Obama Housing Plan Wins Banks' Support

Banks have lashed out at the plan, arguing that bankruptcy court mortgage modifications would bring about massive costs that would inevitably be passed along to borrowers at higher fees and interest rates. The bill will be voted on by the House of Representatives as early as Thursday.

"We believe [the Making Home Affordable plan's] completeness eliminates the need for judicial modification in bankruptcy, but if legislated, judicial modifications should be consistent with this plan and only for borrowers who couldn't qualify or were not offered a modification," Dimon said.

Wells Fargo shares were dropping 9.5% to $9.66. Shares of JPMorgan were lately down 8.1% to $19.30. Meanwhile, Freddie Mac was jumping 5.1% to 41 cents and Fannie Mae was adding 7.9% to 41 cents.

BofA shares recently were up 1.4% to $3.59. Citi shares were off 7.4% to $1.13.

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