The National Credit Union Administration on Sept. 30 liquidated LOMTO Federal Credit Union of Woodside, New York, as troubled taxi medallion loans ultimately caused the failure of the credit union.
Teachers Federal Credit Union, of Hauppauge, New York, assumed LOMTO’s members and most shares as well as some loans and other assets.
This follows Teachers FCU purchase and assumption of Melrose Credit Union on September 1.
At the time of liquidation and subsequent purchase by Teachers Federal Credit Union, LOMTO served 2,283 members and had assets of approximately $156 million, according to the credit union’s most recent Call Report.
The credit union was insolvent as of June 30, 2018. Click here, to review LOMTO's financial performance at the end of the second quarter of 2018.
LOMTO Federal Credit Union is the sixth federally insured credit union liquidation in 2018. LOMTO is the third credit union that specialized in taxi medallion lending to be liquidated this year.
Read the press release.
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Anyone know if Teachers inherits Melrose's open field of membership? Not sure if LOMTO was the same but anyone could join Melrose.
ReplyDeleteAlso, as usual, no mention on the expected loss to the fund or how much and what Teachers is buying
Yes, Teachers FCU received Melrose's open charter. LOMTO had a limited field of membership.
DeleteTeachers did not buy any of the loans secured by taxi medallions.
NCUA did not disclose the magnitude of the loss to the NCUSIF. We will have to wait for the Inspector General's Material Loss Review for information on the size of the projected loss to the NCUSIF.