Which of these is not a requirement for a loan subject to the terms of Section 32 of HOEPA?

The correct answer highlights that mortgage insurance is not a requirement for loans that are subject to Section 32 of the Home Ownership and Equity Protection Act (HOEPA). Section 32 specifically outlines various protections and provisions for high-cost mortgage loans, designed to protect consumers from predatory lending practices.

While the other options listed—appraisals, the 3-day "cooling off" period before loan consummation, and the establishment of an escrow account—are clearly anti-predatory measures meant to ensure borrower protection, mortgage insurance is not mandated under these provisions. Mortgage insurance may be required by lenders for certain types of loans, especially if the down payment is low, but it is not a stipulation specifically tied to the protections designed for high-cost loans under HOEPA. Therefore, understanding the legislative intent of Section 32 emphasizes the focus on protecting borrowers from abusive lending practices rather than adding insurance requirements that could further burden them financially.