Firefighter Credit Union Newsroom

It gears back its used car forecast but notes the resilience of buyers even with rising interest rates. By Jim DuPlessis | June 28, 2023 Credit/Shutterstock Drivers have more cash than expected, allowing new car sales to show surprising strength and leading Cox Automotive on Tuesday to raise its forecast for the year. Cox Automotive said it now expects 15.0 million new cars will be sold in 2023, up 9.2% from a year earlier. It also marked the second increase in its 2023 forecast. In January it forecast 14.1 million and in March it forecast 14.2 million. Cox Automotive Chief Economist Jonathan Smoke said the year started with concerns about affordability, supply constraints and a fragile economy. “But the jobs market has remained healthy, and consumers have found a way to buy new wheels,” Smoke said. Jonathan Smoke “As we close the first half, the market is showing signs of being more balanced, with smaller, more predictable changes in sal

LONG BEACH, Calif.–A recession is coming, but it’s not going to be bad and will likely be short-lived, according to one economist. Elliott Eisenberg, a frequent speaker to credit union events who heads the consultancy Graphs and Laughs!,  told NAFCU’s annual conference there is ample evidence from history and in the recent historical economic trends that show the second half of 2023 is going to be weaker. Elliott Eisenberg Among the reasons and indicators cited by Eisenberg: Automobiles “Under normal conditions, automobiles give you a really good signal about the economy. Not now. Interest rates went up, and car sales went up. Now car sales are coming down

FARMINGTON HILLS, Mich.–Alliance Catholic Credit Union said it has added five more interactive teller machines (ITMs) from Dolphin Debit to its ATM fleet. According to the company, the installations bring the total number of machines to 15 for the $613 million credit union, which serves more than 32,000 Catholic members in southeastern Michigan. The credit union selected Dolphin Debit to manage its ATMs after years of doing so on its own, according to the company. “It’s great to have a single point of contact,” said Adam Tonge, VP-retail services for Alliance Catholic. “Communication has been excellent from the Dolphin staff. One of the things that Dolphin is great at is taking care of issues quickly.” As a result, the credit union is seeing muc

ARLINGTON, Va.—Existing home sales rose 0.2% in May to a seasonally-adjusted annual rate of 4.3 million units, a 20.4% decrease in sales versus a year ago, new data show. Curt Long, NAFCU “The overall existing home sales market remained virtually unchanged from last month. However, some regions fared better than others,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Sales look to be stabilizing, coinciding with mortgage rates, which have been more consistent as of late. Demand remains strong as properties remained on the market for an average of only 18 days in May which was four days less than in April. While the year-over-year pri

    The median age of Americans reached an all-time high of 38.9 in 2022, according to data released yesterday from the US Census Bureau. The figure implies half of Americans were younger than 38.9 years last year, while half were older.     The median age is up by 0.2 years from 2021 and is nearly half of the average life expectancy of Americans, which was 76.1 in 2022. The median age in 2000 was 35.3, and in 1980, it was 30 ( see chart ).    The census data also revealed 17 states had a median age above 40 in 2022, with Maine (44.8) and New Hampshire (43.3) leading the group. The states with the lowest median age were Utah (31.9), the District of Columbia (34.8), and Texas (35.5). Hawaii (40.7) saw the largest increase in its median age, up 0.4 years from 2021. No state saw a decrease.   Observers say the US data reflect the aging population worldwide. See global data on median ages  here  (from 2020).

ALEXANDRIA, Va. (June 22, 2023) – Following the ending of the federal government’s COVID-19 public health emergency declaration on April 10, the National Credit Union Administration announced today that it is rescinding many of its pandemic-related guidance to credit unions. During the pandemic, the NCUA developed the COVID-19 Resource Center and published guidance letters issued to all federally insured credit unions to ensure they took steps to assist credit union members through the unprecedented pandemic and its economic and financial disruptions. With the ending of the national emergency, the NCUA reviewed all COVID-related supervisory guidance and identified what is no longer applicable or necessary. A complete list of archived or rescinded guidance and guidance still in effect is available on the NCUA’s website . The NCUA will also notify state supervisory authorities of this action to ensure awareness of the archiving of outdat

NCOFCU Advocacy The National Council of Firefighter Credit Union (NCOFCU) is dedicated to advocating for the first responder credit union industry and addressing issues that impact first responder workers, their families, and the credit unions that serve them. As part of our First Responder Advocacy, we shape and guide conversations around pressing issues with key decision-makers at various government agencies like Capitol Hill and the National Credit Union Administration. Our mission involves representing first responder credit unions at the national level and in local communities, and we understand the unique needs and concerns of first responder workers. By advocating for our members, we strive to ensure that legislative and regulatory decisions reflect the best interests of those who serve in the first responder communities and their loved ones. Please take this opportunity to visit our Advocacy site and assist us in reaching out to your representatives.  https://ncofcu.org/advo

 Recent indicators suggest that economic activity has continued to expand at a modest pace. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated. The U.S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains 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 maintain the target range for the federal funds rate at 5 to 5-1/4 percent. Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to re

ARLINGTON, Va.–At the beginning of this year there was a general consensus among economists both inside and outside of credit unions that the latter half of 2023 would see a mild recession. Now, one CU economist says that seems unlikely, and a recession in 2024 remains an uncertainty, as well. Curt Long, NAFCU Curt Long, chief economist with NAFCU,  noted that many economists with the larger economic firms have been adjusting their forecasts when it comes to a recession, dialing back their earlier predictions. “I think that generally matches what we see, as well,” said Long. “…Now we’re on the other side of the debt ceiling crisis, if you will, t

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Economist says strong household spending is acting as a ‘firewall’ against recession. By Jim DuPlessis | Source: Shutterstock. CUNA’s latest forecast backs away from predicting a recession, saying a strong jobs market and resilient household spending have tilted the odds in favor of a soft landing. In an Economic Update video posted May 25, Senior Economist Dawit Kebede said CUNA economists still expect economic growth to slow this year and next, but they are more optimistic than in their January forecast. Kebede said one reason is the strength of the job market. The other is the continued strength of household spending. “It’s acting like a firewall keeping the economy from recession.” CUNA and the Mortgage Bankers Association had predicted last October that a mild recession would occur in early 2023, later pushing the start date to this year’s second half. MBA stuck with that forecast as recently as mid-May even as its monthly forecast wa

WASHINGTON — Don’t call it a “pause.” When the Federal Reserve meets next week, it is widely expected to leave interest rates alone — after 10 straight meetings in which it has jacked up its key rate to fight inflation. But what might otherwise be seen as a “pause” will likely be characterized instead as a “skip.” The difference? A “pause” might suggest that the Fed may not raise its benchmark rate again. A “skip” implies that it probably will — just not now. The purpose of suspending its rate hikes is to give the Fed’s policymakers time to look around and assess how much higher borrowing rates are slowing inflation. Calling next week’s decision a “skip” is also a way for Chair Jerome Powell to forge a consensus among an increasingly fractious committee of Fed policymakers. One group of Fed officials would like to pause their hikes and decide, over time, whether to increase rates any further. But a second group worries that inflation is still too high and would prefer tha

www.NCOFCU.org There were directors and staff at a local credit union serving first responders who had been looking for ways to improve the services they provide to their members. After hearing of the National Council of Firefighter Credit Unions Inc (NCOFCU) conference they decided to attend. The day of the conference finally arrived. They felt nervous, yet excited, as they waited in line to register. Once inside, they found themselves surrounded by other first responder credit union professionals eager to learn, teach, and share ideas. The conference was a whirlwind of workshops, keynote speeches, vendor exhibits, and special networking events. They took notes, asked questions, and networked with other attendees and vendors. After the conference, they felt more confident in their ability to lead their credit union into the future. They had met others in the industry who were facing similar challenges and had networked with experts who could help guide their organization to success.

AI has been dominating the conversation in recent months, ever since the launch of ChatGPT in late 2022. And while ChatGPT is now only 6 months old, we have already seen an explosion of growth in AI programs, with Microsoft and Google immediately launching their own AI-driven initiatives. AI is quickly becoming a necessary component for any tech company, and other industries are already making moves to incorporate it into their processes. We’ve seen blogs, recipes, code, and other AI-generated content in recent months. In China, an AI program was used in tumor diagnosis and achieved higher accuracy in a shorter amount of time than human doctors. The future of the industry is rapidly evolving in front of us. Sundar Pichai, CEO of Alphabet, has said “By the end of this decade, there are going to be two kinds of companies: those that are fully utilizing AI and those that are out of business.” It’s time to prepare for the future. Ask yourself, “How can my credit union utilize

WASHINGTON–The economy saw the second consecutive month of accelerated hiring in May  with the country adding a seasonally adjusted 339,000 new jobs. In addition, the Bureau of Labor Statistics also revised upward the numbers for jobs added in March and April. Dawit Kebede, CUNA But employment is sending mixed signals, as the unemployment rate rose to 3.7%, still near historic lows but an uptick from April’s 3.4%. According to the new jobs report, the hiring and low unemployment rate have put upward pressure on wages. Average hourly earnings grew a 4.3% in May over the prior year, similar to annual gains in March and Aprils, according to the government data

CUs are turning to automation to prepare for upcoming regulation changes and rigorous data scrubbing requirements. By Tyler Barron |  Source: Shutterstock. Regulatory reporting compliance is top of mind for all financial institutions – especially as the Dodd-Frank 1071 ruling was enacted in March 2023, requiring covered financial institutions to collect and report small business lending data to the CFPB. While the final ruling increased the minimum volume threshold and exempts all but the several hundred largest credit unions, similarities between 1071 and existing HMDA reporting requirements present increasingly difficult challenges. For 1071, qualifying institutions must quickly begin to accumulate, sift through and properly report all relevant data, but it is easier said than done. Lenders must accurately collect more than 20 additional data points from all small businesses, increasing the amount of time needed for every lending opportunity. Manual