U.S. Treasury Secretary Henry Paulson said that today that the government would broaden the reach of its $700 billion bailout plan to support non-bank financial institutions that provide consumer credit, such as credit cards and automobile loans, CNNMoney.com reported.

In this second stage of the bailout, officials also hope to attract private capital, possibly through matching investments, to give the government’s injections more heft.

Paulson also said the government is no longer planning to buy troubled mortgage assets, the original goal of the plan. And officials are continuing to examine ways to help homeowners and slow the tide of foreclosures.

“Although the financial system has stabilized, both banks and non-banks may well need more capital given their troubled asset holdings, projections for continued high rates of foreclosures and stagnant U.S. and world economic conditions,” Paulson said.

“Second, the important markets for securitizing credit outside of the banking system also need support,” he said. “Approximately 40 percent of U.S. consumer credit is provided through securitization of credit card receivables, auto loans and student loans and similar products. This market, which is vital for lending and growth, has for all practical purposes ground to a halt.”

American Express Co. provided the most recent example of the troubles facing non-bank financial institutions, which can no longer sell securities based on assets such as credit card loans. On Monday, the Federal Reserve reclassified the credit card issuer as a bank holding company so it could more easily access government financing. It has reportedly asked for $3.5 billion under the bailout plan.

In the five weeks since Congress approved the bailout, the Treasury Department has focused on injecting capital into banks. Nearly 50 financial firms have won full or preliminary approval to receive a total of $172 billion in equity injections. The government has yet to award another $78 billion. Most institutions have until Nov. 14, though private banks have additional time.

However, institutions have come under fire for not increasing their lending despite the government intervention.