I work for a reputable mortgage broker in Foothill Ranch, CA. Many people call and ask us for quotes on refis, and when we tell them, they say, "Well, another company said they'll get me 4.5% for $995." I'd have to work for free and pay your closing costs out of my pocket to do that.
A new disclosure law that went into effect in July has made it harder for these companies to lie and hide extra fees. As for my company, we never did that, so the new disclosures are no big deal for us.