Where will mortgage rate spreads go down if Fannie & Freddie get absorbed by Uncle Sam???

[usctrojanman29_IHB]

Looks like more and more like Fannie and Freddie Mac will get absorbed by the gov't because of course they are "too big" to fail. So my question, if the gov't takes them over will be mortgage rate spreads (mortgage rates less treasury rates) significantly decline from the 2.5% that it is today?

 

[awgee_IHB]

I just heard this: "Fannie Mae and Freddie Mac are the worst of both worlds; the worst of government and the worst of private enterprise."