Problems are brewing with San Francisco Federal Credit Union's taxi medallion portfolio.
According to KPIX 5, the credit union has foreclosed on 70 taxi medallion loans. As of September 2017, the credit union reported $7 million in foreclosed and repossessed other assets, which presumably are all medallion loans.
The $1.1 billion credit union is also treating approximately 480 remaining taxi medallion loans as impaired.
As of September, the credit union reported $52.3 million in commercial loans not secured by real estate. Almost $5.5 million in these loans were delinquent. In other words, 10.42 percent of these loans were 60 days or more past due.
However, San Francisco FCU does not have the same concentration risk to taxi medallion loans as the New York City credit unions that specialized in taxi medallion loans.
Read the story.
San Francisco created a taxi medallion monopoly. The SF FCU got in bed with the city of San Francisco. Both the City and the Credit Union expected a crack pipe high in ca$h. Enter Uber & Lyft. The NCUA gives the seal of approval. The Mafia hates this type of lawful extortion. Enter market disruption. The lights are on but nobody is home on Duke Street at NCUA.
ReplyDeleteThe taxi loans are more than their equity. That’s still concentration risk. ESpecially when the market value is as you reported earlier at around 25 cents.
ReplyDeleteSeems the horse is long gone on the business loans to taxis.
ReplyDeleteWhat 'can't miss' industry would be next that cu business loan portfolios are loading up on?