Company: BLNE
Filing Date: 2025-01-08
Form Type: S-1/A
Source: 0001493152-25-001415
Chunk: 67

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-08
Form: S-1/A
Chunk 67
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24/7 basis. Beeline recently upgraded Bob and since this upgrade, Bob converts   
 conversations into applications at a rate six times more accurate than its human loan officers,   
 who Beeline refers to as “Loan Guides”. Beeline plans for Bob to soon start voice                 
 campaigns for generating sales activities and enhancing customer service. By the end of the       
 first quarter of 2025, Bob is expected to start processing files. It will then process some       
 underwriting functions by the end of the third quarter of 2025. A certain level of human          
 interaction and involvement is needed for the mortgage process, therefore Bob will always         
 work in an environment that leverages AI abilities and humans when needed.                        |
| ● | License                                                                                           
 for software: Beeline licenses the loan origination software and customer relationship management 
 platform from third party vendors.                                                                |

Competition

Banks and other savings institutions have historicallydominate dthe mortgage lending business. Their competitive advantages are financial strength, which includes the availability of capital to fund loans, management and employee skills, experience and availability, the ability to use their financial strength to leverage compliance costs and local visibility. Because of policy changes and shifts in the marketplace, nonbank mortgage lenders have come back in force. By 2016, nonbank mortgage origination for the first time surpassed that of banks. The rapid rise of the nonbank mortgage lenders could have been possible only with the assistance of federal subsidies. In the decade from 2010 to 2020, nonbanks effectively doubled their market share of Fannie, Freddie, and FHA lending. In market segments not dominated by government lenders, such as the jumbo mortgage market, banks continued their dominance.

Digital direct-to-consumer mortgage lending has grown rapidly, especially post-COVID, as the trend toward remote communication and digitization of the economy accelerated. As a result, many younger consumers demand a faster, more efficient mortgage processes. Key trends include the adoption of AI and machine learning for underwriting, online document management, and personalized loan options.

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The market for online mortgage lending is substantial, with projections suggesting continuous growth due to convenience, cost-efficiency, and customer demand for transparency and lower fees.

Beeline’s key online competitors are:

| ● | Rocket                                                                                            
 Mortgage: The largest digital mortgage lender in the U.S., known for its streamlined application  
 process and fast approvals. Its online platform is user-friendly, and it offers competitive       
 rates. Rocket Mortgage leverages AI to enhance customer experience and predict