Re: World Lending Group - Posted by Lee McCord
Posted by Lee McCord on November 04, 2003 at 12:26:04:
Here’s what they don’t tell you…
When you sign up for World Lending Group to close loans, the first thing you
have to do is signup as an independent contractor with World Leadership
Group by completing a W-9 form. Then you must agree to the World Leadership
Group, Inc Associate Membership Agreement where you will agree to among
others, the following two statements:
A. As a member of “World Leadership Group” the Associate promises
that he/she will do the following:
5. Participate in the training that will be provided to “World
Leadership Group”;
The Associate understands and acknowledges that WLG is in the business of
building "World Leadership Group
Dave, training always costs money, there’s no such thing as free training.
You must ask yourself how many employers make their employees pay for
training. These “training classes” cost $25-$35 and of course they’re
nonrefundable fees. At these classes, you’re not trained on how to
originate loans, you mainly just listen to motivational speakers that talk
about building the business. When I signed up, I went to an 8 hour day of
“training” and learned nothing of the mortgage business. The subject matter
was mainly on how to use the website and recruit people. They also try to
sell you a website at these training classes.
“…in the business of building World Leadership Group…” means recruiting
people into the business. So basically when you sign the agreement you
promise to pay for training and to recruit people. Remember this is all
before you even signup for World Lending Group.
Ok, after you agree to this agreement and fill out a W-9, you’re then asked
to pay a $100 nonrefundable processing fee. Any company that asks for
nonrefundable up front payments should throw up a red flag…I had to learn
the hard way, they got my money.
Now that you’ve signed the agreement and paid your $100, you are ready to
become a loan originator. Whew…in order to become a loan originator you
must first pay a $125 nonrefundable training fee and pass an open book test.
Believe me I don’t think anybody could fail the 50
question-take-all-the-time-you-need-we’ve-already-got-your-money test. When
you pass the test and the home office receives your paperwork, you’re now a
commission-only, part time W-2 employee of World Lending Group. Don’t get
this confused with World Leadership Group. Remember, you’re an independent
contractor with World Leadership Group and a W-2 employee with World Lending
Group.
This is where I have a problem with World Lending Group reporting people as
W-2 employees when legally the relationship looks like an independent
contractor. You, as an employee must pay for any advertising, supplies,
phones, computers, internet service, etc…employees normally don’t have to
pay to advertise the business…oh and WLG will sell you anything you need,
how convenient…you’d think they’d give their “employees” the tools to
become successful.
I’ve been doing some research
on WLG and it’s founder Hubert Humphrey. If you research Mr. Humphrey,
you’ll find that he founded another company, World Marketing Alliance, that
has had several cease and desist orders in several states. World Marketing
Alliance no longer exists because of litigation against it.
This is interesting…if you watch the Terry Bradshaw video at
http://www.wlgweb.com/ , you see some interesting characters. I did some
research on these people in the video. Most of these people in the video
have ties to WMA, very interesting. And the domain name
Worldlendinggroup.com is registered to WMA Mortgage Services and Andy
Woodman who happens to be one of the guys in the video. Also in the video a
gentleman by the name of Charles Catledge makes the following statements:
" When I realized that if a Regional Marketing Director could do 4 loans a
month personally, they’d earn $10,000 dollars in cashflow a month…If that
same person could have 5 part-time associates who do 2 loans a month, they
could double that income…that’s exciting…Now, let’s take it a step
further…if I can get 6 folks to do the same production, have the same size
team, that’s 3/4 of a million dollars a year in cash flow…now that’s
exciting…"
I did the math on his statement and it goes like this:
First of all the loans must be $200,000 loans so in order to make $10,000 on
4 loans you have to get $2500 on each loan…ok seems reasonable. Now if
you had 5 people doing 2 loans a month and you’re still doing 4 loans a
month you can double that income…that’s true, you could, if your 5 people
were doing 2 $200,000 dollar loans a month, ok not so bad still seems
reasonable. Keep in mind that’s 14 loans a month, you’re doing 4 and 5
people are doing 2 each, that’s 10, 10+4=14. The next thing he says is the
catch he says, “…if I can get 6 folks to do the same production…” that
means 6 folks doing 4 loans a month personally"…and have the same size
team…" the same size team means, you have 6 people below you doing 4 loans
personally, and each of them have 5 people below them doing 2 loans a
month…that’s 88 loans a month…the last I heard, the processing center in
Georgia can only handle 400 loans a month, which I doubt but I’ll believe
for now. So if there were just 4 Regional Marketing Directors doing this
kind of production, the processing center would be maxed out all the time.
My point is WLG can’t handle that type of production, people would get tired
of waiting and go elsewhere…this proves that WLG is much more interested
in recruiting than closing loans. If this example doesn’t make sense, please
watch the video and see if you can decipher what Charles Catledge says and
do the math and let me know.
One more example: My upline was actually using WLG to take out a new
mortgage…he kept waiting and trying to contact WLG by phone. After he
finally got someone on the phone, they told him they were 21 days behind on
loans…he cancelled the loan and went elsewhere and had it processed the
same day ! Bottom line is WLG doesn’t care about serving customers, they
only care about recruiting and collecting fees for “processing and
training”…Oh and charging people $100 to sign up for their Great Events
!!! Such as the upcoming Top Gun Awards where you get to go to the podium
and receive some type of reward based on the number of people you’ve
recruited, not the number of loans you’ve orginated…
Also do some research on WFG, World Financial Group and see what you find
out. Then go to WorldFinanacialGroup.com and notice how it’s just
WorldLeadershipGroup with different colors…you’ll even find the same
terminology that is used in the WLG recruiting pitch…“be in business for
yourself, but not by yourself…”
WLG has recently joined forces with a company called PPMG Elite and would
very much like current WLG employees or independent contractors to go to the
PPMG Elite website and signup with them…that would cost the WLG Associate
100 nonrefundable dollars…it’s laughable.
One last note, World Lending Group will soon be changing the name to Global
Preferred Lending “… to better align our
company name within the World Leadership Group of Companies…” Sounds like
to me ole Hubert needs to sell more office supplies to World Lending Group
employees who’ve already paid who-knows-how-much for supplies with the
World Lending Group name on it…it’s laughable…