FTC warns Mortgage Connect over noncompete restrictions
→Mortgage Connect must review noncompete and restrictive-covenant terms or remain exposed to FTC enforcement scrutiny
Change
On May 8, 2026, FTC Chairman Andrew Ferguson sent Mortgage Connect a warning letter urging review of employment contracts, discontinuance of noncompete or restrictive-covenant terms that are not reasonably necessary, and notice to affected workers.
Why it matters
The letter puts Mortgage Connect?s employment-contract templates and enforcement choices inside the FTC?s active noncompete enforcement focus. The immediate decision is whether to keep, narrow, or discontinue restrictive terms before the agency escalates from warning-letter scrutiny to enforcement action.
Implications
- → Mortgage Connect HR and legal teams must review employment contracts for noncompete and restrictive-covenant terms that are not reasonably necessary ? leaving them unchanged preserves the FTC warning-letter risk.
- → Mortgage Connect HR and legal teams must notify relevant workers if restrictive terms are discontinued ? failing to notify leaves affected workers operating under unclear contract expectations.
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Source
View on FTC