According to LOMTO’s financial performance report, the credit union reported a higher quarter over quarter net worth ratio and a quarterly decline in its delinquency rates. It’s worth noting this means the third party used may be named on any credit agreements. Melrose Credit Union, Montauk Credit Union, Progressive Credit Union and LOMTO Federal Credit Union are seeking a preliminary injunction ordering the city to enforce the law that prohibits any vehicle other than a yellow taxi from responding to street hails. For example, Melrose Credit Union has significantly increased its reserves for loan losses from $4.9 million as of March 2014 to almost $28.3 million at the end of the first quarter of 2015.
Massachusetts State Law authorizes the commissioner of banks to annually establish a reasonable fee that compensates a bank or credit union for the direct cost incurred in processing deposit return items. The fee was determined from cost data of 74 state chartered banks and credit unions. The average cost for banks and credit unions were $6.97 and $8.95, respectively. Based upon the survey, half of the banks and credit unions will not be able to recoup their cost for processing a deposit return item. Banks and credit unions should have the freedom to set their prices, not have them dictated by the state.
The credit union tax exemption from corporate income taxes is treated as a tax expenditure for budgetary purposes. The National Credit Union Administration (NCUA) has no clue about how the credit union tax exemption is being used, despite being grilled by former House Ways and Means Chairman Thomas almost a decade ago in November 2005 during a hearing.
For example, the NCUA does not have any information on marketing and advertising arrangements between credit unions and sports teams. NCUA does not have information on how much credit unions are spending on the naming rights to sport and entertainment venues. NCUA does not appear to collect information on senior management compensation at federal credit unions. Outside of a few muckrakers, there is a paucity of information on how credit unions are using their preferential tax treatment.
Congress should demand greater accountability and transparency from NCUA regarding how the credit union taxpayer subsidy is being used. According to Brown, readers argued that credit unions should retain their exemption because of banker greed, trusting credit unions more than big banks, and credit unions pay other taxes. But he pointed out that these arguments do not warrant exempting credit unions from paying taxes on their income. He is a leading expert on credit unions and the National Credit Union Administration.