Democratic senators, including prominent Wall Street critic Elizabeth Warren, took the regulators to task over what they described as a cozy relationship between banks, regulators and the consultants hired to evaluate foreclosure cases. Warren also criticized regulators for withholding documents and information from Congress.

"People want to know that their regulators are watching out for the American public -- not for the banks," Warren said.

The main point of contention was the Independent Foreclosure Review, an initiative announced back in April 2011 to assess potential wrongdoing by banks in foreclosure cases from 2009 and 2010.

Read Full Article: Warren grills bank regulators over bungled foreclosure review