Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 3

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 3
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 (“GSEs”)
that back a majority of mortgages in the U.S. (“QM loans”). In this instance, Beeline will re-route the borrower to a non-traditional
mortgage process offering solutions not offered by larger lending institutions. Combining QM loans and Non-QM loans through a single streamlined
platform available any time provides strong differentiation and provides additional options for Beeline’s customers.

As the real estate industry has evolved, Non-QM loans
have become more popular, relying on a different set of underwriting criteria which are more suited to borrowers whose situations do not
line up with more stringent guidelines created for and based on the previous generations and less flexible economy. Beeline is one of
the few direct-to-consumer digital mortgage lenders that offer both QM loans and Non-QM loans from a single platform, allowing Beeline
to better serve the 100 million Millennials and Gen Z quickly emerging as home buyers and currently representing approximately 60% of
the home purchase market. In 2024, 25% of Beeline’s loan originations were home purchases, and 75% were refinance transactions.

As described elsewhere in this section, Beeline’s
business is multi-faceted, and Beeline can serve multiple roles in the home lending process. In addition to the lending operation, Beeline
also has two title agencies in its umbrella. One title agency is wholly owned and the other title agency is a joint venture with an asset
manager in which Beeline holds 50.9% of the ownership. Beeline also has a minority investment in a subsidiary focused on the development
of artificial intelligence (“AI”) that Beeline’s lending operation leverages in text chat on its website.

Beeline breaks down the legacy role-based mortgage
process into tasks for faster processing. Beeline has built automation to satisfy underwriting conditions in the loan file in real time.
This expedites the time to close while minimizing headcount and expense for Beeline. Beeline expects that its technology and systems will
continue to evolve, which will permit growth over the next three to five years. However, there are no assurances that Beeline will grow
during this period.

Beeline generates its leads exclusively online relying
heavily on Google advertising, which generated over 49% of its leads in 2024. One other source accounted for more than 10% of Beeline’s
leads. Its marketing processes and strategies are further described under “Marketing” below.

Beeline’s