Whether a renewal of a loan is treated as a higher-priced mortgage loan depends on whether it is considered a “refinancing” under Regulation Z. Supplement I to Section 226, Paragraph 1(d)(5)-1 (“if the transaction were a modification of an existing obligation’s terms that does not constitute a refinance loan under §226.20(a), the final rules, including for example the restriction on prepayment penalties, would not apply”).

 Section 226.20(a) defines a refinancing as “a new transaction,” a term which the official commentary states is determined under state law: “Whether a refinancing has occurred is determined by reference to whether the original obligation has been satisfied or extinguished and replaced by a new obligation, based on the parties’ contract and applicable law.” Supplement I to Section 226, Paragraph 20(a)-1. Even if a transaction is a refinancing, Paragraph excludes five types of transactions from the definition of “refinancing,” including any transaction that is a “renewal of a single payment obligation with no change in the original terms.” 12 C.F.R. 226.20(a)(1).