They are white flannel moths, not quilted.My mistake.

Uh oh...I had better check my Redbud! They love those plants! If the caterpillars are still very small, they can be controlled with applications of Bt-k. However if full-sized or nearly so, your best bet would be to try insecticidal soaps or merely direct hits with your full blast hose. Attached is a fact sheet that explains their life cycle, so that you can prevent this from occuring next year.

Time to get out the rake!

Here is a link that might be useful: Norape ovina life cycle