Regardless of the politics behind the bill, the collapse of these two entities would have a huge effect on the housing market and the economy. If they fall, credit will tighten dramatically in all markets and the entire economy, not just the housing and mortgage markets, would be exposed to detrimental effects.

Quoted: In addition to propping up Fannie Mae and Freddie Mac and helping homeowners avoid foreclosure, the bill creates a permanent affordable-housing trust fund that initially will help pay for the mortgage-refinancing plan and eventually sponsor the creation of rental housing for Americans too poor to buy homes.