For loans otherwise covered under TILA (consumer loan, etc.), is a Reamortization transaction covered under 1026.20 (post consummation events)? Specifically, would a Reamortization where the interest rate is increased and/or a fee is charged as part of the transaction be considered a refinance, or otherwise trigger requirements relating to closing disclosures?
Under Section 1026.20, a transaction is a refinance if there is a new transaction that satisfies and replaces the original transaction. If the reamortization where the rate is increased or a fee is charged is accomplished using a new note, it is a refinance. If the same result is achieved using a modification agreement, then it is not a refinance.