Several prominent Republicans, including Sen. Richard Shelby, the Banking Committee's top Republican, sharply criticized a proposed settlement between the five largest servicers and state and federal agencies, arguing that the government authorities were trying to usurp Congress' role.

In an opening statement at a hearing on the state of the housing market, Shelby called the 27-page term sheet given to banks by the state attorneys general a "regulatory shakedown," that was being conducted to "advance the administration's political agenda."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.