BROCKTON, Mass. (4/23/13)--The National Credit Union Administration has notified Brockton, Mass.-based HarborOne CU that its procedures to convert to a mutual savings bank have complied with the agency's conversion regulations.
The $1.9 billion asset HarborOne also announced Monday the Massachusetts Division of Banks had approved the membership vote results, which were in favor of the conversion. About 62% of voting members of HarborOne cast ballots in favor of the change in March. About 21% of eligible voters voted.
The Federal Deposit Insurance Corp. has officially accepted HarborOne's application to convert, and the credit union now awaits for approval of FDIC insurance before it can complete the conversion process.
Although members have a prerogative to do what they believe is in the best interest of their credit union, said the Credit Union National Association, they are best served by the not-for-profit, cooperatively owned and member-directed ownership structure of credit unions. CUNA emphasized it is important for members to be fully informed about any conversion proposal and its implications before any conversion.
At the time the vote was announced, the Massachusetts Credit Union League noted that any conversion should be approached from the viewpoint of the members of the credit union, but added that HarborOne members unfortunately seemed to have accepted the argument that the operational advantages outweighed their rights and privileges as members.