All 14 members of New Jersey’s congressional delegation signed a letter to NCUA Chairman J. Mark McWatters on the agency’s treatment of taxi medallion loans.
Circulated among the delegation by Sen. Robert Menendez (D-N.J.) and Rep. Donald Norcross (D-N.J.), the letter is the culmination of months of groundwork between the New Jersey Credit Union League (NJCUL) and their offices, as well as making the case to the other delegation members that they should add their name as well.
The league and credit union advocates met with McWatters and the agency’s senior management team in July to discuss issues associated with taxi medallion loans.
The delegation letter reinforces a key message they brought to the agency; specifically, that credit unions need clear, updated and consistent guidance on “how to service those loans in a way that maximizes positive outcomes for borrowers, ensures the safety and soundness of their credit unions, and protects the Share Insurance Fund,” the letter says.
“Both credit unions and borrowers would benefit from updated guidance that reflects the realities of today’s taxi medallion market,” the letter adds.
The letter concludes with “In any updated guidance, the NCUA should consider providing greater clarity on criteria for acceptable valuation methodologies as well as procedures outlining how credit unions can work with small business owners with outstanding taxi medallion debt to remain current on their loans while continuing to operate their businesses.”