Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

The statement about the creditor's information section of the Loan Estimate that is incorrect is that a mortgage broker must always use their name on the LE. In a typical transaction, the name of the mortgage broker does not need to be included in the creditor's section of the Loan Estimate if they are acting on behalf of a specific lender. Instead, the LE should reflect the creditor who is ultimately offering the loan or taking responsibility for it.

This is important for maintaining clarity in the loan process, as the borrower needs to know who they are dealing with for the loan terms and conditions. By including only the direct creditor's information, it helps streamline communication and accountability. The LE is designed to offer transparency about the costs and terms of the loan, highlighting who the financial responsibility rests with during the loan process. Thus, the behavior of the mortgage broker doesn't dictate their name's inclusion in the creditor's section of the LE; the creditor’s identity is what is essential.