The university is dropping its extra supervision, but that doesn’t mean the groups will run wild. Twenty two sororities are part of National Panhellenic group, and those sororities are governed by agreement. At Penn State they have their ‘house’ in the dorms, so still have university supervision just like any other student in a dorm would.
Fraternities are usually not in very good compliance, but those in the IFC should be following some rules. Or their insurance companies will cut them off.