Jumbo Reverse Mortgage Rolled Out to AAG's Brokers in Calif.

American Advisors Group has released its jumbo reverse mortgage loan product to its wholesale network in California.

Brokers and loan officers in California can originate reverse mortgages through AAG on properties valued up to $6 million, well above the $625,500 limit set by the Federal Housing Administration for Home Equity Conversion Mortgage loans. These originators can also offer the product, called AAG Advantage, to owners of Ginnie Mae-approved condominiums.

The Orange, Calif.-based company, which does business nationwide through retail and third-party channels, introduced AAG Advantage last September. The product works similarly to a HECM loan: Borrowers age 62 or older use the product to convert a portion of their home equity into cash to use for retirement spending purposes. AAG caps the possible proceeds from the product at $3 million.

AAG said in a news release Wednesday that it plans to roll out the product to other states through retail and wholesale platforms in future phases. The product was initially rolled out to "select states," but AAG did not specify which states those were.