Texas-based lender Reverse Mortgage USA announced this week its employees will roll into American Advisors Group.
The company, founded by John Mitchell, transitioned from being the largest reverse mortgage broker to become a mortgage banker in 2011. Today, 90% of its employees are being hired by AAG to begin doing business under their new employer next week.
Reverse Mortgage USA recently announced it was incorporating branches into its origination model, and had hired Nancy Pedone to lead the efforts. AAG will incorporate the majority of Reverse Mortgage USA under the agreement with Pedone serving as national branch sales manager.
“AAG’s decision to enter the distributed retail channel was not unexpected and is a natural progression for a company so well positioned in the reverse mortgage industry,” she said. “The wealth resources they have dedicated to the Reverse Mortgage industry are extraordinary and unwavering.”
The on boarding of former Reverse Mortgage USA employees will give AAG a “feet-on-the-street” presence, as well as market expansion opportunities, the company says.
“We feel that the RMUSA team will give us a solid entry into the distributed retail model,” said Reza Jahangiri, AAG founder and CEO. “AAG is committing considerable resources to this channel in 2014 and we anticipate material volume growth alongside our centralized retail business in the coming years.”
Reverse Mortgage USA Founder John Mitchell will help with the transition of employees to the AAG brand.
“We feel John and Ginger [Mitchell] and the entire RM USA team have done a great job building a successful business. We hope the existing team can now use the AAG brand and resources to take the division to a new level,” said Austen Verst, executive vice president of production for AAG
Reverse Mortgage USA was most recently ranked the No. 8 reverse mortgage lender by volume by Reverse Market Insight, having closed 100 reverse mortgages in October and 100 loans in November.
Written by Elizabeth Ecker