Despite legislative efforts to enact sweeping change when it comes to Fannie Mae and Freddie Mac, many observers and investors believe the status quo is the most likely scenario for the foreseeable future. Given the low likelihood of reform, some are suggesting that the two entities should be merged into one single company to save money and generate more cash for the government.

In the following video, Matt Koppenheffer and David Hanson debate the likelihood of this happening and what it would mean for shareholders.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.