Firefighter Credit Union Newsroom

Economists at CUNA, NAFCU and beyond said the U.S. economy seems to be dodging a recession despite Thursday’s report of a second drop in a row of quarterly gross domestic product. The U.S. Bureau of Economic Analysis said its GDP index that is adjusted for seasonality and inflation (real GDP) fell 0.9% from the first quarter to the second quarter, after falling 1.6% in the first quarter. Since at least 1947, recessions have almost always been declared when those figures drop for at least two quarters in a row. CUNA Senior Economist Dawit Kebede said the guide is not the rule. But he said the economy could be brought down by future Fed rate hikes in addition to the historically large 75-basis point increases announced in June and on Wednesday . “We are not in a recession just because we have two quarters of decline,” Kebede said. “Consumer spending and a strong labor market continue to be the firewall against a significant and widespread decline in economic activity. H

 LANSING, Mich. — As inflation remains high and the Fed continues to push up rates, Lansing Area FCU (LAFCU) has introduced a 10/6 adjustable-rate mortgage (ARM). In announcing the new offering, the $970-million credit union noted ARMs were a hallmark of the 1980s inflationary period and the mid-2000s mortgage crisis, and the product is now making a “comeback.” The loan has a fixed rate of interest for the first 10 years of the loan, after which it adjusts once every six months over the remaining 20 years. The terms apply to both new and refinanced mortgages. The Stanton familiy in their new home. “LAFCU’s 10/6 ARM loan is a low-cost opti

On Wednesday, members of the House Financial Services Committee passed the Credit Union Board Modernization Act (H.R. 6889) introduced by Reps. Juan Vargas (D-Calif.) and Anthony Gonzalez (R-Ohio). The bill would alter the Federal Credit Union Act’s requirement that federally charted credit unions meet 12 times each year and reduce that number to a minimum of six times each year. In a statement Wednesday after its passage out of Committee, CUNA President/CEO Jim Nussle said, “Thank you to the House Financial Services Committee for passing this common-sense bipartisan bill that will give credit union boards needed flexibility. This bill addresses an outdated Federal Credit Union Act requirement and will free up credit union staff and board members to focus more on member service.” In letters to the Committee on Tuesday, both NAFCU and CUNA argued that the Federal Credit Union Act does not consider the advances in technology that have occurred to allow board members to co

The Federal Reserve raised rates by 75 basis points Wednesday, citing robust job gains, low unemployment and inflation. The Federal Open Market Committee’s unanimous agreement on the increase was on par with economists’ expectations, and followed a 75-bps increase in June that was the largest increase in 30 years. The committee raised its target range for the federal funds rate to 2.25% to 2.50%, and expects it to rise to 3.25% to 3.5% by year’s end. CUNA Senior Economist Dawit Kebede said the Fed’s 75-bps hike puts the federal funds rate at a neutral 2.25% to 2.50%, but its plan to increase its rates another percentage point by the end of the year also raises the risk of recession. NAFCU Chief Economist Curt Long said the Fed was responding to “the hottest inflation numbers in 40 years,” but softening in the economy might lead it to raise rates by a smaller amount when it next meets Sept. 20-21. Mike Fratantoni, chief economist for the Mortgage Bankers Association, sa

  With prices rising at their fastest pace in a generation, the Federal Reserve is ratcheting up its fight against inflation. On Wednesday, the Fed raised its benchmark interest rate by an additional three-quarters of a percentage point. This is the fourth time the central bank has raised rates this year. It follows an increase of the same size in June — rate hikes at this pace and magnitude have not occurred since the late 1980s. Despite these fast and furious moves, the central bank has its work cut out for it. Its goal is to rein in inflation without kickstarting a recession. "The labor market is extremely tight, and inflation is much too high," Fed Chair Jerome Powell said at a news conference, where he explained the "unusually large" move up in rates. He and his colleagues are trying to fight inflation by tackling demand. They are pushing up the cost of of credit — what consumers and companies pay to borrow money — and they are trying

CUToday WASHINGTON–The Federal Reserve’s Open Market Committee (FOMC) will kick off two days of meetings today and the decision they announce tomorrow will affect everything from the major U.S. markets to credit unions that are seeing strong loan growth to individual credit union members struggling with monthly bills. The FOMC is widely expected to again raise its benchmark rate as it seeks to cool raging inflation. Among those expecting rates to be higher by Wednesday afternoon is CUNA’s chief economist, Mike Schenk, who expects the Fed will push up rates by 75 basis points. That follows the full one percentage point increase made during the Fed’s July meeting. “That’s pretty substantial, but inflation is over 9%,” said Schenk

  BOSTON–A new survey of small business owners finds nearly half say their businesses are at risk of failing by the fall of this year unless economic conditions improve significantly. According to Alignable's Small Business Revenue Report  , which is based on a poll of 4,392 randomly selected small business owners conducted from June 10-July 13, 2022,  along with historic data from 680,000 surveyed since March 2020, key highlights include: 47% of small business owners (SMBs) say they're businesses are at risk of closing by Fall of '22, unless economic conditions improve significantly That's up 12 percentage points from last summer, when only 35% were concerned about economic issues forcing them to shut down, Alignable said. And SMBs in key industries face even bigger problems: 59% of retailers are at risk, along with 52% in construction, 51% in the automotive sector, and 50% of restaurant owners.  Supporting these unfortunate trends, the total percen

CUToday    NEW YORK–One of the most watched indicators over whether a recession is approaching is “sounding its loudest alarm”—the yield curve, according to one new analysis. As every credit union portfolio manager and CFO is aware, the standard yield curve should show rates moving higher as terms grow longer, hence, the “curve.” But every once in a while, short-term rates rise above long-term ones, known as an inversion, and such inversions have preceded every U.S. recession over the past 50 years. “And it’s happening now,” the New York Times reported, adding, the yield curve has predictive power that other markets don’t. On July 20 the yield on two-year Treasury notes stood at 3.23%, above the 3.03% yield on 10-year notes. A year ago, by compa

CUToday 07/2022 SAN ANTONIO—More consumers are looking to Tik Tok and YouTube for financial advice than they are their own financial institution, according to new research. Nearly half of the respondents in the research from Vericast said they seek financial advice from friends or family, while less than a third are seeking it from a bank, credit union or financial advisor. Thirty-four percent of Gen Z consumers obtain financial advice from TikTok and 33% get it from YouTube, while only 24% of this age group seek advice from financial advisors, according to Vericast, which surveyed 1,000 adults. “It is clear that financial institutions have a critical need to innovate quickly and reimagine their approach to retain customers,” said Stephenie W

  The gains in the amount spent far outpace gains in the number of transactions. By Jim DuPlessis | July 2022 Source: Shutterstock. PSCU reported Tuesday that the value of purchases it handles for affiliated credit unions rose much faster than the number of transactions in June, which it said indicated inflation was a growing factor in purchasing growth. The St. Petersburg, Fla., payments CUSO found members whose credit unions use PSCU services spent 16% more by credit cards in value and 12% more in the number of transactions in June than they did in June 2021. By debit, they spent 7% more by value and 3% more by number. “While overall consumer spending remained strong throughout June, current inflationary pressures are keeping growth in purchases outpacing growth in transactions,” Brian Scott, PSCU’s chief growth officer, said. The U.S. Bureau of Labor Statistics reported July 13 that inflation rose a seasonally adjusted 1.3% from May to

  The MBA finds mortgage applications are at their lowest level since 2000. By Jim DuPlessis | July 2022 Source: AdobeStock. Mortgage applications fell for the third week in row, reaching their lowest level since 2000, the Mortgage Bankers Association reported Wednesday. Meanwhile, the National Association of Realtors reported Wednesday that the streak of falling sales of existing homes stretched into a fifth month in June. The MBA’s Market Composite Index of loan application volume for the week ending July 15 was 6.3% lower than the previous week after seasonal adjustments. Refinances, which have been slashed by rising interest rates, fell a further 4% for the week ending July 15, and were down 80% from a year earlier. But the three-week falling streak also extended to mortgages for home buyers. Purchase applications fell a seasonally adjusted 7% from the previous week. That followed drops of 4% in each of the two previous weeks after a b

    www.NCOFCU.org As New Orleans nears, we’ve rounded up some of the best minds in the industry to share their knowledge with us.  “Attendees will network with their peers and colleagues while receiving an in-depth look at relevant governance and strategy issues, and walk away with a deeper and broader understanding of current industry trends and enhanced skills to help improve their credit unions’ performance,” Here’s a sample of some of this year’s speakers and their respective sessions: Special Guest speaker Dr. Jerry V. Teplitz, Jerry Teplitz Enterprises Inc "INCREASING YOUR BRAIN’S PERFORMANCE FOR GREATER LEADERSHIP WHILE MANAGING THE STRESS OF CHANGE" Frank J. Diekmann CUToday , "Key Issues & Trends for 2023: Opportunities & Challenges for First-responder CUs" Rodney Hood Director NCUA - NCUA & Credit Unions' future. Steven Rick, Chief Economist CUNA Mutual - U.S. Economic Outlook & Its Impact on Credit Unions for 2022 and Beyond. Tammy

  New WOCCU Chairman, Other Board Election Results Diana Dyksta, president and CEO of the California and Nevada leagues, has been elected as the World Council’s new chair. In addition, current directors Dallas Bergl (USA), Joe Thomas (USA) and Michael Lawrence (Australia) have been appointed to two-year terms. Jeff Guthrie, the new president and CEO of the Canadian Credit Union Association (CCUA), was also appointed to a two-year term. He replaces outgoing CCUA President and CEO Martha Durdin. WOCCU board members Manfred Dasenbrock (Brazil), Charles Murphy (Ireland), George Ototo (Kenya) and Joseph Remy (Caribbean) were all reelected to two-year terms. The World Council Board’s committee officers for 2022-23 are: Diana Dykstra (USA), Chair Michael Lawrence (Australia), Vice Chair/Secretary George Ototo (Kenya), Treasurer/Chair of Audit and Risk Committee Joe Thomas (USA), Chair of Governance and Elections Committee Below, Diana Dykstra, center, appears with Elissa M

METAIRIE, La.–New Orleans Firemen’s FCU (NOFFCU) has been approved by NCUA to addfive underserved areas comprising a total of 518 census tracts to its field of membership (FOM). NOFFCU, a multiple common bond credit union and certified CDFI, has been looking to expand service beyond its now-former FOM of close to 26,000 members and 300 businesses in both Louisiana and Mississippi. “We serve two states with some of the least prosperous residents in the nation due to high rates of poverty, income inequality, subprime credit and lack of mainstream financial services,” said President and CEO Judy De Lucca. “Expanding our FOM will allow us to now be able to offer more services to more members and further empower the communities we serve.” New Orlean

  WASHINGTON—Single-family home prices increased at the annualized rate of 19.4% in Q2, down slightly from the previous quarter’s upwardly revised 20.5%, according to Fannie Mae’s latest Home Price Index (FNM-HPI) reading. The HPI is a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the United States, excluding condos. On a quarterly basis, home prices rose a seasonally adjusted 4.3% in Q2 2022, Fannie Mae said. ‘Near-Historic Pace’ “Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth,” said Doug Duncan, Fannie Mae senior vice president and chief eco

Money Concepts 2022 New Orleans Conference Sponsor https://moneyconcepts.com/ KENNY R. PARKER | National Director Financial Institutions Division o:636.925.3000 w: www.moneyconcepts.com a:5600 Mexico Rd, Suite 1 | St. Peters, MO 63376 e: kparker@moneyconcepts.com

  WASHINGTON–Many analysts have been forecasting a 75-basis-point increase in the Fed Funds rate when the Federal Open Markets Committee meets July 26-27, but now the markets are predicting it could be a full percentage point increase. The forecasts are coming after the latest Labor Department’s June Consumer Index report showed inflation in June jumped a record 9.1%, the biggest monthly increase since November 1981. “Fed funds futures for July immediately rose to 81 basis points, meaning investors were pricing in 0.81% in rate hikes from the Fed on July 27. And by the afternoon, market expectations continued to grow, with the fed funds futures pricing in 93 basis points of a hike in July, according to BMO,” CNBC reported. “The market had prev

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