Over the past decade there have been a wide range of proposals for comprehensive financial reform. In terms of national legislation, these proposals— which are designed to alter the basic asset‐liability mismatch of the housing oriented thrift institutions—have often been stymied. However, legislation is once again under serious consideration in Congress; and more importantly, significant change is already underway at the state and local level, fueled by technology, consumer pressure, financial markets and regulatory action. In fact, lead by such innovations as the money market certificate, negotiable order of withdrawal (NOW) accounts, alternative mortgage instruments and an expanded secondary market, it seems that a strong, silent revolution is underway which will substantially alter the activities and composition of thrift institutions. This paper, then, will outline what has happened over the past decade, the reasons for legislative failure during much of this period, and the factors which fuel the evolution and new pressure for change which is underway. It also discusses the prospects and implications for the future, especially as they relate to financial institutions, housing, and the consu