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RedFlags Interavtice EFE

L&D

Created on September 23, 2025

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Transcript

Keep your eyes peeled for Red Flags of EFE. You’re in a unique position to spot the warning signs. Select each (+) Button to learn more about red flags to watch for:

Someone is Working as a Gatekeeper

Pressure or Confusion

Sudden Changes to Financial Documents

Reluctance to Share Details

If something doesn’t feel right, trust your instincts. If you are not sure how to have a conversation about EFE with your borrower, or just want a second opinion, the Client Advocate team can help. You should also contact the Red Flags team.

Sudden Changes to Financial Documents...

Like adding a new co-borrower or modifying account access. You may find the credit report shows multiple tradelines recently opened and lots of maxed-out balances when the borrower historically kept low balances had few open tradelines.

Pressure or Confusion...

The borrower seems uncertain, fearful, or like they are being “coached” by someone in the room with them.

Reluctant to Share Details...

The customer avoids explaining why they need the funds or seems hesitant to talk. The victim may be ashamed to have gotten themselves in the situation and feel there is no way to separate themselves from the scammer.

Someone is working as a gatekeeper.

You only have contact with a person who claims to be helping our older borrower, and they will not let you talk with the borrower, or they always have an excuse for why the borrower is not available (i.e. sleeping or doctor appointment). It is not unusual for us to have a borrower who needs help due to limitations with technology, hearing issues or they simply need help completing their “to-dos” on the task list. When a Power of Attorney is in place or someone is assisting the borrower with the loan process, it is essential to ensure the borrower is fully aware. They must understand that the transaction is being carried out in their name and that their benefits are being utilized. We should try to talk with the actual borrower as soon as possible to avoid any unexpected issues prior to closing.