Looking for opinions - does anyone think that "We do not offer credit in the terms and condition you requested" is sufficient enough as a denial reason or should there be more, such as what part of the request was unacceptable?

We have used very similar language and never had it questioned by examiners. Just make sure you never offer the credit terms they are asking for to anyone else.

I don't disagree, but wanted to clarify. Not offering a type of loan is not adverse action [See §202.2(c)(2)(v) A refusal to extend credit because the creditor does not offer the type of credit or credit plan requested.]