The economy is always top-of-mind for the financial sector and the latest report on U.S. gross domestic product (GDP) warranted an analysis from the Mortgage Bankers Association’s (MBA) leading expert in that area.
Meanwhile, the country’s largest trade association representing consumer bankers published the results of a roundtable discussion on establishing a national strategy for combatting fraudsters and scam artists.
Learn about these developments and more in this roundup:
MBA chief economist reacts to Q2 GDP report
MBA Chief Economist Mike Fratantoni shared his analysis of the U.S. Commerce Department’s report on GDP in the second quarter via a blog post published on July 25.
"The economy grew at a faster pace in the second quarter of this year, rising to 2.8 percent from 1.4 percent,” he said. “Both an increase in consumer spending on durable goods and business spending on inventories accounted for a substantial part of last quarter’s expansion. Weaker net exports reflect a global economy that continues to operate in a lower gear as well as a stronger dollar. While top line growth is above the pace needed to keep the unemployment rate from rising further, the components do suggest the economy may slow from here.
"The inflation data is consistent with recent news showing a downward trend, which should provide enough confidence for the Federal Reserve to cut rates in September.”
CBA hosts roundtable on national cross-industry fraud, scam strategy
The Consumer Bankers Association (CBA) held a roundtable for representatives from multiple corners of the financial sector and the federal government last week to discuss a whitepaper outlining considerations for forming a cross-industry, government-private national strategy for addressing fraud and scams. Participants included those from the private sector, non-profit consumer organizations, and industry trade associations from the banking and telecommunications sectors. The whitepaper was written by Nick Bourke, former director of consumer finance at The Pew Charitable Trusts, was released earlier this week. CBA published a summary of the discussion, as well as proposed next steps and deliverables.
Credit union class action settlement filing deadline approaching
America’s Credit Unions (ACU) published a notice informing its members the deadline for credit unions to file claims in the $28.5 million class action settlement against Wawa, Inc. over an alleged data breach at the convenience store chain. The breach allegedly involved the company’s payment systems at its stores, compromising more than 30 million payment cards. The claim filing deadline is Aug.12. Three types of claims are available. Credit unions impacted by the breach are eligible to receive at least $400 with no documentation required, the ACU stated. Eligible credit unions should have received a notice from Visa, Mastercard or Discover about the compromised cards, and a follow-up postcard or letter from the settlement administrator, Analytics Consulting, LLC. Learn more about filing a claim here and read Dodd Frank Update’s coverage of the case here.
Survey shows 30 percent of Americans use HSA accounts
The results of a survey conducted by Devenir and the American Bankers Association’s health savings account (HSA) council indicate more than 61 million Americans utilize HSAs to cover medical expenses. More than 37 million health savings accounts existed at the end of 2023. About 30 percent are held by millennials in their 30s, while accountholders ages 55 or older had more than $52 billion in their accounts at the same point, representing a 20 percent increase from the previous year, according to the survey. The average account balance for the age group was $5,739. About 68 percent of HSA holders live in ZIP codes with median household income totaling less than $100,000. Read more here.