What kind of loans are covered under the terms of Section 32?

Section 32 refers specifically to the Home Ownership and Equity Protection Act (HOEPA), which is part of the Truth in Lending Act (TILA). This section is designed to protect consumers from misleading practices related to high-cost mortgage loans. A high-cost loan, as defined by HOEPA, includes loans that have certain high rates or fees, which exceed specified thresholds.

These thresholds are aimed at ensuring that borrowers are sufficiently informed about the costs associated with their loans and can help prevent predatory lending practices. The regulations under Section 32 require additional disclosures and provide borrowers with specific protections to ensure they fully understand the terms and conditions of their loans.

The term "high-cost loans" typically encompasses certain subprime loans, especially those that carry higher interest rates or fees. While government-backed loans and conventional loans can also have various costs associated with them, they are not categorized under Section 32 when they do not meet the specific criteria established for high-cost loans. Consequently, the focus of Section 32 is distinctly on high-cost loans, making it the correct answer in this context.