According to a recent study conducted by the Center for Responsible Lending, government-mandated down payments would severely damage the mortgage marketplace.

The survey showed that a required down payment rate of 20 percent could force as many as 60 percent of otherwise creditworthy borrowers into high-cost loans, while others would be prevented from receiving a home loan altogether.

Although regulators argue that mandatory down payments would help lower the mortgage delinquency rate and result in fewer defaults, critics argue that the resulting number of potential borrowers who would be locked out of the marketplace would offset any positive aspects.

Additionally, some industry experts claim that the mandate would be particularly bad for minority borrowers. It's believed that if implemented, an estimated 70 to 75 percent of qualified minority borrowers would be prevented from receiving a fairly priced home loan due to a lack of closing solutions.

However, some claim that the current ban on high-risk loans under the Dodd-Frank Act is currently more effective than a mandatory down payment rate of 20 percent. A high-risk loan in this case can be a mortgage granted with prepayment penalties or without thorough income documentation.