When a bank purchase a loan, does the purchasing bank accept all of the compliance violations made during the application, closing, funding and servicing that preceded the purchase? The home loan portfolio consist mainly of primary residence home loans that were originated in 2016; therefore, it may be reasonable to assume that many of the loans have not been part of a regulatory examination. The originating bank reports that the loans are qualified mortgages and TRID applicable. The originating bank is also a small creditor.

Is there a worksheet/checklist I can use to conduct the due diligence? If not, please provide guidance of what I need to include in my due diligence review.

You will be pretty much liable for everything as an assignee:

https://www.law.cornell.edu/uscode/text/15/1641#

As Randy said, if you buy it you're on the hook. You're looking at full RE reviews. BCC has some tools, but I would do a full review of the files prior to purchasing.

http://www.bankerscompliance.com/compliance-resources/free-downloads.htm

Once reviewed a consumer portfolio for a bank being considered to purchase. Things were so disorganized and incorrect, indicated that the purchase would be a huge liability. Although the purchase price was good, management turned it down for reputational and liability issues.

I have been unable to find a compliance due diligence check list for purchasing consumer and non-consumer loans. If anyone has one and is willing to share it, it would be most appreciated it.

I would go through your standard compliance checklists for that type of loan and include note reviews, etc. - for the underwriting side I would pass that aspect along to your credit team.