If we are doing a Note modification for a MFH w/out land to lower the rate (work-out modification), do we still have to test for HMPL?

Never mind....I found the answer, which is NO.

Can you tell me where you found your answer? I'm dealing with a similar situation now.

12 CFR 226.1(d)(5) – #1,i.
i. General. A refinancing or assumption as defined in §226.20(a) or (b) is a new transaction and is covered by a provision of the final rules if the creditor receives an application for the transaction on or after that provision's effective date. For example, if a creditor receives an application for a refinance loan covered by §226.35(a) on or after October 1, 2009, and the refinance loan is consummated on October 15, 2009, the provision restricting prepayment penalties in §226.35(b)(2) applies. However, 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.

12 CFR 226.20(a)(1) - #1
1. Renewal. This exception applies both to obligations with a single payment of principal and interest and to obligations with periodic payments of interest and a final payment of principal. In determining whether a new obligation replacing an old one is a renewal of the original terms or a refinancing, the creditor may consider it a renewal even if:
• Accrued unpaid interest is added to the principal balance.
• Changes are made in the terms of renewal resulting from the factors listed in §226.17(c)(3).
• The principal at renewal is reduced by a curtailment of the obligation.