Firefighter Credit Union Newsroom

MADISON, Wis.–Absent any “swan events,” such as wars, new pandemics or meteor strikes, CUNA Mutual’s chief economist is saying credit unions should not expect to see any recession in the next five years. As part of the company’s January Trends Report on credit union performance (see related story), CUNA Mutual’s Steve Rick said that even with the Fed expected to raise interest rates multiple times in 2022, CUNA Mutual is currently forecasting that real gross domestic product will rise 4% this year, which is twice the long-run average of 2% growth rate, “as consumers spend some of their built-up savings on services, business rebuild inventories, housing construction continues to expand and infrastructure spending increases.” “With no recession expected for the next five years and therefore less economic uncertainty, many businesses will also decide to increase spending on capital investment and many households will decide to build new homes,” Rick stated in the Trends report. “These

NCUA Board Approves Proposed Rule on Succession Planning Board Briefed on Supervisory Priorities, Status of Central Liquidity Facility ALEXANDRIA, Va. (Jan. 27, 2022) – The National Credit Union Administration Board held its first open meeting of 2022 through a live webcast and approved a proposed rule on succession planning. The NCUA Board was briefed on the NCUA’s 2022 supervisory priorities and the status of the Central Liquidity Facility following the statutory expiration of its enhanced authority. The Board was also briefed on required inflation adjustments to the agency’s civil monetary penalties, which were approved by a notation vote at the end of 2021. Proposed Rule Would Require Federal Credit Unions to Have Succession Plans The NCUA Board approved by a vote of 2-1 a proposed rule that would require boards of directors at federal credit unions to establish and adhere to processes for succession planning. “At its core, this rulemaking is about federal credit unions of all si

Employees and employers alike may have thought they understood company culture, and likely did until recently. Coming to work, knowing company values, interacting with others are all no brainers when it comes to the driving forces that make up company culture. Buy a seismic shift is occurring on two fronts. One, various generations are working together in multiple industries and two; the pandemic has changed attitudes about where work can occur and how that may or may not affect culture. The Linkedin Global Trends 2022 report says more freedom to work where and when employees want, as well as attention to wellbeing, are important demands employers need to consider. Consider the numbers: when picking a new job, 63% of professionals put work-life balance as the top priority. Sixty percent are interested in compensation and benefits and 40% say the colleagues and culture they will be working with are their top priorities. Employers should take note as company culture starts with profess

More people use overdraft service as an intentional personal financial backstop than as a general safety measure, according to new research. Financial institutions that figure out better ways to fill this often critical need can counter the appeal of Chime and other challengers. The familiar narrative out of Washington about overdraft service generally holds that consumers are hapless victims of evil banks, who set up overdraft plans like mousetraps to snatch fees. It’s true that some institutions don’t have a history on overdraft policy to brag about, but much of the narrative is flawed because only a comparative few consumers wind up overdrawing by accident, according to a report on people’s attitudes towards overdraft from Curinos. In fact, the report confirms, many consumers depend on the availability of overdraft service as a form of quasi credit, and they don’t want it to be regulated out of existence. “More than 60% of overdrafts come from consumers who intend to use the servi

UNIFY Financial Credit Union ($3.6B, Torrance, CA), is leading the way into cryptocurrency, becoming the first credit union to allow members to buy, sell, and hold bitcoin within their credit union e-banking accounts. On UNIFY’s crypto landing page , the credit union says the new offer will allow members to take advantage of lower transaction fees than other providers and faster money transfer periods to fund bitcoin transactions. Plus, they can avoid sharing personal information with unfamiliar crypto companies. According to Allied Market Research , the global cryptocurrency market is expected to reach nearly $5 billion by 2030 from $1.49 billion in 2020. Trading exchanges are quickly becoming rivals to the traditional stock market, too, but the list of financial services providers participating in crypto remains limited. The only major financial services providers that support bitcoin are Chime, Ally, USAA, Simple Bank, and Goldman Sachs, according to banks.com . Each supports bi

The past few years have been filled with complexity and change in the banking industry, which has also triggered a shift in how credit unions use artificial intelligence. We have witnessed an incremental increase in the use of AI in all aspects of banking, as it can reduce labor costs, increase efficiency and productivity, and help credit unions provide better service for their members. Traditionally, credit unions only leveraged AI to automate routine internal processes, like compliance, underwriting or fraud detection, but recent technological developments have led to AI now also being used for front-office purposes, like member service. This trend will continue this year, as members of credit unions will default primarily to digital channels when searching for solutions to match their financial needs. When it comes to AI, we have seen consumers get particularly excited about features like uniquely tailored services or offerings that anticipate their needs, such as chatboxes or 24/7

MOOSINNING, Germany–There are 10 reasons why good managers sometimes make bad decisions, according to one analysis. Not surprisingly, the report by GreatWorkLife.com notes, when an otherwise competent manager starts making bad decisions, it can impact their team and the broader organization. Among those 10 reasons: Inexperience in Life or Leadership   “A young manager just starting on their career in management might simply not have enough business and life experience to make a high percentage of good decisions,” GreatWorkLife.com observed. “Often a mistake of young managers is to say ‘Yes’ to everything, which can lead to an over-burdening of the team. While saying ‘No’ to many requests may lead others to perceive the manager in a negative light. Always saying Yes without question and without prioritizing the requests can lead to overworking your team, forcing poor decision-making further down the line.” Moreover, inexperience in leading people on a personal level can also lead to

Letter to Federal Credit Unions (22-FCU-01) Operating Fee Schedule Adjusted for 2022 Dear Boards of Directors and Chief Executive Officers: In December, the NCUA Board unanimously approved a new budget. As a result of that decision and other factors, federal credit union operating fees will decrease by an average of 23.7 percent in 2022 . Approximately half of the 2022 operating fee reduction results from the NCUA Board applying a $15 million credit to amounts that would otherwise be due to support the approved 2022 Operating and Capital budgets. The $15 million credit comes from previously collected operating fees that remained unspent at the end of 2021. The remaining reduction to the 2022 operating fee results from a 2021 budget surplus that was used to offset the 202

Editor’s Note: This column was written in response to a challenge by CUToday.info’s Frank J. Diekmann that members of Filene’s i3 group and other CU organizations lead the charge and help reverse the three year decline by credit unions, which have fallen bedhind banks in the annual American Customer Satisfaction Index. By Shanda R. Reaves Credit unions pride themselves on a high level of service, satisfaction, and face-to-face interactions. But has the idea been considered that as a whole, members may no longer equate good service to face-to-face interactions as much as credit unions think they do? Recent surveys from the American Consumer Satisfaction Index have shown that credit unions are falling behind in member satisfaction. This is not because credit unions are lacking in the quality of service, but because the needs and expectations of members have shifted. Due to the pandemic, members value their time doing more meaningful things and, thanks to Amazon, members expect more

JACKSONVILLE, Fla.–The $13-billion VyStar Credit Union has obtained Community Development Financial Institution (CDFI) certification and also qualified for grants from the U.S. Treasury Department. The credit union worked with CU Strategic Planning , which is the largest organization in the CU community for obtaining CDFI certification, as it works to expand its service in underserved and vulnerable markets. “Earning the right to be called a Community Development Financial Institution is central to the values VyStar stands for as an organization,” Chief Lending Officer Jenny Vipperman stated. “We believe in the importance of reflecting the communities we serve, and that means meeting individuals where they are and helping improve their financial wellness with fairness, compassion and integrity. That’s why we employ a diverse, talented staff and remain committed to making our high-quality products and services available to people of all different backgrounds. It is why we also support

WASHINGTON­–While still low by traditional standards, mortgage rates have now risen for three straight weeks. The rate increases are partly in response to expectations the Federal Reserve will raise interest rates at least three times during 2021, as rates are closely tied to the 10-year Treasury. As of Jan. 13, the average rate on a 30-year, fixed-rate mortgage was 3.871%, while it was 3.592% on a 30-year fixed FHA mortgage and 3.632% on a 30-year fixed VA loan. A year ago, the average rate on the 30-year was 2.79%, just above its record low of 2.65%. Meanwhile, the higher borrowing costs combined with record-high home prices could push some would-be buyers out of the market. According to the National Association of Realtors, the median price for existing homes rose 13.9% in November from a year earlier to $353,900. “Given the fast pace of home price growth, [higher rates] will likely dampen demand in the near future,” Sam Khater, chief economist at Freddie Mac, said in a statement

UPPER DARBY, Penn.–A half-dozen more credit union mergers have been proposed, with nearly all involving smaller CUs and several citing a lack of succession planning as one big problem, according to forms filed with NCUA. In Upper Darby, Penn., the $15.1-million Delco Postal Credit Union which has approximately 1,312 members, is seeking to merge into the $41.4-million Forge FCU, which has approximately 3,300 members. In its disclosure statement filed with NCUA, Delco Postal said, “the board of directors has concluded that the proposed merger is desirable and in the best interests of members because of the expanded products and services, the location with expanded membership hours and the dedication of the continuing credit union to serving a SEG-based membership.” Delco Postal reported $148,339 in net income on its Sept. 30, 2021 call report, with net worth of 11.46%. Forge FCU reported net income of $909,464 and net worth of 21.15% on the same date. Delco Postal said it does not pl

ARLINGTON, Va.—Total vehicle sales declined to 12.4 million units from 12.9 million annualized units in December, with monthly sales levels down 24% year over year. Curt Long, NAFCU "The auto market is having a difficult time breaking out of its malaise, and sales in December declined slightly from already low levels," said NAFCU Chief Economist and Vice President of Research Curt Long. "High gas prices and low inventories are each taking a toll. "On the supply front, KPMG says it could take until October 2023 for vehicle supply to meet projected demand," Long added. "According to Moody's, the decline in unit sales did not prevent automobile lending from achieving new highs." Car sales were flat last month, holding at 2.6 million annualized units, while light truck sales fell from 10.3 million annualized units to 9.8 million. Domestic Production is Down Domestic production in November was down 41% from the same month in 2019. The inventory-to

WASHINGTON–Mortgage rates in the U.S. hit their highest levels since May 2020, helping to drive up the costs of buying a home at the same time home prices are already near record highs. According to Freddie Mac, the average rate for a 30-year fixed-rate loan was 3.22%, up from 3.11% one week earlier. One year earlier mortgage rates stood at 2.65%. Meanwhile, the median existing-home price rose 13.9% in November from a year earlier to $353,900, according to the National Association of Realtors. The November figure for the median sales price for newly built homes also reflected an all-time high. “Rates are really the biggest risk to the market,” Ivy Zelman, chief executive of real-estate research and advisory firm Zelman & Associates, told the Wall Street Journal. The Difference in Payments The Journal noted data provided by LendingTree show a 3.22% rate on a $300,000 loan would create a monthly payment of about $1,300. At 2.65%, where the average mortgage rate stood a year ago,

WASHINGTON–Federal Reserve Chairman Jerome Powell has sent the clearest signal yet that rates will be on the rise this year, while also defending himself before Congress over how the Fed missed the mark so badly on inflation. Federal Reserve Chairman Jay Powell. Testifying before the Senate Banking Committee as he seeks confirmation for a second term as chair, Powell emphasized that controlling inflation, which is best accomplished by raising interest rates, will be a focus as the Fed seeks to set the stage for a sustained expansion of the economy. “If we see inflation persisting at high levels longer than expected, if we have to raise interest rates more over time, we will,” Powell said. “We will use our tools to get inflation back.” He acknowledged the Fed’s earlier forecasts underplayed inflation. “We and other forecasters, we believed based on our analysis and discussions with people in industry that the supply side issues would be alleviated more quickly than now appears to b

LONDON—Will 2022 see the surging interest and appreciation in digital currencies as was seen during 2021? Perhaps, but the Bank of England also has a warning, cautioning consumers that Bitcoin could be “worthless” and people investing in the digital currency should be prepared to lose everything. In a warning over the potential risks for investors, the central bank questioned whether there was any inherent worth in the most prominent digital currency, which has soared in value this year to close to $50,000, The Guardian reported. The cryptocurrency peaked above $67,000 in early November, but suffered a sell-off after news first broke of the Omicron variant of coronavirus, before stabilizing around its current level. The deputy governor, Sir Jon Cunliffe, said the Bank had to be ready for risks linked to the rise of the crypto asset following rapid growth in its popularity. “Their price can vary quite considerably and [Bitcoins] could theoretically or practically drop to zero,” he tol

Darwit Kebede WASHINGTON — The U.S. economy added 199,000 jobs in December, according to new data from the Labor Department. While that was the fewest jobs added in any month of 2021, one credit union economist sees signs a “strong recovery” continues. The 199,000 new jobs came in well below what many economists had forecast, with most expecting it would be double that number. Nevertheless, despite the weaker than anticipated numbers, 2021 will still go down as a year of record-breaking jobs growth, with the country adding 6.4 million jobs during the year, the most since records started in 1939.   The unemployment rate fell to 3.9% in December, marking a new pandemic-era low. “The labor market added fewer jobs than expected in December,” said CUNA Senior Economist Dawit Kebede. “However, the unemployment rate continued to decline, falling below 4%, which indicates a strong recovery. Overall, the economy added on average 537,000 jobs per month in 2021. “The employment data was collec

Major specialists like Klarna, Afterpay and Affirm, as well as payments giant PayPal, are raking in big bucks financing consumer purchases. They are playing a different game than many banks and credit unions. But amid this tectonic shift there may be opportunity for traditional institutions — in part by picking up the pieces. That buy now, pay later purchasing is booming is indisputable. It’s a story that’s been building up over the course of the last several years. Predictions that it would surge to new heights during the 2021 holiday shopping season were supported when PayPal CEO Dan Schulman, appearing on CNBC, crowed that on Black Friday, “our volume on buy now, pay later was up almost 400% year over year.” Schulman added that his company’s “Pay in Four” installment plans proved to be “one of the stars, actually, of the holiday season for us.” Contrast that euphoria with comments by Scott Galloway, NYU Stern marketing professor. In a blog post written a few days after the national

By Frank J. Diekmann CUToday Stop. Before we all race to get into our 2022 resolutions and strategic plans, let’s pause. Let’s breathe (preferably through a mask if we ever want to get this thing behind us). And let’s first remember the credit unions that left us in 2021, from A(rrowpoint) to X(ceed). Let’s remember their stories, let’s remember what they teach us, and let’s especially remember why one now former CU’s name should be practiced by credit unions everywhere, especially if you want to see 2023 and 2033 and 2050 and beyond. From the beginning credit unions have always been so much more than just little not-for-profit companies no different than the local oil change place or pizza joint; from 1909 on they have always been mirrors to their communities and pages in the American history book inscribed with the words from earlier generations--living, breathing snapshots of different eras until they live and breathe no more. History pages from this last year that have turned for a