Critics feel new mortgage law is too monetarily demanding

In an effort to limit new restrictions on the housing and mortgage markets, a group of senators have sent a letter to the chairman of the Federal Reserve, the chairman of Securities and Exchange Commission, the secretary of the U.S. Department of Housing and Urban Development and three others, according to Reuters.

These senators are taking aim at the newly proposed qualified residential mortgage rule, which is supposed to crack down on the lax lending standards that many people believe caused the financial crisis, the news outlet reports. The problem, according to this group of legislators, is that the new proposal will impose an unnecessarily high down payment restriction of 20 percent.

Mortgage standards, as they are currently regulated, already require documentation of income, debt-to-income ratios and mortgage insurance on low down payments. The senators claim that the added monetary requirements the QRM proposal is requesting will overcompensate for the financial crisis, which they feel was not caused by low down payment mortgages, the letter states.

These large down payments could limit the number of people that are able to relocate to newer homes, potentially getting stale houses off the market.  

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