Which federal legislation implements Section 32 that governs high cost/high interest loans?

The correct choice is TILA, which stands for the Truth in Lending Act. TILA is a federal law designed to promote informed consumer credit decisions by requiring clear disclosure of key terms of the lending arrangement and all costs. It specifically addresses the provision of credit to consumers, including regulations governing high-cost loans.

Section 32 of TILA outlines specific criteria for identifying high-cost mortgages, referred to as "high-cost loans," which typically have higher interest rates or fees that exceed certain thresholds established by the regulations. The law mandates additional disclosures and protections for borrowers to ensure they understand the risks associated with such loans and to help prevent predatory lending practices.

Other options, such as RESPA (Real Estate Settlement Procedures Act), ECOA (Equal Credit Opportunity Act), and HMDA (Home Mortgage Disclosure Act), serve different purposes. RESPA focuses on providing consumers with information about the settlement process, ECOA prohibits discrimination in lending, and HMDA requires financial institutions to report data about their lending patterns. None of these directly govern high-cost/high-interest loans like TILA does with its Section 32 provisions.