American Advisors Group Launches Jumbo Reverse Mortgage Loan

American Advisors Group has begun marketing a jumbo reverse mortgage loan over a year after it first planned to issue them.

The loan, called AAG Advantage, is a reverse mortgage on properties up to $6 million in value, well above the Federal Housing Administration loan limit of $625,500 for a traditional home equity conversion mortgage. The loan will be made available for both properties that would be eligible for a HECM loan and Ginnie Mae-approved condominiums.

AAG's new loan is similar to traditional HECM reverse mortgages in that it is intended for senior borrowers looking to convert home equity to spend on their retirement. AAG Advantage will allow these borrowers to borrow up to $3 million in loan proceeds.

The Orange, Calif.-based company had originally planned on beginning to originate these loans last October. Around that same time, Urban Financial of America began offering jumbo reverse mortgages, while OneReverse Mortgage also subsequently began offering them. Meanwhile, another competitor, Generation Mortgage, stopped originating these loans last November — though it continues to service them.

AAG said the loans will initially become available in select states before a rolling it out nationwide in phases, but did not specify which states will first receive the product. The company did not immediately respond to a request for comment.