Which of the following individuals is exempt from licensing under the SAFE Act?

The correct answer indicates that a registered Mortgage Loan Originator (MLO) who takes applications for a depository institution is exempt from licensing under the SAFE Act. The SAFE (Secure and Fair Enforcement for Mortgage Licensing) Act establishes clear guidelines and requirements for mortgage loan originators, aimed at enhancing consumer protection and ensuring that those handling mortgage loans meet certain standards.

A registered MLO working for a depository institution is typically seen as an employee of a federally insured depository institution, such as banks or credit unions, which are already subject to rigorous regulatory oversight. Because they're registered and not required to be licensed like independent MLOs, they enjoy this exemption. This registration process provides a layer of compliance and oversight that replaces the need for an additional state license, ensuring that individuals in this role meet federal standards without duplicative state licensing requirements.

The other choices do not fit within the exemption framework outlined by the SAFE Act. For instance, a licensed MLO working for a qualified lender still requires a state-issued license. An individual who manages a sales team and occasionally takes applications likely engages in enough direct lending activity that they would need a license. Similarly, an independently contracted processor performing higher-level functions beyond clerical duties would not be exempt, as their role could