Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 115

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 in a heavily regulated industry that is highly focused on consumer protection. The extensive regulatory framework
to which Beeline Financial is subject includes U.S. federal and state laws and regulations.

Governmental
authorities and various U.S. federal and state agencies have broad oversight and supervisory authority over all aspects of Beeline Financial’s
business.

Under
the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Consumer Financial Protection Bureau
(the “CFPB”) was established to ensure, among other things, that consumers receive clear and accurate disclosures regarding
financial products and to 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 Financial’s other lines of
business title insurance. The CFPB has broad supervisory and enforcement powers with regard to non-depository institutions, such as Beeline
Financial, that engage in the production and servicing of home loans.

The
following discussion should be read in conjunction with the efforts of the Trump Administration to shut down the CFPB. Presently, there
is a lower federal court order enjoining the efforts to eliminate the CFPB, although the order has been appealed.

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.

    28

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

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