we will allow the customer to refinance using the index/margin provided in the original note.
IMO the key is if they are contractually liable to renew the note and whether they renew or refinance it.
If they are and renew the original obligation then I would opine they are in the world of a ARM. If they refinance the original obligation (satisfying and replacing the original one) then I would opine they are not. Also under a refinancing all new disclosures are required.
Again I think they have to look at their legal obligation. Allowing and being "required to" are two different things.