Beeline Financial to Sell Non-QM Lending Business for SEO
Beeline Financial Holdings, a fintech mortgage lender specializing in non-qualified mortgage (non-QM) loans, has recently merged with Eastside Distilling, signaling a strategic move to expand its services in a competitive market.
The merger, as outlined in Eastside’s recent SEC filing, marks the company’s entry into digital lending. While the specific financial details remain undisclosed, this collaboration is a notable development in the industry.
Founded in 2019, Beeline stands out by focusing on non-QM lending, which targets borrowers with unconventional income or asset profiles that might not fit traditional lending criteria. Operating in 28 states, including California, Florida, and Texas, the company’s services cover a range of residential and commercial lending operations, with non-QM loans playing a significant role in its business model.
In addition to lending, Beeline also offers title and escrow services through two title agencies—one wholly owned and another through a joint venture. Their digital platform emphasizes user-friendly interactions, incorporating artificial intelligence to aid in decision-making processes.
According to the SEC filing, Beeline earns revenue primarily from loans sold to aggregators post-closing (66%), fees from title and escrow services (20%), and origination fees (15%). Future plans include expanding revenue streams by licensing its software to other mortgage lenders in 2025 and gradually venturing into the commercial real estate market.
Notably, Beeline operates in a competitive space, contending with major players like Rocket Mortgage and Better.com, while also navigating intricate regulatory frameworks to ensure compliance with consumer financial protection laws.
The merger between Beeline and Eastside Distilling aligns with Eastside’s strategy to diversify its portfolio and enter the financial services sector. Despite Eastside’s beverage business notoriety, this acquisition represents an opportunity for the company to leverage Beeline’s expertise in non-QM lending and digital innovation, suggesting a promising union for growth and innovation.
In a statement, Eastside Distilling expressed its enthusiasm for the future, stating that the merger amplifies its presence in digital lending terrain and sets the stage for continued development and progress in the industry.
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