Seven states on Wednesday began a standardized process to more thoroughly license and track tens of thousands of mortgage brokers.

WASHINGTON - Seven states on Wednesday began a standardized process to more thoroughly license and track tens of thousands of mortgage brokers.

The system is mandatory for brokers doing business in the seven states, and brokers can be penalized for operating without a license.

Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York and Rhode Island are the initial states participating. In total, 40 state agencies, as well as Washington, D.C., and Puerto Rico, plan to join by the end of 2009.

Florida already licenses mortgage brokers, requiring a course and continuing-education credits. The state also registers loan originators.

Ritch Workman, president of the Florida Association of Mortgage Brokers, a Tallahassee-based trade group, said he favors a national registry that would more closely monitor mortgage brokers and loan originators. "We would like to see all loan originators fall under the licensing and registration requirement," Workman said. "Mortgage brokers should not be singled out."

http://www.sun-sentinel.com/business/realestate/sfl-flzbrokers0103sbjan03,0,4992588.story