Crain's New York Business is reporting that eight New York Democratic lawmakers wrote National Credit Union Administration (NCUA) Chairman McWatters urging the agency to review its treatment of taxi medallion loans originated by Melrose Credit Union, which is in conservatorship.
The letter stated that NCUA was unfairly punishing taxi medallion borrowers, who "through no fault of their own", were adversely impacted by the disruption of the taxi industry by riding sharing apps.
The letter urges the agency "to work with medallion owners, on a case-by-case basis, and to cease the practices of doubling interest rates, demanding homes be offered as additional collateral, refusing loan assumptions by willing third-parties, and requiring additional guarantors such as spouses be added to loans."
The letter was signed by Representatives Grace Meng, Joseph Crowley, Adriano Espaillat, Carolyn Maloney, Gregory Meeks, José Serrano, Nydia Velázquez, and Hakeem Jeffries.
Read the story (letter appears at the end of the story).
NCUA is doubling the interest payment requirement?
ReplyDeleteThat is what I've read.
DeleteHow much I’m taxi loans does melrose have?
ReplyDeleteWhat’s their total assets?
Melrose has slightly more than $1.6 billion in assets and approximately $1.2 billion in taxi medallion loans.
Delete75% of assets?
DeleteOMG.
$1.2B?
They can’t possibly have enough capital right?
I believe you are right.
DeleteWe discussed this last night after listening to mcwatters dodge the taxi loan question.
DeleteThis is a big reason why they want to merge the insurance funds. Everyone at our table agreed and doubts we will get a rebate but pretty sure we will get assessments.
Used to like mcwatters.
How does NCUA and mcwatters continue to deny there’s a taxi loan problem?
Deleteya gotta feel for them.
Deletethey have no one to tell.
not accountable to anyone.