‘This is a national crisis’
When NCUA eventually sells its portfolio of medallion loans, will the medallion crisis facing credit unions be over?
Sources are split on that answer, with one expert saying the worst has passed but some CUs will still experience issues—even with performing medallion loans—in having to write down the value of that collateral.
Another analyst, however, asserts the industry faces a big problem.
As CUToday.info has reported, NCUA is looking to sell its portfolio of more than 3,500 medallion loans, including some from Chicago, valued at an estimated $1.5 billion. NCUA came to own the medallions following the liquidation of a half-dozen taxi medallion-lending credit unions that failed at a cost of nearly three-quarters-of-a-billion-dollars to the National Credit Union Share Insurance Fund.
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