By Thomas Hampton

New Year’s Greetings! I am excited and honored to have the opportunity to continue serving as the commissioner of the DC Department of Insurance, Securities and Banking (DISB) under Mayor Adrian M. Fenty. 

Much of our work in 2007 will build upon the initiatives of 2006, with particular focus on ensuring the passage of several critical legislations, bringing a third District-chartered bank to fruition, implementing the agency-wide consumer protection plan, and launching a consumer awareness campaign to give DISB more visibility in the community and more accessibility to the District’s consumers.

In 2007, DISB will continue to push for several legislative initiatives to make the District of Columbia’s financial regulatory environment more responsive to market changes, more competitive as a financial capital, and better serving our consumers’ interests. We are pleased that the Securitization and Protected Cell Captive insurance bills were passed by the Council of the District of Columbia and signed into law by departing Mayor Anthony Williams at the end of last year, thus increasing the type and size of captive companies regulated by the District. 

Among the legislative priorities are the enactment of the Interstate Insurance Product Regulation Compact Act, which would ensure the District of Columbia’s participation in the Interstate Compact for greater uniformity in insurance regulation across jurisdictions; and introducing legislation to regulate the life settlements (a.k.a. Viatical settlements) industry. In addition, we will work to reform the District’s title insurance law to protect against defects in the legal title to real estate and introduce amendments to the current Producer Licensing Act that would establish uniform standards for issuing insurance licenses to limited lines producers such as rental car agents.  

Besides insurance-related legislation, DISB will also collaborate with the Council on the introduction of the Home Equity Protection Act of 2007, which is intended to prevent the practice of “equity stripping” through foreclosure actions. This is a timely initiative in light of the housing market slump and the subsequent fallout for some consumers in the local market. 

Last year, DISB developed a comprehensive consumer protection plan that would require collaboration among the agency’s different units as well as external partners. Among our priorities are hiring more bank examiners, adding a consumer advocate position, and changing the focus of our enforcement work to engage in more civil investigation (as opposed to criminal investigation) in collaboration with the Office of the Attorney General. 

As a jurisdiction with only two locally chartered banks, Bank of Georgetown and Washington First, we are very pleased that the NuAmerica Bank charter application is near completion, pending the Council’s approval. We look forward to working with NuAmerica and the other two locally chartered banks to make community banking more accessible to the District’s consumers and small businesses. 

Finally, a major department-wide initiative in 2007 is to make DISB’s comprehensive range of resources and services more visible and accessible to District consumers through an integrated branding and social marketing campaign. This campaign will position our agency as a premier consumer protector on financial matters, encourage greater public use of our services including consumer complaints and inquiries, and establish an instant connection between the brand “DISB” and what it stands for—a fair and effective financial regulator that protects consumer interests. 

Thank you for your support and I look forward to staying connected with you, our valued partners. 

Commissioner Thomas E. Hampton is the head of the District of Columbia Department of Insurance, Securities and Banking.