Final answer:
The Home Ownership and Equity Protection Act (HOEPA) is the legislation that added special regulations to control Section 32 high-cost loans, as part of an amendment to the Truth in Lending Act (TILA) focusing on consumer protection in the mortgage market.
Option 'a' is the correct.
Step-by-step explanation:
The act which added special regulations to control Section 32 high-cost loans is B) the Home Ownership and Equity Protection Act (HOEPA).
This legislation was enacted as an amendment to the Truth in Lending Act (TILA) to address concerns over predatory lending practices. HOEPA established requirements for certain high-cost mortgages, such as those with high interest rates or fees, and mandated additional disclosures to protect consumers from potential abuses in this segment of the mortgage market.
In the context of historical federal housing policy, the Federal Housing Administration (FHA) and various New Deal programs such as the Home Owners' Loan Corporation have played significant roles in shaping home loan practices over the decades, from refinancing existing mortgages to prevent foreclosures during the Great Depression to fostering broader homeownership post-World War II. However, these efforts sometimes inadvertently contributed to patterns of residential segregation.
It's important to note that other significant pieces of legislation, like the Dodd-Frank Wall Street Reform and Consumer Protection Act, have also impacted the regulation of the mortgage industry by enhancing consumer protection and reducing risks in financial markets in response to the financial crisis of 2007-2008.