By Alison Vekshin

Jan. 2 (Bloomberg) -- State bank supervisors unveiled a nationwide licensing system for U.S. mortgage brokers, aiming to close a regulatory gap blamed for opening the way to record defaults and foreclosures among subprime borrowers.

The Internet-based system, modeled on the registry for securities brokers and dealers, went online today, the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators announced in a statement released in Washington. The program will track licensing, employment history and enforcement actions.

``This significant and necessary step forward should better protect borrowers by bringing greater consistency across the states to the supervision of mortgage lenders,'' Federal Reserve Governor Randall Kroszner said in a statement. ``Nationwide licensing should prevent lenders who run afoul of authorities in one state from simply moving and doing business in another.''

The licensing effort will help government watchdogs monitor state-regulated brokers and lenders who aren't overseen by the Fed and other U.S. agencies. Regulators told Congress in hearings last year that brokers were responsible for most subprime loans, those made to borrowers with weak or incomplete credit histories.

The percentage of Americans behind on mortgage payments in the third quarter was the highest in 21 years and foreclosures hit a record, the Mortgage Bankers Association said last month.

Included in House Bill

The U.S. House of Representatives included the licensing system in a broader bill to rein in predatory practices in mortgage lending. That measure was approved in November. Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, introduced companion legislation last month.

``As a mortgage originator, I feel safer with this kind of thing in place because I think it gets some of the bad guys out of the business,'' George Hanzimanolis, president of the National Association of Mortgage Brokers, said in a telephone interview.

``The problem with this is that it doesn't include everyone,'' including loan originators at subsidiaries of national banks, Hanzimanolis said.

Seven states, including New York and Massachusetts, agreed to help initiate the program, and 40 more said they will participate, according to the statement announcing the effort. More than 500,000 brokers and lenders are expected to register, the statement said.