Firefighter Credit Union Newsroom

By not using SMS text messaging for marketing, you are missing a channel with a 98% open rate and a rapid response rate. Consumers love the convenience and are open to receiving personalized and relevant texts from their bank and credit union. Naturally there are some caveats to be aware of. Here are seven pointers. Are you content to have your customers take 90 minutes to respond back to a communication you’ve sent, or would 90 seconds be better? That’s the difference in average response times between email and SMS text. Then there is the open rate: SMS texts have high open rates — up to 98%, according to Gartner and 82% by another source. The average open rate of email is around 20%. If you send an email with a link to a survey to find out what a consumer thinks about the virtual meeting with a lending officer they just had, it may linger in the consumers’ inbox for days, at which point the experience is no longer top-of-mind or the consumer decides to simply delete the ...

Interest payments for the U.S. benchmark 30-year fixed rate mortgage saw the largest one-week upward movement in 35 years, hitting 5.78 percent as of Thursday. The rate jumped more than half a percentage point in the last week and is nearly double what it was a year ago, according to government-backed mortgage lender Freddie Mac. That means a monthly mortgage payment on a roughly median-valued $400,000 home, after a 20 percent down payment, would now be $1,874. Last year, the monthly payment on the same home would have been $1,335 — a difference of more than $500. The spiking mortgage rate comes as the Federal Reserve announced this week its own 75 basis point hike in the federal funds rate, which determines the lending rates used by financial institutions. The uptick was higher than the 50-basis point hike the Fed had originally signaled as part of the central bank’s battle against inflation, which stands now at 8.6 percent, a 40-year high. ...

 WASHINGTON–In what would be a relief for home shoppers, one executive with Freddie Mac is predicting the U.S. housing sector is in the midst of the biggest slowdown in over a decade. “The U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006,” Len Kiefer, deputy chief economist at Freddie Mac told MarketWatch. “It hasn’t shown up in many data series yet, but mortgage applications are pointing to a large decline over summer.” Kiefer pointed out home-purchase mortgage applications are down 40% from their most recent peak in 2021. Purchases and refinance applications are also at their lowest level in 22 years. ‘Where Market is Headed’ Mortgage applications as a data point “gives you a sense of...

Credit unions should brace for a slowdown or recession after the Fed slammed on the brakes with its largest rate hike in nearly 30 years, a NAFCU economist said Wednesday. NAFCU Senior Economist Curt Long said Wedneday’s 75-basis-point increase in the federal funds rate was the largest since 1994, and half of the members of the Fed’s Open Market Committee (FOMC) expect to raise the rate by at least another 175 basis points by year’s end. “That is a sharp departure from the committee’s forecast three months ago, and the rest of the economic projections bear that out,” Long said. The measures are part of the Fed’s commitment to halt inflation as soon as it can. Its goal continues to be a 2% annual inflation rate. On June 10 the U.S. Bureau of Labor Statistics reported that inflation rose 8.6% from May 2021 to May 2022, the largest 12-month gain since December 1981. Curt Long Half of FOMC members expect the personal consumption expenditure measure of inflation to recede ...

WASHINGTON–Mortgage rates continue to rise, having jumped significantly even prior to the Federal Reserve’s meeting this week at which it announced it was pushing up rates. The average rate on the 30-year fixed mortgage rose 10 basis points to 6.28% on June 14, according to Mortgage News Daily, after a 33 basis point jump on June 13. The rate was 5.55% one week ago. “Rising rates have caused a sharp turnaround in the housing market. Mortgage demand has plummeted,” CNBC reported. “Home sales have fallen for six straight months, according to the National Association of Realtors. Rising rates have so far done little to chill the red-hot home prices fueled by historically strong, pandemic-driven demand and record low supply.” The...

June 15, 2022 The Federal Reserve is rolling out the heavy artillery in its bid to fight a historic inflation spike that has shown little let-up. But the aggressive strategy is expected to further slow the economy and increases the risk of recession. It already has triggered a brutal market sell-off. The Fed raised its key short-term interest rates by three quarters of a percentage point Wednesday – its largest hike since 1994 – to a range of 1.5% to 1.75. It also downgraded its economic forecast. It also signaled that more big moves may be coming. Fed officials forecast the federal funds rate will end 2022 at a range off 3.25% to 3.5%, according to their median estimate. That suggests officials are tentatively planning another three-quarters point increase in July and a half point rise in September before throttling back to more typical quarter-point increases the rest of the year. “The (Fed’s policymaking committee) is strongly committed to returning inflation to its 2 ...

 METAIRIE, La.–Two Louisiana CUs have announced their intent to merge. The $8.1-million West Jefferson FCU said it is seeking to merge into the  $247-million New Orleans Firemen’s FCU. If the combination is completed, the CU will have 10 branches and approximately 28,000 members, “Our membership will thrive as a result of this partnership. We are excited to provide increased accessibility, benefits, and digital services to our membership,” said WFCU Chair Gail Bruce. “At this time when we see more everyday challenges and uncertainties than ever before, it is more important than ever to make available strong financial solutions to our members for their continued success.” Added NOFFCU Chairman Joseph Jurisich, “We are honored to have t...

 WASHINGTON—NCUA needs to update its Charitable Donation Accounts (CDA) rule definition of “qualified charity” to allow credit unions to do more to serve worthy organizations, according to CUNA. The CDA rule allows federal credit unions to make investments that would otherwise be prohibited provided the proceeds are for charitable purposes. In a letter to the agency, CUNA called for the definition to be expanded to include 501(c)(19) veterans organizations, in addition to the currently allowed 501(c)(3)s. “The primary purpose of a CDA is to generate funds to donate to tax-exempt organizations chosen by the federal credit union,” the letter reads. “Equally Worthy” At the time the CDA rule was adopted, these tax-exempt organizations were des...

  NCUA Releases Q1 2022 State-Level Credit Union Data Report ALEXANDRIA, Va. (June 14, 2022) – Federally insured credit unions experienced growth in assets, shares and deposits, and loans outstanding over the year ending in the first quarter of 2022, according to the latest Quarterly U.S. Map Review released today by the National Credit Union Administration. Nationally, median asset growth for federally insured credit unions over the year ending in the first quarter of 2022 was 5.2 percent, compared with growth of 17.1 percent during the same period a year earlier. Median growth in shares and deposits over the year ending in the first quarter of 2022 was 5.7 percent, compared with 19.5 percent during the same period a year ago. View the entire press release​

 WASHINGTON–The Federal Reserve’s Open Market Committee will begin two days of meetings today, and when it adjourns on Wednesday it is expected to announce it is pushing up interest rates by 50 basis points as it seeks to fight inflation. The move is expected to push the Fed Funds target to a range of 1.25% to 1.50%. Economic observers will be closely watching the FOMC statement on Wednesday for signals for what the Fed sees ahead and to what degree it will remain hawkish. Some economists have speculated the Fed will boost rates 75 basis points as it seeks to tamp down rapidly growing inflation. Others are sticking with their half-point increase projection but then expecting another half-point increase when the Fed meets again in July. CU E...

  https://www.ailife.com/         I would like to introduce and recommend American Income Life (AIL). The National Council of Firefighter Credit Unions (NCOFCU) created a partnership with AIL almost a decade ago. Our council has continued its partnership in an effort to further support our participating credit unions and also provide additional resources to further our collective goals.  ...

NAFCU Chief Economist Curt Long said credit unions should brace for more aggressive action from the Fed this year in the wake of Friday’s report that inflation hit a 40-year high in May. “Inflation surprised to the upside in May, placing more pressure on policy makers,” Long said. The U.S. Bureau of Labor Statistics reported that inflation rose 8.6% from May 2021 to May 2022, the largest 12-month gain since December 1981. The largest price jolts were for shelter, gasoline and food. “But price gains were strong across the board,” Long said. “Credit unions should be prepared for more hawkish talk from Fed officials and the related market impacts, but they will continue delivering low-cost financial services at a time when it’s increasingly important to everyday Americans.” Curt Long Inflation from April to May was a seasonally adjusted 0.3%. After declining in April, the energy index rose 3.9% over the month with the gasoline index rising 4.1%. CUNA Senior Economist Da...

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NEW YORK–A new study offers insights into just how much inflation is costing depositors when it comes to their funds in interest-bearing accounts. The latest MagnifyMoney study examined personal and online savings, standard and reward checking, money market and certificate of deposit (CD) accounts — as well as the largest exchange-traded funds (ETFs) — to see how they fared during the 12 months ending March 31, 2022. Among the findings, according to MagnifyMoney: Consumers are undeniably feeling the effects of inflation, starting with   personal savings accounts .   “Americans who put $100 into one of these a year ago (April 1, 2021) would have lost the equivalent of $8.41 to inflation by March 31, 2022. This is due to a tiny 13 cen...

 MADISON, Wis.– CUNA Mutual’s chief economist is forecasting 7% inflation this year, then 3% in 2023 and 2% in 2024. The forecast was included in the company’s latest Trends Report, which primarily features an update on credit union performance and which CUToday.info reported here . “Economists believe inflation is caused by ‘too many dollars chasing too few goods,” observed Chief Economist Steve Rick. “Over the last two years, the money supply rose a remarkable 42% due to three rounds of stimulus checks and record low-interest rates to give us the “too many dollars” part of the economic truism. The ‘too few goods’ is being caused by the pandemic-induced supply chain disruptions and the war in Ukraine. Rick noted that on a year-ago basis, t...

  Senate Confirms Harper to Full Term on the NCUA Board ALEXANDRIA, Va. (June 8, 2022) – The U.S. Senate by a vote of 59 to 40 today confirmed Todd M. Harper to be a Member of the National Credit Union Administration Board for a term expiring on April 10, 2027. “I am grateful to President Biden for nominating me to serve a full term on the NCUA’s Board and humbled by today’s bipartisan confirmation vote,” Chairman Harper said. “In the years ahead, my focus will remain on credit union members, the system’s resiliency and strength, and the NCUA’s readiness to respond to an evolving economic environment, credit union system, and financial services marketplace. Consistent with the law, I will also continue prioritizing capital and liquidity, cybersecurity, consumer financial protection, and diversity, equity, and inclusion.” Chairman Harper’s confirmation is a reappointment to the NCUA Board, and he will continue to serve as Chairman. He was initially confirmed to fill out a pa...

The times, they are a-changin'… From the COVID-19 pandemic to Russia-Ukraine turmoil and everything in between it seems as if we are constantly speculating on what will be the catalyst that pushes us into the next recession. As it stands, many economists think the chances of a recession in the short term are unlikely . While some speculated that we would see significant impacts to the economy as a direct result of the COVID-19 pandemic, there ultimately was minimal consumer impact, at least on the employment and demand side of our economy. While many economists see a recession as being unlikely, the threat remains. I grew up in a small town on the West Coast of Florida. We’ve been frequently impacted by tropical storms and hurricanes, but the most devastating impact to us came from the result of a 1993 “ no-name storm ” that had no formal designation whatsoever. A long-winded way of saying that there are scenarios where a recession emerges, and there are also scenario...

Some workers are so unhappy about returning to the office that they’re playing a legal card—asserting that they have a disability that necessitates that they work from home full time, employment attorneys say. “Many are arguing COVID-related reasons, but it doesn’t have to be,” said David Barron, a member of the law firm Cozen O’Connor in Houston. “It could be some other type of disability that would warrant a reasonable accommodation to work from home.” Workers seeking disability accommodations are relatively rare, attorneys say, but nonetheless reflect the strong resistance a sizable slice of employees is showing to any in-the-office mandates. It’s a tricky landscape for corporate legal departments to navigate, attorneys say, in part because they could expose their companies to discrimination claims if they apply extensive flexibility to certain similarly situated workers but not others. It doesn’t help that some workers are outright angry. Recently, a group of Apple e...

 SANTA CLARA, Calif.–For the first time since June of 2019, the inventory of homes for sale has increased for the first time, which Realtor.com is calling a “major turning point in inventory.” The national inventory of active listings increased by 8.0% over last year, while the total inventory of unsold homes, including pending listings, still declined by 3.9% due to a decline in pending inventory, Realtor.com stated. “The inventory of active listings was down 48.5% compared to May 2020 in the early days of the COVID-19 pandemic. In other words, there are still only half as many homes available,” Realtor.com reported. “ “Sellers are fueling this turnaround in inventory, with newly listed homes entering the market at a rate not seen since 2...

All financial institutions, particularly credit unions, provide valuable services. Checking, or if you will, share draft accounts, have a value, yet they’re ubiquitous, so consumers no longer recognize their worth. Credit unions have done this to themselves by traditionally offering free checking. We don’t recognize the value in transaction accounts, so how (or why) would our members? We must find a way for members to see the value once again. And credit unions must find a new way to create revenues from that value. Income Generation Is Hard … and Getting Harder Credit union income generation is under attack and has been for decades. Between legislators and regulators increasing burdens while capping fees, narrowing net interest margins and new competitors entering the market, credit union leaders – particularly CFOs – are feeling a bit besieged. I get it. Then, just as interest rates edge upward to provide a bit of a reprieve, lawmakers are eyeing your credit card inte...

 IRVINE, Calif.–Rising rates may be expected to put a damper on the pace of rising home prices, but data through March shows that has yet to be the case. The reason, according to analysts: demand continues to be stronger than the limited supply of homes for sale. The newest S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, shows prices rose 20.6% in the year that ended in March, up from a 20% annual rate the prior month. The March numbers marked the highest annual rate of price growth since the index began in 1987. The Case-Shiller index, which measures repeat-sales data, reports on a two-month delay. Inventory has risen since March but remains below t...