According to Dworkin, “We need to rapidly respond to real changes that could create quantifiably negative impact on markets and people, like last weekend’s assault on the CDFI Fund. As a result of the advocacy of dozens of housing groups, [and] a strong endorsement by the bipartisan Senate Community Finance Coalition, ultimately, the CDFI Fund ended up stronger and more secure than it has been in months. We know from experience, however, that things can change very fast.”

Dworkin goes on to note that the third week of March marked dramatic changes at Fannie Mae and Freddie Mac under the leadership of FHFA Director Bill Pulte, who was sworn in a week prior. Those changes included the replacement of 14 members of Fannie and Freddie’s Boards of Directors, as well as the replacement of the Freddie Mac CEO, and the firing of the two senior officers responsible for DEI initiatives, as well as Freddie’s head of HR. “The Chief Operating Officer and head of Human Resources at FHFA were also fired,” says Dworkin, “and dozens of FHFA employees were put on administrative leave and escorted from the building.”

Dworkin notes that the reorganization of Fannie and Freddie - ‘The Enterprises’ - while jarring in its pace and scope, is a net good. “Over the past 16 years,” he says, “FHFA has had operational control on such a micro level that lenders have routinely complained about being unable to get guidance from the two Enterprises on the most basic issues, routinely being told, ‘I have to wait for FHFA approval.’ While this has not interfered with the Enterprises becoming profitable and beginning to rebuild capital, it has made it nearly impossible for them to innovate or scale innovations of their lender customers.

“Time will tell how much flexibility Enterprise staff have in their interaction with lenders,” Dworkin continues, “but it is clear to me that for them to move forward, Pulte’s efforts to take over the operations of the Enterprises is an important first step.”

“Unfortunately,” he says, “the most important thing we don’t know is what will happen tomorrow, or the day after, and how that will change what we know today. We’ve never seen anything like this in Washington since the earliest days of the Roosevelt presidency. While history has treated this period in glowing terms, it can’t be understated how disruptive it was at the time. The point is, we are in the midst of a revolution and revolutions are messy, as Maximilien Robespierre learned the hard way. Where this one will lead is anyone’s guess. My prayer is that however messy this one is, it ends well for housing, housers and the people we serve.”

Read the full essay here.