Friday, July 28, 2017

Long-term U.S. Mortgage Rates Fell

Long-term U.S. mortgage rates fell this week for the second week in a row, despite the Federal Reserve's efforts to lift borrowing costs.
Mortgage buyer Freddie Mac says the rate on 30-year, fixed-rate mortgages slid to 3.92 percent from 3.96 percent the previous week. While historically low, that is still above last year's average of 3.65 percent.
The rate on 15-year, fixed-rate home loans, popular with homeowners who are refinancing their mortgages, eased to 3.2 percent from 3.23 percent last week.
Mortgage rates haven't increased much even though the Federal Reserve has boosted its benchmark rate four times in the past 18 months. That's because mortgage rates follow the yield on the 10-year Treasury note, which is influenced by many factors. Greater demand by overseas investors can lower the yield.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage slipped to 0.5 point from 0.6 point last week. The fee on 15-year loans was unchanged at 0.5 point.
Rates on adjustable five-year loans dipped to 3.18 percent from 3.21 percent last week. The fee held steady at 0.5 point.

Thursday, July 27, 2017

Feds. No Change In Rates

WASHINGTON—At the close of its two-day meeting Wednesday, the Federal Open Market Committee announced that no change will be made this month in interest rates.

In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1 to 1-1/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. 

The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

For the time being, the Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee expects to begin implementing its balance sheet normalization program relatively soon, provided that the economy evolves broadly as anticipated; this program is described in the June 2017 Addendum to the Committee's Policy Normalization Principles and Plans.

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Patrick Harker; Robert S. Kaplan; Neel Kashkari; and Jerome H. Powell.

Implementation Note issued July 26, 2017

Sunday, July 23, 2017

NCUA restructuring, closing 2 regions; more to come

July 21, 2017
The NCUA is embarking on a restructuring that, among other things, will result in a reduction of the agency's regions from five to three, with the Albany (Region I) and Atlanta (Region III) offices slated for closure.
NCUA says the changes to come are aimed at creating more efficiency, responsiveness and cost-effectiveness.
The NCUA notes the creation late last year of internal review teams to rethink the agency’s operations, discuss how it can re-tool to do its job better, and make recommendations to the board. Among the recommendations the Board approved are:
  • Consolidate the agency’s five regional offices into three by closing the Albany, N.Y., and Atlanta, Ga., offices and eliminate four of the agency’s five leased facilities;
  • Create an Office of Credit Union Resources and Expansion by redefining and realigning chartering and field-of-membership, credit union development, grants and loans, and minority depository institutions programs;
  • Restructure the Office of Examination and Insurance into specialized working groups; and
  • Realign the Asset Management and Assistance Center to include changes to the servicing business model and moving to a financial supervisory structure.
NCUA also plans to eliminate agency offices with overlapping functions and improve functions such as examination reporting, records management, and procurement. The proposed plan anticipates a reduction in the agency’s workforce by attrition.

Friday, July 21, 2017

We want you in Charlotte, NC October 4-7, 2017

We have a tremendous line up of speakers for you!
M. McWatters Chairman NCUA, Dan Berger CEO NAFCU, Jim Blane State Employees CU, Kevin Smith TEAM Resources, SunDeep Kapur, Steven Rick CUNA Mutual Group, FBI Special Agent on Cyber Security, Motivational Speaker Terry Wright, Directors and CEO breakouts as well as several Open Round-table discussions.

Our scheduled events.
Wednesday, GOLF at the Ballantyne Golf Club or a tour of the Charlotte Speedway and Hendricks Motorsports, Thursday a spousal tour of the Billy Graham Museum and shopping,  Friday Queens City citywide tour and last but not least our Friday night dinner will take place in the NASCAR Hall of Fame and Museum.  Check out our complete conference schedule HERE

Friday, July 14, 2017

Millennials And The Adoption Of Third-Party Payment Apps

Millennials may not understand the difference between a bank and a credit union, but when it comes to third-party payment apps, they know their stuff.
Individuals ages 18-to-34 are a technology-first, convenience-driven generation. Being able to access anything at any time is important for millennials. That’s why they prefer mobile for everything? including banking.
According to a FICO report, 80% of millennials do most of their banking activities online and through mobile apps. Through bank and credit union apps anyone can check account balances, deposit checks, pay bills, and transfer money between accounts, all from their phone.
Millennials still aren’t satisfied.
Third-party payment apps like Venmo and Square Cashallow users to make real-time mobile payments without fees, making them instantly popular with young adults.
Pay Pal-owned Venmo is particularly popular, as displayed by its dramatic 126% payment volume increase over the span of one year. Not only has Venmo made it possible to immediately transfer money from one account to another (though not withdraw), it has created a social media aspect to a payment method.
As 22-year-old DePauw University graduate Sheinnera Gerongay says, “It’s more social. You can put a funny tag on your payment whereas a bank app is more serious.”
I’m not the biggest believer in Venmo but sometimes boredom takes over and I find myself scrolling through my Venmo feed to see which of my friends transferred money to whom and the entertaining sayings attached to the transactions.
Aside from that, Venmo is convenient and available. Says Nathalia Melo, a graduate student at the University of Alabama-Birmingham, “It’s an easy fix when I forget my card or I pay for someone, instead of an ‘I owe you’ and then the person never pays you back.”
Personally, I don’t love Venmo or other apps of its kind. I use them because it’s easy and because everyone else does. As skeptical as I am of the security and social nature of the app, I prefer Venmo over using cash. I hardly ever carry cash with me anymore and I can’t pay a friend back for late-night Wendy’s runs with my debit card.

Why Is This Important For Credit Unions?

Friday, July 7, 2017

Win a $50 Gift Card

Complete the Hunt to be eligible for 
1 of 4 $50 Gift Cards

Visit NCOFCU and try to complete the following tasks. Log in with your e-mail and password. If you have forgotten your password, and we all do now and then,  CLICK HERE.   

  • Find which credit unions are members of NCOFCU and their sponsorship's
  • Find NCOFCU's Vision and Mission
  • Locate the Members Directory
  • Find NCOFCU's 2016 Conference photos and presentations
  • Locate in Members Benefits, the Associate Directors Position policy
  • Find NCOFCU's Disaster and Scholarship Funds
  • Locate NCOFCU's financial reports
  • Find how many Associate Directors  NCOFCU has?

    Let the search begin!
When you are finished with the scavenger hunt, click the "I'm Done" below to register your completion with the correct answer. You will be entered to win one (1) of four (4) $50 gift cards.
* NCOFCU Volunteers and staff not eligible. 

I'm Done

Hunt will end 7/31/17

"Great things happen when credit unions serving firefighters and first responders come together. Our Face-to-face interaction is the platform where collaboration begins, relationships are forged, and ideas are generated." 

Wednesday, July 5, 2017

Only in Charlotte

See you in Charlotte
NCOFCU's  Annual Conference!October 4-7, 2017

Mortgage Rates Decline Despite Fed's Increases

WASHINGTON–The Fed may be pushing rates up, but the 30-year mortgage rate average has declined to new lows for 2017.
According to Freddie Mac data:

  • 30-year fixed-rate mortgage (FRM) averaged 3.88% with an average 0.5 point for the week ending June 29, 2017, down from one week earlier when it averaged 3.90%. A year ago at this time, the 30-year FRM averaged 3.48%
  • 15-year FRM this week averaged 3.17% with an average 0.5 point, the same as one week earlier. A year ago at this time, the 15-year FRM averaged 2.78%
  • Five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17% as of June 29, with an average 0.5 point, up from one week earlier when it averaged 3.14%. A year ago at the same time, the five-year ARM averaged 2.70%

"The 30-year mortgage rate fell two basis points to 3.88% this week," says Sean Becketti, chief economist, Freddie Mac, in a statement. "However, the majority of our survey was conducted prior to Tuesday's sell-off in the bond market, which drove Treasury yields higher. Mortgage rates may increase in next week's survey if Treasury yields continue to rise.