Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 38

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 38
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 Warrants with an exercise price of $231.20 per share. The
new Warrants have not been issued as of the date of this Report.

16.
COMMITMENTS AND CONTINGENCIES

Legal
Matters

The
Company is not currently subject to any material legal proceedings; however, it could be subject to legal proceedings and claims from
time to time in the ordinary course of its business, or legal proceedings it considered immaterial may in the future become material.
Regardless of the outcome, litigation can, among other things, be time consuming and expensive to resolve, and can divert management
resources.

Government
Regulations Affecting Mortgage Loan Origination

Beeline
Financial operates in a heavily regulated industry that is highly focused on consumer protection. The extensive regulatory framework
to which Beeline Financial is subject includes U.S. federal and state laws and regulations.

Governmental
authorities and various U.S. federal and state agencies have broad oversight and supervisory authority over all aspects of Beeline Financial’s
business.

Under
the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Consumer Financial Protection Bureau
(the “CFPB”) was established to ensure, among other things, that consumers receive clear and accurate disclosures regarding
financial products and to protect consumers from hidden fees and unfair, deceptive or abusive acts or practices. The CFPB’s jurisdiction
includes those persons producing or brokering residential mortgage loans. It also extends to Beeline Financial’s other lines of
business title insurance. The CFPB has broad supervisory and enforcement powers with regard to non-depository institutions, such as Beeline
Financial, that engage in the production and servicing of home loans.

The
following discussion should be read in conjunction with the efforts of the Trump Administration to shut down the CFPB. Presently, there
is a lower federal court order enjoining the efforts to eliminate the CFPB, although the order has been appealed.

As
part of its enforcement authority, the CFPB can order, among other things, rescission or reformation of contracts, the refund of moneys
or the return of real property, restitution, disgorgement or compensation for unjust enrichment, the payment of damages or other monetary
relief, public notifications regarding violations, remediation of practices, external compliance monitoring and civil money penalties.
The CFPB has been active in investigations and enforcement actions and has issued large civil money penalties since its inception to
parties the