Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 772

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 772
---
ortgage
loans sold to investors by the Company, and which met investor underwriting guidelines at the time of sale, may be subject to repurchase
in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company may, upon
mutual agreement, indemnify the investor against future losses on such loans. Additionally, reserves are established for estimated liabilities
from the need to repay, where applicable, a portion of the premium received from investors on the sale of certain mortgage loans if such
loans are repaid in their entirety within a specified period after the sale of the loans. The Company has established a reserve for potential
losses related to these representations and warranties. In assessing the adequacy of the reserve, management evaluates various factors
including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends
and conditions in the industry. Actual losses incurred are reflected as write-offs against the loan indemnification reserve.

Since
mortgage loans held for sale have maturity dates greater than one year from the balance sheet date but are expected to be sold in a short
time frame (less than one year), they are recorded as current assets.

Changes
in the balance of mortgage loans held for sale are included in cash flows from operating activities in the consolidated statements of
cash flows in accordance with ASC 230-10-45-21, Statement of Cash Flows.

Revenue
recognition

Gains
on Sale of Loans, Net

See
discussion above under “Mortgage Loans Held for Sale and Gain on Sale of Loans Revenue Recognition” and below under “Derivative
Financial Instruments and Revenue Recognition”.

Title
Fees

Commissions
earned at loan settlement on insurance premiums paid to title insurance companies.

Loan
Origination Fees and Costs

Loan
origination fees represent revenue earned from originating mortgage loans. Loan origination fees generally represent flat per-loan fee
amounts based on a percentage of the original principal loan balance and are recognized as revenue at the time the mortgage loans are
funded since the loans are held for sale. Loan origination costs are charged to operations as incurred.

Interest
Income

Interest
income on mortgage loans held for sale is recognized for the period from loan funding to sale based upon the principal balance outstanding
and contractual interest rates. Revenue recognition is discontinued when loans become 90 days delinquent, or when, in management’s
opinion, the recovery of principal and interest