On the heels of its last advertising production featuring a new direction in messaging with spokesman Tom Selleck, American Advisors Group (AAG) on Monday released a new ad aimed this time at touting its proprietary reverse mortgage offering known as “AAG Advantage” also led by Selleck.
The new ad — titled “Change” — is aimed at affluent seniors who can seek loans of up to $4 million, accessing the equity in higher-value properties.
“With time comes change. That’s for sure. And, when those changes might help more people, especially those in retirement, I think it’s worth talking about,” Selleck says in introducing the ad. “So, AAG is introducing a new jumbo reverse mortgage loan so you can now access as much as four million dollars in cash tax-free from your home’s equity.”
Even after only one day of being broadcast, AAG is already very pleased with the new ad’s performance, according to a company spokesperson.
“It’s only the first day, and the spot came out of the gates strong! It really validates our decision to expand marketing of AAG’s jumbo reverse mortgage products to seniors with high home values,” the spokesperson told RMD in an email.
The release of the new ad also represents something of a new beginning in AAG’s ongoing efforts to connect with new potential borrowers, exemplified by a borrower profile that is actively shifting for both proprietary and HECM products, they said.
“The jumbo TV ad really represents the rebranding of the reverse mortgage product,” the spokesperson said. “It’s no longer a ‘needs-based’ loan, as it was during the financial crisis. In fact, the entire customer profile for the reverse mortgage has changed, and not just for proprietary products. Overall, for HECMs as well as proprietary jumbo loans, we’re seeing higher home values, higher credit scores, and very different use cases.”
The ability for borrowers of the Advantage loan to permit seniors to extract higher amounts of home equity than a more traditional Home Equity Conversion Mortgage (HECM) offers seniors with exceptionally high home values “another way to effectively manage [their] retirement income sources,” Selleck explains.
AAG is creating a robust campaign around the new ad, with plans to air it on several prominent cable channels that themselves are aimed at a more financially-aware viewing audience.
“‘Change’ will air nationally across major cable networks such as Bloomberg, CNBC and Fox Business beginning August 26,” AAG said in the press release.
The spokesperson also said that the ad will run on Fox News Channel, and while there are not currently plans to run it on broadcast networks, that could change in the future.
“As the results come in, we’ll start considering local markets as well as national networks,” the spokesperson said.
Employing Mr. Selleck in the messaging for AAG Advantage illustrates the potential for disruption that can come from a higher concentration of proprietary loans in the marketplace. That potential for change is exemplified by AAG’s expectations for its proprietary offering.
“With senior home equity at record levels, we expect to see continued growth in the jumbo reverse mortgage market,” the AAG spokesperson told RMD. “We are breaking new ground with the jumbo spot, as we’re focused on how a reverse mortgage loan can give seniors with high home values ‘another way to effectively manage their retirement income sources,’ and the ability to access tax-free cash, improve the performance of their retirement portfolio, and make their retirement savings last longer.”
AAG Advantage is currently available in Arizona, California, Colorado, Connecticut, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Michigan, New Jersey, Nevada, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, and Virginia. Additional states will be added to the program in the future, the company said.
AAG Advantage is a product offered in conjunction with Finance of America Reverse (FAR) in a correspondent partnership. FAR’s HomeSafe proprietary product is offered by AAG using the Advantage name through the company’s retail channel.