Expiration of Emergency Exemption from Certain In-Person Meeting Requirements

To Federal Credit Unions

Dear Boards of Directors and Chief Executive Officers:

In March 2020, November 2020, and November 2021, the NCUA issued three letters to federal credit unions providing flexibility during the pandemic related to annual meetings.¹ In those letters, the NCUA recognized that the COVID-19 pandemic had created challenges for federal credit unions and their members. As a result, the NCUA provided federal credit unions with the flexibility to conduct their membership and board of director meetings completely virtually. This emergency exemption will expire on December 31, 2022.

Specifically, in those actions the NCUA provided that a federal credit union could adopt at any time, by a two-thirds vote of its board of directors, and without additional NCUA approvals, a bylaw amendment to Article IV of the NCUA’s Federal Credit Union Bylaws. The letters to federal credit unions provided specific wording for the bylaw amendment.

In addition, the NCUA has issued several meeting-related notifications to federal credit unions since 2020 in connection with the COVID-19 pandemic. Specifically, the NCUA stated in those notifications that if a federal credit union had adopted the above-referenced bylaw amendment, then it was appropriate for that federal credit union to invoke its provisions for meetings if a majority of its board of directors so resolved for each such meeting. The NCUA noted that general quorum requirements still had to be met for “virtual-only” meetings.

The NCUA does not believe that current circumstances continue to warrant federal credit unions to invoke the subject bylaw provision beyond year-end 2022. Federal credit unions that have already adopted the bylaw amendment may retain it in their bylaws, but it will not be applicable after the end of 2022 unless NCUA issues a new notification allowing federal credit unions to invoke it.

Although “virtual-only” member meetings will no longer be an option, the NCUA reminds federal credit unions that they may choose to hold hybrid meetings if that suits their needs.² Hybrid meetings consist of a meeting held virtually in conjunction with an in-person component for members who wish to or need to attend that way. While general quorum requirements still must be met for hybrid meetings, federal credit unions may count attendees at both the virtual and in-person components toward those requirements. A hybrid meeting format could preserve federal credit union resources and reduce the effort required to hold meetings without disenfranchising those members for whom virtual attendance is difficult or impossible. Federal credit unions must also consider whether their current bylaws authorize hybrid meetings or whether bylaw changes will be necessary.

Additionally, the NCUA’s Federal Credit Union Bylaws permit federal credit union boards to conduct “virtual-only” meetings for all but one of their board meetings per calendar year. Further, if a quorum of the directors is physically present at the one required in-person meeting, then the remaining directors may attend that meeting virtually.³

Finally, the NCUA’s Federal Credit Union Bylaws permit flexibility for distributing member notices. Specifically, the bylaws provide that notices for member meetings may be sent by electronic mail to members who have opted to receive statements and notices electronically.⁴ As such, a paper mailing is not required for all members, only those members who have not opted to receive electronic statements and notices.

If you have any questions or concerns, please contact your NCUA Regional Office.

Sincerely,

/s/

Todd M. Harper
Chairman

Wanted - Branch Operations Manager Spokane Firefighters Credit Union

 

Branch Operations Manager
https://shanleysearch.com/available/open-positions/#tab-BranchOperationsManager-1  

Spokane Firefighters Credit Union was founded by Spokane Firefighters in 1934, during the Great Depression. This was a time when trust in banks was at an all-time low and Americans with common interests banded together to form their own financial cooperatives. While many credit unions have expanded their membership fields to include just about anyone, we have remained closed to all except those that we have always served, which are firefighters and their families. The Credit Union is in excellent financial condition and provides quality in-person service while keeping up with the very latest in electronic banking technology. Our Mission Statement says it all: “Improve the quality of life for our members by providing personalized financial services.”

The credit union has an exciting new opportunity for a member services / operations specialist to join their team as the Branch Operations Manager. This individual will manage the administrative and member service activities of the credit union. This includes overseeing and directing activities to ensure that all products and services of the credit union are promoted, and that quality member service is delivered to all members. This individual will work with senior staff to ensure the overall efficient and accurate operation of all member service and lending functions. This selected candidate will manage and delegate all member service, branch operations, and lending functions by assigning work, answering questions, solving problems, helping with complex transactions and resolving sensitive member relations issues. They will ensure the credit union is complying with all federal, state and local laws and regulations; promote all credit union products and services and lead, mentor and train junior staff members. This position also assists senior management in evaluating the operations and lending programs and developing, updating and implementing policies, and procedures.

The selected candidate will represent the Credit Union in a courteous and professional manner and have a history of demonstrated success at a bank or credit union. Additionally, they will have a forward-thinking mindset, relevant management experience, ability to multitask, strong attention to detail, willingness to try new things, excellent project management, analytical and communication skills, belief in the cooperative culture and exceptional integrity and trust. Five to Ten years similar or related experience and/or a college degree or equivalent and completion or willingness to complete CUNA Management School required.

https://shanleysearch.com/available/open-positions/#tab-BranchOperationsManager-1  

Driving Growth in the Year of the Rabbit

01/07/2023 CUToday

By John Vardallas

According to the Chinese Calendar 2023 is the Zodiac Year of the Rabbit. The Rabbit personality is focused on peace, prosperity, longevity and access. People born in this year are calm, decisive, rarely panic and cautioned to think twice before acting to be successful in their plans.

In terms of wealth, Rabbits will be careful about watching their money and entering monetary relationships with others. So do not expect a big windfall achievement in the year of the Rabbit. Bracing for trouble and being cautious and reasonable about money will help one go through the year smoothly. 

Like the rabbit, credit union leaders must monitor the changing economic conditions and impact on consumers’ (our members’) lives and invest in analytics that look for opportunities to meet new needs. 

And like Rabbits we must be wary and keep an Eye on the Two I’s-—inflation and interest rates.

2023 will be the real year of test regarding the contracting economy and the recessionary carry over from 2022. It will give our credit unions a chance to put into practice our re-imagining strategies for the future during a challenging economy.

More than ever, 2023 will be the time for our CU leadership to be bold, think more like futurists and implement recent post-COVID lessons learned that have impacted our operations and serving members.

Dangle Some Carrots

And, like getting a rabbit’s attention, your credit union should dangle some “incentive carrots” to get members to use more of your services: rewards programs, rate specials, free education seminar/webinars, credit reports and easy mobile payments.

Credit unions should value even more the contributions employees bring to the workplace, especially during the Great Resignation, and support them in embracing our business transformation while generating value from exceeding member expectations and experiences.

More than ever during an uncertain economy, credit unions must continue to tell our story more, be heroes to our members and keep demonstrating our mission/purpose and community inclusiveness. Focus on continuing to be a trusted advisor/first financial responder and life-line to our members financial needs.

Suggested Strategies

Some suggested recession-buster growth strategies to consider for 2023 include:

• Offer incentives/rewards (low-rate cards) to members for doing more business with your credit union
• Increase CU’s products/services
• Give members a strong member experience (MX)
• Provide more electronic ad remoted lending/online ordering transactions capabilities, and do its 24/7/365
• Offer retirement planning (Wills) serviced
• Increase non-interest income (credit life/disability insurance products)
• Promote home equity loans (home offices/family caves/backyard landscaping)
• Help more members needing financial assistance and counseling
• Provide loans for boats/personal watercraft, RV, camper, ATVs
• Be ready to respond to pent-up desire for new/used cars
• Provide member business loans (including to cannabis businesses and suppliers)
• Offer green loans for solar panels (for commercial and home use), as well as hybrid and EV autos
• Offer first (second vacation) and travel loans
• Pursue the those unhappy customer refugees (Wells Fargo) and demonstrate how credit union membership is a better financial value 

One Final Thing

Finally, the overall economy is likely to be weaker in the coming year. However, due to strong net worth, earnings and assets, credit unions will have the capacity to lend and grow. Credit unions have always survived challenging times and members will be looking for guidance, help and their assets preserved. 

2023 will be no time to go down rabbit holes. Credit union leaders will need to work smarter, be brave and pounce upon this opportunity for the credit union difference to shine. 

It may mean the difference between just surviving and thriving. 

That’s all, folks.

John A. Vardalas is founder/CEO of The American BoomeR Group, a Madison, Wis. based speaking/business consulting firm for credit unoins. He can be reached at jvardallas@aol.com/www.theamericanboomer.com

NAFCU Economist: U.S. Might Dodge Recession

Curt Long said a strong jobs report shows resilience despite the Fed’s escalation in interest rates.

By Jim DuPlessis | January 06, 2023 CUTimes

Source: Shutterstock.

NAFCU Chief Economist Curt Long said Friday the continued strength in the job market has increased the odds the nation will dodge a recession this year.

The U.S. Bureau of Labor Statistics reported Friday there were 153.7 million seasonally adjusted jobs in December, an increase of 223,000, or 0.1%, from November and up 3% from a year earlier.

The unemployment rate was 3.5% in December, down from 3.6% in November and 3.9% in December 2021. Long said December’s rate was the lowest in more than 50 years, while the labor force participation rate rose slightly.

Seasonally adjusted average hourly earnings were $32.82 in December, up 0.3% from November and up 4.6% from a year ago, a slightly lower rate of increase from previous months.

Curt Long

“This is an unambiguously positive report that has the potential to set us on a path toward a recession free 2023,” Long said. “The odds of a soft landing are much improved after this report.”

Long wouldn’t say in an interview with CU Times what those odds might be, but he said his outlook is generally brighter than others. Even before the report, he was forecasting the U.S. economy would grow 1.5% this year — tepid, but much better than the 0.5% expected by members of the Federal Open Market Committee at their December meeting.

The FOMC outlook anticipates a mild recession, or at best, zero growth, Long said.

Long said a mild recession is “certainly a distinct possibility,” but he also noted that while the FOMC raised the federal funds rate from near zero at the end of 2021 to 4.5% in December 2022 to help pull inflation down to its 2% goal, the nation’s unemployment rate went from 3.9% in December 2021 to 3.5% in December 2022.

“If we can continue that trend and get inflation to really turn the corner and start coming back to where the Fed wants to get it, then maybe we can do that without a recession and a bunch of joblessness.”

Economists at the Mortgage Bankers Association began predicting last October that the U.S. would enter a recession in the first half of 2023.

On Friday, MBA Chief Economist Mike Fratantoni said the only sign of economic softness in the jobs report was the slower pace of wage growth. “The consistent slowing in the pace of wage growth may reflect employer caution as other data clearly signal a weaker economy in 2023.”

Mike Fratantoni

“Slower wage growth should also be reflected in further reductions in the rate of inflation, as businesses will have less cause to push prices up to pay for higher wages. Ultimately, this should result in inflation dropping back to the Federal Reserve’s 2% target,” he said.

But Fratantoni said the report showed employers were still hiring.

“Although there are an increasing number of high-profile layoffs, particularly in the technology sector and also in the mortgage industry, hiring in other sectors of the economy are more than offsetting these on net,” he said. “Additionally, November data showed that there were still more than 10 million job openings in the economy.”

Long and Fratantoni expect the Fed will raise rates 25 basis points at their next meeting Jan. 31-Feb. 1. However, if the December inflation report to be released Jan. 12 is worse than expected, Long said the Fed might raise rates 50 basis points.

CUNA Senior Economist Dawit Kebede said Friday’s jobs report should give the Fed more confidence that the economy won’t suffer from a wage-price spiral.

Dawit Kebede

“The average hourly earnings increased by 0.3% — a slowdown from previous months,” Kebede said. The monthly rate is the equivalent of an annualized rate of 3.6% growth, compared with year-ago rates that have been consistently at or above 5% in previous reports.

“This report is encouraging for the Federal Reserve, which was expecting a slack in the labor market, to bring inflation down to its target level,” Kebede said. “The rate of job increases is slowing down. Big tech firms are announcing layoffs which will lead to further cooling of the labor market. The wage increase pressure on inflation is also easing.”

You Are Not Alone

I just wanted to remind everyone that you are not alone when you're a member of The National Council of Firefighter Credit Unions Inc (NCOFCU). Our national leadership, nationwide members, business partners, and other NCOFCU-associated credit union industry leaders are here for you.

The NCUA approved 58 mergers in the third quarter, according to the federal agency’s Q3 Merger Activity and Insurance Report. This quarter’s number of mergers approved was considerably higher when compared to the 43 consolidations during 2021’s third quarter and 34 during the same quarter in 2020.

In the first three quarters of 2022, 134 consolidations have been approved by the federal agency, compared to 117 last year and 93 in 2020.

I anticipate that the credit union industry will see an acceleration of mergers in 2023, mainly for credit unions with less than 500 million in assets impacted by no succession planning, low to no membership growth, the rising cost of compliance, and Cybersecurity.

If a merger is on your radar, please reach out to us to see if we can help you with your survival or a possible in-house merger with another first responder credit union.

NCOFCU is an exclusive network (have been meeting since 2001) of credit unions primarily serving over 800 thousand firefighters, first responders, and their families. Our collaborative effort is to assist the volunteers and staff of credit unions serving firefighters and first responders with their operational and educational needs and to promote the importance of first responder credit unions to the credit union community.

NCOFCU’s peer two peer networking relationships bring together;

• Credit union staff & volunteers with the same employment backgrounds,
• Field of membership, and
• Financial & educational needs 

Through NCOFCU’s exclusive network and annual conference, credit unions serving first responders are available to assist fellow credit unions in making operational decisions such as.

• Possible first responder network merger solutions
• Management Assistance
• Field of membership expansion
• New products and services
• Staff and volunteer succession planning
• Recommended Business Partners

NCOFCU’s board of directors and membership is made up of credit union executives and volunteers from across the country of all asset and membership sizes. It is this diverse makeup that brings forth our goals and objectives that we hope will assist credit unions, serving first responders, to continue to survive and support their memberships. 

Please take this opportunity to visit our website www.NCOFCU.org, and look at the many member benefits, services, and conference scholarships available to you. 

Not a member, Join Here. Members can renew HERE

Grant Sheehan CEO
NCOFCU
305-951-3306
ceo@ncofcu.org

See you in Clearwater Beach, FL 10/3-6/23

The 2023 Automobile Model (Forecasts) Are Out; Most Expect Sales to Slow

01/04/2023 CUToday

DETROIT–With credit unions continuing to post record loan numbers, and with CUs cumulatively the largest auto lender in the U.S., U.S. auto sales are projected to total 13.7 million vehicles in 2022, the lowest figure in more than a decade and an 8% decrease from 2021, according to a joint forecast by J.D. Power and LMC Automotive.

Prior to the pandemic, auto sales were approximately 17 million units annually. As 2023 gets underway, some supply chain issues have now been addressed and employment remains strong, which should be make for a rebound, but higher interest rates and higher prices are combining to mute sales.

The forecast for the new year remains mixed, according to analysts, especially as the average price paid for a vehicle in December was a near record high of $46,382, according to J.D. Power.

“Inventory levels are bouncing back, putting pressure on car companies to resist the kinds of profit-damaging discounts that have been historically used to counter slowing demand,” The Wall Street Journal reported. “Still, there are early signs that demand might be slowing, even for the hottest car makers.”

The 2023 Forecast

While increasingly popular, electric vehicle sales are expected to suffer due to a range of factors, including rising prices for raw materials used in lithium-ion batteries, with some warning of a looming battery shortage.

Falling used-car values are also discouraging to potential buyers, who have trade-ins and are looking to use them to offset the higher cost of a new vehicle, the Journal reported.

The Journal cited research by Edmunds that predicts new-car sales will hit 14.8 million in 2023, a marginal increase from last year but well below prepandemic levels.

Syracuse Fire Department Employees FCU appoints new CEO

SFDEFCU, a $123 million-asset institution in Syracuse, New York, announced that Bowering, who has been with the credit union for 22 years and was most recently its director of operations, took on the leadership roles Tuesday. 

"After an extensive search, the board of directors is pleased to announce the appointment of Ms. Bowering to this position. … She brings a wealth of knowledge and experience to our credit union," Charles E. Boynton, chairman of the board of directors at the credit union, said in a press release Tuesday.

Roxane Bowering has been with Syracuse Fire Department Employees Federal Credit Union for more than 22 years and most recently held the title of director of operations.

The credit union provides financial services to firefighters, Syracuse Police, City of Syracuse employees, Syracuse Department of Public Works, and others.

How to Stay Competitive With a New, Younger Generation of Homebuyers

 Learn two key steps toward enabling the digital lending experience that consumers increasingly demand.

By Ashley Wood | December 30, 2022

It’s no secret the mortgage industry has seen more than its fair share of ups and downs over the past two years. Now, as lenders navigate an increasingly uncertain market amid rising interest rates and a potential recession looming, they’re also tasked with preparing for a new wave of younger homebuyers and changing consumer demands. As millennials and Gen Z enter the market – accustomed to near-instant e-commerce transactions in an increasingly digital world, having grown up with smartphones, computers, tablets and constant access to technology right at their fingertips – they’re bringing with them a new set of expectations about the lending experience.

A recent report from National Mortgage News showed that while 64% of baby boomers say they are satisfied with the amount of time their home buying transactions took to close, that percentage falls to less than half among millennials and Gen Z at 48% and 36%, respectively. Meanwhile, across all generations, more than half of those surveyed applied for a mortgage online. As consumers continue to embrace a more digital lending experience, it’s becoming increasingly important that lenders do the same. Here’s how:

1. Leverage automation to help enable faster, more confident decisions.

As more and more consumers opt to complete their mortgage applications online, lenders increasingly need the ability to provide responses as quickly as possible. Gone are the days of relying on consumer-provided information, such as W-2s and bank statements, to verify ability to pay, and those lenders that have yet to adopt technology must do so now or risk falling behind. Implementing digital verifications of income and employment can be key to helping lenders achieve a faster, more consistent and better-informed loan decisioning process, leveraging automation to help provide answers to consumers near-instantly.

Using a third-party data provider to verify income and employment can help ensure lenders have the most current data, enabling them to approve and qualify a homebuyer faster and with greater confidence. Leveraging automated verifications of income and employment during the application process and beyond can not only reduce paper-based processes that add friction to the lending experience, but also help improve security by providing a direct connection to data provided directly by employers and payroll providers, with a secure SSN-only search.

Adopting an automated solution to verify income and employment can also help lenders ensure compliance with industry requirements since most mortgage lending processes require that lenders reverify a borrower’s assets post-closing. While requirements vary, in some cases, lenders will need to reverify income and employment within 10 business days. By leveraging digital verifications of income and employment throughout the entire closing cycle, lenders can help speed up the process from beginning to end.

2. Integrate technology to help further reduce friction within the entire lending process.

While verifying income and employment has long been a common practice for mortgage lenders, it’s how they perform those verifications that can really set them apart from the competition. Automation has revolutionized how successful lenders conduct business, especially when it comes to leveraging the right data efficiently for lending decisions. Rather than relying on consumer-permissioned accounts that add more work for the applicant, automated verifications of income and employment help take the work off the consumer, making the process even more seamless.

In addition, consumers and lenders should consider where and how borrower data is accessed, transferred and stored when borrowers provide their private banking or payroll credentials in order to complete a verification. In some cases, verifiers may have access to consumer-permissioned data beyond the loan decisioning period, adding additional risks that could compromise security.

Lenders can further realize efficiencies by leveraging a verification of income and employment solution integrated directly within their point-of-sale (POS) solution. With the right technology, they can adopt an enterprise-wide, standardized loan decisioning framework based on integrated income and employment data from a single source. When current income and employment data is integrated and pre-populated, that data drives downstream decisions in the POS, such as automated underwriting and the loan origination system, helping further reduce friction throughout the entire loan cycle.

The minute a consumer hits submit on their online application, the timer starts. And for those consumers increasingly accustomed to fast-paced online interactions and transactions, when they don’t get a quick response – or receive a follow-up for more information – they may take their business elsewhere. Working with a third-party expert to integrate automated income and employment data throughout their entire lending process can give lenders a competitive edge by helping to ensure they’re meeting the technology-driven, fast and efficient decisioning processes consumers increasingly demand.

Ashley Wood 

Mortgage Rates in the U.S. Rise for First Time in Seven Weeks

 Even as new listings decline, inventory is on the rise because homes are taking longer to sell.

By Prashant Gopal | December 30, 2022 CU Times

Mortgage rates in the US rose for the first time since mid-November.

The average for a 30-year, fixed loan was 6.42%, the highest since early this month and up from 6.27% last week, Freddie Mac said in a statement Thursday.

Borrowing costs tracked 10-year Treasury yields, which climbed after a report showed that a consumer-price gauge the Federal Reserve watches closely continued to cool. Inflation is still higher than the central bank would like, and wage growth is stubbornly robust, meaning the Fed’s policy of interest-rate hikes is likely to continue into the new year.

For would-be homebuyers, mortgage costs are more than double what they were a year ago and “remain a significant barrier to successfully closing transactions,” said George Ratiu, head of economic research at Realtor.com. Purchases have been declining for months, and in November, contract signings slid to their second-lowest pace in records going back to 2001. With demand slumping, sellers are reluctant to list properties.

Even as new listings decline, inventory is on the rise because homes are taking longer to sell. In the four weeks through Dec. 25, the number of properties on the market increased 18% from the same period a year earlier, Redfin Corp. said in a report Thursday. It was the biggest gain since at least 2015, according to the brokerage.

The typical home was on the market for 40 days before going under contract, more than double the record low of 18 days set in May and the slowest pace since January 2021, Redfin said.

While home prices have slipped from the peak reached in June, they’re still rising from year-earlier levels — a double whammy for shoppers still in the hunt for something affordable. At current mortgage rates, the buyer of a median-priced home would pay about $2,100 a month without taxes or insurance, roughly 60% more than last year, according to Ratiu.

Happy New Year

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 of Akron Fire Police CU, Marc Sanders Director of Boston Firefighters CU, Bob  Whitaker Director of Baton Rouge Firemen's CU.

Staff: Grant Sheehan CEO
  305-951-3306

See you in Clearwater Beach, FL 10/3-6/23