Obama Housing Plan Wins Banks' Support

For instance, the program has strict stipulations for those borrowers looking to refinance or modify their loan payments. In order to qualify for the modification aspect of the program, a borrower must have secured their mortgage prior to the start of 2009, the primary mortgage must be below $729,750, and it will apply only to owner-occupied primary residences.

Additionally, the borrower will need to document their income with tax returns and pay stubs, and must sign an affidavit stating their financial hardship. Those in households where debt totals 55% or more of their income must attend debt counseling.

The senior Treasury official also noted that the modification program will only be extended to those borrowers with the willingness and the ability to pay an affordable mortgage and "will not help those who borrowed far more than the house was worth or more than they could ever hope to repay."

"There is no silver bullet," Dimon said. "These mortgage modifications are economically and morally the right thing to do for individual customers. It is the respectful way in which we all would want to be treated. We will work hard to incorporate the new criteria into our own loan modification process to quickly help customers, and we urge all to participate in this plan as soon as possible."

While supportive of the plan, Dimon was also quick to criticize the plan currently floating its way through Congress that would give bankruptcy judges more power to adjust mortgages in court.