Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 420

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 420
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 requirement limiting QMs
to a 43% debt-to-income ratio (“DTI”) and replaced it with pricing-based thresholds. Loans at 150 basis points or less over
the average prime offer rate (“APOR”) as of the date the interest rate is set, receive a safe harbor presumption of compliance,
while loans between 151 and 225 basis points over the APOR benefit from a rebuttable presumption of compliance. The new rule also created
new requirements for a lender to “consider” and “verify” a borrower’s income and debts and associated DTI,
along with several other underwriting requirements. Additionally, the new QM definition eliminated a path to regulatory compliance that
was available for originating loans that were eligible to be sold to GSEs, which was heavily relied upon by a large segment of the mortgage
industry. Due to the transition to the new QM definition, there may be residual compliance and legal risks associated with the implementation
of these new underwriting obligations.

The CFPB’s loan originator compensation rule
prohibits compensating loan originators based on a term of a transaction, prohibits loan originators from receiving compensation directly
from a consumer or another person in connection with the same transaction, imposes certain loan originator qualification and identification
requirements, and imposes certain loan originator compensation recordkeeping requirements, among other things.

Beeline is also supervised by regulatory agencies
under state law. From time-to-time, Beeline receives examination requests from the states in which Beeline is licensed. State attorneys
general, state mortgage licensing regulators, state insurance departments, and state and local consumer protection offices have authority
to investigate consumer complaints and to commence investigations and other formal and informal proceedings regarding Beeline’s
operations and activities. In addition, the government-sponsored enterprises, or GSEs, the Federal Housing Authority (the “FHA”),
the Federal Trade Commission (the “FTC”), and others subject Beeline to periodic reviews and audits. This broad and extensive
supervisory and enforcement oversight will continue to occur in the future.

    F-36

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Beeline maintains dedicated staff on the legal and
compliance team to ensure timely responses to regulatory examination requests and to investigate consumer complaints in accordance with
regulatory regulations and expectations.

21. CONCENTRATIONS

The Company maintains cash balances with several regional
banks. The deposits are insured by the Federal Deposit