Reverse Mortgage Lender Raises $4 Million, Gears Up For Expansion

clip_image001Reverse mortgage originator American Advisors Group announced a new management team comprised of industry veterans and an infusion of investment capital from JAM Equity Partners, LLC (“JAM”).

“The combination of a strong capital base from an industry experienced partner and one of the most seasoned and accomplished teams in the industry, positions us to be a substantial player in the reverse mortgage space in the coming year,” said Reza Jahangiri, President, American Advisors Group.

JAM Equity Partners is a private investment firm based in El Segundo, Calif., and has committed $4 million from its JAM Special Opportunities Fund II, LP (“JSOF II”). Proceeds from the financing will be used to further accelerate AAG’s growth in the reverse mortgage sector, including funding the company’s infrastructure, sales and marketing, and general working capital needs said a company statement.

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“We are impressed by the company’s deep and proven management team and its diversified multi-channel customer acquisition strategy,” said Mike Sekits, partner at JAM.  “AAG represents an exciting opportunity to invest in one of the nation’s largest independent reverse mortgage originators.”

JAM isn’t new to the reverse mortgage business, the company made investments in Vertical Lend / Senior Lending Network before it was purchased by KBC Group as well as Reverse Mortgage Solutions.  Sekits told RMD that the company is actively seeking other investments in the industry and expects to make another announcement in the reverse mortgage sector within the next 60 days.

The Irvine, CA based reverse mortgage lender plans to roll out a new direct mail effort, along with a national television campaign “that will not only promote the company as a leader in reverse mortgage lending, but also provide unparalleled transparency and education to the senior community,” said Teague McGrath, Vice-president, Marketing.

The campaign’s theme, “The Best Advice for a Better Life,” will include a widely familiar spokesperson from the entertainment world that will be identified by the firm later this summer.

AAG’s new management team includes several professionals who previously held positions at the Senior Lending Network and Liberty Reverse Mortgage/Genworth.

The company has endorsed 351 HECMs YTD according to data from RM Insight.

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  • Congrats to AAG. Hopefully they reveal a good spokesperson to add credibility to our industry. I think the Robert Wagner and James Garner campaigns really helped us ALL with the credibility factor.

  • It's exciting to see an already proven investor like JAM putting money back into the industry, and more importantly the reverse mortgage niche. Hopefully this is the beginning of positive news for our industry. Good luck to all of you at AAG.

  • I applaud transparency, look at what fly.com is doing to change travel searches, all with transparency.

    We do not need another celebrity talking down to seniors, who are quite capable of empowering themselves.

    We do need more “social media” brought to the category, as “sm” is the new “word of mouth”

    Bob Purcell

  • I applaud more transparency, look at what fly.com is now doing in the travel category.rnrnI am not convinced that celebrities talking down to seniors is the kind of authentic marketing that matters in today’s world. I would hope that we will see more extensive use of “social media” as true spokespeople of the category.rnrnBob Purcell

  • I applaud transparency, look at what fly.com is doing to change travel searches, all with transparency.rnrnWe do not need another celebrity talking down to seniors, who are quite capable of empowering themselves.rnrnWe do need more “social media” brought to the category, as “sm” is the new “word of mouth”rnrnBob Purcell

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