Industry-leading reverse mortgage lender American Advisors Group (AAG) instituted a round of layoffs this week.
“AAG asks its business unit leaders to continually evaluate their department’s overall costs and staffing needs. After analyzing market trends, AAG has made some organizational changes,” a spokesperson for AAG Holding wrote to RMD and its sister publication HousingWire. “We regret any negative impact that organizational changes have on AAG employees and their families.”
The company did not provide additional details about the layoffs. It’s unclear how many jobs were shed. The reverse mortgage lender has around 1,500 employees.
California-based AAG is the top reverse mortgage lender in the nation, with 18,646 closed loans over the 12-month period ending in May 2022, according to data compiled by Reverse Market Insight (RMI).
According to an AAG employee who requested anonymity, a company executive said the latest layoffs affected all departments and were focused on the reverse business.
The same source said few, if any, underwriters were laid off. The company also instituted a layoff in May on the forward mortgage side.
“For a while, we were so busy, working on weekends,” the same source said. “Now, I am asking for extra work during the day to stay busy.”
The source said that on Tuesday, AAG sent an email with a link to a recorded message to employees about the layoffs. The recording mentioned margin compression, inflation, and the need to cut costs.
AAG is the latest in a vast list of mortgage lenders trimming their workforces. Rising mortgage rates and dropping origination volume have led to thousands of industry job losses over the last six months.
Multi-channel lender Open Mortgage, for example, cut 14 employees primarily tied to the lender’s forward mortgage operations, RMD reported on Wednesday.
To navigate the shrinking market, AAG has made some changes. Recently, the company added to its repertoire of partnerships the assistance to borrowers who wish to customize their homes to accommodate the needs of staying put as they age. Examples are deals with VGM Live at Home and BestBath.
AAG also expanded its reach to the popular social media platform TikTok by sponsoring the prize in a “vocabulary challenge” organized by a senior influencer.
In March, the reverse mortgage lender announced the hiring of Scott Slifer to serve as the company’s new chief administrative officer, putting him in charge of national sales, wholesale and business development divisions.