If an applicant does not meet the criteria for a refinance in the bank will need to deny the loan because it does not pass the tangeble net benefit test. What denial reasons should be used?

Thanks

What portion did they fail?

There are 7 reasons on the form.

(i) at the time the home loan is consummated, the borrower’s total monthly debts, including amounts due under the home loan, do not exceed fifty percent of the borrower’s monthly income as verified by tax returns, payroll receipts, or other third-party income verification;
(ii) the borrower’s monthly payment to pay the new consolidated debt is a minimum of twenty percent lower than the total of all monthly obligations being financed, taking into account costs and fees;
(iii) there is a beneficial change for the borrower in the duration of the loan;
(iv) the borrower receives a reasonable amount of cash in excess of and in relation to the cost and fees as part of the refinancing;
(v) the borrower’s note rate of interest is reduced by at least two percent;
(vi) there is a change from an adjustable rate loan to a fixed rate loan, taking into account costs and fees and the costs can be recouped within two years; or
(vii) the borrower is able to recoup the costs of refinancing the loan within two years and reduces the interest rate by two points or the length of term by a minimum of five years.



So I am not sure if there could be one reason, because if it fails any, the loan can not be closed.
So can there be one general reason if it fails the test?

Can you decline on the fact that they did not pass the TND?
Which is the true reason.