President-Elect Obama Says Funds Should Help Homeowners Too

President-elect Barak Obama said that some of the $700 billion approved by Congress to rescue the nation’s financial sector should be used to help keep struggling homeowners in their homes.

“The deteriorating assets in the financial markets are rooted in the deterioration of people being able to pay their mortgages and stay in their homes,” he said.

The statement, which puts him at odds with current Treasury Secretary Henry Paulson, was made at a press conference announcing his choice of New Mexico Governor Bill Richardson as his choice for commerce secretary.

Paulson has criticized a plan put forth by FDIC Chairwoman Sheila Bair that will use $25 billion from the bailout to restructure loans to lower payments for homeowners who are in danger of losing their homes.

The policy directive from the president-elect may have little influence on the Bush administration’s decisions on how to spend the money, but many homeowners might be glad to hear that Obama is considering some help for them once he takes office.