American Advisors Group is now offering its proprietary jumbo reverse mortgage product, AAG Advantage, to its wholesale partners in California.
AAG first launched the AAG Advantage product in select states last September, though only on a retail basis. Now with the wholesale expansion, California brokers and loan officers will be able to originate jumbo reverse mortgages through AAG on properties valued at $6 million.
“We’re pleased to now offer the AAG Advantage to our wholesale partners in California, where many of their clients’ property values tend to be higher,” says Kimberly Smith, senior vice president of wholesale lending at AAG. “With AAG Advantage and our solid network of California wholesale partners, we can help extend reverse mortgages to a greater number of seniors, provide them access to more funds and help them age in place with increased security and peace of mind.”
By utilizing the AAG Advantage product, owners with home values that exceed the $625,500 loan limit for traditional FHA-insured Home Equity Conversion Mortgages will now have the opportunity to borrow up to $3 million in loan proceeds.
Similar to a traditional HECM, the AAG Advantage is designed for borrowers age 62 and older, however, the jumbo does not require borrowers to pay mortgage insurance premiums that are typically charged with government-insured reverse mortgages.
As a result of the product expansion, AAG’s California wholesale partners can now market the AAG Advantage to both owners of property types eligible for a HECM loan and to owners of Ginnie Mae-approved condominiums.
AAG Advantage is currently available to borrowers in California, Connecticut, Florida, Illinois, Pennsylvania, Texas and Virginia. On a wholesale basis, the product is only available to brokers and loan officer partners in AAG’s California network, however, the company plans to expand the product to other states via its retail and wholesale platforms in the future.
To date, AAG is just one of two reverse mortgage lenders currently offering proprietary jumbo products. In 2014, Finance of America Reverse launched its HomeSafe jumbo reverse mortgage.
Written by Alana Stramowski