American Advisors Group, the nation’s largest reverse mortgage lender, announced Wednesday that it has rebranded as a provider of home equity solutions.
While it will continue to originate reverse mortgage products, the company will also offer conventional and FHA refinance loans and real estate services for those looking to buy or sell a home.
In its revised mission statement, the company says it aims to help older Americans navigate their later years by providing them with a full suite of home equity solutions designed to provide the best financial outcomes in retirement.
“We completely retooled our business model so that AAG could help more seniors responsibly access their home equity to get better outcomes in retirement,” said AAG CEO Reza Jahangiri.
The company said it interacts with more than 500,000 older Americans every year, and that with the rebrand, it is the only company in the U.S. solely focused on helping seniors access their equity.
“We're changing the conversation – and the mindset – around using home equity,” Jahangiri said. “Whereas before our advertising spoke directly to those seeking more financial stability, we are now broadening our appeal to anyone who can envision a better retirement. Almost every retiree has their version of ‘better,’ however they define it.”
The move coincides with the launch of AAG’s “Retire Better” marketing campaign, in which spokesperson Tom Selleck discusses what seniors can do to make their retirement “not just good, but better.” In the 120-second slot that will air on cable networks nationwide, Selleck explains that accessing home equity could lead to a better retirement.
The rebrand follows significant changes to the reverse mortgage program issued in October by the U.S. Department of Housing and Urban Development that has effectively cut volume for lenders across the board. In June, reverse mortgage endorsements fell more than 15% from the previous month, marking a low the industry hasn’t seen in 13 years.
In February, the company told HousingWire that its pending leap into the traditional mortgage space was a natural next step.
“For many retirees, income from savings and retirement accounts isn’t enough to cover expenses and they experience a significant drop in their quality of life,” Jahangiri said. “And by providing a variety of options for accessing home equity AAG is better able to serve our customers, especially those entering or in retirement.”