Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 9

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 9
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 faster, more efficient mortgage processes. Key trends include the adoption of AI and machine learning
for underwriting, online document management, and personalized loan options.

The market for online mortgage lending is substantial,
with projections suggesting continuous growth due to convenience, cost-efficiency, and customer demand for transparency and lower fees.

Beeline’s key online competitors are:

    ●
    Rocket Mortgage: The largest digital mortgage lender in the U.S., known for its streamlined application process and fast approvals. Its online platform is user-friendly, and it offers competitive rates. Rocket Mortgage leverages AI to enhance customer experience and predict borrower needs.

    ●
    Better Home and Finance: Differentiates with its digital-first experience and AI-driven recommendations. It emphasizes transparency and customer support, with a streamlined, all-digital process.

8

    ●
    SoFi: Targets a younger demographic, particularly first-time homebuyers. SoFi combines mortgage products with personal finance management tools. It emphasizes low fees and offers a diverse array of financial services and non-mortgage loan products.

    ●
    LoanDepot: Strong presence in both direct-to-consumer and retail channels, with its proprietary technology called mello®. LoanDepot aims to combine human assistance with technology-driven processes to cater to diverse customer needs.

However, as of the date of this Report, Beeline does
not believe that the above competitors provide Non-QM loans in any material way. Beeline believes the combination of its mortgage product
offerings and its focus on a digital first experience, provides it with a competitive advantage.

On the other hand, certain of Beeline’s competitors
have greater resources and brand recognition than Beeline or otherwise pose a competitive threat to our business. See Item 1A “Risk
Factors” for risks related to the competition Beeline faces in its industry.

Strategy for success

Beeline’s strategy is focused on developing
and leveraging excellent technology to enable better scale at a reduced cost while delivering an exceptional customer experience. This
is being done through AI, automation and task-based workflows. The industry cost to originate a mortgage is approximately $9,000 to $13,000.
Beeline’s goal is to reduce that to below $6,000.

Additionally, Beeline’s strategy includes the
ability to keep the consumer in the Beeline ecosystem - keeping that customer for the title work and escrow/settlement services. This
increases Beeline’s revenue per file by an average of $1,700 and spreads customer acquisition costs over multiple revenue