How the administration will get rid of Fannie Mae and Freddie Mac

I mentioned earlier that the administration plans to get rid of Fannie Mae and Freddie Mac. But I didn't say much about how they mean to go about doing it. Luckily, Daniel Indiviglio has a nice, clean summary:

One change would be to gradually increase the guarantee fees that [Fannie and Freddie] charge, so that private guarantors would be able to better compete. Another change would be to require Fannie and Freddie to obtain more private capital to cover subsequent credit losses. The Treasury also intends to reduce the size of mortgages that qualify for Fannie and Freddie guarantees. Finally, the administration intends to wind down Fannie's and Freddie's mortgage portfolios, by at least 10% per year.