The Web is a hot topic for mortgage lenders, but a report released last week said their on-line efforts so far have been disappointing.

"Few lenders have utilized the Internet to revolutionize the process of marketing, originating, and selling mortgages," Sutro & Co., a San Francisco-based stock brokerage, said in its report. "With few significant exceptions, the initial reality of the new Web lenders does not yet live up to this promise, either in terms of convenience to the consumer or, we believe, in risk-adjusted potential returns to investors."

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