The following shall not be treated as a refinancing:
(4) A change in the payment schedule or a change in collateral requirements as a result of the consumer's default or delinquency, unless the rate is increased, or the new amount financed exceeds the unpaid balance plus earned finance charge and premiums for continuation of insurance of the types described in §1026.4(d).

[i][/i]If on a loan modification, the rate of the borrower is being increased, not due to default or delinquency, but because a change in rates for products, does that constitute a refinance?

This is a perennial favorite topic which we discuss repeatedly. This is probably the best discussion in recent years.