Think of retail banks (big box bank, mortgage bank, online mortgage lender) like a Nike store: It only sells Nike products and setting prices. These banks ONLY sell their products, rate, and fees.

Think of us (brokers) as Amazon: It sells Nike also, but it also sells products from many other vendors.

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What Banks charge consumers (the cost of the loan i.e. rate & fees) is a function of their costs. This is outlined in the graphic. As you can see, banks have a lot more staff expenses and overhead than the broker & wholesale lender model. That means higher rates and fees for consumers. 

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As Mortgage Brokers, we can shop all those banks, their wholesale division, which doesn't have all those expenses. 

 

It explains why the same bank "Bank Bs'" retail division quotes different rate & fees compared to "Bank Bs'" wholesale divisions' rate & fees. Add to that, we as a broker, run a very lean operation so savings can be passed on to you.