HAR-CO Mutual Bank Conversion Bid Awaits Regulators
The members of the $193 million HAR-CO Maryland Federal Credit Union have voted to approve the credit union's change to a mutual bank charter, according to an announcement from the CU to its members.
Managers of the Bel Air, Md., credit union have not returned calls to comment on the vote.
HAR-CO reported that more than 5,000 of its more than 20,000 members voted in the balloting and that the vote had been 58% for the new charter and 42% opposed.
The credit union’s application to become a bank now waits for action from three federal regulatory agencies: the NCUA, the Officer of Comptroller of the Currency that now oversees federally chartered thrifts, and the Federal Deposit Insurance Corporation.
The NCUA has to review the application and certify the ballot results, then the OCC has to approve it and the FDIC has to agree to insure its deposits. In some past charter change applications, it has been the final steps that have proved insurmountable.
According to the OCC, HAR-CO filed its charter change application on March 25 and the agency has not set a date for a decision.