Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 32

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 32
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. Its business model requires it to sell its loans on the secondary mortgage market to replenish its lending funding and
to help shift lending risks.

Demand in the secondary market
for home loans and Beeline’s ability to sell the loans that it produces depend on many factors that are beyond its control, including
general economic conditions and the threat of a recession, prevailing interest rates, a major war affecting the United States, the willingness
of lenders to provide funding for and purchase home loans, the risk of another pandemic like COVID-19, and changes in regulatory requirements.
Beeline’s inability to make new loans and sell the loans that it produces in the secondary market in a timely manner and on favorable
terms would materially and adversely affect its business. In particular, market fluctuations may alter the types of loans and other products
that it is able to originate and sell. For example, higher mortgage rates following the U.S. Federal Reserve’s rate hikes to combat
inflation have, and may continue to have, an adverse impact on demand for new mortgage originations because existing homebuyers are hesitant
to move or give up their current low interest rate loan in the event of a refinancing. The higher cost of home ownership adversely impacts
move-up, new homebuyers and refinancings, which trend adversely affects and may continue to adversely affect our business. In addition,
it is unclear how recent governmental actions or the threats of certain actions, such as tariffs, reductions of governmental employees
and spending, tax reform, and actions taken to address the debt ceiling and deficit, will impact the U.S. economy and the residential
real estate market. Any uncertainty or deterioration in market conditions that leads to a decrease in loan originations would likely have
an adverse effect on our operating results and financial condition. Lower loan origination volumes in the industry also generally place
downward pressure on margins, thus compounding the effect of the deteriorating market conditions. If it is not possible or economical
for Beeline to continue originating and selling its loans in the secondary mortgage market, Beeline’s business, financial condition,
and results of operations, could be materially and adversely affected. Further, volatility from changes in prevailing interest rates can
adversely affect the value of our MSR portfolio and servicing revenue and changes in the value, or inaccuracies in the estimates of their
value, could adversely affect our financial condition and liquidity.

22

Because we are required to comply
with many financial, legal, and regulatory laws and regulations, its failure to comply