Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 46

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 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
Financial is also supervised by regulatory agencies under state law. From time-to-time, Beeline Financial receives examination requests
from the states in which Beeline Financial 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 Financial’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 Financial to periodic reviews and audits. This broad and extensive supervisory and enforcement oversight will
continue to occur in the future.

Beeline
Financial 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.

18.
CONCENTRATIONS

The
Company maintains cash balances with several regional banks. The deposits are insured by the Federal Deposit Insurance Corporation
up to $250,000 per
depositor per bank. At various times throughout the year, cash balances held within these accounts may exceed the maximum insured
amounts. As of March 31, 2025, there was one account that exceeded the limit by $1.0
million. As of December 31, 2024, there was one account that exceeded the limit by $0.5
million.

The
Company relies on one lender for the warehouse line it uses to fund the mortgage loans it makes to its customers, which is limited to
a maximum of $5.0 million.

The
Company sold its mortgage loans to