First-responder Credit Union Newsroom

WASHINGTON—Total consumer credit rose 7.9% in February, at a seasonally-adjusted, annualized rate and is unchanged versus a year ago. Revolving credit, which is primarily credit cards, rose 10% during the month but is down 11.2% compared to February 2020. curt long Curt Long Non-revolving credit – primarily auto and education loans – rose 3.7% in February and is up 4.3% over the year. "The economic situation continues to improve and the post-COVID economic boom is within sight," said Curt Long, NAFCU's chief economist and vice president of research. "In the Federal Reserve’s fourth quarter Senior Loan Office Survey, a net 13% of loan officers reported easing lending standards for credit cards, while a ‘moderate net share of larger banks reported stronger demand.’ NAFCU expects consumer credit to continue to expand briskly as consumer sentiment is strong and the jobs market is rapidly improving." Total consumer credit for credit unions rose 0.4% over the month, r...

PHILADELPHIA–Police and Fire FCU has been named the “top-performing” credit union in the U.S. in a ranking by S&P Global Market Intelligence that ranked the top 100 CUs with assets of more than $100 million. Eastman Credit Union in Tennessee and Long Beach Firemen’s CU in California were ranked number two and three, respectively. According to S&P Global, the $6.7-billion Police & Fire not only outperformed the industry median in all five of the ranking metrics in 202,  but also outpaced the top-100 median in all but one metric. Its average loans per member of $11,260, although an improvement of 18.2% year over year, was lower than the top-100 median of $12,015, S&P Global said. The rankings noted Police and Fire FCU's total loans and leases jumped almost 38% last year to $4.88 billion, helped by a $1.04 billion increase in fixed-rate first mortgages. Meanwhile, its loan delinquency ratio fell 13 basis points from 2019, helped by strong declines in delinquent uns...

With two thirds of all credit unions at less than $100 million in assets, concerns are growing that competitive forces – dominant megabanks, the rapid uptake of digital banking, fintech inroads, low rates and more – could result in massive consolidation. Several industry experts and leaders see alternative ways forward. But how many small institutions can follow that path? Or will? With the tectonic changes altering retail banking — “trillionaire” banks spending billions on digital technology and sophisticated marketing, consumers increasingly able to switch institutions (or divide up their business) on an app — can a $50 million, $200 million or even a $500 million credit union expect to survive, much less thrive? Credit unions, much like community banks, have seen their share of doomsday headlines. Yet thousands remain. In fact, the credit union industry saw significant growth in terms of total assets and members in 2020, as shown in the first of the two charts below. But that indust...

Two House members said it should not take a meeting of the full membership of a federal credit union to expel a member. Reps. Tom Emmer (R-Minn.) and Ed Perlmutter (D-Colo.) have introduced legislation that would update the expulsion process while ensuring a fair procedure for reinstatement. In introducing the bill, the lawmakers said current law requires a federal credit union to hold a membership vote before it can expel a member who “engages in egregious, dangerous or illegal conduct.” The legislation would allow credit unions to adopt a policy to expel members who engage in such conduct and provide for a process for membership reinstatement. Some states already have adopted policies for state financial institutions. Similar legislation was introduced in the House and Senate during the last Congress. “My home state of Minnesota has already taken steps to adopt a similar, important measure,” Emmer said. “It’s critical we make credit unions safer for both employees and their members.”...

WASHINGTON–The Biden administration is suspending collections on defaulted student loans held by more than one-million borrowers. The move extends relief to 1.14 million students who borrowed under an older loan program known as the Federal Family Education Loan Program, and then defaulted on those loans, According to the Wall Street Journal. The report noted this group hadn’t been covered by prior coronavirus-related adjustments to collections and payment requirements. FFEL loans are guaranteed by the federal government but held by private lenders. Some defaulted loans were purchased by the Education Department during the financial crisis more than a decade ago, but others are still held by private entities, the Journal reported. FFEL borrowers whose loans are owned by private lenders and who are not in default aren’t affected by the administration’s announcement, according to the Journal. A senior agency official told the publication there are a couple-million borrowers in that categ...

ARLINGTON, Va.—Total vehicle sales surged in March from 15.8 million annualized units to 17.8 million during the month. Monthly sales levels were up a massive 56.2% year-over-year. “Vehicle sales soared in March to 17.8 million annualized units, continuing a trend of good news for the American economy,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Strong fiscal support, more stimulus checks, low interest rates, better weather and great March job numbers all contributed to this surge.” Sales of cars rose during the month, increasing from 3.4 million annualized units to 3.9 million, while light truck sales grew to 13.9 million annualized units. Light truck sales have surged since the second half of 2020, rising 64% compared to March 2020. Car sales were up 33.4% year-over-year. “The problem in 2021 will be supply, as microchip shortages worldwide have affected many industries and paused production on some Ford and GM lines,” added Long. “Supply issues have not hi...

NEW YORK– Some experts are now weighing in with a few predictions, according to one new report. While many companies have made a slew of modifications to their workspaces and buildings to protect against the spread of the coronavirus, as they prepare to bring workers back, even more changes are on the way, according to interviews conducted by the New York Times. Expect expanded gathering spaces and fewer personal workstations, for instance, changes that are being fueled by the success of working from home, the analysis notes, pointing to companies such as Google, Microsoft and Walmart that have already announced proposals for hybrid work models that will allow employees to continue to work remotely at least a few days a week. More than 80% of companies are embracing a hybrid model whereby employees will be in the office three days a week , according to a new survey by KayoCloud, a real estate technology platform, cited by the Times. The Key Changes Among the changes cited: Workplaces a...

In a pandemic-wracked season, the number of consumer checking accounts topped 408 million, an increase of 6.3%—and CUs’ share of this market jumped 1.7%. Michael Moebs “This is unprecedented for any financial institution group to gain this amount of market share in one year,” said Michael Moebs, economist and CEO of Moebs Services. “Driven by fear brought upon by lockdowns and stay-at-home restrictions, the consumer has been warehousing funds since the onset of the pandemic. Deposits have expanded significantly with stimulus payments and the consumer has been diversifying the deposits by opening more checking accounts.” Moebs said the findings were surprising in a year when many, based on previous economic downturns, expected checking growth would remain stagnant. Moebs suggested several key factors caused the expansion: population growth, checking usage, and COVID-19. “In the Great Influenza of 1918-20, the U.S. population had its first and only dip in population growth. It was easy t...

NEW YORK–While many of the nation’s largest employers have begun bringing workers back to their offices as the COVID-19 vaccine rolls out across the country, they are also announcing plans to unload big blocks of office space, indicating the workforce changes of the last year may be long lasting. The moves are also putting new stresses on commercial real estate, especially in New York. Among the companies announcing they are vacating space have been JPMorgan Chase, Salesforce, and Pricewaterhouse Coopers. “Large companies typically sign office leases for a decade or longer, giving them few options for reducing their footprint beyond trying to sublease floors to other tenants,” reported the Wall Street Journal. “At the end of 2020, 137 million square feet of office space was available for sublease across the U.S., according to CBRE Group Inc. That is up 40% from a year earlier and the highest figure since 2003.” Change Could Be Permanent Firms typically add office space when the econ...

WASHINGTON—The Consumer Financial Protection Bureau is warning mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this Fall. “Millions of homeowners currently in forbearance will need help from their servicers when the pandemic-related federal emergency mortgage protections expire this summer and fall,” the agency said. “Servicers should dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help.” The CFPB said it will closely monitor how servicers engage with borrowers, respond to borrower requests, and process applications for loss mitigation. The CFPB said it will consider a servicer’s overall effectiveness in helping consumers when using its discretion to address compliance issues that arise. “There is a tidal wave of distressed homeowners who will need help from their mortgage servicers in the coming months. Responsible servicers should be preparing now. There is no time to waste, and no...