NEW YORKâCredit unions in the New York City market that make taxi medallion loans, as well as those that have purchased participations, continue to face rough headwinds, according to a new report that shows medallion values here continued to slide in June.
Keith Leggett, the former senior vice president and senior economist at the ABA, reported on his Credit Union Watch blog that nine medallion asset sales ranged in price from $150,000 to $475,000, last month. Six medallions sold for $230,000 or less.
In June, NCUA placed medallion lender LOMTO FCU in Woodside, N.Y., into conservatorship.
LOMTO is the third taxi-medallion CU the agency has taken action against as the value of medallions in New York City, which are required in order to legally drive a cab, have plummeted to approximately half of their peak values. That has led many members to default on their medallion loans.
Such defaults led to the conservatorship of the $1.8-billion Melrose Credit Union earlier this year and, prior to that in September of 2015, the conservatorship of another taxi medallion lender, Montauk CU. It was later merged into Bethpage FCU.