Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 186

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 186
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 inability to make new loans and sell the loans that it produces in the secondary market in a timely manner and on favorable
terms would materially and adversely affect its business. In particular, market fluctuations may alter the types of loans and other products
that it is able to originate and sell. For example, higher mortgage rates following the U.S. Federal Reserve’s rate hikes to combat
inflation have, and may continue to have, an adverse impact on demand for new mortgage originations because existing homebuyers are hesitant
to move or give up their current low interest rate loan in the event of a refinancing. The higher cost of home ownership adversely impacts
move-up, new homebuyers and refinancings, which trend adversely affects and may continue to adversely affect our business. In addition,
it is unclear how recent governmental actions or the threats of certain actions, such as tariffs, reductions of governmental employees
and spending, tax reform, and actions taken to address the debt ceiling and deficit, will impact the U.S. economy and the residential
real estate market. Any uncertainty or deterioration in market conditions that leads to a decrease in loan originations would likely have
an adverse effect on our operating results and financial condition. Lower loan origination volumes in the industry also generally place
downward pressure on margins, thus compounding the effect of the deteriorating market conditions. If it is not possible or economical
for Beeline to continue originating and selling its loans in the secondary mortgage market, Beeline’s business, financial condition,
and results of operations, could be materially and adversely affected. Further, volatility from changes in prevailing interest rates can
adversely affect the value of our MSR portfolio and servicing revenue and changes in the value, or inaccuracies in the estimates of their
value, could adversely affect our financial condition and liquidity.

22

Because we are required to comply
with many financial, legal, and regulatory laws and regulations, its failure to comply with all of the applicable laws and regulations
could result in large fines, suspensions of its licenses to make loans in one or more states and could otherwise have a material adverse
effect on Beeline.

Beeline’s business operations
require it to comply with numerous state and federal laws and regulations applicable to the mortgage loan industry. See “Business-Government
Regulations Affecting Beeline” earlier in this Report for a description of certain of the laws and regulations to which Beeline
and its operations are subject. While we currently have compliance and risk management policies for maintaining compliance