tag:blogger.com,1999:blog-319775530671726401.post5118518100132787861..comments2023-10-01T09:18:26.162-04:00Comments on Keith Leggett’s Credit Union Watch: Taxi Medallion Loans Crash LOMTO FCU Keith Leggetthttp://www.blogger.com/profile/14794334790117033547noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-319775530671726401.post-63911500183189149292018-11-10T22:14:52.181-05:002018-11-10T22:14:52.181-05:00I am so sorry to read of LOMTO FCU's demise. ...I am so sorry to read of LOMTO FCU's demise. I am one of its oldest continuous account holders on record, having opened it at age 12 in 1962 when they had a small storefront office on EL Grant Hwy. in the Bronx, just a few blocks from my home. My father was a taxi owner-operator. I have kept it open all these years in his memory, although maintaining only a token balance (one identifies more lucrative investments as one grows older, after all). <br /><br />The pittance I have left in that account will still be there when I close it soon, but I grieve for the poor (many immigrants among them) operators who bought their medallions at peak price before the advent of Uber and Lyft. My prayers for their future, as well as that of all the brave LOMTO employees who stuck it out until the end.<br />sestamibihttps://www.blogger.com/profile/03713681322114049960noreply@blogger.comtag:blogger.com,1999:blog-319775530671726401.post-87067943978722733532018-08-14T21:40:47.692-04:002018-08-14T21:40:47.692-04:00December 2017, the NCUSIF booked about $750 milli...December 2017, the NCUSIF booked about $750 million in provision expense taking their Loss Reserves account from $225 M to over $940 M in ONE MONTH. It’s amazing what the threat of a year-end audit can do to you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-319775530671726401.post-69834074637362380042018-08-14T11:23:05.705-04:002018-08-14T11:23:05.705-04:00To: OIG (Office of Inspector General) NCUA
Please ...To: OIG (Office of Inspector General) NCUA<br />Please advise how LOMTO FCU could report 0.0% delinquency at year end 12-2011, 12-2012, and 12-2013 & shock of all shock report delinquency of 10.44% in 6-2018? How does that happen? Did the NCUA EIC (Examiner In Charge fail to review the delinquency report and conduct a random review for fraud?<br />How did LOMTO report 0.0% charge offs for 12-2011, 12-2012, and 12-2013 and suddenly without warning report charge offs of 16.34% in 6-2018? Same question as before. Did the EIC forget to audit the collections department? <br />Did the EIC notice in 12-2011 fixed assets were at 5.83% and ramps up to 20.82% in 6-2018? Are the lights on at the NCUA? Is anybody home at the NCUA? LOMTO did not buy new buildings - so here is a stack of repossessions. Where is the used car parking lot to store all these wrecks? When is the used wreck car sale? Finance these turds with a taxi medallion - another NCUA trick to mask bad loans and get 'em back on the books. Let's make it up in volume. <br />Can the EIC explain how ROA in 12-2011 was 1.44% and in 6-2018 it is now a -19.31%? Any warning signs here or did the NCUA just miss the bleed out of the income statement? It could happen. Call it human error. Call it NCUA gross incompetence.<br />Might the EIC explain what happened to the net worth of $34M in 12-2011? Who stole the $34M? CEO salary? NCUA operating fees? 6-2018 the net worth is -$56M! How big must the MINUS sign get before the NCUA does something? Net worth moved from 15.37% to -34.57% Did the EIC notice a negative trend developing here?<br />12-2011 the loan to share ratio was a modest 109%. Today it ramps up to 115% Did the EIC notice there is no economy of scale here? LOMTO is not making it up in volume. So here again the FCU community is on the hook to cover the $100M note payable to a dumbass Corporate FCU that kept the line of credit open at full tilt. And the FCU community is on the hook for $56M net worth that is exhausted, extinguished and depleted. If LOMTO CEO Kaufman has "unclean hands" - several folks at the NCUA have "dirty hands" and when prey tell will they be held accountable or responsible?<br />The corporate credit union recovery fund will nicely coverup the NCUA negligence and lack of due diligence. NCUA incompetence in no longer the exception to the rule - IT IS THE RULE. Escaping the NCUA/NCUSIF with private American Share Insurance (ASI)is presenting a compelling option to escape NCUA assessments as they will no doubt continue as part of the NCUA business model tony costanzohttps://www.blogger.com/profile/05410579521294240535noreply@blogger.com