A Pennsylvania judge denied Mortgage Connect’s bid to enforce a broad noncompete against a former executive and found the restriction too broad to uphold.
A Pennsylvania judge has ruled that Mortgage Connect’s noncompete agreement is unenforceable, denying the company’s request for injunctive relief in a dispute with former executive Melissa Harvey.
According to HousingWire, the court found the agreement’s nationwide geographic scope too broad to enforce. The ruling was issued on May 12, 2026.
The case stems from Harvey’s departure from Mortgage Connect in May 2025, when she left for First Title. Mortgage Connect sought to block her from competing under the noncompete.
The ruling came days after the Federal Trade Commission sent Mortgage Connect a warning letter on May 8, urging the company to review its noncompete and other restrictive covenants. The FTC said the warning was based on public materials from the ongoing lawsuit.
The combination of the court ruling and the FTC letter puts fresh pressure on the company’s employee-restriction practices, though the available reporting does not say whether Mortgage Connect plans to appeal.
What happens next
The remaining claims in the Pennsylvania case may still move forward, and the record available so far does not indicate whether Mortgage Connect will seek further review of the injunction ruling.
Revision note
Initial automated publication.