WASHINGTON — Several prominent Republicans, including Sen. Richard Shelby, the Senate Banking Committee's top GOP member, sharply criticized a proposed settlement between the five largest mortgage 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 that the state attorneys general gave banks a "regulatory shakedown" to "advance the administration's political agenda."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.