I keep seeing articles like this telling a sad story of people losing their homes. If you watch the senate oversight committee (if not you might want to; you can watch it here or buy it here), it’s obvious the problem is getting bigger. Primarily the blame is falls on exotic loan products being available to the masses combined with increasingly predatory lending practices.

While most financial advisors clients probably don’t have this problem, you might be surprised how many people have fallen into the interest only or zero down loan products. Many in the middle class get into these products to “buy more home” and simply get in over their head. The short-term impact on your business has clients selling off assets to get caught up on mortgage payments.

It might be a good idea to do a home loan checkup next time you meet with a client. It could also be a good reason to see clients that you have not seen in some time (using an informational mailer or other marketing product).

Hopefully, you have a relationship with a good mortgage broker that can help your clients. If not, now is a good time to develop one. These relationships can also be a good source for reciprocal referrals.