Well still i think nothing could beat an independent and experienced broker. I mean the kind of inside information they have is hard to find any where. though technology has been bridging the gap between borrower and lender but as they say old is still gold.

I was a loan officer for a mortgage broker about 4 years ago, and I often times was flooded with mistakes, misinformation, and shotty service from some of the lender reps... You'd think working directly for the lender, these reps would be extremely knowledgable... There's no replacement for mortgage brokers.

I have not use a mortgage broker in 13 years, however I believe there is a place for them and the Internet services. In fact I would use the internet to negotiate a better deal. I refinanced (direct) my home approx. 8 years ago and used the Internet to negotiate a better deal.

Yes there are lots of mortgage websites which would help you get the best deals. so internet has added one more dimension here, which help save lots of time and energy.

guess there will be some need for the lower income area and a need for the specialties, which makes money

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For people that aren't confident at finding their own mortgage deal or for more specialized circumstances there is a definate need for a mortgage broker as oppose to the lender reps.

The lender reps, like already mentioned, only have experience with the lender they work for so you would have to speak to lots of them to get a good picture, and they are obviously bias and heavily targeted.

A broker understands the whole market and can match you up with the right lender and the right deal.

For more run of the mill mortgages and if you are fairly financially literate then I agree the internet makes things very easy and the direct only lender deals are 99% of the time better than the broker deals

Good mortgage brokers are suffering from what the bad mortgage brokers have done. Mortgage brokers in general are gaining a negative image from the recent housing bust. With so many bad mortgages originated with little to no documentation, with negative amortization loans, with ARM loans clients would not be able to afford after the initial rate adjustment, with the reassuring "come back in two years and we will refinance this into a nice, low, 30 year fixed mortgage" sales pitch, bad mortgage brokers have soured the public's opinion on mortgage brokers.

Wholesale lenders don't really give you the best price. They have a huge overhead in dealing with individual borrowers, so the prices the direct lenders quote you are higher than they quote to brokers.

Mortgage brokers are the retail sellers of the mortgage market, and they have their place in the free market economy. A small broker may have multiple lenders to quote wholesale prices from, and may know how to serve individual borrowers more efficiently than a big bank does.

Of course, mortgage broker is a middleman and it's tempting to cut him/her from the sale. But some things that the middleman does, someone still has to do. For example, someone has to talk to you and quote you the price and do the paperwork, which requires certain amount of time and money. It may cost more or less in the end, you should always compare how much you pay in the end, not how many people are in the middle.

I'm rolling out a site soon to give mortgage quotes in Washington state, and I would challenge you to find a direct lender who'd give you better "direct" quote than I can give you (it's in closed beta now, PM me if interested)

Good mortgage brokers are suffering from what the bad mortgage brokers have done. Im fully supporthing this!