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.

The government is begging you to use this tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

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.