Section 32 governs high cost/high interest loans under which federal legislation?

Section 32, which particularly addresses high-cost or high-interest loans, falls under the Truth in Lending Act (TILA). This legislation was established to promote the informed use of consumer credit by requiring disclosures about its terms and costs. Section 32 specifically aims to protect consumers from predatory lending practices by defining certain types of high-cost loans and mandating additional disclosures to ensure borrowers understand the terms of their loans.

Understanding TILA's significance in regulating high-cost loans helps to underscore the importance of this legislation in consumer protection. It provides guidelines on labeling loans that exceed certain thresholds in terms of costs, thus ensuring that consumers are aware of the risks associated with such lending practices. This focus on transparency is paramount for consumers to make informed financial decisions.

In contrast, the other options relate to different aspects of financial regulation. The Equal Credit Opportunity Act (ECOA) prevents discrimination in lending practices, the Real Estate Settlement Procedures Act (RESPA) deals with disclosures associated with real estate transactions, and the Home Mortgage Disclosure Act (HMDA) focuses on the collection and reporting of mortgage data. Each of these serves important functions within the lending landscape, but none is specifically concerned with high-cost loan regulations as TILA is.