Firefighter Credit Union Newsroom

WASHINGTON–The Federal Reserve’s Open Market Committee (FOMC) is expected to adjourn its two-day meeting today by again not taking any action to reduce rates, although analysts believe such a move is getting clearer. This week’s meetings mark the one-year anniversary of the Fed’s most recent interest rate hike, which pushed rates to their highest point in 23 years after a series of steady increases aimed at taming inflation. The unlikelihood of any rate reduction at the July meetings has been signaled by Chairman Jay Powell, who has on numerous occasions said he wants to see additional evidence inflation has moved closer to the Fed’s target rate of 2%. In addition, the Fed also wants to see a reduction in the rate of job growth, which has remai

By Ray Birch LAKE FOREST, Ill.—A new study suggests credit unions should be less concerned about what big banks are doing with overdrafts and instead focus their attention on fintechs. A new report from Moebs $ervices reveals fintechs continue to grab an even greater share of the checking market, and a big reason is a $3 average overdraft fee combined with targeted marketing. “Fintechs are raking in the checking market share by going after those consumers who seldom overdraw but do so enough to add to profitability,” explained Michael Moebs, economist and chair of Moebs $ervices. “Fintechs are targeting, with one checking account, people with higher FICO scores. This is not what CUs, banks and thrifts are doing. Plus, most of the fintechs will pay interest on their checking account. It is classical financial services pricing— using fees, rates and balances.”

  The US economy grew at an annualized rate of 2.8% in the second quarter of 2024, according to preliminary data yesterday. The figure beat analysts' expectations of 2.1% and comes as inflation continues to cool. The announcement sparked hopes the economy was on track for a  soft landing,  in which inflation is curbed without triggering a recession. The US gross domestic product was double the 1.4% growth rate in the first quarter. It also came as consumer prices last quarter grew at 2.6%—above the Federal Reserve's target inflation rate of 2% but down from 3.4% in the first quarter. Household spending drove over two-thirds of GDP growth; Americans save about 3.8% of their monthly paychecks today, down from 7% prepandemic. The news reinforced expectations the Federal Reserve will keep interest rates steady at next week's meeting but may cut rates in September. The country's total yearly GDP is roughly $28.6T. See historical dat

https://www.ncofcu.org/s/succession-plan-template-20240718.pdf The NCUA Board approved by a vote of 2-1 a   proposed rule (Opens new window)hat requires boards of directors at federally insured credit unions to establish and adhere to processes for succession planning. This new proposed rule modifies the  “Succession planning is vital to the long-term success of any institution, including credit unions,” Chairman Harper said. “A credit union board’s failure to plan for the transition of its management and key decision-makers could come with high costs, including the potential for an unanticipated merger of the credit union when key personnel depart. In my view, it’s better to maintain many small credit unions serving a wide variety of purposes and niche markets than continuing to consolidate credit unions into ever larger institutions.” Under the revised proposal, boards of directors at federally insured credit unions would be required to establish written succession plans that address

NEW YORK—A new report suggests U.S. consumers are ready to move to open banking, a trend already well underway in other parts of the world. “The financial landscape in North America is primed for a meaningful reshaping. New technologies enabling secure data exchange, interoperability, and faster payments are all contributing to the emergence of a more streamlined, efficient financial ecosystem,” Ripple said, citing data from its latest study.  According to the Ripple analysis, increased consumer demand is driving a surge in open banking adoption, with 71% of U.S. consumers saying they’d rather make purchases or pay bills directly from their bank account. ‘Not All Blue Skies’ “This shift has big na

  5 ways to destroy your firefighting career on social media If you’re on the hunt for creative way to toss away that great career in firefighting, here the answer: Be irresponsible and reckless on social media July 17, 2024 01:22 PM Many hiring fire departments look closely at applicants’ social media sites to ascertain character and suitability for a judgment-oriented career in public safety. DALL-

By Ronald K. Vaske , Kaley Schafer & Loran Kilson on July 19, 2024 Posted in NCUA The NCUA board on July 18 voted to maintain its interest rate ceiling on most loans at 18% from Sept. 11, 2024 through March 10, 2026. The only exception to that rate cap is loans modeled after the agency’s Payday Alternative Loan program; the interest rate on those loans will remain capped at 28%. “Lowering the rate ceiling below the current temporary 18% maximum would threaten the safety and soundness of individual credit unions due to the anticipated adverse effect upon liquidity, capital, earnings, and growth,” agency staff told the board, in a memo . The Federal Credit Union Act limits the interest rate that credit unions may charge on loans to 15%. However, that cap may be set higher if the NCUA consults with Congress, the Treasury Department and the appropriate congressional committees. The law sets two other conditions that must be met before the interest rate may be incre

  Houston Texas Fire Fighters FCU Disaster Relief Fund     Contribute Here       The National Council of Firefighter Credit Unions (NCOFCU) , the only association exclusively representing credit unions serving firefighters and first responders,  has established a Disaster Relief Fund, and will contributed directly to the Houston Texas Fire Fighters Federal Credit Union. “This fund is to be used to assist in the rebuilding efforts of their staff and volunteers. Many of the staff and volunteers have suffered significant losses, if not total losses, to their homes and property due to the heavy winds and rains from Hurricane Beryl.” As donations are deposited in the Houston Texas Fire Fighters FCU Disaster Fund (HTFCUDRF), NCOFCU, will coordinate with the Houston Texas Fire Fighters FCU board of directors to distribute money efficiently to affe

MIAMI–A new analysis ranks U.S. states according to levels of loan delinquencies. To highlight the places where people are having the most trouble paying their debts, WalletHub said it analyzed proprietary user data from Q1 2024 for the 50 states. In creating the ranking, WalletHub said it considered both the percentage of individual tradelines that were delinquent, as well as the percentages of residents’ total loan balances that were delinquent. Mississippi at Top of List “Mississippi has the biggest debt delinquency problem. Around 12.7% of individual loans and lines of credit in the state were delinquent in Q1 2024, the highest percentage in the country,” WalletHub reported. “Mississippi doesn’t just lead the country in the percentage of delinquent accounts, though – it’s important to also look at the overall amount of debt that’s delinquent to get the full picture. When all the dollar amounts are added together, Mississippi residents are actually delinquent on 10.9%

NEW YORK—Nearly 80% of U.S. banking consumers ages 18 to 42 cited mobile banking apps as a channel where they became aware of an FI’s offerings, according to a new report. Citing its October 2023 US Banking Consumer Habits survey, eMarketer reported that percentage “far outweighs the proportions who cited other channels like bank websites (58.4%) and social media (37.4%).” Even among banking consumers ages 43 to 77, more than half became aware of products and services via mobile app, eMarketer added. ‘ “That means encouraging greater app usage will help banks maximize cross-marketing opportunities,” eMarketer stated.. Print (16.6%) and TV ads (24.5%) are far less effective at driving awareness, according to the study. Bank branches (54.8%), wor

MINNEAPOLIS — Target has become the latest national retailer to announce it will longer accept personal checks. The policy will go into effect July 15, in yet another sign of how the once ubiquitous payment method is fading away. Target cited the “extremely low volumes” of customers who still write checks as a primary reason for the move. In a statement, it said it remains committed to creating an “easy and convenient checkout experience” with credit and debit cards, buy now, pay later services and its Target Circle membership program, which applies deals automatically at checkout. The company said it has “taken several measures to notify guests in advance” about the new no-checks policy. The move by Target follows earlier announcements by the

WASHINGTON—The Fannie Mae  Home Purchase Sentiment Index (HPSI)  increased 3.2 points in June to 72.6, rebounding from a dip in May and returning the index nearer the plateau it set earlier this year. Still, the percentage of consumers who consider a good time to be home shopping remains low. During June 19% of consumers indicated that it’s a good time to buy a home, up from 14% in May, which represented a new survey low, according to Fannie Mae. The share believing it’s a good time to sell also increased, rising from 64% to 66%. “Greater shares of consumers also indicated belief that home prices and mortgage rates would rise over the next 12 months,” Fannie Made stated. The survey found that among the household finance components, the percentage of consumers expressing a sense of job security jumped to 79%, an increase of four percentage points compared to May. The full index is  up 6.6 points  year over year, Fannie Mae said.

SACRAMENTO, Calif.—July 1 marked an important date for credit card companies when it comes to requirements related to recording firearms purchases. On July 1, California became the first state to require credit card companies to create the unique code for retailers to use. But on the same day the law took effect in California, laws banning such a code also went into effect in Tennessee, Georgia, Iowa and Wyoming, USA Today reported. The code, known as the merchant category code (MCC), tracks the type of business where a transaction was made to determine things like tax reporting or transaction fees. “It can also be used to track purchasing behavior, but MCCs do not note the specific items purchased,” USA Today said. The report noted Colorado pa

    Helping families and their businesses plan for the future     Understanding the Problems with Lady Bird Deeds Lady Bird Deeds, also known as Enhanced Life Estate Deeds, have gained popularity as an estate planning tool, particularly in states like Florida. These deeds, named after Lady Bird Johnson, enable property owners to retain control over their property during their lifetime while designating who will inherit the property upon their death, bypassing probate. Despite their advantages, Lady Bird Deeds come with a set of potential problems and drawbacks that individuals should carefully consider before including them in their estate plan. Limited Availability One of

07/01/2024 08:19 pm WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) has issued a proposed rule amending financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs to explicitly require that such programs be “effective, risk-based, and reasonably designed,” enabling financial institutions to focus their resources and attention in a manner consistent with their risk profiles. The proposed amendments are based on changes to the Bank Secrecy Act (BSA) as enacted by the Anti-Money Laundering Act of 2020. The Specifics Specifically, FinCEN said the proposed rule would: Amend existing program rules to explicitly require financial institutions to est

Happy 4th of July   National Council of Firefighter Credit Unions www.NCOFCU.org   The anniversary of America’s independence is a time for celebration and gratitude for freedom. And as the 4th of July rolls around this year, we’re sure you and your family will take the time to indulge in your favorite BBQ sides, find the best spot to watch fireworks, and enjoy tons of festive activities, like parades and picnics. But remember the history and  facts of the day  are just as important. Enjoy and be safe! NCOFCU’s National Board of Directors Chairman:   David Lantrip Director Houston Firefighters FCU 1st V. Chairman:   Brian Kurzel V. Chair. Charlotte Fire Dept. CU 2nd V. Chairman: Bonnie Sensing Exec. Admin

By Frank J. Diekmann NCUA has made a priority out of the F word in 2024—fees--announcing a special focus on NSF and OD fees this year.  And yet the agency seems to have little interest in the biggest and most egregious fee of all—the “merger” fee that comes when net worth isn’t returned to the people whose money it is in the first place, and it instead goes to insiders—often in amounts a multitude larger than any bounced check fee. It's sadly ironic that NCUA seems bothered by fees members opt into, but not by a merger fee they don’t seem able to opt out of. The merger fee is a hidden-in-plain-sight cost to members that is so brazen and increasingly occurring it has entered that dangerous territory of almost being taken for granted, with ev