WASHINGTON — The backlash against an aggressive mortgage servicing settlement reached new heights on Wednesday as lawmakers sharply criticized Elizabeth Warren of the Consumer Financial Protection Bureau for her involvement and two state attorneys general vocally opposed the proposed deal. While a House hearing on the CFPB turned into an attack on the agency's role in the settlement, Republican attorneys general outside of Washington expressed dismay at the 27-page settlement term sheet offered by Tom Miller, Iowa's AG, on behalf of all 50 state enforcement agencies.

Their opposition and continued objections from lawmakers suggest the banks are gaining momentum in their effort to substantially weaken the proposed terms.

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