The National Credit Union Administration (NCUA) on February 19 announced the sale of the majority of its taxi-medallion loan portfolio to Marblegate Asset Management LLC.
After thorough research and careful consideration, NCUA determined this sale was the most appropriate action to meet its statutory obligation under the Federal Credit Union Act to achieve the least long-term cost to the National Credit Union Share Insurance Fund.
NCUA’s holdings included medallion loans from Melrose Credit Union and LOMTO Federal Credit Union, which supported the New York City taxi industry for nearly a century until their liquidations in 2018.
NCUA determined a single bulk sale was the best option to meet its statutory requirements and prevent any unnecessary volatility in the already stressed taxi medallion market.
The agency did not disclose the sale price.
However, the Wall Street Journal (subscription required) is reporting that Marblegate Asset Management was nearing a deal to buy almost 4,500 medallion loans for around $350 million, according to unnamed sources.
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