Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 34

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 34
---
 Unlike
its federally chartered competitors, Beeline is generally subject to all state and local laws applicable to lenders in each jurisdiction
in which it operates, and such regulatory changes may increase Beeline’s costs or limit its activities, such as more restrictive
licensing, disclosure, or fee-related laws, or laws that may impose conditions to licensing that it or its personnel are unable to meet.
To compete effectively, Beeline must have a very high level of operational, technological, and managerial expertise, as well as access
to capital at a competitive cost.

Further, we compete with other
mortgage originators and other businesses across the broader real estate and mortgage industry for those consumers that consider obtaining
loans online or non-conforming loans. Digitally native home buying technology platforms are increasingly moving into the loan production
space. Such online mortgage originators, and digitally native entrants primarily compete on name recognition, price and on the speed of
the loan application, underwriting and approval process, and any increase in these competitive pressures could materially and adversely
affect our business, including as a result of higher performance marketing and advertising spend due to greater demand for customer leads.

Competition in our industry can
take many forms, including the variety of loan programs being made available, interest rates and fees charged for a loan, convenience
in obtaining a loan, customer service levels, the amount and term of a loan and marketing and distribution channels. Fluctuations in interest
rates and general economic conditions may also materially and adversely affect our competitive position. During periods of rising rates,
competitors that have locked in low borrowing costs may have a competitive advantage. Furthermore, a cyclical decline in the industry’s
overall level of loan producers, or decreased demand for loans due to a higher interest rate environment or a housing market or general
economic downturn, may lead to increased competition for the remaining loans. Additionally, more restrictive loan underwriting standards
have resulted in a more homogenous product offering, which has increased competition across the mortgage loan industry for loan originations.
Furthermore, our existing and potential competitors may decide to modify their business models to compete more directly with our loan
origination models. Post COVID-19, many banks and depository institutions withdrew from mortgage origination, leaving large non-depository
mortgage lenders with greater access to market share. In addition, technological advances and heightened e-commerce activities have increased
consumers’ accessibility to products and services. This has intensified competition among banks and non-banks in offering mortgage
loans