The NCUA may be forced to increase loss reserves for the Share Insurance Fund as the value of taxi medallions plunges, putting credit unions that made medallion loans at risk, NCUA board member Rick Metsger said Friday.
"Prices for New York taxi medallions at two recent public auctions have been considerably lower," Metsger said, speaking at the Oregon Department of Financial Services CEO roundtable. "That, combined with a continued increase in already high delinquency rates on medallion loans, suggests the Share Insurance Fund's reserves may have to increase in the very near future."
Metsger said the agency warned credit unions about concentration risk in 2010 and issued a more specific warning about taxi medallions in 2014.
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