - November 1, 1760
Lincoln County - November 1, 1760
Windham - June 12, 1762
Gorham - October 30, 1764
Cape Elizabeth - November 1, 1765
Deed Sketch
Boundary Surveys
Field Recon & Instrument Location
 Using the deed sketch, we
field locate all applicable
boundary evidence,
improvements, and lines of
occupation (tree lines,
fences, stone walls).
 Not uncommon to find
occupation lines and record
lines to be in different
locations.
Boundary Surveys
Data Entry/Office Computations
 Review, validate, and verify data
for mathematical accuracy
 Can now determine acreage,
encroachments, boundary corner
locations, easements, rights of
way, etc.
 Determine deed excess and
deficiency
 We create our professional
opinion
Boundary Surveys
Preparation of Final Plan
 Depicts all rendered services,
final findings, and
recommendations.
 Should hold up to professional
scrutiny in a discussion or
dispute.
 Product is prepared in
compliance with State
requirements.
Boundary Surveys
Mark Property Corners
 Return to site to mark
boundary corners and lines
with steel rebar and survey
caps.
 Provides notice to abutters
and future surveyors that
the parcel was formally
surveyed.
 Other monuments can be
placed as requested.
Summary of Key Points
 Mortgage Loan Inspections are only to be used to
determine investment risk in mortgage loan transactions.
 Any determinations made based on accurate measuring
of the land would require a formal land survey.
 Permits made for development projects should never be
based on an Mortgage Loan Inspection Plan.
Any Questions?
Presenter: James D. Nadeau
P.L.S., C.F.M., C.F.S.
Session 1: 8:45-10:00 AM
Mortgage Loan Inspections vs. Boundary Surveys
Session 2: 1:30-3:00 PM
Understanding Flood Zones
Session 2: 1:30 – 3:00 PM
Understanding Flood Zones
 History and purpose of the National Flood Insurance Program
 Creation of the flood zone
 Flood Insurance Rate Maps & their inconsistencies
 Flood zone determinations & the appeals process
We will not cover the following
topics in great detail:
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Elevation Certificates
Formal submissions
Insurance
Community Rating System
Creating elevations from flood studies
Substantial improvement and damage
Hazard mitigation
Regulatory and administrative measures
But we are happy to provide more
information at another time.
Evolution of the
National Flood Insurance Program
 During the early years of flood insurance provided by private
industry, rates were too high because it was optional.
 Data collected in the early to mid- 1900’s indicated most of the
major flood disasters in previous decades were the result of urban
expansion in flood zone areas, with little regard for the natural
resource.
 Traditionally, governments tried to keep water away from the
people by constructing dams, levees, etc., but this was inadequate.
NEW STRATEGY: Keep the people away from the water!
1953: Tennessee Valley Authority initiates first
floodplain regulations
 Objectives:
 Assure the retention of the required floodway areas without
raising flood heights
 Encourage sound land use in the floodplain, consistent with flood
hazard and community land use needs
 Initial approach: “Zero” flood height increase across the entire
floodplain
 Not very practical! Expanded regulation in a way that couldn’t
address:
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individual existing uses
development needs
social, economic, and natural benefits
private property rights, etc.
In an effort to gain approval and funding…
 The Flood Insurance Administration (part of the
U.S. Dept. of Housing and Urban Development)
negotiated a compromise to satisfy Congress.
 Engineered models of a floodway often show an
area larger than those depicted on the flood
maps due to the “no rise” strategy.
 They achieved a smaller floodway width by
squeezing the model to a point that a one foot
rise at any point within the channel would occur.
1968: Congress passed the National Flood Insurance Act,
creating the National Flood Insurance Program
 Program would:
 Provide flood insurance coverage
not generally available in the
public market
 Stimulate local floodplain
management to guide future
development
 Emphasize less costly
nonstructural flood control
regulatory measures
 Reduce Federal disaster costs by
shifting burden from general
taxpayer to floodplain occupants
1973: Flood Disaster Protection Act
 Lending institutions cannot make, increase, extend, or
renew a loan for a building in the floodplain without NFIP
flood insurance.
 It is the responsibility of the lender to:
 Determine if the property is in a Special Flood Hazard Area (SFHA)
 Document the determination
 Ensure the insurance is maintained through the life of the loan
1994: National Flood Insurance Reform Act
 Increased the maximum amount of flood insurance coverage
 Establish a grant program for mitigation plans and projects
 Enacted stricter penalties on lenders to comply
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5 year visit by FEMA to
communities
Increased Cost of Compliance
The NFIP’s approach was based on the rational of selecting a minimum
criterion (no more than one foot) to designate a floodway, that would be
a compromise between prohibiting encroachments into the floodplain,
while permitting economical land use and protection from unreasonable
invasion of private and public rights.
Base Flood Elevation (BFE)
 The height above sea level to which flood
water would be expected to rise in a base, or
100 year flood event.
 100 year flood
 1 % annual chance of being equaled or
exceeded in a given year
 100 year flood has a 26% chance of occurring
over the life of a 30-year mortgage loan
The Floodway
No development is
permitted in the floodway,
unless a licensed engineer
can certify through
scientific analysis that it will
cause “no rise” to the BFE.
Floodway: the main channel of a watercourse, including
adjacent floodplains necessary to carry the selected flood
without increasing flood elevations significantly.
The Effects of Fill on the Floodway
Oppositions
 Officials from various states felt that
“no more than one foot rise” was not
an effective criterion.
 Did not take into account:
 Terrain topography
 Stream slope and side slope
 Upstream watershed development
 Hydrology, hydraulics, water
velocities, water depth
 Ecological and environmental
conditions
 Economic and societal considerations
 Degree of acceptance of land use
regulations
 State and federal statutes and criteria
 Vegetation loss, impervious surfaces
 Bridges, ice blocks, improper fill
Base Flood Elevation
 Insurance - used as an accurate numerical value for
determining flood risk.
 Regulation – used as an accurate numerical value for
permit approvals.
 Design or planning – should only be used as an
approximate or predicted elevation.
NFIP Basic Parts
Insurance
Regulations
Maps
Permissible Rise
 Permissible rise in flood elevation is based on the
assumption that the floodway fringe is completely filled
with structures or earth fill to the elevation of the selected
flood, or is closed off by a wall so flood waters have to pass
down the floodway in the floodway model.
In real conditions, the walls do not exist and flood water will
impact the floodway fringe on both sides of the floodway.
Special Flood Hazard Areas (SFHA)
 FEMA-identified high-risk flood area where flood
insurance is mandatory for property owners.
 These areas have special flood, mudflow, or flood-related
erosion hazards
 Shown on a Flood Hazard Boundary Map or a Flood
Insurance Rate Map (FIRM) as being in an A Zone or V
Zone (coastal flood zones)
A Zones
 AE - An area inundated by 100-year flooding, for which BFEs have
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been determined.
A - An area inundated by 100 year flooding, for which no BFEs have
been established.
AH - An area inundated by 100-year flooding (usually an area of
ponding), for which BFEs have been determined; flood depths range
from 1 to 3 feet.
AO - An area inundated by 100-year flooding (usually sheet flow on
sloping terrain), for which average depths have been determined;
flood depths range from 1 to 3 feet.
A99 - An area inundated by 100-year flooding, for which no BFEs
have been determined. This is an area to be protected from the 100year flood by a Federal flood protection system under construction.
AR - An area inundated by flooding, for which BFEs or average
depths have been determined.
V Zones
 VE - An area inundated by 100-year flooding with velocity
hazard (wave action); BFEs have been determined.
 V - An area inundated by 100-year flooding with velocity
hazard (wave action); no BFEs have been determined.
 VO - An area inundated by 100-year flooding with velocity
hazard (wave action); no BFEs have been determined.
Coastal Flood Zones
Other Flood Zones
 Zone B: 500-year flooding;
or 100-year flooding with
ave. depths of < 1 ft. or
with drainages less than 1
sq. mi., or protection from
levees
 Zone C: outside of 100-
and 500-year floodplains
 Zone X: outside of the 100-
and 500-year floodplains
Flood Determinations
 What is a Flood Determination?
 An official declaration stating whether or not a property lies
within a Special Flood Hazard Area
 Generally referred to as a “Flood Certificate”
 Certificate that protects investors and borrowers by
ensuring flood insurance is purchased for properties in atrisk areas
Uses Horizontal scaling only, no elevations!
 Who uses Flood Determinations?
 Any federally-regulated lender or government-sponsored
enterprise is required to perform a flood zone
determination for any mortgage loan they provide
Bookmark this site!
Plotting a House: Google Earth estimate
Plotting on the
Flood Map
 Names of streets may differ
 Not all streets are shown
 Some shown incorrectly
Challenges with Flood Zone
Determinations
 Flood Insurance Rate Maps (FIRMs) aren’t perfect.
Mapping errors can lead to:
 Incorrect determinations
 Conflicting data
 Maps are outdated
 Watershed is constantly changing
The NFIP understands that these errors exist. Any flood determination can be disputed.
Falmouth GIS
Westbrook
Flood Map
 Arrows show actual
water course
Veteran’s
Bridge
DFIRM
Paper FIRM
FIRMS & DFIRMS
Paper vs. Digital Flood Maps
 The transition could change flood risk & insurance rates.
 “New maps” will still have “old data” in most cases, and can still
have errors.
 Fewer paper copies are being made available to communities, and
not all communities have been supplied with digital maps.
 The datum, not the data, may have changed. The paper maps are on
NGVD 1929 and the new digital maps are on NAVD 1988, which in
the Portland area is a 7/10’ difference in elevation.
Disputing Flood Zone Determinations
 Property owner most prove map error using technical
data
 Obtain a NFIP Elevation Certificate through a professional
land surveyor, who will submit application to FEMA to
request
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Letter of Determination Review (LODR)
Letter of Map Amendment (LOMA)
Letter of Map Revision (LOMR)
NFIP
Elevation Certificate
 Completed by land surveyor
to get vertical scaling data.
Record elevation of lowest
floor of a building.
 Expiration date on form:
March 31, 2012 (still acceptable)
 Does NOT waive mandatory
flood insurance. Only
approved LOMAs and LOMRs
can amend the FIRM and
remove the requirement.
As-Built Elevation Certificates
Findings of the NFIP’s Community Assistance Visits have
indicated that many communities do not secure as-built
certifications of lowest floor elevation.
Elevation documentation based on plans and drawings is
insufficient to assure that the lowest floor of the structure
has indeed been built above the BFE.
Standard Flood Hazard
Determination Form
(SFHDF)
 Lender requests
determination from a private
company (if not already
provided through a
mortgage loan inspection)
 Note “Preparer’s
Information” at the bottom.
This is NOT a determination
made by FEMA.
Private Company
Letter of Map Amendment
Determination Document
(Removal)
 FEMA approved removal
of property out of the
SFHA
 Case Number and “LOMA”
in top right corner
 Signed by FEMA Director
Letter of Map Amendment
Determination Document
(Non-Removal)
 FEMA denied removal of
property out of the SHFA
(mandatory flood
insurance is required)
 Case Number and
“LOMA-DEN” in top right
corner
 Signed by a FEMA
director
Freeboard
 Freeboard is a factor of safety usually expressed in feet above
a flood level for purposes of floodplain management.
 Compensates for the many unknown factors that could
contribute to flood heights greater than the height calculated for
a selected size flood and floodway conditions
 Not required by NFIP standards, but communities are
encouraged to adopt at least a one-foot freeboard to account for
the one-foot rise built into the concept of designating a floodway
and the encroachment requirements where floodways have not
been designated.
 Results in significantly lower flood insurance rates due to lower
flood risk.
• Require development permits, review them carefully for each site.
• Require residential structures to have the lowest floor (including
basement) elevated at least to or above the Base Flood Elevation.
(One foot ABOVE the BFE for non-residential).
•
But remember, Maine has freeboard, which requires an additional foot.
• Require manufactured homes to be elevated and anchored.
• Assure flood carrying capacity of altered or relocated watercourses is
maintained.
• Maintain records of all development permits.
• Verify and document 1st floor elevations of new or substantially
improved structures.
• Maintain adequate records to assure elevations are adequately
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communicated prior to construction projects.
Encourage permits for “Other Development” such as mining,
drilling, filling, grading, paving, etc. in flood hazard areas.
Secure As-Built Elevation Certificates of the lowest floor
elevation.
Floodway encroachments are prohibited unless an engineered
no-rise analysis is done.
If a watercourse is altered, it is required to notify adjacent
communities, the State Coordinating Agency and FEMA.
Any Questions?
Pre-FIRM & Post-FIRM
Pre-FIRM
Post-FIRM
 Built before detailed flood
 New construction and those
hazard data and flood
elevations were provided to
the community and usually
before the community enacted
comprehensive regulations on
floodplain regulation.
 Can be insured using
"subsidized" rates.
 Designed to help people afford
flood insurance even though
their buildings were not built
with flood protection in mind.
built after the effective date of
the first FIRM for a community.
 Insurance rates for Post-FIRM
buildings are dependent on the
elevation of the lowest floor in
relation to the Base Flood
Elevation (BFE).
Pre-FIRM & Post-FIRM Structures
REMEMBER: one portion of a dwelling could be Pre-Firm and another could be Post-Firm.
Build dates can
also effect
insurance rates
 Pre-FIRM: built before the
effective date of the
community’s first FIRM
 Post-FIRM: built after initial
FIRM, OR after 12/31/74,
whichever is later
The map says: “Flood insurance not
available for structures newly built or
substantially improved on and after Oct. 1,
1983 in designated coastal barriers.”
Insurance Impacts
 Mapped “In”
 Mapped “Out”
 Flood risk increased
 Flood risk reduced
 More structures in
floodplain
 Risk not eliminated
 Mandatory purchase of
flood insurance
 Low-cost preferred risk
coverage available
Putting it into perspective…
Pre-FIRM AE Zone
(No Grandfather)
$2235
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Post-FIRM +1 AE Zone
(No Grandfather)
$819
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Post-FIRM -1AE Zone
(No Grandfather)
$5623
Standard X Zone
$1439
PRP Premium
(PRP Extension)
$343
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Single Family
One Floor
No Basement
No Prior Flood Losses
Grandfathering
 Allows a property owner to:
 “Lock in” a previous Flood Zone
 “Lock” in a previous Base Flood Elevation
 Allows premium benefits after:
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Changes in map zones
Changes to compliance issues