Global Equity Lending is a mortgage broking company that is auxiliary to the World Leadership group, its marketer. Global Equity Lending uses a structure in its lending process similar to multi-level marketing. The company was formed by Hubert Humphrey from his previous business ventures and is among the larger mortgage brokers in the industry.
The company uses an unusual system, very similar to multi-level marketing, of hiring employees and then training them as lenders, the majority of whom are not licensed. During the training process they are shown how to properly market the products and services Global Equity Lending has to provide, as well as learning how to represent World Leadership Group. The lending associates, or loan originators, usually end up receiving close to half of the profits from the loans they close. Current employees of Global Equity Lending are able to recruit new lending associates into the company and they receive additional commissions for the loans these individuals close. The loan originators don’t actually receive leads from Global Equity Lending, so unless they take an active role in finding potential loan candidates and increasing their connections they are unlikely to make as much money in the company as otherwise.
The company also requires that applicants for loans pay fees between $12.50 and $75.00 in order to make their applications. These fees go towards the costs of processing the application, performing credit checks on potential clients, and other similar purposes.
Because of its multi-level marketing Global Equity Lending has been the focus of some controversy.