There is no need to break them up and remake them because there is no need for these Great Depression era FDR-created GSE services to begin with - they only distorted the normal housing/mortgage market and have been privatizing profits while socializing the risk / liabilities / losses.
Fannie and Freddie aren't Too Big To Fail (TBTF) - they are Too Big To Succeed (TBTS). So is the rest of the Big Government (e.g., look at Greece and the PIIGS of EU).
though, I’m no economist, but what happens if Fannie and Freddie DO collapse and fall? Does that bring down the US economy? Anyone have a clear picture that they can tell me?