Firefighter Credit Union Newsroom

11/29/2022 CUToday WASHINGTON–There may be some good economic news in U.S. Treasurys and the inverted yield curve. Yields on longer-term U.S. Treasurys have fallen further below those on short-term bonds than at any time in decades, an indicator investors believe the Federal Reserve is close to winning its inflation battle regardless of the cost to economic activity, according to the Wall Street Journal. As the Journal noted, yields on Treasurys largely reflect investors’ expectations for what short-term interest rates set by the Fed will average over the life of a bond. But as the publication added, “The yield curve is more than just a little bent out of...

 

It’s Time to Take HELOCs Off the Backburner  By Scott Meier | CUTimes  HELOC use is shifting. (Source: Shutterstock) Mortgage refinancing had quite a moment in the last two years. Borrowers rushed to take advantage of the historically low-interest rates, resulting in $5.5 trillion in mortgage lending in 2020 and 2021, according to Black Knight’s January 2022 Mortgage Monitor. Enter 2022 … and the winds have completely changed. As the Federal Reserve rapidly adjusts interest rates upward, the housing market reacted with a sharp and abrupt drop in mortgage refinances. Weekly mortgage applications are down 83% compared to one year ago, according to the Mortgage Bankers Association. Homeowners have record levels of home equity and still have financial needs. Where a cash-out refinance might have made sense last year, interest rates likely make a home equity loan a better financial decision. HELOCs: Then Versus Now I recall from my days as a credit union lending manager that HELOCs...

NEW YORK – While the elimination or reduction of overdraft and non-sufficient funds (NSF) fees by some banks have been getting headlines, the fees are still being charged by most banks and are “not going away anytime soon,” according to a new analysis. But one product may be in the process of a “vanishing act”: free checking, the report adds. Bankrate.com ’s annual Checking Account and ATM Fee Study has found overdraft fees are still charged by 96% of accounts surveyed and NSF fees are still charged by 87% of accounts surveyed. In addition, the average combined ATM fees are up to a three-year high, with the surcharge hitting a record high of $3.14, up 1.9% from last year, according to Bankrate.com, which has conducted the study and its survey of non-interest and interest accounts and their associated fees for over 20 years. Overdraft and NSF Fees According to Bankrate.com, the average overdraft fee is $29.80, down 11% from last year’s record high of $33.58, and now is at the lowest lev...

   www. NCOFCU .org   Have a Safe and Happy Thanksgiving! “Thanksgiving”, a day when we pause to give than...

11/22/2022 CUToday WASHINGTON—After rebounding at a 2.6% annualized rate in Q3 2022 on the strength of net exports, real gross domestic product (GDP) is projected to turn negative again in the fourth quarter as the temporary boost from international trade moderates, according to the November 2022 commentary from the Fannie Mae Economic and Strategic Research (ESR) Group . The ESR Group said it also expects declines in residential fixed and business investment, as well as slowing personal consumption growth, to contribute to negative growth in Q4 2022, and it continues to expect the economy to tip into a modest recession in the first quarter of 2023. “Full-year 2...

WASHINGTON—Should a recession occur, credit unions won’t feel the effects all that deeply, according to a new forecast from CUNA. Ligia Vado Senior Economist Ligia Vado shared that prediction and made other projections in her October 2022 CUNA Economic Update . “Members’ healthy financial conditions is one of the most important reasons why, if indeed there is a recession next year, its impact on credit unions will be much less severe,” Vado said  Other points made in the forecast: Economic growth predictions . Vado projected that the economy will grow 0.3% in 2022 and no growth in 2023 Yield curve inversion . “The inversion of the yield curve sin...

The holidays are here, and so are the scammers. Cybercriminals are lurking around every corner, waiting to steal your personal information and hard-earned money. The best way to protect yourself is by educating yourself. Keep reading to learn how to practice good cyber hygiene this holiday season.  According to the Internet Crime Complaint’s 2021 Report, non-payment and non-delivery scams cost Americans more than $337 million. Credit card scams cost them another $173 million. A non-payment scam is when a seller ships goods or provides services but never receives payment. Non-delivery is when a buyer pays for goods or services online and never receives them. We hear horror stories every year, but how do we make sure we don’t become a statistic?  The best course of action is to question everything. Always do your research and pay attention to what you’re interacting with digitally before you start clicking and giving out your card number, passwords, and sensitive information. Ph...

11/20/2022 CUToday By Ray Birch LOMBARD, Ill.—The prospects for a liquidity crunch are “hit or miss” among credit unions across the nation, says Bill Handel, who adds those CUs now feeling a crunch can count on some relief within the next 12 months. But there are other balance sheet issues developing, he is cautioning. “This liquidity crisis is not a universal occurrence by any means,” said the SVP of research at Raddon, who noted for those experiencing the shortage it is a big issue in a year in which member lending demand, at least in dollars, is high. The reversal that has taken place on many credit union balance sheets—and quickly—has been a surprise to many CEO...

 11/16/2022  ARLINGTON, Va.– Retails sales increased a seasonally adjusted 1.3% in October compared with September, the strongest growth since early 2022 and a sign the economy remains resilient, according to new data from the Commerce Department. Curt Long According to the data, consumers spent more at auto dealers, furniture stores, grocery stores and gasoline stations. “Retail sales perked up in October, growing at the strongest pace since February. Notably, this report coincides with the weaker-than-anticipated report on the consumer price index (CPI) from last week,” said NAFCU’s chief economist, Curt...

11/15/2022  WASHINGTON–The Federal Reserve’s vice chair is indicating it may be time to begin slowing the pace of interest rate increases. Lael Brainard Vice Chair Lael Brainard said that with markets now expecting the Fed, when it meets again in December, to pull back from the rapid pace of rate increases in 2022, she favors the  slowdown. "I think it will probably be appropriate soon to move to a slower pace of rate increases," she told Bloomberg News. That doesn't mean the Fed will stop raising rates, but it at least will come off a pace that has seen four consecutive 0.75 percentage point increases,...

11/15/2022 08:20 pm WASHINGTON–A preview of how congressional oversight of financial institution regulators might change in the next Congress was apparent during a Senate Banking Committee hearing on Tuesday at which NCUA was both criticized and praised. While the Democrats will retain control of the Senate regardless of the vote in the Georgia senate run-off,  the  House will most likely be under GOP control when  the 118 th Congress convenes in January. And that means a change in committee leadership. During a hearing in the Senate titled “Oversight of Financial Regulators: A Strong Banking and Credit Union Systems for Main Street,” Sen. Pat Toomey (R-PA) raised concerns around several ...

11/13/2022  By Ray Birch ARLINGTON, Va.—It's never been more critical for credit union boards to have a “bench,” says one expert, who notes the strategy not only leads to stronger succession planning but also deepens board member experience and knowledge while helping to avoid reputation risk. “I see volunteers from all across the country at different training events,” said David Reed, partner at Reed & Jolly, PLLC, who consults with credit union boards and provides training. “The issue is our boards are generally getting older, and they are not going to be able to serve forever. So, when does the credit union realize it needs to replace people on its board?” ...

Things are tighter than the federal funds rate suggests, according to the San Francisco Fed. By Erik Sherman | November  When your business model depends on financing, of course, you focus on what decisions the Federal Reserve will make about raising interest rates. The benchmark federal funds rate, which is a target range that only directly affects how banks lend to one another, is massively influential. Any doubt, just look at the current going rate for financing in commercial real estate. But it’s important not to forget other information. The Federal Reserve Bank of San Francisco issued an economic letter on Monday, noting that monetary policy is tighter than the federal funds rate. It’s important knowledge because monetary policy affects much more than inflation. The amount of available capital is one, and that has been a factor in influxes of investment into commercial real estate that have helped drive prices higher and cap rates lower. “The...

Credit union economists see signs that the Fed might start easing rate hikes. By Jim DuPlessis | November 10, 2022 at 03:00 PM Source: AdobeStock. October’s inflation came in lower than expected, leading credit union economists to predict the Fed might have a reason to begin making smaller interest rate hikes. The U.S. Bureau of Labor Statistics reported Thursday that the consumer price index rose 0.4% from September to October after seasonal adjustments, the same monthly increase that occurred in September. Prices in October were 7.7% higher than a year earlier, down from the annual inflation rate of 8.2% in September. “This is the lowest increase for the year as prices for used cars, air travel and medical care declined in October,” CUNA Senior Economist Dawit Kebede said. “Overall, the October inflation report shows signs of prices slowing down.” Dawit Kebede Kebede predicted the annual inflation rate would fall to 7.5% by December ...

 ST. LOUIS—The Federal Reserve rate hikes are having an uneven effect on different forms of debt.  The hikes have led to a near-record gap between interest rates on personal loans and credit cards, according to the Federal Reserve Bank of St. Louis, Fox Business reported. The average interest rate on credit cards was 16.27% as of August, while the average interest rate on personal loans was 10.16%, according to the latest data.   “This marks one of the largest gaps between commercial bank interest rates on credit card plans and 24-month personal loans in the St. Louis Fed’s recorded history,” Fox Business said.  The news comes as Americans are holding significant amounts of credit card debt. Credit card balances saw a $4...

 CUToday PLANO, Texas–Newly released data show there were a total of 92,634 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — during the third quarter of this year, a 3% increase over Q2 and a 104% jump from a year ago. Brian Turner The data was released as part of ATTOM’s U.S. Foreclosure Market Report for the third quarter. The report further found there were a total of 31,836 U.S. properties with foreclosure filings in September 2022, down 8Q% from the previous month but up 62% from September 2021. In his analysis of the...

MADISON, Wis.–Not only have ongoing rate increases by the Federal Reserve not slowed down member borrowing, it actually picked up pace through September, according to CUNA’s latest Monthly Credit Union Estimates. But the slowdown is coming, said one economist. Mike Schenk “In general, the trends we see are continuations of what we have reported in the recent past,” said CUNA’s chief economist, Mike Schenk. “Despite a very aggressive Federal Reserve,  loan growth actually accelerated for third month in a row, increasing 2.1%. That’s the third month of loan growth over 2%. We have never seen a calendar year where we have had three months of loan growth l...