Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 133

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 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.

    31

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

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.

17.
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 September 30, 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 relied on one lender for the warehouse line it uses to fund the mortgage loans it makes to its customers, which was limited to
a maximum of $5.0 million, see Note 10 – Warehouse Line of Credit. In October 2025, the Company expanded its warehouse lines
to $25.0 million