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

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 15
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 for a character and fitness review, submit to a criminal background check, complete a minimum of 20 hours
of pre-licensing education, complete an annual minimum of eight hours of continuing education and successfully complete an examination.

In addition to applicable federal laws and regulations
governing Beeline’s operations, its ability to originate loans in any particular state is subject to that state’s laws, regulations
and licensing requirements, which may differ from the laws, regulations and licensing requirements of other states. State laws often include
fee limitations and disclosure and other requirements. Many states have adopted regulations that prohibit various forms of “predatory”
lending and place obligations on lenders to substantiate that a customer will derive a tangible benefit from the proposed home financing
transaction and/or have the ability to repay the loan. These laws have required most lenders, including Beeline, to devote considerable
resources to maintain automated systems to perform loan-by-loan analysis of points, fees and other factors set forth in the laws, which
often vary depending on the location of the mortgaged property.

Additionally, our business is subject to numerous
types of state laws that are continuously changing, including laws related to mobile-and internet-based businesses, data privacy and advertising
laws, which limit how companies can use customer data, impose obligations on companies in their management of such data, and require us
to modify our data processing practices and policies, which results in substantial costs and expenses in an effort to comply.

In particular, there are numerous U.S. federal and
state laws and regulations regarding privacy and the collection, sharing, use, processing, disclosure, and protection of personal data.
In the loan origination process, Beeline obtains substantial personal data including credit reports, tax returns, social security numbers
and income and asset sources, all of which must be kept confidential. Such laws and regulations often vary in scope, may be subject to
differing interpretations, and may be inconsistent among different jurisdictions. Following the European Union, California became the
first state to adopt a data privacy law when in June 2018 it enacted the CCPA. The CCPA requires covered companies to provide California
consumers with new disclosures and will expand the rights afforded consumers regarding their data. Fines for noncompliance may be up to
$7,500 per violation.

Since the CCPA was enacted, the U.S. has at least
20 states – which includes Colorado, Connecticut, Delaware, Indiana, Iowa, Kentucky, Maryland, Minnesota, Montana, Nebraska,