Beeline is well-positioned with its AI
platform in an improving mortgage market
Beeline is addressing the Mortgage Needs of
100M Millennials and Gen Z
PORTLAND, Ore. and PROVIDENCE, R.I., Nov. 6, 2024
/PRNewswire/ -- Eastside Distilling, Inc. ("Eastside") (Nasdaq: EAST) today announced that
the recent merger between Eastside Distilling and Beeline is
proving to be beneficial for both companies. For Eastside, its shareholders are now also
invested in an emerging AI-driven mortgage platform designed for
rapid growth in an industry expected to expand in 2025. Beeline
shareholders gain access to a public market for their
investment.
Beeline is a direct-to-consumer mortgage origination and
technology company providing mortgages to homeowners and investors
seeking an easier path through a digital platform. It processes
applications and answers questions for mortgage borrowers 24/7 for
both conventional and non-qualified mortgages. Most of the
top 50 lenders will deny a borrower if they cannot qualify for a
conventional mortgage. Beeline, however, offers non-qualified
mortgages. The underwriting for these loans is often more suited to
consumers who earn income in the gig economy or who are
self-employed. Beeline's platform was built for
digital-first consumers - making it the perfect fit for Millennials
and Gen Z. According to Maxwell, nearly 60% of all mortgages
generated in 2023 were from Millennials and Gen Z. Combined this
class makes up about 100M
consumers.
According to Nick Liuzza, CEO of
Beeline, "There is no doubt our team saw the opportunity to address
the mortgage needs of a large emerging audience who grew up with
mobile devices and the ability to obtain real-time certainty and
transact any time of the day. Our platform, brand, and
processes were designed for these generations and many of the
platforms out there are not consistently meeting the needs of
Millennials and Gen Z. We are excited to serve these
important consumers in a more material way in 2025."
Beeline was the first mortgage lender to introduce its AI Chabot
named "Bob" in June of 2023. "Bob" is currently performing six
times better in converting a lead from an initial chat conversation
to a completed loan application than its human counterparts. The
cost to operate Bob is 90% less than the associated payroll to
perform these functions. Bob has his own brain - he speaks in
alignment with Beeline's brand while logically sequencing
sophisticated conversations. Unlike other AI chat bots, he is not
tied to a set of responses - making him truly unique in his
approach.
The Mortgage industry has experienced tough times since early
2021 when rates rose quickly and those conditions persisted through
the first half of 2024. Many large lenders saw their revenues
drop 70-90% from 2021 to 2023. Through all of this, Beeline was
building its AI platforms and incurring financial losses
intentionally. Beeline knew that when the market normalized
it would be ready to capitalize with a modern solution for
Millennials and Gen Z. This decision laid the foundation for an
opportunity for Beeline and Eastside Distilling shareholders.
The Mortgage Bankers Association released projections that the
mortgage market should grow to $2.6
trillion in 2025, which is a 28% increase over 2024.
Beeline is still small, especially when compared to legacy,
well-established lenders but its technology and platform are
compelling and the timing of this merger aligns very well with
current market demand and dynamics.
About Eastside Distilling, Inc.
Eastside Distilling,
Inc. (Nasdaq: EAST) is a producer of award-winning craft spirits,
including whiskey, vodka, and rum. Founded in Portland, Oregon, Eastside is committed to quality, innovation,
and sustainability, delivering exceptional products that reflect
the spirit of the Pacific Northwest.
About Beeline Financial Holdings, Inc.
Beeline
Financial Holdings, Inc. is a technology-driven mortgage lender
offering a fully digital, AI-enhanced, platform that simplifies and
accelerates the home financing process for homeowners and property
investors. Based in Providence,
RI, Beeline is dedicated to transforming the mortgage
industry through innovative technology and customer-centric
solutions.
Important Cautions Regarding Forward-Looking
Statements
Certain matters discussed in this press release may be
forward-looking statements that reflect our expectations or
anticipations rather than historical fact. Such matters involve
risks and uncertainties that may cause actual results to differ
materially, including the following: changes in economic
conditions, general competitive factors, the Company's ongoing
financing requirements and ability to achieve financing, acceptance
of the Company's products in the market, the Company's success in
obtaining new customers, the Company's ability to execute its
business model and strategic plans, and other risks and related
information described from time to time in the Company's filings
with the Securities and Exchange Commission ("SEC"). A detailed
discussion of the most significant risks can be found in the "Risk
Factors" section of the Company's Annual Report on Form 10-K. The
Company assumes no obligation to update the cautionary information
in this press release.
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SOURCE Eastside Distilling, Inc.