Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 210

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 210
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 class certified or if Beeline is unable to successfully defend such a suit,
then TCPA damages could materially and adversely affect its business, financial condition, results of operations, and prospects. Moreover,
defense of any class action is expensive and may divert employees from their normal tasks.

If Beeline is unable to comply
with the TILA-RESPA Integrated Disclosure (the “TRID rules”), its business and operations could be materially and adversely
affected.

The CFPB implemented loan disclosure
requirements, to combine and amend certain TILA and RESPA disclosures. The TRID rules significantly changed consumer-facing disclosure
rules and added certain waiting periods to allow consumers time to shop for and consider the loan terms after receiving the required disclosures.
If Beeline fails to comply with the TRID rules, including but not limited to disclosure timing requirements and the requirements related
to disclosing fees within applicable tolerance thresholds, it may be unable to sell loans that it originates, it may be required to sell
such loans at a discount compared to other loans, or it may be subject to repurchase or indemnification demands from purchasers or insurers/guarantors
of such loans. Further, the right to rescind certain loans could be extended, Beeline could be required to issue refunds to consumers,
and it could be subject to regulatory action, penalties, or civil litigation.

35

Federal
and state lending laws regulate Beeline’s strategic relationships with third-party partnerships and vendors; a determination that
it has failed to comply with such laws could require restructuring of the relationships, result in material financial liabilities, and
expose Beeline to regulatory enforcement and litigation risk, and/or diminish the value of these relationships.

Beeline
must comply with a number of federal and state lending laws including, among others, RESPA, TILA and HMDA. Because its business relies
on strategic relationships with third parties and affiliates, it is particularly important that it comply with RESPA, which requires
lenders to make certain disclosures to mortgage loan borrowers regarding their settlement costs and affiliate relationships with
other settlement service providers, and prohibits kickbacks, referral fees, and unearned fees associated with settlement service business.
RESPA-related risk arises, for example, to the extent that certain services provided by one of Beeline’s affiliates or third-party
partners are considered to be settlement services, consumers are not able to choose whether such services are provided by the affiliate
or Beeline, and consumers are deemed to pay a charge attributable to such services, or if loans are deemed not