Washington, D.C. – The State Regulatory Registry (SRR) has filed a lawsuit against two individuals and one company who illegally obtained and distributed confidential information from the national licensing exam that mortgage loan originators must pass to conduct business.
“The actions cited in our lawsuit undermined the integrity of the state licensing exam, which is designed to ensure public confidence in the way state regulators approve licenses,” said John Ducrest, chairman of the SRR Board of Managers and commissioner of the Louisiana Office of Financial Institutions.
The suit charges B. Glenn Bartholomew, Cary Green, and MTI Services, Corp., for conducting a “conspiracy to steal, reproduce and sell…licensing examination questions to prospective loan officers so as to give those customers an unfair advantage on the test.” The suit lists several illicit methods to gather and distribute copyrighted test questions. SRR concluded that the defendants’ conduct compromised a significant number of test questions.
The suit, filed in the U.S. District Court, District of Colorado, charges that these actions amount to copyright infringement, trade secrets violations, and breaches of contract. The suit seeks monetary damages, legal and court cost reimbursements, and that defendants be enjoined from engaging in such conduct.
SRR is a subsidiary of the Conference of State Bank Supervisors, and oversees the operation of the Nationwide Multistate Licensing System. The formal name of the licensing exam is the SAFE MLO National Test, mandated for mortgage loan officers by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.