No More Fannie & Freddie? Is It Possible?

It was announced by President Obama that the government would like to move toward getting rid of Fannie Mae and Freddie Mac. These two artists previously known as government ran, then privately ran, then taken back under by the government are in the lime light again. But I can't figure out what for.  They got into hot water when the market fell a number of years back for doing a few things that were, well, not cool to say-the-least.  But then the government came in, took back control, forked over a bunch of money and sent them back to the school of "do business the right way or you're outta here".  So what's the news about getting rid of them?  And if there were no more Freddie and Fannie, then where would we get our loans? The LA Times reports "...Freddie Mac has financed 1.8 million home purchases, 7.2 million refinancings and 872,000 loan modifications or workouts. As of next month it will have paid back $41 billion of the $71 billion in assistance extended by the government."  I personally don't think it's possible to get rid of them but I guess if we really don't need anyone to get our loans from, well then, go ahead Washington. Read more at LA Times Real Estate here Dissolving Fannie Mae, Freddie Mac May Hurt Borrowers