Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1467

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1467
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 protect consumers
from hidden fees and unfair, deceptive or abusive acts or practices. The CFPB’s jurisdiction includes those persons producing or
brokering residential mortgage loans. It also extends to Beeline’s other lines of business title insurance. The CFPB has broad supervisory
and enforcement powers with regard to non-depository institutions, such as Beeline, that engage in the production and servicing of home
loans.

As part of its enforcement authority, the CFPB can
order, among other things, rescission or reformation of contracts, the refund of moneys or the return of real property, restitution, disgorgement
or compensation for unjust enrichment, the payment of damages or other monetary relief, public notifications regarding violations, remediation
of practices, external compliance monitoring and civil money penalties. The CFPB has been active in investigations and enforcement actions
and has issued large civil money penalties since its inception to parties the CFPB determines have violated the laws and regulations it
enforces.

Effective October 1, 2022, the CFPB revised the definition
of a qualified mortgage (“QM”) which permits mortgage lenders to gain a presumption of compliance with the CFPB’s ability to repay requirements if a loan
meets certain underwriting criteria. Lenders are now required to comply with a new QM definition in order to receive a safe-harbor or
rebuttable presumption of compliance under the ability-to-repay requirements of the Truth in Lending Act (“TILA”) and its
implementing Regulation Z. The revision to the QM definition created additional compliance burdens and removed some of the legal certainties
afforded to lenders under the prior QM definition. Specifically, the revised QM rule eliminated the previous requirement limiting QMs
to a 43% debt-to-income ratio (“DTI”) and replaced it with pricing-based thresholds. Loans at 150 basis points or less over
the average prime offer rate (“APOR”) as of the date the interest rate is set, receive a safe harbor presumption of compliance,
while loans between 151 and 225 basis points over the APOR benefit from a rebuttable presumption of compliance. The new rule also created
new requirements for a lender to “consider” and “verify” a borrower’s income and debts and associated DTI,
along with several other underwriting requirements. Additionally, the new QM definition eliminated a path to regulatory compliance that
was available for originating loans that were eligible to be sold to