6 Things to Ponder on a Friday Morning
An unusually busy Thursday, so here are some quick notes to keep in mind as you start your credit union day. I’ve also been gracious enough to intersperse these notes with my football predictions, which, as many of you may know, are certified as capital for RBC purposes by the NCUA.
Taxi Medallions Under Scrutiny
The plight of New York’s Taxi Medallion credit unions, which specialize in making loans for the purchase of taxi medallions, is getting more and more attention lately. Yesterday, NCUA led its press release summarizing the quarterly performance of credit unions by noting that medallion loan growth in federally insured credit unions rose 4% in the year ending June 30, 2015. On a less sanguine note, the CU Times is reporting this morning that a New York judge has refused to rule that consumers summoning a ride using an App based ride sharing service such as Uber is engaged in street hailing. The medallion industry argued that since only medallion taxis were authorized to pick up riders from the street, ride sharing services were violating the law. The decision is going to be appealed, according to the article.
Fearless Football Prediction No. 1
Overwhelmed by guilt, Tom Brady admits his complicity in deflating footballs and makes amends by quitting football so he can go around the country making balloon animals for children’s birthday parties.
Senate MBL Bill Introduced
Yesterday evening our good friends at CUNA sent word that Republican Senator and Presidential hopeful Rand Paul and Democratic Senator Sheldon Whitehouse have introduced legislation that would authorize NCUA to raise the MBL cap for well-capitalized credit unions on a case-by-case basis from 12.25% of total assets to 27.5% of total assets. Bill language provided by CUNA indicates that the legislation would apply to credit unions that have been within 20% of the current cap for at least two years and can demonstrate, among other things, that they are well-capitalized and have five years of MBL underwriting and servicing experience.
Fearless Football Prediction No. 2
NFL Commissioner Roger Goodell resigns to begin his own labor arbitration firm. He is replaced by former Secretary of State and National Security Advisor Condoleezza Rice. The NFL explains that anyone used to dealing with the mess in Iraq is surely qualified to deal with the mess Goodell has left behind.
NY AG Settles Buffalo Redlining Case
In a case I’ve talked about in a previous blog, New York’s Attorney General Eric Schneiderman announced yesterday the settlement of a lawsuit in which Evans Bank was accused of intentionally refusing to make mortgage loans available to Buffalo residents who lived in the City’s predominantly African-American Eastside neighborhoods. The allegations against Evans were both serious and disturbing. According to the press release, Evans has agreed to amend its lending area to include the disenfranchised neighborhoods. It has also agreed to establish an $825,000 Settlement Fund to help establish affordable housing in Buffalo.
Fearless Football Prediction No. 3
As much as it pains me to say this, the Dallas Cowboys beat the Pittsburgh Steelers 35-24 to win the Superbowl.