Monday, June 26, 2017

LOMTO Federal Credit Union Placed into Conservatorship

The National Credit Union Administration (NCUA) on June 26th placed LOMTO Federal Credit Union in Woodside, New York, into conservatorship.

NCUA placed LOMTO Federal Credit Union into conservatorship because of unsafe and unsound practices at the credit union.

The credit union's financial performance has been battered by bad taxi medallion loans due to the disruption of the taxi industry by ridesharing companies such as Uber and Lyft.

Read my blog post from May 10 on LOMTO FCU's financial performance through the first quarter of 2017.

LOMTO Federal Credit union has 2,958 members and $236,468,882 in assets, according to the credit union’s most recent Call Report.

​This is the third New York City taxi medallion lending credit union to be seized by regulators.

Melrose Credit Union was placed into conservatorship earlier this year and Montauk was seized in 2015 and merged into Bethpage FCU in 2016.

Read the press release.

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