First-responder Credit Union Newsroom

Mortgage Bankers Association and Freddie Mac expect only modest gains this year as the Fed clutches to high interest rates. By Jim DuPlessis | June 27, 2024 at 02:00 PM Credit/Adobe Stock As the summer heat rises, the prospects for a big 2024 mortgage rally are melting. Month by month, the Mortgage Bankers Association's forecasts for 2024 originations have diminished to half the gain they predicted a year ago. In June 2023, the MBA expected total 2024 originations would rise 21% to $2.16 trillion. Its forecast released Monday  said it expect this year's originations will rise 9.6% to $1.80 trillion. Of course, high mortgage rates are the issue, which in turn is a product of the Fed's insistence on keeping rates high until it is really, really sure inflation is reaching its 2% target. A year ago, the MBA expected 30-year mortgage rates to fall below 6% by December 2024. Now it doesn't expect that wil...

Getty Table of Contents Credit Union Credit Cards vs. Bank Credit Cards Pros and Cons of Credit Union Credit Cards Impacts of High Interest Rates How Credit Union Credit Cards Can Reduce Your Interest Payments When Is a Low APR Better Than a Rewards Card? What To Consider When Choosing a Credit...

WASHINGTON–Mortgage rates fell last week to their lowest level since early April. According to Freddie Mac, the standard 30-year fixed-rate mortgage averaged 6.87% in the week ending June 20, which was down from the prior week’s 6.95% average and marks the third consecutive weekly decline. Rates are down from a 2024 peak of 7.22%. “Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Federal Reserve rate cut,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market.” Most economists and forecasters expect rates ...

In the latest episode of the NCOFCU Credit Union Podcast, we delved into the cooperative business model, credit union philosophy, and core values that serve as the guiding principles of the credit union industry. This unique organizational structure is characterized by member ownership, democratic control, and a strong focus on meeting the needs of its members. Unlike traditional banks, credit unions operate with the intent of benefiting their members by returning earnings through competitive rates, lower fees, and community-focused initiatives. At the core of the credit union philosophy is the principle of "people helping people," advocating for ethical service, financial inclusion, and social responsibility. By prioritizing the financial well-being of their members, credit unions offer an array of products and services tailored to diverse needs, empowering members to achieve their financial goals. Through a culture of collaboration, trust, and mutual support, credit unions...

As you read this remember, "You are not alone with NCOFCU!" June 21, 2024 by Becky Reed , BankSocial Share Share Share There has been much attention given to the rapid disappearance of the small, local credit union. About a hundred reasons have been cited for this disturbing trend—from lack of succession planning to the cost of compliance. While any of those hundred reasons could be part of the problem—there is one I believe is central to a small credit union’s inability to survive: The Core Let’s look at the advantages of being a small, local credit union: Ability to provide very specific products that meet the needs of the local community Small hyper-focused team that can make decisions quickly Short implementation cycle due to less red-tape and structural ro...

NEW YORK–That new car smell isn’t quite the intoxicating perfume it has been for a long time, according to one automotive analyst. Under the headline, “No One Wants a New Car Now. Here’s Why,” the Wall Street Journal’s well-regarded automotive columnist, Dan Neal, observed that “America’s fleet of cars and trucks is also getting long in the tooth.” Neal’s reference was to a study by S&P Global Mobility that found the average age of vehicles in the U.S. is now 12.6 years, up more than 14 months since 2014, with the average age of passenger cars hitting14 years. All-Time High Burden “In the past, the average-age statistic was taken as a sign of transportation’s burden on household budgets,” Neal wrote. “Those burdens remain near all-time hig...

To provide more meaningful value to members, take a cue from how airline rewards programs are evolving. By Scott Earwood | Credit/AdobeStock What do credit unions and airlines have in common? Think about the relationships airlines develop – they build status for people like Bronze, Silver, Gold or Platinum. These categories are set based on several factors (frequency of travel and finance factors including airline credit cards and in-app purchases). Credit unions take a similar approach to segmentation. Whether running an airline or credit union, the problem is that this type of broad-stroke segmentation does not allow organizations to fully understand consumers. These categories fail to provide an accurate view of how consumers use services and interact with the organization. And, consumers are expecting more personalization. Airlines are starting to ask for customers' unique preferences: Lucy, who prefers to boo...

MADISON, Wis.–With the Federal Reserve’s announcement this week that it will likely only reduce rates once in 2024, TruStage’s chief economist has released an updated an analysis of the factors playing roles in setting rates. Writing as part of the company’s newest Trends Report, Steve Rick reminded what many CU CFOs and ALCOs know all too well, that on March 17, 2022, the Federal Reserve embarked on its plans to reduce inflation by raising the federal funds interest rate and reducing the nation’s money supply. ‘Major Impacts’ “During the ensuing 26 months, the Federal Funds interest rate rose from 0.08% to 5.33% and the money supply fell from $21.9 trillion to $20.9 trillion today,” Rick stated. “Higher interest rates and lower money supply ...

CU trade economists think another good inflation report or two might convince the Fed to lower rates twice this year. By Jim DuPlessis | June 12, 2024 at 04:11 PM Fed Chair Jerome Powell speaks at a news conference in Washington, D.C., Wednesday afternoon. The Fed kicked the can down the road Wednesday, keeping rates at their current high level and signaling that it will take more time in reducing them. The Federal Open Market Committee (FOMC) ended its two-day meeting Wednesday with a decision to maintain the federal funds rate at 5.25% to 5.50%. Its projection report showed half of FOMC members expect the rate to fall to 5.1% by year's end, indicating one 25-basis-point rate cut this year. In March, the median expectation was for two rate cuts. Fed Chair Jerome Powell said half of members expect rates will fall to 3.1% by end of 2026. The FOMC's four remaining meetings this year are July 30-31, Sept. 17-18, N...

  Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee's 2 percent inflation objective. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, th...

 WASHINGTON–In a highly unusual departure by a credit union community that almost always puts on a unified front, America’s Credit Unions said it does not support efforts by Navy Federal Credit Union to amend the Federal Credit Union Act in a way that would allow NCUSIF insurance to cover deposits at a military bank it operates. The issue has been strongly divisive, with Navy FCU working in Congress to have the FCU Act amended, military credit unions strongly opposing the move, and America’s Credit Unions not really taking a strong position as it sought to find a way forward on which everyone could agree. But as has become clear, there was not going to be an agreement, and the divide between not just credit unions but CU trade groups become prominent enough that ACU President and CEO Jim Nussle has released a video explaining the association has been unable to find a calm harbor. America’s Credit Unions now says it opposes Navy FCU’s bid to amend the FCU Act, which pr...

  A social media pessimist says, “No one uses Facebook anymore.” A Swiftie says, “Who doesn’t love Taylor Swift?” In the credit union movement, we ask, “Why would ANYONE do business with Wells Fargo?” In other words, why aren’t people beating down our door to join our credit union? Why wouldn’t they? Our thoughts and ideas are the way the world works. They are blindingly obvious to even a casual observer. When we have the opportunity to explain our position, others will agree with us. Right? Wrong! This is hardly ever true. A young couple is standing shoulder to shoulder, observing New York City from the top of the Empire State Building. Beth sees pain, injustice, and despair. Bob sees opportunity, purpose, and adventure. Beth sees Bob as an impractical dreamer; he sees her as a negative pessimist. Each person has a schema of how the world works. A schema—another name for a belief system—is a mental structure we use to simplify and organize our knowledge of the worl...

https://www.checkalt.com/ Did you know that 70% of organizations reported experiencing check fraud attempts in 2022? Traditional paper checks are particularly vulnerable to theft, forgery, and loss during transit through the USPS network. So it's no surprise that businesses and financial institutions need robust solutions to combat this.  Enter Catch! , CheckAlt's electronic lockbox solution designed to secure payments, streamline processes, and prevent fraud. Catch! offers a comprehensive suite of features to protect your transactions from fraud and ...  ☑ Simplifies payment processing for financial institutions and businesses  ☑ Eliminates paper checks by keeping all bank bill payments online ☑ Streamlines onboarding for Merchants by reducing administrative burdens ☑ Provides an eco-friendly solution to contribute to environmental sustainability  For banks and credit unions, Catch! offers a secure, reliable alternative to traditional paper checks...

National Council of Firefighter Credit Unions Inc (NCOFCU)  Speakers and Schedule! It is the National Council of Firefighter Credit Unions (NCOFCU) "GO TO Conference" for credit unions serving first responders! Who should attend? CEO's, VP's Directors and Staff See What's Planned Register Here! Bring your spouse, bring a guest to enjoy San Antonio, TX River Walk 4 Days Golf 16 + Sessions Alamo Reception Closing Dinner Right on the San Antonio River Walk Several Networking events Open Forums Idea Exchange Events Panel Discussions of CU Leaders National & Industry Speakers Trends in First-Responder Credit Unions Director & Volunteer Sessions Exhibitors ShowcaseAnd  So Much More! HOTEL REGISTER HERE

Economist says credit card delinquency rates have now topped levels of the Great Recession. By Jim DuPlessis | June 05, 2024 at 06:00 PM NCUA official seal. Credit/NCUA Results for the first quarter show credit unions remain in sound financial condition, but rising delinquency rates are a top concern, NCUA officials said Wednesday. Also, credit unions charged off a net $12.9 billion in loans in the three months ending March 31, up 63% from a year earlier and up 36% from the fourth quarter. That translates into a net charge-off ratio of 0.80% for the first quarter, up from 0.52% a year earlier and 0.61% in the fourth quarter. NCUA Deputy Chief Economist Rachel Cononi said rising delinquencies have become the biggest concern of agency officials, especially the delinquency rate on credit cards, which has now exceeded rates during the Great Recession. NCUA data released Wednesday showed 0.78% of the balance of al...

CUs must meet their current members' needs, anticipate their future needs and seek out a new generation. By Pam Cohen | June 03, 2024 at 09:00 AM Credit/AdobeStock As we navigate through an era of rapid change and economic uncertainty, credit unions stand at a critical juncture. The future beckons with both challenges and unprecedented opportunities, but by embracing innovation and focusing on member-focused services, credit unions can remain relevant and impactful in a space where consumers are quick to embrace brands with the most marketing dollars. As an industry we need to take a look at our current members, meet their needs, anticipate their future needs and seek out a new generation of members. As we look to the needs of members in the next decade, the success of credit unions hinges on the ability to merge technological advancements with personalized service. You don't need me to tell you that members want ...