Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 193

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 193
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 effect of the increased mortgage
rates was to reduce loan volume, margins, revenue, and profitability in the mortgage origination industry, including in our business.
Following the September decrease, Beeline experienced its best origination month in terms of units closed since March of 2022 and best
origination month in terms of volume since October 2021. While some industry participants are predicting that interest rates could decline
further in 2025, such predictions could prove to be incorrect, and in any case offer no assurance of returning to pre-2021 loan origination
volumes. An increase in interest rates may cause a reduction in demand for our offerings and/or increased delinquency default and foreclosure,
which may adversely affect our business by increasing our expenses and reducing the number of mortgage service fees that are collected.
Furthermore, interest rates depend on action taken by the Federal Reserve, which in turn depends on the current state of inflation and
the U.S. economy. The recent impositions of tariffs by the U.S. and any retaliatory actions by foreign countries could contribute to higher
inflation and reduced economic activity for a prolonged period of time, thereby delaying any rate reductions or potentially resulting
in rate increases in the future, as well as reduced demand for mortgages. If mortgage interest rates rise, fewer individuals may pursue
home ownership or refinance, and the decreased profitability and loan originations will negatively impact Beeline’s business operations,
operating results and financial condition.

In addition, higher interest rates
come with an increased probability for an economic downturn or recession by making it more difficult for businesses to borrow money and
individuals to maintain employment. Contributing further to an increased probability for a recession or economic downturn in the U.S.
in the near term are recent and threatened tariffs, trade wars, geopolitical conflicts, increased unemployment including due to widescale
layoffs and staff reductions in the federal government, and volatility and declines in the stock market, any or all of which could cause
the U.S. economy to experience a significant decline including a reduction in consumer sentiment and spending. Future economic downturns
and recessions may negatively impact the real estate market and the demand for our services, which in turn would have a material adverse
effect on its business and operating results. Because of the high purchase prices for homes relative to other items that may be purchased
in the market, the real estate market tends to be particularly hard hit during economic downturns or recessions, and we cannot predict
the impact such an event could have