Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 208

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 208
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 Beeline.

As federal and state laws evolve,
it may be more difficult for Beeline to identify legal and regulatory developments comprehensively, to interpret changes accurately, and
to train its team members effectively with respect to these laws and regulations. Adding to these difficulties, laws may conflict with
each other and, if Beeline complies with the laws of one jurisdiction, it may find that it is violating the laws of another jurisdiction.
These difficulties potentially increase its exposure to the risks of noncompliance with these laws and regulations, which could materially
and adversely affect Beeline’s business. In addition, Beeline’s failure to comply with these laws and regulations may result
in reduced payments by customers, modification of the original terms of loans, permanent forgiveness of debt, delays or defenses in the
foreclosure process, increased servicing advances, litigation, enforcement actions and repurchase and indemnification obligations, as
well as potential allegations that such compliance failures demonstrate weaknesses in its compliance systems. A failure to adequately
supervise Beeline’s service providers and vendors, including outside foreclosure counsel, may also have a material adverse effect.

The laws and regulations applicable
to Beeline are subject to administrative or judicial interpretation, but some of these laws and regulations have been recently enacted
and may not be interpreted yet or may be interpreted infrequently or inconsistently. Ambiguities in applicable laws and regulations may
leave uncertainty with respect to permitted or restricted conduct and may make compliance with laws and risk assessment decisions with
respect to compliance with laws difficult and uncertain. In addition, ambiguities make it difficult, in certain circumstances, to determine
if, and how, compliance violations may be cured. The adoption by industry participants of different interpretations of these laws and
regulations has added uncertainty and complexity to compliance. Beeline may fail to comply with applicable statutes and regulations even
if acting in good faith, due to a lack of clarity regarding the interpretation of such laws and regulations, which may lead to regulatory
investigations, governmental enforcement actions or private causes of action with respect to Beeline’s compliance.

34

To resolve issues raised in examinations
or other governmental actions, Beeline may be required to take various corrective actions, including changing certain business practices,
making refunds or taking other actions that could be financially or competitively detrimental to its. In addition, certain legislative
actions and judicial decisions could give rise to the initiation of lawsuits against it for activities it conducted in the past. Furthermore,
provisions in Beeline’s mortgage loan and other loan product documentation