HarborOne Chafes on FOM and Regs
Now there are two large credit unions, the $1.8 billion HarborOne Credit Union of Brockton, Mass., and the $1.5 billion Technology CU of San Jose, Calif., making plans to convert to mutual bank charters.
A third credit union pursuing charter change is the smaller $193 million HAR-CO FCU, based in Bel Air, Md.
Meanwhile, in California, there has been no word from Technology CU on its board's plans to consider a conversion plan after detailing the proposed switch Oct. 3 on its website. Echoing comments similar to HarborOne on capital and FOM limits, Technology said it would seek member comment prior to a Nov. 2 board meeting, but the CU since then has made no formal comment about the processing of the application with the NCUA, the FDIC or other agencies.
Barbara Kamm, president/CEO of Technology, told Credit Union Times last week, “I cannot discuss the conversion plan.”
John Bissell, executive vice president of the $1.1 billion Greylock FCU of Berkshire, the state’s third largest, said it had no interest in following HarborOne. “We are confident our model is the right one,” he said. He noted that Greylock continues to serve Berkshire County successfully and profitably. “But we cannot speak for HarborOne,” said Bissell.
Many CU leaders said they were taken aback by the HarborOne action and had not known in advance it was coming, but they still expressed dismay. Some also said it was puzzling in light of the Bank Transfer Day boomlet and consumer anger over moves by Bank of America and others to impose new fees.