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A bank employee who negotiates mortgage loan terms with customers but is not required to obtain an MLO license under which exemption?

Correct Answer

A) The employee works for a federally insured depository institution and meets certain conditions

Under the SAFE Act, employees of federally insured depository institutions are exempt from state licensing requirements if they meet certain conditions, including registration with the NMLS and compliance with federal regulations.

Answer Options
A
The employee works for a federally insured depository institution and meets certain conditions
B
The employee only works with commercial loans
C
The employee has been in the industry for over 10 years
D
The employee only processes loan applications

Why This Is the Correct Answer

Under the SAFE Act, employees of federally insured depository institutions are exempt from state licensing requirements if they meet certain conditions, including registration with the NMLS and compliance with federal regulations.

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