The sixth 2018 liquidation of a federally insured credit union was announced Monday by the National Credit Union Administration (NCUA): LOMTO Federal Credit Union (Woodside, N.Y.) was closed Sunday, with its members, most shares, some loans and other assets assumed by Teachers Federal Credit Union (Hauppauage, N.Y.).
LOMTO Federal Credit Union, started in 1936 by taxi owners, had suffered under the weight of underwater taxi medallion loans. NCUA said the credit union had 2,283 members and approximately $156 million in assets at the time of liquidation, based on its last call report.
Fifteen months earlier, in June 2017, the credit union had last reported having 2,958 members and total assets of $236 million, according to the agency. NCUA placed the credit union in conservatorship that June, citing “unsafe and unsound practices.”
In the liquidation, NCUA retained some of the credit union’s loans.
Teachers is the same credit union that assumed the members and selected assets of the former Melrose Credit Union (Briarwood, N.Y.), another casualty of the taxi medallion loan business. NCUA closed Melrose Aug. 31 and is also seeking a prohibition order against its former CEO as well as fines and restitution.