Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 192

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 192
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 which may negatively
impact the effectiveness of these platforms. For instance, in 2019, the U.S. Department of Justice, entered into a settlement agreement
with Meta that required Meta to replace the software used in Facebook for housing ads, as a result of claims that the software allowed
advertisers to discriminate based on protected characteristics such as race, national origin, religion, sex, family status and disability.
As a result, platforms using similar software found it necessary to replace their advertising systems. Additionally, in the event the
CFPB takes a more stringent and aggressive interpretation of laws governing Beeline’s interaction with lead aggregators, including
RESPA, it could result in a material reduction in the availability of leads from such sources, increased costs, and increased regulatory
risk.

25

New TCPA regulations in 2025
will impact our compliance costs and subject us to new regulatory and legal risks for noncompliance

Effective January 2025, the FCC’s
new rule under the TCPA requires explicit, one-to-one consent for any form of communication involving messaging or calling between a business
and consumer. In April 2025, the FCC is imposing new text and call opt-out rules, requiring companies who utilize robocalls and robotexts
to broaden the standard terms consumers can use to revoke consent and treat natural language revocation requests beyond the standard opt-out
terms as valid opt-out requests. Further, all reasonable opt-out requests must now be complied with within a reasonable time frame, which
is generally considered as 10 business days. Both new rules may require us to modify our consent and opt-out processes and policies relating
to outreach to consumers for marketing, sales, and customer service. The failure to comply with the new TCPA rules could result in fines
between $500 to $1,500 per violation. If we fail to comply with the rules, it may be subject to legal and regulatory fines, which may
negatively impact its financial condition and results of operations.

If the United States experiences
rising mortgage interest rates, it may continue to negatively impact Beeline’s business and loan origination volumes, and the negative
impact could intensify in the future particularly if an economic downturn or recession results.

Mortgage interest rates continually
increased since 2021 until a dip in September 2024. It is difficult to predict the direction of interest rates. In 2025, there has been
a small decrease in rates which are relatively stable and under 7%.

The