Firefighter Credit Union Newsroom

12/28/2022  NEW YORK–Credit unions are getting some national attention for their rates on auto loans. Under the headline “Auto-Loan Interest Rates are Skyrocketing: No One Told Credit Unions,” the Wall Street Journal noted credit unions charged an average interest rate of 5.94% for used cars in third quarter, while banks were charging an average rate of 8.36%. “Auto lending is a bread-and-butter business  for credit unions , and it isn’t unusual for them to beat the competition. But the extent to which they are doing so  when rates are rising  and other lenders are pulling back is drawing attention across the consumer-lending markets,” the Journal stated. The gap between the CU average of 5.94% and the bank average of 8.36%--which is based on data

12/28/2022 CUToday WASHINGTON–The National Association of Realtors has released its forecast for home sales in 2023, including identifying the top real estate markets it said deserve to be watched, where rates are headed and what will happen with rents. Lawrence Yun, the NAR’s chief economist and senior vice president of research, is forecasting  4.78 million existing homes will be sold, that prices will remain stable, and that Atlanta will be the top real estate market to watch in 2023 and beyond. Yun offered his forecast during NAR's fourth annual year-end Real Estate Forecast Summit. Yun is predicting home sales will decline by 6.8% compared to 2022 (5.1

Despite the attractiveness of their dividend yields, there are risks and limitations to what preferreds can do for a portfolio. By Matthew Butler | Source: Shutterstock. To bolster investment yield, many credit unions hold preferred stocks as part of their employee benefits pre-funding portfolios, but preferred stocks aren’t for everyone, and credit unions should be leery about having these securities in their portfolio. Despite the attractiveness of their dividend yields, there are risks and limitations to what preferreds can do for a portfolio, and the high yields they offer aren’t sufficient to justify investing in these securities. What Is a Preferred Stock? Preferred stocks are a class of equities that sit between common stocks and bonds. Like stocks, they pay a dividend that the company is not contractually obligated to pay. Like bonds, their dividends are typically fixed and expressed as a percentage rate. Preferred shareholders receive prefere

Author: Bo McDonald Last week’s blog featured one of the most common questions we’re asked when a credit union engages us in a strategic marketing relationship: How long until this stuff starts working? I realize, you probably need more perspective surrounding those questions regarding the speed of effectiveness of your credit union marketing plan . Many factors can impact the answer to that question. However, the answer “immediately” comes with the proper execution of digital marketing. The question behind that question is, “but how much will it cost?” If a potential member types your credit union name into a Google search, congratulations! You have already won their heart. They have chosen you as their preferred provider and are trying to connect. This means you will enjoy an extremely low cost-per-click with a high conversion rate. But if they type the name of your competitor into the

  Author: Bo McDonald I’m often asked by credit unions that are looking to work with our team this very question: “How long before I see my credit union marketing start to work?” It’s either an innocent question that is on their generic “must ask the marketing people” list, or it’s a red flag. Good marketing isn’t an easy button or simple pill that will solve all of your problems. However, if you truly want an answer to that question, you have to ask yourself a handful of other questions to get a close answer. Does your messaging capture attention or is it easy to ignore? Ask this, especially with your ideal member. Does your value proposition (or lack thereof) sound like every other financial institution? If you’re trying to attract everyone who can join, your messaging is too vague to appeal to anyone. Do your ads speak to a felt need, or are you answering a question no one was asking? “We’re a not-for-profit fin

  NCOFCU’s National Board of Directors Chairman:  Michael McCormick V. Chair. San Diego Firefighters FCU  1st V. Chairman:    David Lantrip Director Houston Firefighters FCU 2nd V. Chairman:  Brian Kurzel V. Chair. Charlotte Fire Dept. CU Treasurer:  Gene Benick Newark Firefighters FCU Secretary:  Andy Doyle Director F&A CU Directors:   Bonnie Sensing Exec. Admin. Nashville Firefighters CU , Michael Tobler Chairman NY Firefighters Bravest FCU, , John Cowin Chairman Syracuse Firefighters CU,  Al Comeaux Chairman Baton Rouge CU ,  Associate Directors:  Johnny Player Treasurer Akron Fire Police CU, Marc  Sanders  Director Boston Firefighters CU, Bob   Whitaker  Director Baton Rouge Firemens CU. Staff:  Grant Sheehan CEO   305-951-3306  

12/21/2022 CUToday WASHINGTON—Following an upward revision to third quarter 2022 real gross domestic product (GDP) and stronger-than-expected incoming personal consumption data to begin the fourth quarter, the economy is now expected to eke out positive growth of 0.4% in 2022 before entering a modest recession in the new year, according to the December 2022 commentary from the Fannie Mae Economic and Strategic Research (ESR) Group . The ESR Group stated that it views the current rate of personal consumption growth as unsustainable given the combination of a low personal saving rate and an elevated ratio of consumer debt to personal disposable income. “With many cyclical indicators continuing to point toward economic contraction, including an inverted yield curve, the ESR Group forecasts 2023 GDP growth to be negative 0.5%, an improvement from last month’s forecast of negative 0.6%,” Fannie Mae stated. “The ESR Group then expects t

 WASHINGTON—The Federal Reserve Board has adopted a final rule that identifies benchmark rates based on the Secured Overnight Financing Rate (SOFR) to replace the London Interbank Offered Rate (LIBOR) in certain financial contracts after June 30, 2023. The final rule was drafted with direction from the LIBOR Act—which was included in the omnibus spending package passed earlier this year and which was aimed at providing a uniform, nationwide solution for replacing references to LIBOR in existing contracts that do not have an adequate fallback provision. In its statement, the Fed said the final adopted rule is substantially similar to what was proposed, with “certain clarifying changes made in response to comments.” The Changes The changes incl

See you in Clearwater Beach, FL 10/3-6/2023 The History of Money Concepts In 1979, Money Concepts founder John P. Walsh recognized major weaknesses in the distribution systems of the financial services industry and dedicated his new company to solving these problems. Mr. Walsh created a “turnkey” Money Concepts Financial Planning Center that allowed community-based financial institutions, tax professionals, and independent financial planners, a structured and unbiased way to offer their clients and customers holistic financial planning and wealth management solutions. Money Concepts is a privately held company completely independent of the influence of product providers. Today, there are more than 700 Money Concepts Planning Centers throughout North America, Europe, and the Pacific Rim.     

One economist says rate hikes will lead to a recession that will help lower mortgage rates to 5.2% by end of next year.   Jerome Powell Wednesday, Dec. 14, 2022 (Source: Federal Reserve). The Federal Reserve said Wednesday it expects to raise rates about 60 basis points in 2023, after a year in which rates zoomed from close to zero to nearly 4.5%. One result will be an easing of mortgage rates, which topped 7% this fall and were at 6.4% last week. Mike Fratantoni, chief economist of the Mortgage Bankers Association, said he expects the rates to drift down to about 5.2% by the end of next year. “The housing market has certainly welcomed the recent decline in mortgage rates,” Fratantoni said. “This decline is reflecting market expectations of being near the peak for short-term rates, as well as increased signs that the U.S. is headed for a recession next year.” Mike Fratantoni The Federal Reserve’s Open Market Market Committee raised the federal fund

12/14/2022   CUToday PITTSBURGH–The Twelve Days of Christmas are going to require many more days of work to pay for all of them in 2022. PNC Bank has released its annual Twelve Days of Christmas expense index in which it tabulates what it would cost to purchase all of the items mentioned in the famous holiday song, which is sometimes better known as the “Partridge in a Pear Tree” song. PNC’s conclusion this year: Shoppers will need to have “significantly more money on-hand to fill stockings this holiday shopping season.” The average unit price tag for the PNC CPI Index in 2022 is $45,523, an increase of $4,118 over 2021, or about 10.5%.  The bank said the "True Cost of Christmas," which accumulates the total cost of all 78 units (364 gifts), increased to $197,071 from last year's total of $179,454 - or about 9.8%.

Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures. Russia's war against Ukraine is causing tremendous human and economic hardship. The war and related events are contributing to upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-1/4 to 4-1/2 percent. The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation t

12/13/2022 CUToday WASHINGTON–With the Federal Reserve expected to announce another rate increase today, new data show consumer prices rose last month at the slowest 12-month pace since December 2021, credit union economists are saying. Dr. Dawit Kebede According to the Labor Department, the consumer price index climbed 7.1% in November over one year earlier, down significantly from 7.7% in October and down even further from the June 2022 peak of 9.1%. Core CPI, which excludes volatile energy and food prices was up just over 6% from a year ago, slightly better than the 6.3%

12/08/2022 CUToday By Ray Birch SAN CARLOS, Calif.—Apple’s new savings account for Apple Card should be a “wake-up call” for credit unions, says one analyst, who is urging CUs to respond in the right way or risk losing deposits and member relationships. Richard Crone, principal of Crone Consulting LLC, told CUToday.info that more credit unions need to support Apple Wallet—as well as all the other so-called “pay,” while additionally removing their and savings account withdrawal limits. “Credit unions by definition are supposed to have better savings rates because they’re member-owned and not-for-profit and are chartered to pass along the higher yields to their m

12/09/2022 CUToday ALEXANDRIA, Va.–Total assets in federally insured credit unions was up more than 5% and total loans were up nearly 20% in the year ending with the third quarter, but overall net income was down 14% and membership declined in every asset category below $1 billion, according to new NCUA data. The numbers, released as part of the agency’s Quarterly Data Summary Report , also show rising employee compensation and benefits, which were up $2.5 billion (8.9%), accounted for about half of the increase in non-interest expenses. According to NCUA, net income totaled $18.5 billion at an annual rate in the first three quarters of 2022, down $3.0 billion, or 14.1%, from the same period a year ago. The net interest margin for federally insured credit unions was $58.7 billion at an annual rate in the first three quarters of 2022, or 2.79% of average assets. That compares with $50.0 billion, or 2.59% of average assets, in the f

12/07/2022 CUToday ANDRIA, Va.– NCUA has issued a  Letter to Credit Unions  that dials back some of the powers CUs have been granted over the past three years when it comes to holding both board and membership meetings, including the authority to hold both types of meetings coompletely virtually. The agency is allowing for some flexibility, however, allowing for hybrid meeetings.  Since the onset of the COVID-19 pandemic the agency has been giving federal credit unions the flexibility to conduct membership and board of director meetings completely virtually. That emergency exemption is set to expire on Dec. 31, 2022. “Specifically, in those actions the NCUA pro