Maloney Calls for NCUA To Immediately Stop Taxi Medallion Loan Foreclosures and Sales

Congresswoman Carolyn B. Maloney, Chairwoman of the Oversight and Reform Committee, on January 17 called on the National Credit Union Association (NCUA) to place an immediate moratorium on both taxi medallion loan foreclosures and sales of taxi medallion loans currently owned by the NCUA.

Earlier this month, it was reported that NCUA was seeking to sell approximately 3,500 taxi medallions loans from failed credit unions in its possession by the end of January.

The letter comes in light of a New York City Medallion Task Force proposal to provide as much as $500 million in debt relief to borrowers.

Representative Maloney wrote that any foreclosure or sales of taxi medallion loans would be both premature and harmful to the many borrowers who were innocent victims of fraudulent lending practices.

Maloney argued that if NCUA sells its portfolio of taxi medallion loans before the Medallion Task Force recommendations can be implemented, then much of this relief will never reach the borrowers.

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