American Advisors Group (AAG) Review

About American Advisors Group (AAG)

AAG got its start in 2004 when Reza Jahangiri, newly graduated from Loyola Marymount University, decided to go into the reverse mortgage business. His goal was to help seniors retire more comfortably, and so the Orange, California-based AAG was born.

In the years since, AAG has grown to become the largest reverse mortgage lender in the country. Since its inception, AAG has become fully accredited with the Better Business Bureau and won numerous awards, most recently the BBB’s Torch Awards for Ethics in December of 2019.

AAG originated 12,000 of the 49,000 new reverse mortgages insured by the FHA. Jahangiri has become co-chair of the National Reverse Mortgage Lenders Association (NRMLA), and has seen his company grow to employ over 1,200 people in thirty-two states. Customers speak highly of the service they get from the lender, because its experience, product range, transparent pricing and fast closing times are among the best in the industry.

  • More experience with HECM than any other lender
  • High customer satisfaction rating
  • Quick closing periods
  • Offers Jumbo reverse mortgages
  • Approved lender with the U.S. Department of Housing and Urban Development (HUD)
  • Available in all states, expect MA

AAG Reverse Mortgage Costs

Like conventional mortgage loans, you pay some fees associated with reverse mortgages upfront, while other fees you pay as part of the loan. These are in addition to ongoing costs, such as loan interest, mortgage insurance premiums, property taxes, homeowners insurance, maintenance and any applicable HOA fees. Below is an overview of what some of the costs might look like.

  • Appraisal Fee: $450 on average, but depends on home value and varies by region

  • Counseling Fee: $125

  • Credit Report Fee: $20-$50

  • Document Prep Fee: $75-$150

  • Escrow Fee: $150-$800

  • Flood Certification Fee: $20-$30

  • Pest Inspection: $100

  • Recording Fee: $50-$500

  • Survey: $100-$250

  • Title Insurance: Varies by loan amount and region

  • Initial Mortgage Insurance Premium: Two percent of the maximum claim amount, paid to the government

  • Loan Origination Fee: By law, a lender can charge the greater of $2,500 or two percent of the first $200,000 of your home’s value plus one percent of any amount over $200,000, with a maximum cap at $6,000

American Advisors Group Products

98% of AAG customers report being satisfied with AAG’s loans and their dealings with the company*. AAG offers an extensive list of reverse mortgage products including standard HECM loans, HECM for Purchase and HECM refinancing. Anyone seeking a jumbo reverse mortgage, one which exceeds the Federal Housing Administration’s $765,600 limit to as high as $3 million, should take note: AAG is one of the few reverse mortgage lenders offering jumbo loans.

*As of October 30th, 2019.

Type of Loan Features
Standard Home Equity Conversion Mortgages (HECM) Borrowers can qualify to receive a HECM (adjustable rate or fixed rate) on their home’s value up to $765,600 (as of January 1, 2020).
HECM for Purchase A loan designed to help senior homeowners purchase a new home while obtaining a reverse mortgage in the same transaction and paying only one set of closing costs.
Reverse Mortgage Refinance If you have an existing reverse mortgage, a reverse mortgage refinance offers a way to get a better interest rate, access more equity due to an increase in the home’s value, or add a spouse.
Single-Purpose Reverse Mortgage A Single-Purpose loan is a less expensive option designed for a specified and approved purpose (i.e. property taxes or repairs). Not backed by HUD / FHA.
Proprietary Reverse Mortgage Also called Jumbo Reverse Mortgage Loans, these types of loans are for those with substantial home equity who need more than the HECM’s federally set borrowing limit. They are backed by banks and private lending firms and are not insured by the FHA.

American Advisors Group (AAG) Product Eligibility

Eligibility for a reverse mortgage with AAG is in line with the HUD list of requirements for HECMs for seniors.

Requirement Specific Terms
Borrower Requirements Borrowers can qualify to receive a HECM (adjustable rate or fixed rate) on their home’s value up to $765,600 (as of January 1, 2020).
HECM for Purchase Borrow must:

  • Be 62 or older
  • Own the property or have paid-down a considerable amount
  • Occupy the property as your principal residence
  • Not be behind on any federal debt
  • Have the financial resources to make payments of ongoing property charges on time
  • See a HUD-approved HECM counselor
Property Requirements
  • Single family home or 2-4 unit home with one unit occupied by the borrower
  • HUD-approved condominium project
  • Manufactured home that meets FHA requirements

(The property must also meet all FHA property standards and flood requirements)

Financial Requirements
  • All income, assets, monthly living expenses and credit history will be verified
  • Timely payment of property taxes, hazard and flood insurance premiums will be verified

American Advisors Group (AAG) Complaints

The Better Business Bureau rates AAG with an A+ based on 250 reviews. Phrases such as “very patient and professional,” “excellent communication” and “very positive experience” are frequently found in customer reviews. The majority of the negative reviews seem to stem from things that AAG has no control over, such as HUD regulations.

Like many other large reverse mortgage lenders, AAG has had to reign in its advertising. In 2016, the Consumer Financial Protection Bureau fined AAG and two other reverse mortgage companies after an investigation found they used deceptive advertising practices. AAG paid the $400,000 fine and has since completely revamped its ad campaigns and practices.

AAG Screenshot

AAG Homepage. Source: AAG

American Advisors Group (AAG) Product-related Q&A

  • Does AAG charge a lender servicing fee?
    No. Many companies charge a monthly fee to defray the costs of providing customer service, maintaining accurate records, certifying your occupancy status, issuing statements of account, issuing and collecting payments, collecting on the loan when it becomes due and discharging the mortgage. AAG does not charge this type of lender servicing fee.

  • If I have a reverse mortgage, can the company or government dictate who lives in my home?
    As long as you still live in the home, having a HECM doesn’t alter who can live with you. However, if you die or move, unless you have a co-borrower that continues to live in the home, the people who live with you may have to vacate if they can’t pay off the loan.

  • Can I apply for a reverse mortgage if I haven’t fully paid off my mortgage?
    Yes. Your existing mortgage is paid off with funds from the reverse mortgage, eliminating monthly mortgage payments entirely.

  • How long does the HUD-approved reverse mortgage counseling session usually last?
    Sessions approved by the Department of Housing and Urban Development generally last between one and two hours and can be done over the phone or in person. Once you have completed your session, you’ll receive a certificate that you’ll use in the paperwork phase of the loan.

  • Do I have to have hazard insurance on my mortgaged property?
    Yes. You must have hazard insurance covering your home in an amount that is equal to at least 100 percent of the insurable value of the property. Every year when you renew your insurance, you must provide your loan servicer with a copy of your hazard insurance policy. If you fail to maintain adequate hazard insurance on your property, it is considered defaulting on the loan.

  • What if the loan amount ends up being more than the value of my home?
    Reverse mortgages are non-recourse loans, which means that after the last borrower dies or moves out, the proceeds from the sale of the home are the only asset that can be taken to pay the loan balance. If the balance of the loan is more than the value of the home, the FHA’s insurance fund covers the difference.


When it comes to reverse mortgages, experience counts. AAG has the experience to make the process easier for you.

With its long track record and excellent reputation for customer service, AAG is one of the most trusted reverse mortgage lenders, particularly for those with high-value homes looking for large loans. Of course, whether or not a reverse mortgage is the choice for you depends on several personal factors. Before signing any paperwork, talk to a loan counselor at AAG to get answers to any questions that you may have.

American Advisors Group (AAG) Reviews

Recent Reviews

Featured Review
January 09 2019 1:37AM

Mike ** was our go-to guy for arranging our reverse mortgage in Northern California. Despite the complexity and length of the process of filing paperwork and dealing with multiple agencies, Mike was completely reliable and maintained regular contact with us. He always kept his word and was helpful in navigating the burgeoning reverse mortgage industry. We found him to be completely trustworthy at every level.

David G.
March 31 2022 7:16PM

These people are pathetic. They changed my rate 5 hours after guaranteeing it. Then the next day they raised it again. I was lied to many times. They took 7 months to complete my loan, and I have a FICO score of over 800.

I had to get a 2nd appraisal and was told I would not have to pay for it...WRONG. On the closing papers, they charged me $755 for the 2nd mortgage. I have a lot more to disclose of these people but will do it at the BBB.

Tony G.
St. Louis, MO
July 07 2021 11:31PM

I started the reversed mortgage process in May of 2021. It is now July 2021 and still have no loan. I own my home. No mortgage, I have a high credit score and no outstanding debit. However they have proceeded to make multiple mistakes.

I live in Tennessee and I am dealing with people in Southern CA and Maryland. I have done everything they have ask. The appraisal person appraised the wrong property, they did not want to accept the Death Certificate from the state of Tennessee for my husband.

They found a for a little over $800.00 on his Citibank card. I had paid in full but had to jump through hoops to prove to them.

Then they questioned a $15.00 late charge on my HOA FEES. This was a time in March 2020 when my husband was on hospice and we missed a payment. I immediately paid it and the next month as well and they waived the late fee.

I had to send some documents to them over night. My cost over $50.00 which sat on someone’s desk for over a week. Now they are saying that my HOA fees do not match the county office. I have never know that the county has anything to do with HOA fees only taxes.

Now they are waiting for information from the appraisal people regarding this issue. Now I am told that they will have to re-title and others things because due dates have come and gone. I have never dealt with so many people that can’t get their jobs correctly.

I was naive to believe that people that had a high credit score and no debt and a home that was paid for would be so hard, also money in the bank. I will give them one more week then I will withdraw my application. I will go elsewhere to help me.

Gwen R.
Gallatin, TN
April 19 2021 6:55PM

After going to the point of receiving my appraisal AAG then proceeds to tell me that I do NOT have enough residual income to cover my credit card payments along with my yearly taxes!

AAG knew long before we even got to this point that the whole purpose of my wanting the reverse mortgage was to "pay off" my credit cards! Is this not what a reverse mortgage is advertised for, to PAY OFF bills?

Day one after the closing I would have ZERO credit card debt, and my yearly property taxes would be no issue with my social security. If the FHA people are so stupid as to not understand this, and AAG are so stupid as to not catch this far earlier in the process, then what is the point?

I am very, very disappointed in Hamilton ** (AAG Employee) for NOT catching this when I provided all my financial information early on in the process. I paid for the useless counseling and I will never see that money again!

I highly recommend that everyone stay away from AAG and do not believe Tom Selleck's down home commercials. AAG needs to hire people who know what they're doing!

Joseph S.
Spring, TX
February 13 2021 4:57PM

Excellent! I was helped with every step of the process with my Reverse Mortgage Professional (and still is here for me with any questions). It has been almost one year since closing and everything has gone smoothly. I'm VERY happy! Thank you!!!

Janice L.
Parker, CO
February 09 2021 7:51PM

This process began in September of 2020. Since that time, we have been lied to by so many employees and departments. This continued until February 2 when we went to a different reverse mortgage company.

They must some cheat sheet with different answers they can use when someone calls. I said someone call during the 4 1/2 months we dealt with them. They never returned any calls. It would take a week and I would have call them back.

My new mortgage company sent a letter to them that we were cancelling our account with. The new company said legally they have to send that information within 72 hrs. From that day on I was being bombarded with voicemails and texts from a Rob **.

I spoke with him on February 6 and he continued to try to make us change our mind. I repeatedly said no. He was very persistent. I told him legally he had to mail those papers within 72 hrs.

At that point, he said he knew that but he wasn't ready to send them. I would warn anyone contemplating AAG. Don't.

Karen K.
Grove City, OH
November 16 2020 3:29PM

AAG Is horrible. Gauged on fees at closing and are impossible to get draws from. Processing and processing time was over four or five months. They made mistakes at closing and simply said sign or cancel the loan.

Afterwards, trying to get a draw was a nightmare. They even told me my signature in the withdrawal form didn’t match the HUD 1. They don't accept an electronic signature and they don’t accept a signature written with a finger in Dotloop.

I spent money to get what they wanted printed and scanned at UPS. THEY said I need it notarized. Six times I followed their instructions and they come up with something else. I’m retired from being an FHA underwriter and know all about these mortgages.

The customer service and fees at AAG are atrocious. I’m also a Real Estate broker. They’re taking advantage of Tom Selleck as a trusted and loved actor and taking advantage of seniors that choose them because of Tom.

Cindy M.
Ponte Vedra Beach, FL
November 07 2019 7:11PM

Tiegs **, she was my AAG ADVISOR and she was outstanding. She was always there for us and able to answer all our questions and concerns. A lot of paperwork but dealing with Tiegs made it alot easier. She did everything for us to get through the process and always kept us updated. She was very friendly and true professional advisor at American Advisor Group. We now call her a friend at AAG.

James S.
Visalia, CA
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