While it's considering converting to a bank, the $1.8 billionHarborOne Credit Union has resigned from CUNA and the MassachusettsCredit Union League, the league confirmed on Wednesday.

“HarborOneCredit Union is no longer affiliated with the League or CUNAand none of their employees or officials are now serving on theLeague Board or any League committees,” Rob Kimmett, the league'svice president of public relations and marketing, said in anemail.

HarborOne President/CEO James Blake is a former league chairman.The league already had expressed its disappointment in the possible conversion.

Meanwhile, a former NCUA attorney disputes one of the Brockton,Mass., credit union's reasons for mulling the move, saying the141,000-member HarborOne is at only 20% of its member businesslending cap.

Washington attorney Steve Bisker, a former NCUA assistantgeneral counsel, said he came to that conclusion after looking atHarborOne's preliminary online notice filed with regulators.

“The stated 'consequences of conversion' are inaccurate ormisleading at best,” Bisker said, pointing to what he said areinconsistencies on its stated need for more capital to lend and itsprospects for increased membership under a mutual charter.

Since posting a Feb. 16 notice on its website telling members ofa “possible conversion to a cooperative mutual,” the CU has not returned phone calls fromCredit Union Times seeking comment.

Blake has told Boston media that HarborOne's field of membershipis limited to four counties, and that HarborOne has been forced toturn down $70 million in mortgages and other consumer loans frompotential members who live outside its market.

The website notice said HarborOne's board would meet March 21 tofurther consider the conversion plan. The notice solicited commentsfrom members and said a switch could take place by September ifregulatory and legal hurdles are cleared.

According to insiders and statements made by HarborOne, thereasons for converting include capital and loan restraints, FOMrestrictions and unease over onerous regulatory burdens, the resultof new NCUA policies as it seeks to comply with the Dodd-Frank Actand other new statutes.

The co-op bank structure would empower the metro Boston CU toexpand business loans and mortgages, increase capital and branchinto downtown Boston and elsewhere in the state, the credit unionsaid.