Fannie and Freddie on the way out?

[DGuller]

http://www.bloomberg.com/news/2013-06-03/senators-near-plan-to-abolish-fannie-mae-shrink-government-role.html

This sounds like a very good thing.  Those GSEs had to be one of the biggest distorting abominations that blighted our economy.  What's the catch?

[CountDeMoney]

and replace them with a government reinsurer of mortgage securities behind private capital.

What could happen.