Merger aims to expand company’s services in a competitive market
Beeline Financial Holdings, a fintech mortgage lender specializing in non-qualified mortgage (non-QM) loans, has announced its merger with Eastside Distilling.
The acquisition, detailed in Eastside’s recent SEC filing, represents its move into digital lending. Financial details of the merger were not disclosed.
Beeline, founded in 2019, focuses on non-QM lending, catering to borrowers with unconventional income or asset profiles that may not meet traditional lending requirements. The company is licensed in 28 states (including California, Florida, and Texas) and its operations span residential and a smaller share of commercial lending. Non-QM loans make up a significant portion of its business.
Beyond lending, Beeline offers title and escrow services through two title agencies—one wholly owned and one part of a joint venture. The company’s digital-first platform also incorporates artificial intelligence to streamline borrower interactions and decision-making.
According to the SEC filing, Beeline generates revenue through loans sold to aggregators after closing (66%), fees from title and escrow services (20%), and origination fees (15%).
The company plans to expand its revenue streams by licensing its proprietary software to other mortgage lenders starting in 2025. The company also anticipates gradual expansion into the commercial real estate market.
Despite its strengths, Beeline operates in a competitive landscape dominated by established players like Rocket Mortgage and Better.com. It also faces regulatory complexities as it navigates consumer financial protection laws and compliance requirements.
The merger has aligned with Eastside Distilling’s broader strategy to diversify its portfolio and enter the financial services sector. While Eastside is best known for its beverage business, the company said the acquisition was an opportunity to diversify its portfolio and capitalize on Beeline’s expertise in non-QM lending and digital innovation.
Read next: Diversify or miss out: Why mortgage pros need to embrace non-QM loans now
“Eastside Distilling’s acquisition of Beeline underscores its strategic vision to diversify its financial services and harness Beeline’s expertise in the mortgage industry,” the company said in a statement. “The merger elevates Eastside Distilling’s presence in the digital lending landscape and positions the company for continued growth and innovation.”
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