JPMorgan's Move Is Great News on Housing

Good things keep happening. The 90-day moratorium on foreclosures that JPMorgan Chase (JPM - commentary - Cramer's Take) just issued is gigantic, just gigantic, as it is the repository of Washington Mutual (WM - commentary - Cramer's Take), which has the worst mortgage base of any company. They would be tossing people out left and right if it weren't for this moratorium on $110 billion in mortgages.

If you could people in their homes for 90 days, then we might be able to bridge the loans over to the TARP and then the FHA. It doesn't work if the banks foreclose. It is much better for everyone if the banks keep these people in their homes, and then they can offload these loans to the Fed. It just makes so much sense.

When I see these things, it tells me that housing will bottom next year, no matter what. I believe the falloff in price will be steep between now and June, but can you imagine if other banks follow JPMorgan and give people 90 days for TARP to work? Right now there are very few homes being built. You take the foreclosure inventory off the market, and you could get to that bottom very quickly. It is the ultimate killer of supply. Demand will then take care of itself if we can keep from having double-digit unemployment.

Huge move by JPM. Now let's hope Wells Fargo (WFC - commentary - Cramer's Take) and Bank of America (BAC - commentary - Cramer's Take) get the message!

At the time of publication, Cramer was long JPMorgan Chase.

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