Just want to make sure I understand correctly... If the loan processor helps a customer fill-out a mortgage loan application, it does not make them an MLO since they are not negotiating any terms… right?

That is correct. It is listed in the items that do not constitute "taking an application". From the Federal Register:

(2) Taking an application does not include
any of the following activities performed
solely or in combination:

(iii) Assisting a consumer who is filling out
an application by clarifying what type of
information is necessary for the application
or otherwise explaining the qualifications or
criteria necessary to obtain a loan product;
(iv) Describing the steps that a consumer
would need to take to provide information to
be used to determine whether the consumer
qualifies for a loan or otherwise explaining
the loan application process;