Firefighter Credit Union Newsroom

WASHINGTON—A top U.S. Treasury official said financial regulators are prepared to extend existing authorities to rein in stablecoins, although Treasury hopes instead Congress will move on key legislation to regulate the space. Nellie Liang, undersecretary for domestic finance at the Department of the Treasury and formerly the top financial stability official at the Federal Reserve, told Bloomberg that lawmakers must enact legislation to reduce risks around stablecoins—or digital assets pegged to fiat currency—including fraud, illicit finance and cybersecurity concerns. Congressional action, she said, would help protect the nation's wider financial system. Without new legislation, "regulators will try to use what authority they have," though it lacks oversight power, Liang told Bloomberg. She added that authority would equate to "a little here and a little there," and warned that leveraging it could not even be described as a sufficient "plan B." Bl...

PURCHASE, N.Y.–Retail sales in the United States jumped nearly 11% this holiday season compared with the holiday period in 2019, the year before the pandemic upended the global economy, according to a new Mastercard analysis. The report, Mastercard SpendingPulse , showed an 8.5% increase in retail sales over the holiday season, defined as Nov. 1 to Dec. 24, compared with last year. The figures exclude automobile sales. According to Mastercard, sales in stores were up 8.1% compared with last year, while e-commerce sales were up 11%. Compared with 2019, before the pandemic brought about an explosion of online ordering, e-commerce sales jumped over 61%. Online sales made up 20.9% of all retail sales this year, the Mastercard SpendingPulse reported. In 2019, online sales accounted for just 14.6% of all retail sales, underscoring how the pandemic has accelerated the shift to e-commerce. Beating the Rush In a statement cited by the Times, Steve Sadove, senior adviser for Mastercard, sai...

WASHINGTON–Americans’ personal income may have increased $90.4 billion (0.4%) in November, but they’re paying nearly 6% more for common goods and services compared with one year earlier, according to estimates released by the Bureau of Economic Analysis (BEA). The BEA said disposable personal income (DPI) increased $70.4 billion (0.4%) and personal consumption expenditures (PCE) increased $104.7 billion (0.6%). In addition, the BEA said real DPI decreased 0.2% in November and Real PCE increased less than 0.1%; spending on services increased 0.5% and spending on goods decreased 0.8%. Of particular concern to consumers, the BEA said the PCE price index increased 0.6%. Excluding food and energy, the PCE price index increased 0.5%, the Bureau added. “The estimate for November personal income and outlays reflected the continued economic recovery and government response to the COVID-19 pandemic,” the BEA said in releasing its latest numbers. “Government social benefits increased in Novem...

By John Deese John Deese is president/CEO of Guardians Credit Union in West Palm Beach, Fla. I recently discovered that a credit union was advertising “free NSFs and overdraft services.” On the surface, it seemed like a clever marketing tool, which is certainly their prerogative. The troubling part is that it was using the opportunity to blast banks and credit unions that charge a fee by quoting data that says they take $30 billion annually from consumers. It further states it is being taken from consumers that can least afford it. While on the surface this sounds terrible and could easily be turned into a political weapon by our adversaries, I think there is much more to the story, which I will share later in my thoughts. But most concerning is that a credit union that is supposed to embrace cooperation would attack other credit unions. As I pondered this issue I had to pause and wonder if this is an isolated attack by an arrogant CEO and credit union or is it the new “norm” for futur...

History may show that Venmo, part payment app, part social media channel, did more to 'un-bank' consumer payments than any other factor. The mobile P2P app now has stiff competition from bank-owned Zelle and others, but continues to grow rapidly. The reasons why are not all unique, but taken together make it a potent competitor. Of all the things changed by the pandemic, consumer payment habits was one of the largest. In response to the pandemic, more than eight in ten consumers (86%) say their payment habits have changed, a Paysafe survey found. According to the Atlanta Federal Reserve, 62% of consumers adopted at least one new payment app such as PayPal, Venmo, or Zelle in 2020, up from 54% in 2019. In the first quarter of 2021, Venmo’s total payment volume grew by 60% year-on-year to $51 billion, according to Statista. Venmo essentially has five things going for it. They’re not all exclusive to the app, but together they explain its continued growth, even in the face of tou...

John “Bernie” Winne, 66, is one of many credit union and community bank CEOs who postponed retirement during the pandemic because they didn’t want to leave in a time of need. Winne, the president and CEO of Boston Firefighters Credit Union in Dorchester, Massachusetts, now plans to retire next year after spending four decades in the credit union industry. The last 20 of those were at the helm of the $394 million-asset BFCU. “We had no idea in the late spring and early summer of 2020 how this was going to play out,” Winne said. “Many of us had granted millions of dollars in forbearance requests to help our members weather the storm, and there was credible doubt about the long-term viability of many of those loans.” “Many CEOs and other occupants of C-suite offices are just tired,” says John “Bernie” Winne, who will retire next year as CEO of Boston Firefighters Credit Union. “I’m a big believer that CEOs and politicians stay on too long,” says John Cassidy, outgoing CEO of Sierra Cen...

When it comes to reading between the lines of financial regulators’ advisory letters, tone matters. Take last week’s letter from the National Credit Union Administration (NCUA) which gave the federally insured credit unions (FICUs) it oversees permission to partner with digital asset providers to allow retail customers to buy, sell and trade in cryptocurrencies. Now compare it to the one issued by Comptroller of the Currency Michael Hsu’s agency to the national banks and federal savings associations it regulates a month earlier. On the surface, both said much the same thing: Financial institutions can provide cryptocurrency services (albeit with some notable differences: the OCC’s letter dealt with more back-end services, including custody services as well as holding and using dollar-pegged stablecoins for transaction settlement). Neither was enthusiastic. The NCUA’s letter said it “does not prohibit FICUs from establishing these relationships” — which is not as enthusiastic as “are a...

By Ray Birch CUToday Michael Moebs LAKE FOREST, Ill.—For the first time in 23 years, overdraft limits are finally moving higher, according to a new study that shows credit unions are leading the way with the increases—including one CU with a $10,000 OD ceiling. The decision to raise limits is critical, according to Michael Moebs, economist and CEO at Moebs $ervices, who noted the adjustments are taking place at the same time the marketplace has really started to evolve and several government agencies have announced they intend to bring new scrutiny to overdrafts and NSF fees. Moebs emphasized the moves are a “total change” in overdraft thinking and policy “The average American household pays a bit over $1,500 a month for housing and transportation according to cost-of-living index stats. OD limits need to match these monthly costs,” he said, adding the increases will help many Americans “get past COVID.” Moebs explained overdraft limits have been stagnant at $500 since 1998, but t...

WASHINGTON—NCUA is being urged to take action to ensure credit unions are not left behind as federal financial regulators move toward foundational federal digital asset regulation and legislation. Dan Berger In a letter to the agency, NAFCU President and CEO Dan Berger called on the NCUA to promptly respond to comments submitted in response to their request for information (RFI) on digital assets and proactively engage the President’s Working Group on Financial Markets (PWG) and other federal financial regulators on digital asset issues. Though the association appreciates the agency's efforts to solicit feedback through the RFI, Ber...

Dear Boards of Directors and Chief Executive Officers: The purpose of this letter i s to provide clarity about the already existing authority of federally insured credit unions (FICUs) to establish relationships with third-party providers that offer digital asset services to the FICUs’ members, provided certain conditions are met. This includes third-party provided services to allow FICU members to buy, sell, and hold uninsured digital assets with the third-party provider outside of the FICU. Digital assets are one of many terms used to describe distributed ledger technology (DLT) based tokens.1  As insurer, the NCUA does not prohibit FICUs from establishing these relationships. The authority for federal credit unions (FCUs) to establish these relationships is described in section II of this letter . The authority for federally insured, state-chartered credit unions (FISCUs) to establish these relationships will depend upon the laws and regulations of their states. A FICU’s relati...

CHICAGO–Continued expansion of lending, including to non-prime consumers, is expected to occur in 2022 with origination levels reaching or surpassing pre-pandemic levels, according to the newly released TransUnion Financial Services 2022 Consumer Credit Forecast . “For auto loans and personal loans, consumers who are generally higher risk are accounting for a growing share of origination volume, with the forecast providing insights that explain why such broader lending will benefit the overall consumer credit market,” TransUnion stated. TransUnion is reporting its forecast found that the auto, credit card and personal loan markets are expected to continue expanding into the non-prime segment of the market (comprised of the subprime and near prime risk tiers) as financial institutions recalibrate their growth strategies. This expansion is happening as serious delinquency rates remain well below pre-pandemic levels, TransUnion added. “During the height of the pandemic, many lenders pulle...

Having a top ten U.S. bank pull the plug may not be a mortal blow for the controversial fees. Experts contend that even with the fees, the service adds value for consumers who need it. But business as usual is over for overdrafts. Washington is seizing the opportunity to take action. With the announcement by Capital One that it will be eliminating overdraft and non-sufficient funds penalties, the future of these much-maligned fees in the banking industry has reached a critical juncture. The $425 billion-asset Capital One becomes the largest bank to eliminate the fees, and follows smaller institutions, such as digital-only Ally and Alliant Credit Union, as well as most fintech neobanks, in making such a move. Beyond outright elimination of fees, a growing number of institutions have introduced programs to reduce the cost of overdraft/NSF fees. PNC’s Low Cash Mode , Bank of America’s Balance Assist, along with programs from Huntington Bank, Chase, Regions and others have all been efforts...

But the MBA forecast still holds, as it expects 30-year rates to hit 4% by the end of 2022. A Mortgage Bankers Association economist said Wednesday that the Fed’s decision to act more aggressively to curb inflation will send long-term rates up, but the increase is already baked into its forecast for mortgage rates over the next 12 months. MBA Chief Economist Mike Fratantoni said the Fed’s purchases of longer-term Treasuries and mortgage-backed securities have kept mortgage rates lower than they otherwise would have been. However, even with the Fed’s new stance, he said he expects the MBA’s last forecast is still on target, with 30-year rates rising to 4% by the end of 2022. But he also said rates “may be more volatile as the Fed backs away from the market.” “Although this will lead to a drop in refinances, we expect that the strong economy will support an increase in home sales in 2022,” he said.   The MBA’s Nov. 22 forecast showed refinances falling 63% from $2.32 trillion ...

The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals. With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have improved in recent months but continue to be affected by COVID-19. Job gains have been solid in recent months, and the unemployment rate has declined substantially. Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. The path of the economy continues to depend on the course of the virus. Progress on vaccinations and an easing of supply constraints are expe...

By Homer Fager The Third Industrial Revolution period of the 1950s through 1990s witnessed the beginning of the decline of the small credit unions. In the 1960s the number of credit unions, including state and federal institutions, exceeded 20,000. The 1980s brought new technology to the industry from personal computers to the introduction of the first credit union-sponsored ATM. During the next three decades 10,000 credit unions were lost and in the last decade alone 2,000 have vanished. Continuation of this rate of decline means the “small entity” credit unions may be lost within the next 15 to 20 years. These Third Industrial Revolution banking structural changes were the beginning of the decline of the “small entity”credit union. The Fourth Industrial Revolution, also referred to as 4IR or Industry 4.0, has changed the 21st century and will continue to change our society as did none of the other three revolutions. More has been accomplished in the last 250-plus years of human his...

The Tunnel to Towers Foundation is dedicated to honoring the sacrifice of FDNY Firefighter Stephen Siller, who laid down his life to save others on September 11, 2001. For 20 years the Foundation has supported our nation’s first responders, veterans, and their families by providing these heroes and the families they leave behind with mortgage-free homes. For more about the Tunnel to Towers Foundation and its commitment to DO GOOD, please visit T2T.org . Follow Tunnel to Towers on Facebook, Twitter, and Instagram at @Tunnel2Towers .   Donate Tunnel to Towers Foundation Honor Stephen Siller’s legacy by making a one-time or monthly donation. Donate Once | Donate Monthly | Donate to Bourgeois Campaign Donate using PayPal Use our Printable Donation Form to donate by mail or fax. Mail your completed form to us at: Tunnel to Towers Foundation, 2361 Hylan Boulevard, Staten Island, NY 10306 or fax it to us at 718-987-3909. Use our Printable Bank Transfer Form to donate ...

The Houston Texas Fire Fighters Federal Credit Union Board of Directors is pleased to announce the appointment of Pamela McIver as the credit union's new Chief Executive Officer, replacing Steve Gilman, who is retiring in December, after serving six years as the credit union's President and CEO.  McIver is a seasoned credit union executive with 28 years of financial institution experience. She started her career at HTFFFCU in 1993 as a Staff Accountant, and moved up through the organization to her current position of Vice President – Chief Financial Officer, prior to her accepting her new assignment as CEO.  HTFFFCU Board Chairman Brian McLeroy said “We are excited to have Ms. McIver as our new CEO. She is a proven leader who will bring the highest level of financial experience and management skills to our organization.” McIver said “I am thankful for the opportunity to serve as the next CEO of Houston Texas Fire Fighters Federal Credit Union. Our team will continue its effort...

Key Trend Summary In 2022 members will expect to be able to access 75% of all banking services digitally. Digital is the Branch Unprecedented pace of adoption of full service digital banking by members fueled by pandemic. Five years ago, credit unions saw about 15% of the business that was previously done in branches conducted through their digital channels. Two years later, in 2018, 25% of members were using digital channels to match their needs with the institution’s offerings. The Covid-19 pandemic accelerated this trend and in 2021 credit unions saw an average of 50% of their business coming through digital channels. This trend toward full service digital banking will reach a tipping point in 2022. Members of credit unions will default primarily to digital channels when searching for solutions to match their financial needs.   Attributes of Winning Credit Unions This tipping point will bring exponential growth to those credit unions that are embracing the combination of...