Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 185

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 185
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of similar loans available for sale; (ii) conditions in the loan securitization market or in the secondary market for loans in general
or for its loans in particular, which could make its loans less desirable to potential purchasers; (iii) defaults under loans in general;
(iv) loan-level pricing adjustments imposed by investors and Fannie Mae and Freddie Mac (together, the “GSEs”), including
adjustments for the purchase of loans in forbearance or refinancing loans; (v) the types and volume of loans being originated or sold
by Beeline; (vi) the level and volatility of interest rates; and (vii) unease in the banking industry caused by, among other things, recent
bank failures. An inability to sell or a decrease in the prices paid to Beeline upon sale of its loans and MSRs would be detrimental to
its business, as Beeline is dependent on the cash generated from such sales to fund its future loan production and repay borrowings under
its warehouse lines of credit. If Beeline lacks liquidity to continue to fund future loans, its revenues from new loan originations would
be materially and adversely affected, which in turn would materially and adversely affect its potential to achieve profitability.

Substantially all of Beeline’s
loan production and related MSRs are sold to a limited number of purchasers in the secondary market. If any of those buyers decide to
not purchase loans from Beeline going forward, it would have a materially adverse impact on Beeline’s operations and ability to
originate new loans and generate revenue.

Because Beeline relies on the
secondary mortgage market for loan sales, an economic downturn or other adverse market trends or developments could halt or limit its
ability to sell its loans and lend money to future borrowers.

Beeline’s business operations
depend on selling loans to a limited pool of purchasers in the secondary mortgage market, including secondary mortgage market participants
and investors. 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