NEW YORK—One analyst is predicting even more trouble for New York City CUs that make taxi medallion loans.
Keith Leggett, the former senior vice president and senior economist at the ABA, on his Credit Union Watch blog noted that for the months of May and June, taxi medallion prices averaged $550,750 in the Big Apple. There were 10 transfers during the two months, of which seven were foreclosures, Leggett said.
“Taxi medallion prices ranged between $405,000 to $610,000. However, the $405,000 medallion transfer is possibly a data outlier,” Leggett said. “These transactions indicate that credit unions with New York City taxi medallion loans will likely see an increase in delinquencies, troubled debt restructured loans, and charge-offs.
Due to the impact of ride-sharing services such as Uber, taxi medallions continue to decline in value and taxicab operators continue to experience a drop in revenues.