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American Advisors Group Reverse Mortgage Review


ConsumersAdvocate.org Rating: 5 / 5 (Excellent)
57 Customer Comments & Reviews - see all comments
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American Advisors Group is a leading provider of Federal Housing Administration (FHA) - backed reverse mortgages. Based in California and founded in 2004, AAG offers a full range of reverse mortgage products including traditional Home Equity Conversion Mortgages (HECMs), HECM refinance, and HECM for purchase. Depending on a borrower’s needs, AAG’s disbursement options can be customized, with choices including line of credit, monthly payments, or lump sum. AAG has a B+ grade with the BBB and generally favorable reviews from customers.
 
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Best for Relocating and Downsizing

American Advisors Group (AAG) stands out from its competitors for having a remarkable Home Equity Conversion Mortgages (HECM) for Purchase program. Through AAG Residential Services (AAGRS), a licensed real estate brokerage firm and subsidiary of AAG, older adults can get the help they need to sell their homes and relocate. This can be very helpful for those who feel their home is too large or too far away from the people and things they care about. It also provides the same advantages of traditional HECMs by eliminating monthly mortgage payments on your new home, thereby helping your cash flow.

 

 

AAG requires that brokers meet certain criteria before working with them. They must complete an older adult awareness course and comply with a strict code of conduct. AAGRS also says that they only hire real estate agents with full-time experience helping clients over 55 years old.

When asked over the phone, AAG focused on explaining the ins and outs of how their HECM for Purchase program worked instead of rushing to ask where or when we wanted to relocate. The company took its time to explain how its residential services work and helped us explore the qualities we would like in a new home.

Size, Scope, and Experience

Consumers looking to borrow from a large, experienced, and well-established company are likely to be satisfied with what AAG has to offer on that front. The company was founded in 2004 and is one of the longest-standing companies to focus on reverse mortgage lending.

AAG currently operates in 49 states and the District of Columbia. Additionally, approved for business by the Department of Housing and Urban Development (HUD) in 81 geographical areas. The widespread availability of its services is directly tied to the large number of clients that the company is able to work with.

AAG has been the leading originator of reverse mortgage loans in the country since 2013. In fact, the company closes more than twice the number of loans that competitors do, with 1024 loans originated in February 2019 alone.

Additional Products and Services

AAG offers other products besides the HECM and HECM for Purchase programs. Consumers in certain states may also apply for the lender’s proprietary reverse mortgage, called AAG Advantage. AAG offers Home Mortgage-Backed Securities (HMBS), as well, which it started issuing in 2013. The company also has other types of products available, such as mortgage refinancing and VA loans.

 

AAG Advantage, works very much like other proprietary loans available in the market today. Borrowers may access up to a total of $4,000,000 and the funds may be withdrawn in full immediately. The loan is not insured by the FHA, meaning certain fees—such as mortgage insurance premiums—are not applicable. In order to qualify, the borrower must own a high-value property and the loan must be able to deliver more proceeds than a traditional reverse mortgage.

The company also offers more mainstream loan programs, such as mortgage refinancing and VA loans. AAG’s loan refinancing is designed to help those who aren’t yet 62 years of age and therefore do not qualify for a reverse mortgage. The program is designed to modify the length of a pre-existing mortgage loan, lock in a better rate, lower monthly bills, and tap into the home’s equity. Likewise, AAG’s VA loan program is designed to help veterans that may qualify for a reverse mortgage, but still need the additional financial help for retirement.

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57 Customer Comments & Reviews

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bwalsh21
7/27/2020
My advice to anyone working with AAG is that they make certain they are dealing with an experienced agent. Chris Alamo is not. As soon as I started working the Chris Alamo he immediately told me to set up a counseling appointment which I did for the following week at a cost to me of $125.00. After the counseling Chris told me to contact my HOA to see if my community had FHA approval. My community does not and was not going to help me pursue this reverse mortgage. During the week between the time of my scheduled counseling if Chris had told me to contact my HOA prior to the appointment I would not be out $`125. When I told him we should have waited to hear from my HOA before... Read More

Glenn K
7/5/2020
I have had nothing but trouble with my reverse mortgage loan from the beginning!! Please do not trust these people. They are out to deceive the elderly!!! AAG has been charging me for flood insurance for 8 months now. I have sent them proof that I already have flood insurance but the is not an intelligent person working there that can get this charge stopped!!! Now I just received a letter stating that I am delinquent on my property taxes!!! Hello, ca. Hasn’t sent out bills to anyone!! There is a Covid 19 going on!! I CANT PAY A BILL THAT I DONT RECEIVE!!! Wake up AAG. So, I say don’t do it! AAG will squeeze every last cent from you one way or another.

L
Laura
1/19/2020
As we approached month 4 (yes, 4) to get a reverse mortgage (which I don't have yet) I gave up and closed the account. I had to call THEM to get an update; on one call I was told my request was closed due to lack of communication w/ our HOA president; on another I was told they had "just received" docs from the managing company - docs that were sent via email 2 (yes, 2) months previously. Why didn't THEY call ME about these (perceived) hangups? They did nothing to keep things moving. I had to call their corporate number - not my rep - to find out about the last situation. Rep's response to my calls was, "Condo team working on it" which means zilch after hearing that for 2 weeks. Wasted... Read More

Carol P
10/27/2019
In contacting AAG about a Reverse Mortgage, My only question was "what are the interest rates?" After all, the website posted a click on button just for that. After a couple of hours of yammering on the phone, providing all my information for basic qualification (which was totally unnecessary in that I've "been there and done that", literally, from a previous Rev, Mtg., I asked for the 10 time, what's the interest rate and the representative, avid, finally gave me the rates and stipulated that I could only get the variable rate. This means that he rate can go up whenever. I'm not a fan of variables at all. Must also share, I worked in the mortgage business at one time and am quite... Read More

insideoutclaeys
10/25/2019
Tom Selleck is doing damage control for this company. You won’t believe how much paperwork is generated to secure this loan. It’s daunting! All that with great credit scores and plenty of assets. We found the “right hand doesn’t know what the left hand is doing”.... they are not organized! What a mess! We backed out.

P
Paul W
8/9/2019
I currently have a reverse mortgage with AAG up until now I would have given high marks. However I now give them a zero or one because they do not return calls. I even called for a supervisor and again no return call. I would say stay away from them they are full of promises when you are signing up but after that they have nothing to do with you.

D
drpk
4/13/2019
I approached AAG for information on doing a reverse mortgage. I was told that they would give me half of the value of my house. I was told it would probably be a line of credit instead of cash as *some* people had blown through the cash (some people). She would not give me any costs and told me that interest would be around 5% but I would get 5% interest on the line of credit. I decided to wait. I e-mailed her again this week, and, instead of her responding, I get a call from the 'home office' trying to talk me into the loan. I told the 'licensed professional' that I needed to know closing costs and interest. His response was 'why? You get to stay in the house until you pass away so what... Read More

Mike R
12/26/2018
Talked to an adviser. Never got back with me on the figures for me to review. My credit score dropped because of this inquiry.

T
Tsuda(s)
12/13/2018
We are extremely pleased with the service we received from Carole Grant of AAG. She was always available when we called and she kept us apprised every week during the process. From start to finish, the whole experience was very positive. She is the perfect blend of being professional and personable.

J
jeffrey
9/28/2018
It seems many negative reviews here center around the fact their loan was not approved. If through the process certain items come up that were not caught before is part of the process of reviewing a loan. Nothing can be promised until closing. Our experience has been perfect, from start to closing - yes many documents had to be sent and resent to pass the underwriting process. My suggestion is don't count your money until its in the bank. Be prepared if the process fails - have a backup plan! Yes, they will hold money back to pay for insurance and taxes if you have or had a history of late payments on your mortgage (thats not stealing as the money is being spent on your taxes and insurance... Read More

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