ALEXANDRIA, Va. – NCUA ruled that credit union service organizations may act as loan brokers for the purchase of New York City tax medallions.
A CUSO, owned by one of the credit union taxi lenders, would screen loan applicants, do credit checks and submit information to a lender, but would not fund the loan. The loans would be offered to the numerous New York credit unions that make loans for the medallions, which are taxi licenses.
New York City issues a fixed number of 13,000 medallions, which are bought and sold on a regular basis. The value of taxicab medallion ranges from $500,000 to more than $700,000.
In a new legal opinion letter, NCUA said brokering taxi medallions is a permissible activity for a CUSO, but the CUSO cannot originate or fund a loan for the licenses.
