CU Times Highlights NJ Congressional Delegation Pressing NCUA on Taxi Loans Through League-Led Letter

Putting the spotlight on the plunging value of taxi medallions since the NCUA last issued guidance on such loans, the New Jersey congressional delegation is asking the agency to update its advice on such lending, a recent article in the Credit Union Times points out. All 14 members of New Jersey’s congressional delegation signed a letter to the NCUA's Chairman J. Mark McWatters last week on the agency’s treatment of these loans. Circulated among the delegation by Sen. Robert Menendez (D-NJ) and Rep. Donald Norcross (D-1), the letter is the culmination of months of groundwork between the NJCUL and their offices, as well as making the case to the other delegation members that they should add their name as well.

The 14 members—both Democrats and Republicans, and both House members and the state’s two senators—are asking the agency to “work with individual credit unions that extended business loans secured by taxi medallions to achieve positive outcomes for borrowers, credit unions and the Share Insurance Fund,” the article points out.

In recent years, Uber and other ride-sharing services have caused the value of taxi medallions to plunge, causing a huge problem for credit unions that have made loans to drivers based on the value of the medallions.

The plunging value of taxi loans “has presented significant challenges to borrowers and credit unions in New Jersey and across the country.”

The members of Congress are asking NCUA officials to issue guidance on acceptable valuation methodologies, as well as advice on how credit unions can work with medallion owners.

Read the article in its entirety here.