46. If a loan meets underwriting standards but is a true "hit" on OFAC's Specially Designated Nationals (SDN) list, what do we use as a denial reason on the adverse action notice?

If you have confirmed with OFAC that you have a "good hit" on the SDN list or one of OFAC's other sanctions lists, there is no reason not to explain that to the customer. The customer can contact OFAC directly for further information.