Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 187

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 187
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 with such laws
and regulations, we cannot assure you that such policies are perfect or will guarantee full compliance. Any failure in our current compliance
and risk management policies may subject us to regulatory or legal proceedings and financial penalties, which may negatively impact us
and our financial condition and results of operations and divert our management’s attention from its business. Further, the legal
and regulatory scheme is always subject to change, and we may be unable to timely comply with new laws and regulations applicable to our
business.

Our mortgage business faces
intense competition that could materially and adversely affect it if it cannot adequately address competitive challenges.

Competition in the mortgage lending
industry is intense and is dominated by major national and regional banks as well as local banks and large non-depository lending institutions.
In addition, the mortgage and other consumer lending business is highly fragmented and dominated by legacy players. Some of Beeline’s
competitors have better name recognition and greater financial and other resources than it does (including access to capital). Other competitors,
such as correspondent lenders who produce loans using their own funds, may have more operational flexibility in approving loans. Commercial
banks and savings institutions may also have significantly greater access to potential customers, given their deposit-taking and other
banking functions and locations near potential borrowers.

Also, some of these competitors
are less reliant than we are on the sale of mortgage loans into the secondary markets to maintain their liquidity and may be able to participate
in government programs that Beeline is unable to participate, all of which may place us at a competitive disadvantage. Additionally, Beeline
operates at a competitive disadvantage when compared to U.S. federal banks and thrifts and their subsidiaries because, such other industry
participants enjoy federal preemption from compliance with state law and, as a result, conduct their business under relatively uniform
U.S. federal rules and standards and are generally not subject to the mortgage-related laws of the states in which they do business. Unlike
its federally chartered competitors, Beeline is generally subject to all state and local laws applicable to lenders in each jurisdiction
in which it operates, and such regulatory changes may increase Beeline’s costs or limit its activities, such as more restrictive
licensing, disclosure, or fee-related laws, or laws that may impose conditions to licensing that it or its personnel are unable to meet.
To compete effectively, Beeline must have a very high level of operational, technological, and managerial expertise, as well as access
to capital at a competitive cost.

Further, we compete with