American Advisors Group

To who it may concern, American Advisors Group strives to provide consumers, as well as our borrowers with the highest level of service possible and we appreciate the opportunity to address any concerns they may haveWe have conducted a thorough review of the details associated to this concern and have found that all aspects of the origination were completed properly and in accordance with all local, state and federal requirementsIn response to the consumers concerns, AAG has responded directly to the client in a formal letter, mailed as of today, 3/1/2017, detailing each listed concern individuallyIn addition, we have attached a copy of our response letter, as well as two additional items, herein for review by the Revdex.comAgain, AAG appreciates the opportunity to address these concernsPlease feel free to contact us with any additional questions at the following: AAG CARES Department 866-948-WChapman Ave Orange, CA

Revdex.com: I have reviewed the response made by the business in reference to complaint ID [redacted] , and have determined that this proposed action would not resolve my complaint For your reference, details of the offer I reviewed appear below Regards, [redacted] *** They are lie\ars *** *** collected the funds for me for the evaluation person and for the appraiser and I have all these emails and conversations telling you are approved and not problems so excuse me I do not believe a word Mr*** is saying and I have read other complaints against them doing the same thing to me as they didI feel their rating of A+ should be a F- for what they do to people and lead them on..and get their hopes upThey are a SCAM!!! and the elder needs to know this about this company before ever contacting them I will go to the WEB and warn the elder about AAG [redacted] ***

Dear Sir/Madam,
A response to the Consumer complaint was mailed with the requested documents enclosedPlease excuse the tardy response timeThe file had to be retrieved from our third party storage facility and only arrived yesterday and was immediately mailed
Please
feel free to contact me with any questions
Sincerely,
*** ***
Complaint Resolution Specialist
American Advisors Group

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and find that this resolution would be satisfactory to me. I will wait for the business to perform this action and, if it does, will consider this complaint resolved
Regards,
*** ***

To Whom it may concern:AAG apologizes for any inconvenience that the borrower may have experienced. Please see attached letter addressing her concerns in the complaint. Respectfully, *** ***

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this proposed action would not resolve my complaint. For your reference, details of the offer I reviewed appear below
This is a response that I expected from AAG Large company's don't let go that easy so this response was not a surpriseI think something needs to be cleared up going forward Our agent was *** *** and he is a very nice guy We hold no grudge against him so let's be clear.
From our experience, I can now understand why reverse mortgages have a bad rap We as a family did our homework as best we could and it was hard to ignore some of the reviews that we read about which are very consistent with our situation The process is flawed! The agent needs more leverage or power to say" you know, I don't think your house will get past the underwriter" That is not a ridiculous suggestionA realtor would be the first person to point fingers at potential drawbacks when trying to sell your house I think we can agree on that
Back on point, there were people listening in on the preliminary talks and at the signing of the paperwork Not one of us can remember that the foundation was in question or even mentioned Had it been mentioned, I would have pulled the plug from the get go because I know that the house is old and most likely wouldn't pass any inspection unless I had an engineers report To be clear once again, the foundation wasn't talked about Our main concern was to have a smoke alarm detector installed for the appraiser per our agent The appraiser comes and sends out his report I even talked to the appraiser on the phone and he didn't seem at all concerned about the cracks in the report We all read the report and we are still scratching our heads on the appraisal being declined On every picture on the appraisal showing damage or cracks, we were going to take care of that I had a licensed painter come and quote on the house There was nothing he said that he couldn't patch up along with taking care of the peeling paint I proceed with *** Cole who is a licensed foundation contractor and he writes two letters giving the house a thumbs up.....at least that's what we hoped it would do AAG kept coming back wanting more language Added and *** was not comfortable with that He repeatedly told me that he couldn't gurantee any house from falling apart He did mention that with an earthquake or massive flooding, that may be a problem for the house and any house on the block So now we have a painting contractor and a foundation contractor involved That wasn't good enough Our agent brought in another contractor who wanted to charge $25,and potentially more to fix a retaining wall in the garage This didn't include permit costs either We shot that down quickly I get another contractor in *** *** and I send him the appraisal with all the pictures I point out every defect He goes on to say that *** is basically correct, the house is okay Still not good enough At this point, I am fried and tired of it all I call *** on the phone and arrange for *** to meet him at the house to finalize this fiasco if possible This cost me another $ Now I am out $ *** looks at the house and sees cracks that concerned himHe tells us that without getting an engineer involved, he couldn't say with percent certainty that all is cosmetic He did write a letter which AAG can share with you along with ***'s letters Again, declined
I told *** we can do this all day along with contractors If you get contractors to look at a house, you will probably get different opinions
Lastly, I told *** that I appreciated his help but it's time to move on He was gracious and offered to pay the $for ***s visit.
Regards,
*** ***
*** ***

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this proposed action would not resolve my complaint. For your reference, details of the offer I reviewed appear below
Regards,
*** *** *
The service is offensive and provided bad service
AAG ordered the appraisal and I was not allowed to choose the individual appraiser. AAG had a contract with *** *** *** ***(*** *** *** *** ** ***) who then contracted with *** *** *** *** *** *** *** ** ***). A qualified HUD appraiser would check the sale comparables BEFORE they would have made a trip charge to the borrower. They would have seen they could not have produced a viable report since sales were more than miles away. Plus, a good appraiser would not have driven to a location when AAG had stated no inspection was needed. This cost me $200.00. Then AAG told Broad Street to return to my residence for a min walk around and charged an additional $500.00. (total $700.00). Once the appraiser contacted AAG that available comps were not available, the company that ordered the appraisal is to reverse the charges. The appraisal was ordered by AAG as an FHA appraisal and was not completed to HUD standards. AAG farmed out the appraiser via Broad Street Valuations who was not the best for the job. Full refund of the $is requested

AAG helped me organize my lifeThe Mortgage in reverse has been a blessingThank you

Dear Sir/Madam,I would like to apologize to the Consumer for the tardy response to his request for information on why the loan was deniedThe uploaded written response explains what transpired on the loan and the reason for the loan denial.The Consumer is welcome to re-apply for a reverse mortgage
when his financial situation improves or he is able to document or verify his income.Sincerely,*** ***
CARES ManagerAmerican Advisors Group866-948-Ext***Dear Mr***,American Advisors Group (herein AAG) is in receipt of the above referenced correspondence filed with the Revdex.com on April 11, We appreciate the opportunity to address your concerns.In the complaint you stated the following:“In June of we sent for information on reverse mortgageOn July 20, *** received first email (sent through *** email) from *** *** saying, "He would be our AAG personal reverse mortgage professional." On July 23, *** *** sent *** an email, (sent through *** email) about upcoming counseling session which we did on August 8, The next step in the process was the notary, who came on August 10, The appraisers came out September 18, On October 6, a letter was sent from *** *** stating that our loan was conditionally approved but there were a few things we had to do and that we needed to have these things complete before November 25, 2015, which we did except for modifying the trust because we could not get anyone to explain why this was necessary and our lawyer *** *** said, "He did not think this was necessary." October 26, a letter was sent to me that AAG was now my title companyThe appraisers were supposed to be back out before November 25, but *** *** would never get back to us so the appraisers did not come out till December 11, It took until January 22, for *** *** to get in touch with *** *** to answer questions about why this was necessary and on March 10, the trust was revisedThen I was told that the loan was denied because *** lived on the propertyThat was never a secretThen we get a letter stating my initial loan amount and the finally letter I get is that the loan was denied because I did not meet the income requirementThroughout this process, not one time till final letter did anyone mention an income requirementI am not sure what income has to do with a reverse mortgage? I thought a reverse mortgage was to help people to stay in their homes and that there was no mortgage paymentsI also never received the appraisal reportI have called numerous times, sent emails to AAG and *** *** at HUD with no response.” [End].You went on to state the following:“I would like to get my reverse mortgageI see no reason that I didn't receive my reverse mortgage because everything was good with the loan and I did everything that they asked me to doThe paperwork clearly states there is no income requirement but that is why I was denied.” [End].AAG would like to apologize for any inconvenience you may have experienced during the loan process with us.Your first statement regarding the advice you received from your attorney about the trust not having to be submitted to an attorney retained by AAG is not accurateAll trusts are reviewed to confirm they are acceptable for a HUD/FHA insured loan, and to satisfy AAG’s lending guidelines as an FHA approved lenderBecause we did not receive the trust for review in a timely manner, a significant delay resulted.The income requirement for reverse mortgage applicants has been in place since April Every homeowner who applies for a reverse mortgage after that date must be advised that there is an income requirement as well as a determination by the lender, known as a Financial Assessment, or FA, that the borrower will be able to continue to make on time property tax and homeowners insurance payments for the life of the loanIf it is determined that the borrower is unable to make such payments, or has not historically been able to meet such obligations in a timely manner, then a Lifetime Estimated Set Aside has to be imposed on the loanThis LESA is a lump sum that is applied to the loan when it funds, and used to pay for property taxes and homeowners insurance obligationsWithout income details, a lender such as AAG is unable to determine if the borrower is eligible for a reverse mortgageAAG’s Underwriting Department determined that there was in income shortfall in your residual income which is less than 80% and would require a fully funded LESA, the details of which were explained earlier in this paragraphBecause the income component or requirement is so critical to the reverse mortgage, you were advised very early in the process that this would be a requirementWhile the term “income requirement” was perhaps not used, the fact that you were asked for proof of income etc., is proof that you were aware that AAG as an FHA approved lender needs to know such information.We hope this letter has addressed all of your concernsPlease do not hesitate to to contact me anytime by telephone or email if you have any questions.Sincerely,*** ***American Advisors GroupCARES Manager1-866-948-Ext***

Dear Sir/Madam,
I would like to apologize to the Consumer for the tardy response to his request for information
on why the loan was deniedThe uploaded written response explains what transpired on the loan and the reason for the loan denial.The Consumer is welcome to re-apply for a reverse mortgage when his financial situation improves or he is able to document or verify his incomeSincerely,
*** ***
CARES Manager
American Advisors Group
866-948-Ext***
***
Dear Mr***,
American Advisors Group (herein AAG) is in receipt of the above referenced correspondence filed with the Revdex.com on April 11, We appreciate the opportunity to address your concernsIn the complaint you stated the following:
“In June of we sent for information on reverse mortgageOn July 20, *** received first email (sent through *** email) from *** *** saying, "He would be our AAG personal reverse mortgage professional." On July 23, *** *** sent *** an email, (sent through *** email) about upcoming counseling session which we did on August 8, The next step in the process was the notary, who came on August 10, The appraisers came out September 18, On October 6, a letter was sent from *** *** stating that our loan was conditionally approved but there were a few things we had to do and that we needed to have these things complete before November 25, 2015, which we did except for modifying the trust because we could not get anyone to explain why this was necessary and our lawyer *** *** said, "He did not think this was necessary." October 26, a letter was sent to me that AAG was now my title companyThe appraisers were supposed to be back out before November 25, but *** *** would never get back to us so the appraisers did not come out till December 11, It took until January 22, for *** *** to get in touch with *** *** to answer questions about why this was necessary and on March 10, the trust was revisedThen I was told that the loan was denied because *** lived on the propertyThat was never a secretThen we get a letter stating my initial loan amount and the finally letter I get is that the loan was denied because I did not meet the income requirementThroughout this process, not one time till final letter did anyone mention an income requirementI am not sure what income has to do with a reverse mortgage? I thought a reverse mortgage was to help people to stay in their homes and that there was no mortgage paymentsI also never received the appraisal reportI have called numerous times, sent emails to AAG and *** *** at HUD with no response.” [End]You went on to state the following:
“I would like to get my reverse mortgageI see no reason that I didn't receive my reverse mortgage because everything was good with the loan and I did everything that they asked me to doThe paperwork clearly states there is no income requirement but that is why I was denied.” [End]AAG would like to apologize for any inconvenience you may have experienced during the loan process with usYour first statement regarding the advice you received from your attorney about the trust not having to be submitted to an attorney retained by AAG is not accurateAll trusts are reviewed to confirm they are acceptable for a HUD/FHA insured loan, and to satisfy AAG’s lending guidelines as an FHA approved lenderBecause we did not receive the trust for review in a timely manner, a significant delay resultedThe income requirement for reverse mortgage applicants has been in place since April Every homeowner who applies for a reverse mortgage after that date must be advised that there is an income requirement as well as a determination by the lender, known as a Financial Assessment, or FA, that the borrower will be able to continue to make on time property tax and homeowners insurance payments for the life of the loanIf it is determined that the borrower is unable to make such payments, or has not historically been able to meet such obligations in a timely manner, then a Lifetime Estimated Set Aside has to be imposed on the loanThis LESA is a lump sum that is applied to the loan when it funds, and used to pay for property taxes and homeowners insurance obligationsWithout income details, a lender such as AAG is unable to determine if the borrower is eligible for a reverse mortgageAAG’s Underwriting Department determined that there was in income shortfall in your residual income which is less than 80% and would require a fully funded LESA, the details of which were explained earlier in this paragraph
Because the income component or requirement is so critical to the reverse mortgage, you were advised very early in the process that this would be a requirementWhile the term “income requirement” was perhaps not used, the fact that you were asked for proof of income etc., is proof that you were aware that AAG as an FHA approved lender needs to know such informationWe hope this letter has addressed all of your concernsPlease do not hesitate to to contact me anytime by telephone or email if you have any questionsSincerely,
*** ***
American Advisors Group
CARES Manager
1-866-948-Ext***
***

we completed the process slightly less than years ago and it was not difficult, once we understood the "rules" and" regulations"It has been central to our continuing to live in our home and maintain our financial existenceNot having to pay the principal and interest on our home loan releases about 1,per month for other living expensesWe are very thankful for this program and AAG and in particular Regina Redfern, our contact with AAG

To who it may concern,American Advisors Group strives to provide Consumers, as well as our Borrowers with the highest level of service possible and we appreciate the opportunity to address any concerns that Consumers and our Borrowers may have.We have conducted a thorough review of the details
associated to the ongoing origination of this loan application and have found that it is being completed properly and meets all Local, State and Federal requirements.In response to the Consumers concerns, AAG has responded to her directly in a formal letter, mailed via *** as of today 2/15/2017, detailing each of her concerns individuallyIn addition, we have attached a copy of our response letter here for review by the Revdex.com, as well as proof of shipping.Again, AAG appreciates the opportunity to address these concernsPlease feel free to contact us with any additional questions at the following:AAG CARES Department***-***-*** *** ***, ** ***

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this proposed action would not resolve my complaint. For your reference, details of the offer I reviewed appear below
[Provide details of why you are not satisfied with this resolutionPlease respond in this space ONLY]
Regards,
*** ***

Good Afternoon,Attached is the requested Reverse Mortgage ApplicationPlease note, this is for Revdex.com and Mr***'s review ONLY and cannot by law be shared with any other entity without Mr***'s permissionAll private, non public information has been redacted.On Page of the Application under "Acknowledgment" the Applicant is advised that the lender may request further information from creditors listed on the application or from a credit reporting agencyIn addition, the borrower is verbally advised early in the process by the loan officer that credit or a history of an ability to meet credit obligations in a timely manner may be a factor in determining eligibility for a reverse mortgagePlease see an explanation below of the Financial Assessment requirements for all Reverse Mortgage borrowers, that have been effect since April 27, 2015:For the last few months, the reverse mortgage industry has been preparing for a change called Financial Assessment, which was originally slated to be implemented on March 2, However, the Federal Housing Administration’s Department of Housing and Urban Development (HUD) has announced that due to a delay in the delivery of necessary system enhancements, the original date was postponed instead to become effective April 27th 2015.This financial assessment process is conducive to making the Home Equity Conversion Mortgage (HECM) an even safer loan product and will further protect senior Americans who are interested in reverse mortgagesIn essence, the new changes will require mortgagees to conduct the financial assessment in order to evaluate reverse mortgage borrowers more thoroughly and to provide at risk borrowers with the means to meet their loan obligationsEffective for all case numbers issued on or after April 27th 2015, mortgagees will evaluate borrowers on the answers to questions such as the following:• Is the borrower capable of meeting financial obligations of the HECM?• Is the borrower willing to comply with mortgage requirements?• Is the borrower getting a reverse mortgage as a solution to financial difficulties that they may have, as reflected in their credit report and property charge payment history?• If so, to what extent could the reverse mortgage actually provide a solution to any of those financial difficulties?If it is found that the borrower has not demonstrated willingness or ability to meet financial obligations, then the mortgagee must require a “Life Expectancy Set-Aside”These funds will be allocated specifically to paying the borrower’s loan obligations throughout the life of the loanIn addition, mortgagees will as well require certain additional documentsThis documentation includes the following:• Credit history documentation• Income verification• Asset verification• Property charge verification• Residual Income Analysis• Documentation of extenuating circumstances or compensating factors• Calculations for life expectancy set asides• Residual Income shortfall set asidesAlthough these new requirements are more extensive than past requirements, they will ultimately serve to protect countless reverse mortgage borrowers from default as well as further contribute to making the federally-insured HECM one of the nation’s safest loan products in the market to date

Dear Sir/Madam,I have attached my response to this matter in an email message I sent to Mr/MrsOrlovitz on January 19, 2017.Because no phone number and address were supplied, AAG is unable to place the phone number on the Do Not Call listWe have tried to locate the name SOrlovitz in our records
to no avail. Could you please reach out to the Consumer and advise them that without the affected telephone number,we are not able to execute the request that it be placed on the Do Not Call list.As soon as I receive the number I will ensure it is immediately placed on the DNC. Sincerely,Sinclair RobertsCARES ManagerAmerican Advisors Group866-948-Ext581***@aag.com

Good Afternoon,Please accept my apologies for the tardy response to this matter. A copy of the attached response letter has been mailed to the ConsumerAAG is satisfied that we originated and processed this loan in accordance with standard industry, state and federal lending guidelinesThe
income and credit challenges were not too great for the loan to work, despite AAG's best efforts.Please do not hesitate to call or email me with any questions.Sincerely,*** ***American Advisors GroupCARES Manager*** Ext***

Good Morning,Please find AAG's written response to this matterA copy of the response has been uploaded to this portal I would welcome any questions by email, or telephone.Sincerely,*** ***American Advisors GroupComplaints Resolution Manager*** *** ***Dear Mr
***,American Advisors Group (herein AAG) is in receipt of your correspondence to the Revdex.com dated January 18, We appreciate the opportunity to address yourYou Stated in the correspondence that you called AAG to request information on HECM for Purchase followed later by a refinanceYou stated that the initial representative would not let you speak or transfer you to a loan originator licensed in the State of ***You wanted to let AAG know that he did not connect you with a loan originator qualified to answer your questionsYou Stated that when you called back and asked to speak with a manager, the representative hung up on youYou want AAG to improve its Call Center service and would like to speak with someone able to answer pertinent questions on your loanYou would like to see AAG’s representatives be more transparent with callers.AAG thanks you for your sharing your concerns, and would like to apologize for any misunderstandingWhen is a call is received requesting information on a product offered by AAG, our Call Center determines, by asking a set of questions, if the caller should be forwarded to a loan originator licensed in the state the caller livesIf the caller is unwilling or unable to provide this critical information, our call center representatives are unable to forward them to a licensed loan originatorAAG does not tolerate its employees being rude, and any allegations of such behavior are treated with the severity they deserve, ranging from a warning to retraining and termination.We encourage you to call us again and provide answers to our representatives' questions, which will allow them to transfer you to a licensed loan originator who will be more than happy to assist you.Please do not hesitate to call or email me if you have any questions.Sincerely,*** *** American Advisors Group Complaints Resolution Manager *** Ext***

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this proposed action would not resolve my complaint. For your reference, details of the offer I reviewed appear below.I agree with AAG reference my credit problems, as I stated in my complaint I told *** ***, loan officer, that the first time I spoke with himAt that point he should have referred me to someone who would check my credit before I ever started the processBut no he had told me that everything would be all right as long as I explained why I had credit problemsNot once but twice he sent me and my realtor a conformation letter that I was qualified and was approved for the reverse mortgage purchaseMy realtor sent copies of the approval to the sellers realtorSo not only me but the sellers believed that all was a goI had all ready put $down for deposit*** *** then has me pay for a certificate, $125, that I was required to purchaseSo we are now at $2125.
Next I had to have the property inspected, $= $ and last I was required to get an appraisal, that was $which equals $that I lostFour days before the closing I get a call that AAG needs me to show more incomeWhy is this just now coming upAnd why do I need more income for a loan that does not have any paymentsThe sellers moved the week before the closing thinking everything was going smoothlyThey also suffered greatly having to put the house back up for sale and continue to make their loan paymentsI AM COMPLAINING THAT AAG DOES NOT KNOW WHAT THEY ARE DOING AND HAVE COST ME $2925, WHEN THEY SHOULD HAVE CHECKED MY CREDIT REPORT FIRST THINGIF I HAVE TO GET AN ATTORNEY AND FILE IN SMALL CLAIMS COURT I WILLTHIS IS A TOTAL RIP OFF AND BEING A SENIOR CITIZEN I FEEL I HAVE BEEN TAKEN ADVANTAGE OF.
Regards,
*** ***

They were very niceWe have no complaints

If you want a Reverse Mortgage and live in an unincorporated area where wells, septic tanks and possibly private roads are involved – DO NOT USE AAG! Find a reputable LOCAL mortgage company that does RMs, and make sure you are dealing with a highly experienced loan agent who is familiar with unincorporated areas and FHA requirements! AAG agents are nothing better than well trained, smooth talking sales people who will sell you on the number of loans AAG closes every yearBut they only know the basics about what borrowers need to start the application, and clueless about actual FHA underwriting guidelines!
They will demand an immediate appraisal and ask you to pay for it, but don’t take the time to read it – only looking at the bottom line amountHad our “agent” been knowledgeable about unincorporated areas, he would have noticed on the very first page of the report that our property is one of users on a community wellBut FHA in its infinite wisdom (or lack thereof) only allows only users
A property must qualify almost more so than the borrower itself, and AAG’s first step procedure should be to submit basic property details to an underwriter for preliminary review, who would have immediately rejected the application although we qualify, but clearly our house does not! Instead they let us jump through hoops for FOUR months, while we complied with all demands and sending them dozens of documents with highly personal information, including a full Trust! And the agent didn’t even have the guts to call us and rather had the processor give us the bad news
The other clue of our agent’s incompetence in this botched application is about a technicality he deemed unimportantIf either one of the borrowers is about to turn (minimum age for an RM), the application cannot be submitted MORE than days prior to his or her birthday – he did it days prior to my husband turning He should be aware that FHA does NOT budge on their guidelines!
We were forced to re-apply, signing 50-some pages again, and then finding out the agent had no idea that AAG subsequently sent us a letter saying they can’t process the loan because (unspecified) documents were missingBut he had them from the first application and just didn’t pass them on to whoever needed them
As a former Realtor of 25+ years and having worked with countless extremely savvy and experienced lenders, I do have an understanding of what a top notch loan agent can and cannot doI called several of them – they all knew about the above guidelines! AAG does not hire people with such knowledge and experienceI urge anyone who wants a reverse mortgage to do their homework and ask the right questions! AAG is not the answer!