Are the explanation listed in the BOL Adverse Reasons Chart based on a reg or intrepretation?

It appears that they are based at least on the Sample Notices in Appendix C of Regulation B.

While I'm at it:

We use what appears to be an older standard form from a vendor that also lists, under OTHER the reasons that "We do not grant credit to any applicant on the terms and conditions you requested".

I'm uncomfortable with this, as I would think that we then should document the terms/conditions requested and the terms/conditions we could offer and really give a counter-offer and let the customer decline the counter.

Does any one else use the above terminology and, if so, how do you handle the documentation?

I agree you should be specific such as we don't offer 84 month auto financing but you are under no obligation to make a counter offer on terms you do offer.