I think these standards swing the pendulum too far in the opposite direction. The domino effect from taking that many buyers out of the market will be disasterous, at least in the short term.
I think this will make a lot of people landlords and renters at the same time. We will rent out the house we have mortgaged and be renting a house that someone else has mortgaged. If a lot of people are put into this situation I can see things getting real messy real quick. One renter not paying rent for too long and a domino effect may occur.