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Last week, MnCUN sent via email the official call for candidates. The Minnesota Credit Union Network Election Committee, appointed by the Chair of the Minnesota Credit Union Network, has the responsibility of overseeing the 2025 Network Board of Directors election process.
The election will be conducted by mail and electronic ballot. Three seats are up for election in 2025, one At-Large and two in the Under 10,000-member category. The current Board of Directors is comprised of the following individuals (an asterisk indicates that the seat is up for election): Jay Gostonczik: At-Large Aaron DeJong: At-Large* Steve Ewers (Vice Chair): At-Large Dave Larson (Sec/Treasurer): At-Large Greg Worthen: At-Large Dana Garrett (Chair): Fewer than 10,000 members* Mary Matheson: Fewer than 10,000 members Trina Hoff: Fewer than 10,000 members* Randy Willert: Fewer than 10,000 members The election process is outlined in the MnCUN bylaws, Network Election Policy and 2025 Election Rules, and was initiated with the appointment of the Election Committee. If you have any questions, please feel free to contact any member of the Election Committee: Jay Gostonczik, Chair South Point Financial Credit Union Kathy Harrington Heartland Credit Union Andrea T. Adams Teamsters Credit Union As we strive to continually improve our services and support our members, we invite you to participate in MnCUN's Annual Performance Survey.
In the past year, we have introduced several new initiatives aimed at enhancing member benefits and services. We are particularly interested in your feedback on these and your priorities for the upcoming year. The survey is designed to be brief and should take about 10 minutes to complete. Please complete by Jan. 31, 2025. Thank you for your time and input! Make your voice heard by taking action on critical credit union issues. Through America's Credit Unions Take Action Tools, you can help ensure credit unions are top of mind with lawmakers and regulators.
We appreciate your support in ensuring that all credit union voices are represented when decisions being made. Contact Cynthia Callais, MnCUN Director of Political Advocacy with questions. Last week, Governor Walz proposed a two-year budget that, among other things, includes a cut in the sales tax rate but expands it to cover more services, including those at financial institutions.
Department of Commerce ATM Reminder: The Minnesota Department of Commerce’s Director of Credit Unions, Aeton de Long-Hersh, issued a reminder for credit unions to follow regarding ATM preventive security measures against break-ins.
OFAC Transaction Record Retention Period Extended: The Office of Foreign Asset Control (OFAC) published its interim final rule extending recordkeeping requirements for certain transactions from five to 10 years effective March 12, 2025. FTC CARS Rule Overturned: The Federal Trade Commission (FTC) Combating Auto Retail Scams (CARS) rule effective date, which was paused due to litigation in 2024, has now been overturned by the Fifth Circuit Court of Appeals for not providing proper notice of rulemaking in a 2-1 split decision. Registration for spring CU Connect sessions is now open! Our new peer-to-peer program for 2025 will be held virtually twice a year, once in the spring and once in the fall. Each session will feature a MnCUN staff member to facilitate discussions on topics relevant to your credit union’s needs and specialty area. This new format aims to continue fostering cooperative networking and idea exchange among credit union professionals.
There is no cost to attend these sessions. Sessions will take place from 1:30-2:30 p.m. virtually. Below are the different CU Connect Groups. CU Connect Groups:
By Steve Rick, Chief Economist for TruStage™. This article is provided through MnCUN's partnership with TruStage. For more information visit the Solutions Directory. As we look ahead to 2025, the economic landscape presents a mixed but cautiously optimistic picture. Although overall growth is expected to be moderate, with a 2% gross domestic product (GDP) increase—slightly lower than the 2.4% growth this year—there are several key trends and economic factors to consider. It should be noted that a change in presidential leadership could lead to economic shifts in 2025, driven by key policy decisions such as universal tariffs, immigration reform, tax cuts and deregulation. These policies could impact inflation, GDP and deficits, creating both opportunities for growth and challenges to economic stability. Let’s explore the implications of inflation, interest rates, consumer behavior, and the labor market on the US economy and credit unions. 2025 inflation and interest rate predictions The primary factor influencing the 2025 economic outlook is the persistence of high interest rates. Despite slight decreases, the Federal Reserve's interest rates remain above the desired neutral level. These elevated rates will likely dampen economic growth, slowing overall activity to around 2% GDP growth in 2025. However, the higher rates are not expected to trigger a severe recession, as consumer spending remains resilient. Inflationary pressures are expected to continue, though some relief may come through deregulation policies. Lowering regulatory burdens on small businesses could reduce costs, enhance productivity, and, over time, help curb inflation. 2025 Consumer Price Index (CPI) and real Gross Domestic Product (GDP) predictions In terms of GDP, there’s a projected growth rate of 2% in 2025, slightly below this year's 2.4%. This moderate growth aligns with long-term trends but reflects the restrictive impact of high interest rates. Consumer spending is expected to remain robust, supported by healthy debt-to-income ratios and rising real wages, which should continue to buoy confidence in the economy. However, high inflationary expectations and rising treasury yields will help keep pressure on consumer prices and economic activity. Deregulation could play a key role in stimulating the economy by helping to reduce unnecessary compliance costs, particularly for small businesses. This, in turn, could help reduce inflationary pressures and increase overall productivity, leading to stronger GDP growth in the long run. Unemployment and job market
The current unemployment rate stands at 4.1%, with part-time work on the rise while full-time job growth has plateaued. The tight labor market poses challenges for credit unions, particularly in relation to loan repayment. Many members face financial stress due to stagnant wages and high living costs, and part-time work may exacerbate this issue. Credit unions must stay alert to these trends and offer solutions that help accommodate the changing workforce. Mortgage rates and housing market The housing market is facing significant challenges, particularly due to rising mortgage rates. The 30-year mortgage rate has climbed to around 6.92%, and in some cases, even surpassed 7%. These increases have caused many potential homebuyers to adopt a wait-and-see approach, hoping for lower rates in the future. This slowdown in housing activity could reduce mortgage loan growth, affecting credit unions’ lending volumes. However, with interest rates holding steady or continuing to rise, we may see further delays in housing transactions in the short term. Impact on Credit Unions Credit unions are facing a mixed outlook as they navigate the economic challenges of 2025. Loan growth is forecasted to reach around 6%, a slight rebound from this year’s 3%, but still below the long-run average of 7%. Higher interest rates will continue to limit lending activity, particularly for mortgages and personal loans. However, credit unions can help mitigate this by focusing on areas where they can provide more value, such as offering support to members dealing with financial strain. Delinquencies and charge-offs are expected to remain a challenge, particularly with younger members struggling under the weight of high student debt and rising rent costs. Car insurance premiums, which have surged by 30%, are another strain, leading some members to reduce coverage and increasing the likelihood of repossessed vehicles being in poor condition. This trend could lead to more charge-offs for credit unions. Supporting credit union members in 2025 To address these challenges, credit unions can explore various strategies to assist their members. Offering flexible loan products, such as payment programs for struggling borrowers, will be critical. Stay flexible in offering personalized solutions to members, helping them adjust to the changing job market and economic conditions. Additionally, providing financial counseling services can help members manage their debt and make informed decisions. It will be important to support younger members, who are particularly vulnerable to financial stress, by offering tools to manage student debt and rising living costs. The 2025 economic outlook suggests a year of moderate growth, tempered by high interest rates and inflationary pressures. While these challenges will certainly affect credit unions, there are opportunities for them to play a pivotal role in supporting their members. By offering flexible loan products, financial counseling, and proactive support programs, credit unions can help their members navigate these uncertain times. The views expressed here are those of the author(s) and do not necessarily represent the views of TruStage. TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis. © TruStage MnCUN offers this in-person meeting with expert presentations on current fraud with Q&A, preventive and remediation resources, and small group discussions for attendees to share information and resources. The registration fee is $75 with lunch and beverages provided.
Presenters:
Date: Wednesday, March 12, 2025 Time: 9:00 AM - 3:00 PM CST Location: The Servion Group 500 Main Street New Brighton, MN 55112 Cost: $75 For engagement and participation, there is a maximum of 100 participants. Registration deadline is Monday, March 3. With questions, please contact Xiong Lee, MnCUN Director of Engagement. As a member of MnCUN, you have the support of the only trade association that champions Minnesota Credit Unions. We ensure credit union priorities are front and center as we advocate, accelerate, collaborate, and celebrate Minnesota's thriving credit union system. Dues renewal and information were mailed to credit union CEOs/managers in mid-December, with a deadline of Friday, Jan. 31. Join us as we celebrate 100 years of credit unions in Minnesota. We look forward to honoring the people — the members, the volunteers, the employees — who have made this journey possible. Together, we've built a legacy of trust and opportunity. And together, we look forward to the next 100 years of growth, service, and community. The Year Ahead with MnCUN Preview of 2025 Webinar RecordingLast week, MnCUN staff hosted a webinar discussing legislative and regulatory priorities, events and initiatives, and updates credit unions can look forward to in 2025. A recording is available to view on the Publications page of the Member Portal (login required).
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