Which of the following is not a requirement for a loan under Section 32 of HOEPA?

A loan under Section 32 of the Home Ownership and Equity Protection Act (HOEPA) is designed to protect consumers from deceptive practices in high-cost mortgage lending. The requirements for these loans include several specific provisions.

An appraisal is required to ensure that the property value supports the loan amount, safeguarding both the lender and the borrower. This not only protects lenders from overextending but also provides consumers with a better understanding of the fair value of their property.

The requirement for an escrow account is also in place to ensure that enough funds are set aside for property taxes and insurance payments, which helps prevent borrowers from falling into delinquency due to unforeseen expenses.

The cooling-off period serves as a consumer protection mechanism, allowing borrowers the opportunity to reconsider their borrowing decisions after signing a loan agreement.

Mortgage insurance, on the other hand, is not a requirement under Section 32 of HOEPA. While it may be applicable in certain loan situations, particularly for high loan-to-value loans, it is not mandated by HOEPA specifically. Therefore, the absence of mortgage insurance as a requirement makes it the correct answer in this context.