AAG reverse mortgage: program parameters under Finance of America Reverse

AAG was the brand of American Advisors Group. Finance of America Companies Inc. bought a substantial majority of AAG's assets, and its subsidiary Finance of America Reverse LLC (FAR), NMLS #2285, bought AAG's servicing rights and loans, in a deal that closed on March 31, 2023 (Finance of America Companies, SEC Form 8-K/A). The aag.com website now redirects to Finance of America. The figures below are the federal HECM rules FAR lends under, with the HUD source in each row.

Who is AAG now?

In December 2022, after a difficult year for the reverse-mortgage sector (Reverse Mortgage Funding filed Chapter 11 the same quarter), Finance of America announced it would buy assets of American Advisors Group (Finance of America Companies, December 7, 2022 announcement filed with the SEC). The deal closed on March 31, 2023, with Finance of America Companies Inc. as the buyer of a substantial majority of AAG's assets (Finance of America Companies, SEC Form 8-K/A).

This matters at a practical level: the lender to check on NMLS Consumer Access is Finance of America Reverse LLC, NMLS #2285, not American Advisors Group.

The same parent company also issues the HomeSafe jumbo program. The two products sit under one lender. If a borrower is initially routed to an AAG HECM but the home value exceeds the FHA HECM limit of $1,249,125 (HUD Mortgagee Letter 2025-22, effective January 1, 2026), the same originator can present HomeSafe as a jumbo alternative. HomeSafe has its own parameter card on this site.

Published parameters

Source: HUD HECM program rules cited in each row; NMLS Consumer Access entry for Finance of America Reverse LLC, NMLS #2285 · last verified 2026-05-20

Apply for AAG / FAR HECM through Finance of America Reverse →

Eligibility specifics

The federal HECM rules govern AAG's program because it is a HECM. There is no AAG-specific overlay that admits a 58-year-old borrower or one with a $1.5M home draw above the FHA cap. The five eligibility tests that apply are:

Age. 62 minimum for the youngest borrower on the title. A non-borrowing spouse younger than 62 is protected under HUD Mortgagee Letter 2015-15 if the spouse meets the eligible-non-borrowing-spouse criteria; the spouse can remain in the home after the borrower's death without the loan becoming due and payable.

Property. Primary residence. Single-family, FHA-approved condo, manufactured home that meets HUD's foundation requirements (HUD Handbook 4000.1, II.A.1), or 2–4 unit property where the borrower occupies one unit.

Equity. The principal limit factor table (HUD PLF table) determines how much of the home's appraised value (capped at $1,249,125) is available to the loan. The PLF is driven by age, expected rate, and the 3.0% floor. Existing forward mortgage balances are paid off at closing from loan proceeds; the remainder is the net draw.

Financial assessment is required for every HECM with an FHA case number assigned on or after April 27, 2015 (HUD Mortgagee Letters 2014-21 and 2015-06; HUD Handbook 4000.1, II.B.6). FAR runs the assessment to FHA's published standard, not an overlay. Credit, residual income, and a tax-and-insurance payment history are reviewed. Active foreclosure or recent bankruptcy is typically disqualifying.

A HUD-approved counseling certificate is required before the lender processes the application (HUD Handbook 4000.1, II.B.1). The session covers obligations, costs, and alternatives. The counselor is independent of the lender. The list of approved agencies is at hud.gov.

How it compares

Against Longbridge Financial's HECM, the two programs are similar at the parameter-sheet level. Both are HECM-only at the federal cap, both follow the HUD PLF table, both carry the same MIP structure. Where they differ is in pricing margin (lender-specific), origination-fee schedule, and the closing-cost line items each lender chooses to absorb or pass through.

Against FAR's HomeSafe jumbo, the comparison is structural. AAG/FAR's HECM caps at $1,249,125 and is FHA-insured; HomeSafe caps the loan at $4M and is not FHA-insured. A borrower with a $900K home is almost always better served by the HECM. A borrower with a $1.8M home should run both calculations: HomeSafe captures equity above the FHA cap that HECM ignores, but HECM brings federal non-recourse statute, MIP-funded insurance, and the line-of-credit growth feature that no jumbo program replicates.

Against non-FAR HECM lenders broadly, the AAG brand carries the largest consumer-brand recognition footprint in the sector, but brand recognition is not a parameter on the loan. Counselors will say the same.

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