Single taxi medallion loan sale not in best interest of CUs, members

NCUA selling its portfolio of taxi medallion loans is not an appropriate step at this time, CUNA and three League partners wrote to NCUA, as it may harm not only the credit unions holding taxi medallion loans but ultimately all federally insured credit unions due to the effect on the National Credit Union Share Insurance Fund.

“We urge the NCUA to refrain from such a sale and to instead engage with CUNA, the state leagues, and credit unions—both those directly and indirectly involved. Such collaboration could bring about a more creative solution than simply selling the entire loan portfolio to a single investor at a significant loss,” the letter reads. “While such a sale may be the quickest and easiest approach for the agency, it is not in the best interest of credit unions and their members, including borrowers who took out loans to obtain taxi medallions.”

The signatories–CUNA, the CrossState Credit Union Association, the Illinois Credit Union League, and the New York Credit Union Association–urged NCUA to refrain from selling its entire taxi medallion loan portfolio to for-profit debt buyers for several reasons:

• Selling to a single investor, while quickest and easiest for the agency, would almost certainly result in a lower sale price, which would have a direct impact on the Share Insurance Fund;

 

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