NFDA Update & Key Initiatives 19th Annual NFDA Conference March 22, 2016

Today’s Discussion The NFDA and its role 2015 Industry Statistics Notable Accomplishments Key Initiatives for 2016

The NFDA For over 25 years, companies have offered flood determination services. Non-profit organization comprised of flood determination companies, resellers and industry associates. 20 active members; Executive Members represent more than 90% of all flood determinations performed nationwide Administers the NFDA Certification Program which provides an opportunity for companies to be recognized for achieving an exemplary level of professionalism with a focus on accuracy. Promotes and supports the NFIP and its purpose and advocates for positive changes to the Flood Program. The NFDA is a national, non-profit trade association established more than 20 years ago. Its membership is comprised of companies in the business of making, distributing and/or using flood zone determinations and our flood determination company members produce more than 90% of all flood determinations made nationwide.

NFDA Member Survey NFDA conducts an annual survey of its Executive-level Member Companies to compile statistical data related to services provided. Flood Zone Determinations Completed 2015 survey results*: 16,351,451 flood determinations completed for lenders 2,554,883 flood determinations completed for insurance 278,249 flood determinations completed for others Customer Service Call Volumes Handled over 690,000 non-sales related phone calls in 2015 alone. Survey categories include: Flood zone determinations completed, LOL activity, Customer service, Order processing statistics, Training, and Claims. This data has been valuable in understanding volumes of determinations produced by the industry and for tracking trends over time, as well as to provide perspective for other stakeholder groups regarding the industry’s use of maps and data products and overall contribution to the flood industry. *based on the response of 10 NFDA Executive Member Companies © 2013 National Flood Determination Association ©2010 National Flood Determination Association

NFDA Member Survey Life of Loan Determinations affected 8,013,836. Determinations resulting in a status change: OUT to IN SFHA: 73,123 IN to OUT of SFHA: 73,402 Determinations impacted by map revisions not resulting in a status change: Remained IN SFHA 218,649 Remained OUT of SFHA 7,231,175 In 2015, over 155 million determinations were tracked for map changes. *based on the response of 9 NFDA Executive Member Companies ©2010 National Flood Determination Association

Notable Accomplishments NFDA – FEMA Coordination Meetings Improved Regulatory Product Delivery Regulatory Data Inconsistencies Revalidation Letter Delivery Accelerated LOMC Delivery / Digital Downloads Mass LOMA Pilots Standard Flood Hazard Determination Form (SFHDF) Format Flood Zone Discrepancy Working Group NFDA – FEMA Coordination Meetings Exploration of new and improved solutions Collaboration with FEMA and it’s contractors towards new mapping products and initiatives. Improved Regulatory Product Delivery Prior to 2010, hardcopy and digital products maps were delivered on inconsistent schedules Delays in FIRM Database delivery led to map revision processing issues Following changes implemented, all final regulatory products were delivered consistently ahead of the revision dates. Regulatory Data Inconsistencies Due to a variety of factors, hardcopy and digital products at times showed different data elements Conflicting data between the two product led to discrepancies and confusion Improved quality standards implemented by FEMA HQ greatly reduced the frequency of these issues Revalidation Letter Delivery Prior to 2012, letters were typically received from 1 day to 8 weeks post-revision date. Communities typically received information ahead of revision. Working with FEMA, a new process was put into place in 2012 where NFDA members were notified of revalidations at the same time as the communities. Revalidation letters were typically received by determination companies after the effective date of the revised maps. FEMA HQ modified the revalidation delivery cycle to ensure NFDA determination companies were provided the digital copies of the letters at the same time they were mailed to communities (often ahead of the revision date). Change greatly improved the revalidation cycle and significantly reduced false notifications and/or discrepancies. Accelerated LOMC Delivery / Digital Downloads 30,000+ LOMAs issued in 2013 / 32,000+ issued in 2014. Prior to June 2013, subscribers received CDs bi-weekly. Approximately 15-20% of disputed certifications resulted from not receiving new LOMC information in a timely fashion. In June 2013, after exploring solutions with FEMA, LOMAs were made available using a weekly digital download process, dramatically reducing turn time and improving data quality. Partnered with the Map Service Center to transition the traditional biweekly CD LOMC distribution protocol to a weekly digital download cycle. Dramatically reduced issues related to the delay in publishing of new LOMC cases. Mass LOMA Pilots Supported FEMA with the implementation of numerous large scale Mass LOMA pilots. First case, Collier County, FL, resulted is the mass issuance of 10,500+ individual property removals and 2,500+ revalidated LOMA cases. NFDA coordinated with FEMA and it’s contractors to facilitate the timely processing of these updates to ensure the intend effects of the pilot program were realized. BSA/CSB Improvements Continue to partner with FEMA and the MSC to identify issues and inconsistencies with the current structures of these databases in an effort to find improvements and new methodologies to track and disseminate this information.

Solutions Through Stakeholder Cooperation Dispute resolution support for customers Cooperative efforts between flood determination companies LOMA application assistance – traditional and via eLOMA Working with state, community & FEMA Region officials Information sharing amongst NFDA members Diligent outreach to other stakeholder groups Ongoing coordination with FEMA Headquarters’ Risk Analysis team to address mapping and data issues Participation in Technical Mapping Advisory Council (TMAC) established by BW-12 Most significant accomplishments have been the result of collaborative efforts between NFDA and one or more key stakeholder groups.

Current Initiatives Working with FEMA on recent revisions to the Standard Flood Hazard Determination Form (SFHDF) Coordination with FEMA’s Office of the Flood Insurance Advocate Working with FEMA’s Customer and Data Services (CDS) team on data improvement initiatives, specifically bringing consistency between the various NFIP databases (BSA, CSB, FMSIS, etc.) Flood Determination Industry representation on TMAC Outreach Efforts – online and in-person opportunities Exploring more ways that NFDA data can support industry research and analyses ©2010 National Flood Determination Association

Current Initiatives: NFDA as a “HUB” NFIP WYO Companies Lenders Appraisers Agents FZD Companies Realtors Builders Surveyors Flood Vendors Local Officials Flood data drives processes and informs decisions for all flood industry stakeholders NFDA is in the unique position to understand how the data is used and impacts the numerous stakeholders and has been successful in bringing stakeholders together, especially in times of change NFDA is exploring its role in this evolving industry, to find where it can best serve a need and continue to advocate for a viable flood insurance program and sound public policy ©2010 National Flood Determination Association

of NFDA’s Annual Conference Scottsdale Plaza Resort Come celebrate with us! 20th Anniversary of NFDA’s Annual Conference March 26 -28, 2017 Scottsdale Plaza Resort Scottsdale, AZ

Questions or Concerns about Flood Determinations? Questions about an individual flood zone determination should be directed to the company that produced it (see Preparer’s box on SFHDF) Contact NFDA at info@NFDAflood.com for: Concerns for geographic and other trends in determinations General questions about flood determination processes Information for WebEx or on-site training Visit NFDA at www.NFDAflood.com ©2010 National Flood Determination Association