Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1157

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1157
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 2024, this case was settled for $0.3 million that was subsequently paid in September 2024.

    F-35

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

The Company is not currently subject to any other
material legal proceedings; however, it could be subject to legal proceedings and claims from time to time in the ordinary course of its
business, or legal proceedings it considered immaterial may in the future become material. Regardless of the outcome, litigation can,
among other things, be time consuming and expensive to resolve, and can divert management resources.

Government Regulations Affecting Mortgage Loan
Origination

Beeline operates in a heavily regulated industry that
is highly focused on consumer protection. The extensive regulatory framework to which Beeline 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’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’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 CFP