Firefighter Credit Union Newsroom

NCUA to Distribute $569 Million Under Corporate System Resolution Program ALEXANDRIA, Va. (Feb. 28, 2022) – The National Credit Union Administration, in its role as liquidating agent, announced a $359.2 million distribution to more than 1,000 membership capital shareholders of the former Members United, Constitution, and U.S. Central corporate credit unions. NCUA will also distribute $209.8 million in dividends to more than 1,100 shareholders of Southwest Corporate. NCUA completed capital distributions to Southwest Corporate capital holders last year. “This latest distribution is another important milestone in the successful Corporate System Resolution Program,” Chairman Todd M. Harper said. “As we wind down the remaining asset management estates, we will continue to minimize costs and maximize returns. In doing so, we will fulfill our fiduciary responsibilities as both the conservator and liquidator of the failed corporate credit unions and return additional funds to capital holders.”...

ALEXANDRIA, Va.–NCUA said its “streamlined” application process is being phased out for credit unions eligible to become certified as a community development financial institution (CDFI). Instead, the agency said CDFI applications will be consolidated under one process under the Treasury Department’s Community Development Financial Institutions Fund. “The NCUA encourages eligible credit unions to explore CDFI certification, which makes them eligible for CDFI Fund training and competitive award programs to enhance their capacity to provide underserved communities with access to insured, affordable financial services,” the agency said in released statement. According to NCUA, 461 federally insured credit unions are now certified as CDFIs. Announced in 2021 NCUA announced in August of 2021 its streamlined qualification process for obtaining CDFI application, under which low-income-designated credit unions registered in the NCUA’s CyberGrants system and completed an online participation ...

Following the move by Bank of America and others to eliminate or reduce OD charges, Citigroup says it is following suit, making it the biggest U.S. bank make the change. By this summer, Citi plans to get rid of overdraft fees, non-sufficient funds fees and overdraft protection fees. The changes mean Citi will be the only one among the top five U.S. retail banks by assets to abolish the fees that have come under fire from consumer groups. In a statement announcing its move, Citibank said it is also offering two services, Safety Check and Checking Plus, to help cover negative balance transactions, including an Access Account Package, a checkless account package with “low or avoidable monthly charges that provides customers with a simple, transparent way to manage their finances.” The nation’s fourth-largest bank said it will also offer the Common Sense Protection Measures, where it will not authorize ATM or point-of-sale debit transactions in cases when funds are not available, and Low B...

Current Geopolitical Events Increase Likelihood of Imminent Cyberattacks on Financial Institutions Financial Institutions, Large and Small, Included in Potential Targets to U.S. Critical Infrastructure The U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has recently issued two alerts addressing risks from Russian State-Sponsored cyber threats and highlighting recent malicious cyber incidents suffered by public and private entities in Ukraine . Given current geopolitical events, the NCUA, along with CISA, the Federal Bureau of Investigation, and the National Security Agency encourage credit unions of all sizes and their cybersecurity teams nationwide to adopt a heightened state of awareness and to conduct proactive threat hunting. In addition, COVID-related supply chain disruptions may require management to reevaluate previously held assumptions for business continuity and disaster recovery pla...

TALLAHASSEE, Fla.—The Florida Senate Appropriations Committee has given approval to a bill that defines how Bitcoin and other cryptocurrencies could be sold or traded by money services companies in this state. The committee unanimously sent Republican Sen. Jason Brodeur’s legislative attempt ( SB 486 ) to define the rapidly-growing cryptocurrencies to the Senate floor. The bill sets out to create legal distinctions differentiating how two people trading or selling cryptocurrencies with each other would be considered and treated differently from someone or a company acting as a broker or bank, Florida Politics reported. Those conducting third-party transfers would be regulated as money services businesses governed by Florida’s Office of Financial Regulation, like other financial institutions. Other Provisions The bill would require the cryptocurrency money services businesses to meet various thresholds for holding real currency liquidity, having corporate surety bonds, and maintaining c...

CINCINNATI—Auto lease payments punched the gas noticeably in the fourth quarter of 2021, according to a new report. According to Swapalease.com’s latest national auto lease trends report, Americans are paying an average of $523.68 per month on their leases according to listings made during the fourth quarter, up from $513.28 in the third quarter. However, in a nationwide survey of approximately 2,500 drivers, the majority of people now say they want their payments below $500 monthly. The survey data also show drivers are strongly against longer lease terms, which could be a reflection of American’s exhaustion of extremely long loan terms of more than seven years now. Fifty-three percent of drivers surveyed said they want lease terms no longer than 36 months, the highest percentage recorded in Swapalease’s quarterly driver survey over the last five years. New Inquiries Swapalease.com reported that more drivers have been inquiring about taking over existing leases under contract to a...

Over the past two decades, regulatory expectations have increased steadily. One area regulators are emphasizing includes OFAC, BSA, and AML. Compliance in these areas can be challenging especially for smaller credit unions. In this webinar, Dolores Pico will provide sources and explanations of the source requirements for BSA/AML and demonstrate an effective process to comply with these requirements. She will review the application of simple to apply Risk Assessment tool that addresses the key requirements of these areas and provide guidance to better understand what your examiners expect from you. About the Presenter Date: March 15, 2022 Time: 1-2 pm EST Registration link: https://us02web.zoom.us/webinar/register/WN_md1798fRSc2WKjDfogypYw Dolores Pico, CUCE has worked with credit unions for over 30 years. She is a certified compliance professional with certifications from NAFCU and CUNA. She provides compliance support and consultation for multiple credit unions in the western United ...

ITM Technology By Joe Woods, CUDE SVP, Marketing & Partnerships Technology continues to grow and expand across all markets and industries including the financial sector. In line with this technology growth, financial markets are also seeing a continued shift in service strategy. So, how do we as credit unions marry this technology growth with enhanced member service? One approach that continues to gain traction is the use of the ITM. ITM technology can improve self-service and increase remote access while sacrificing very little in the way of member contact. Furthermore, the new technology can yield benefits such as helping to shrink costs by reducing branch size and staff needs, extending member service hours and improving self-service all while boosting operational efficiency. Still a bit unsure of what an ITM does or how it compares to an ATM? You’re not alone. The lines are a bit gray, but understanding the differences is crucial for building an effective ATM-ITM fleet str...

WASHINGTON–For the first time since 2019, rates on the most popular type of home loan in the U.S. have topped 4%. Analysts said the rate increase is coming as markets anticipate the Federal Reserve will respond to the highest inflation in a generation with an aggressive run of rate hikes. The Mortgage Bankers Association reported its weekly measure of the average contract rate on a 30-year, fixed-rate mortgage climbed to 4.05% in the week ended Feb. 11 from 3.83% a week earlier. That was the highest since October 2019 and the largest weekly increase since March 2020 when the onset of the coronavirus pandemic was roiling financial markets, according to the MBA. The strongly rebounding economy has also reset and driven up the yields on the Treasury securities that influence mortgage rates, and home financing costs have followed suit: the MBA's 30-year contract rate has climbed roughly a full percentage point in about five months. As a result, the rate rise is crimping application vol...

To determine your definition of PFI, think about what product usage matters most to your credit union’s success: products that generate income or technology that reduces expenses and engages ongoing activity. Loans: Generate interest income and offer opportunities for non-interest income with GAP, warranty and other upsell options Checking: Ties members to the CU on a day-to-day basis, as well as produces interchange income (and potentially other fee income) E-services: Indicates high propensity toward PFI because the member has incorporated your CU into their daily life (direct deposit, mobile banking, bill payment). ‍ Deposits: Large deposit accounts (other than checking) can be “hot money” that will leave your credit union the moment rates go up. Deposit-only members do not consider you their PFI. How to Get Started To get started, determine a baseline of members who solidly consider you their PFI. Here’s a formula: Find the number of members who meet the following criteria...

WASHINGTON–Officials with the Federal Reserve have begun pushing back on the prediction by some that it will raise interest rates prior to its March meeting, and further making it clear that when the Fed does move to raise rates the increase will be smaller than many have been predicting. “Markets began to bet on a double-size rate increase — half a percentage point — after January inflation data came in surprisingly high last week,” noted the New York Times. “Those expectations grew after the Federal Reserve Bank of St. Louis president, James Bullard, suggested that the Fed might need to respond decisively with a large increase or even an inter-meeting move, something the central bank typically reserves for emergencies.” But Bullard has since walked back those comments a bit, telling CNBC he is just one policy official and that Fed chair Jerome H. Powell will lead on deciding how quickly to pull back support. Bullard did reiterate that he would like to see a rapid pace of increa...

2022 Conference Sponsor Turnkey Financial Planning & Wealth Management Solutions Money Concepts was established in 1979 to assist credit unions across the country by offering comprehensive and integrated solutions for the delivery of full-service financial planning, wealth management, insurance, and investment advisory services to members. In today's market environment, your real competitive advantage is in the ' MemberCentric ' relationships you develop with your members. No longer can you be satisfied with a transaction-based investment program or no program at all. Take your credit union to the next level and enhance your relationships while increasing your profitability by offering a unique financial experience. Money Concepts has provided consistent, effective, MemberCentric broker-dealer solutions for decades. There are a wealth of opportunities inherent through a relationship with Money Concepts. Do you, your credit union, and most importantly, your members a ...

WASHINGTON–The yield on the 10-year U.S. Treasury note touched 2% on Thursday, doing so for the first time since mid-2019, following a new report showing sustained inflation (see separate CUToday.info report). The report caused investors to further increase their expectations for tighter monetary policies, noted the Wall Street Journal in its analysis. Yields, which rise when bond prices fall, had hovered in a tight range in the overnight session but jumped after the Labor Department released data showing that U.S. inflation accelerated 7.5% in January, the highest level in four decades. The 10-year yield climbed as high as 2.001%, breaching the 2% threshold for the first time since August 2019. It was recently 1.994%, according to Tradeweb, compared with 1.928% Wednesday. Yields on shorter-term Treasurys, which are especially sensitive to the outlook for near-term monetary policy, led to gains. The two-year yield recently stood at 1.479%, compared with 1.346% Wednesday, the Journa...

In a recent post on its website, the NCUA issued an alert to credit unions concerning a potential or pending Russian state-sponsored cybersecurity threat due recent “malicious cyber incidents” reported in Ukraine. According to the post, the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) initially issued the alert. In its post, the NCUA added an extra warning to credit unions. “Given current geopolitical events, the NCUA, along with CISA, the Federal Bureau of Investigation, and the National Security Agency encourage credit unions and their cybersecurity teams nationwide to adopt a heightened state of awareness and to conduct proactive threat hunting. In addition, COVID-related supply chain disruptions may require management to reevaluate previously held assumptions for business continuity and disaster recovery plans,” the statement read. The NCUA’s statement asked credit union executives to “be aware of critical cyber risks and take urge...

NEW YORK—Credit unions that offer financial advising services to members will want to pay attention to one new forecast, which calls for the number of financial advisors in the United States that currently counsel their clients on crypto holdings to double in 2022. According to Arizent Research’s 2022 Prediction survey, which surveyed wealth management experts based in the U.S., the predicted rise in the number of advisors to 44% is in tandem with their expectation that more clients (about 33%) will likely become holders of crypto by the end of 2022. As shown by the data that was obtained from the 153 respondents that participated in the survey, about 60% of financial advisors expect to see the number of crypto holding clients increase,” Bitcoin.com stated in its analysis. “And with only 4% of the respondents expecting to see this number drop, the study findings suggest clients’ demand for cryptocurrencies is not waning.” ‘A Big Theme’ Rather, the findings show that cryptocurrencie...

Tim Kelly of AFG is a featured speaker at NCOFCU"s New Orleans Annual Conference October 5-8,2022 Record-Setting Deposit Levels Since 2020 Since the start of the pandemic, deposits at credit unions have risen at unprecedented levels. According to data from NCUA, credit union account balances have risen nearly 60% in the past five years. With loan demand lagging, credit unions have had to pivot to lower yielding investments, which may ultimately strain capitalization requirements . The pandemic created an odd combination for credit unions. On the one hand, many members found themselves with more savings since travel and other restrictions kept them from spending money on services and leisure and therefore their deposits increased. On the other hand, with vehicle prices being at all-time highs due to shortages, some borrowers may have pulled back from the market, causing auto loan portfolios, which have traditionally helped credit unions serve their members and grow, to shrink. St...

In this article:   Many boards try to play it safe, but there is no risk-free path in today’s world. With the pandemic and economy in flux, decisions won’t be easy, so CEOs must encourage their boards to risk failure, create a decision-making process, and be adaptable. Because of their fiduciary responsibilities to their associations, board members can often be overly cautious. But in the current environment, experts say, boards must be willing to take calculated risks to help their organizations thrive. “What our associations are operating in now is what I refer to as the ‘discontinuous next,’ which is an ongoing period of uncertainty, volatility, and risk that’s not going away,” said Jeff De Cagna, FASAE, executive advisor for Foresight First, LLC. “Every decision, therefore, is higher stakes, and every board needs to change its perspective on risk from the idea that something is either risky or not, but rather to say that every decision involves risk.” More importantly, today’s ...

ALEXANDRIA, Va.–NCUA will host a webinar on changes to its Call Report Form 5300 on Thursday, February 10, 2022, 2 pm EST Registration for the “Call Report Changes” webinar is open. The webinar is scheduled to begin at 2 p.m. Eastern and will run for approximately 90 minutes, according to NCUA. The agency said staff from its Office of Examination and Insurance will cover Call Report changes for natural-person credit unions effective with the March 2022 reporting cycle, including new schedules for risk-based capital and the Complex Credit Union Leverage Ratio (CCULR), which became effective in January. The webinar will be closed captioned and archived online approximately three weeks following the live event, NCUA said.

  The Fed is set to raise interest rates in 2022 faster than it has in decades. An overhang of excess deposits has many banks and credit unions wondering how to approach the coming year. Analysts say a key to remaining competitive will be aligning rates with relationships. Bankers knew higher interest rates were on the way, but few expected the extraordinary pace at which they are now expected to rise. Previous rising-rate periods since 2000 have seen relatively modest rate hikes compared to what analysts are predicting now and it could have significant impact on bank and credit union deposit strategies. March 2022 is when the first of several interest rate hikes from the Federal Reserve is expected to kick in, although the central bank didn’t specify timing in its official announcement. The quarter point increase would be the first increase since 2018. Most forecasts call for at least four rate increases totaling 125 to 150 basis points over the course of the year. That’s a drama...

New Orleans Firemen’s Federal Credit Union collected and distributed 60 holiday meal baskets in their Bogalusa and Lockport communities. Firemen’s Federal has an active presence in Bogalusa and Lockport and is the primary community development financial institution serving these underserved communities. This endeavor was possible due to the generosity and compassion of Firemen’s Federal Credit Union and their partner Kasasa, Ltd. Vouchers for turkeys were donated by Kasasa, and Firemen’s Federal employees collected, packed, and distributed the meal baskets. Each basket was packed to feed a family of five and contained the turkey voucher, mashed potatoes, macaroni and cheese, green beans, yams, desert, and other items needed to provide a complete holiday feast. “The last two years fighting to survive a pandemic, and this past August’s devastating hurricane, have taken a toll on our population. It has created emotional and financial strain, uncertainty, and stress on underserved family ...

PURCHASE, N.Y.—Amid a wave of recent crypto partnerships, Mastercard has struck a non-fungible token (NFT) payments deal with Coinbase. Coinbase customers will be able to use Mastercard credit and debit cards to make purchases on the crypto exchange’s upcoming NFT marketplace, CNBC said. Late in 2021 Coinbase unveiled plans to launch the platform for minting and buying nonfungible tokens, which have exploded in popularity over the past 12 months. “By teaming up with Mastercard, Coinbase executives said they’re looking to reduce friction in the NFT buying process,” CNBC reported. “Right now, that often requires customers opening up a crypto wallet, buying digital currencies, then spending those on NFTs in an online marketplace.”  

Regulatory Alert (22-RA-01) Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2022 Dear Boards of Directors and Chief Executive Officers: If your credit union makes residential mortgage loans and meets all four criteria outlined below, you must comply with the Consumer Financial Protection Bureau’s Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). Regulation C requires you to collect HMDA data associated with mortgage loan applications processed during 2022, if: Your credit union’s total assets as of December 31, 2021, exceeded $50 million; Your credit union had a home or branch office in a Metropolitan Statistical Area on December 31, 2021; Your credit union originated at least one home purchase loan (other than temporary financing s...

DETROIT––Not everyone agrees with those analysts who are forecasting used car values and demand for loans will continue to rise in 2021. In fact, Ally Financial said last week that it is embedding a potential 15% to 20% cumulative decline in used-auto values by the end of 2023 into its assumptions, the Wall Street Journal reported. “It is natural for lenders and investors to anticipate the end of the current used-vehicle boom, and valuations of banks with big auto-finance businesses seem to partly reflect that,” the Journal reported. “Lenders such as Ally and Capital One Financial are trading at forward price-to-earnings valuations that are relatively low compared with where they normally trade versus S&P 500 banks overall, according to FactSet data.” The Journal report noted that industry-tracker Cox Automotive has forecast that the Manheim index of used-car prices will be a mere 3% lower by this December than it was in December 2021. “Perhaps a price decline could accelerate ...