The Obama administration's housing plans help struggling homeowners and provide incentives to loan servicers to rewrite mortgages, JP Morgan Chase CEO Jamie Dimon said.
More than a million mortgages at JPMorgan will get rewritten under the plan, Dimon said during a CNBC interview in which he also praised other administration initiatives for banks and the broad economy.
"To me the whole package is elegantly done--no simple solution, but what they've done is very good," he said. "And I think if the secretary of the Treasury and President Obama continue to come up with really thoughtful plans and to roll them out like this it will have a very beneficial effect on our psyche, on confidence in the financial system and on the country."
For the housing plan specifically, Dimon cited the benefits that will come to homeowners who will get reduced interest rates and thus more affordable mortgages, while mortgage servicers will see fewer defaults and better returns on their investments.
"There are incentives for servicers and mortgage owners and there are really great incentives for the homeowner," he said. "They get a lower price, they get a discount on the back end if they actually keep up with their payments. We think it's kind of win-win."
Dimon said he hopes an economic recovery can happen later this year.
"This country has had big problems before. This is not the first," he said. "If we face them head-on and look at the full set of problems that were made and created, we have real solutions and policies for them, we will reform like we have in the past and we will move on like we have in the past. Hopefully that will be this year, later this year, as opposed to sometime in 2010, but we don't know."