Richard S. Garabedian, a Washington attorney who specializes in credit union charter conversions, doesn’t think HarborOne Credit Union’s conversion to a state co-operative bank, approved by its members last Monday, will trigger a wave of credit union charter conversions.
Industry observers point to credit unions buying banks, note that Boston conversion involves unique state charter.
The members of the $193 million HAR-CO 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. The credit union did not returned calls seeking comment on the vote.
The $188 million Har-Co Federal Credit Union may take the next step toward changing to a mutual bank charter this evening.
In what has become a rare occurrence, a federal credit union in Maryland has taken the what many see as the first step in the process to change to a mutual bank charter.
Leaders of Har-co Federal Credit Union told its members that the CU needed to convert to a federal thrift charter in order to serve more people, but the NCUA has no record of the CU ever applying for a community charter.
The board of directors of the $188 million Har-Co Federal Credit Union has asked for members' opinions about whether the CU should convert from a credit union to a mutual bank charter.