Digital Mortgage Lender Improves Chatbot's AI

1. Beeline Loans Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Beeline Loans Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Digital mortgage lender Beeline Loans Inc. announced a new version of its artificial intelligence (AI) chatbot, Bob 2.0.

Bob, announced in 2023, was among the first AI bots to perform mortgage functions, the company said.

Beeline said Bob was built on an orchestrated model from a single large language model (LLM). It features "increased sophistication, faster learning, stronger communication, on-brand communication, (and) increased regulatory compliance which is more robust," the company said in a release.

Bob 2.0 is also "highly accurate in reading customer sentiment and determining next steps in the sales process, (and it is) excellent at handling objections."

With its simplified online portal and Bob's ability to quickly eligibility for loans, Beeline is increasing its engagement with young people and property investors who have been hesitant to buy property in recent years. "Get a home loan from your sofa" and apply in less than 10 minutes, the company's website says.

In September, Beeline announced it had signed a merger agreement with public company Eastside Distilling Inc. (EAST:NASDAQ), which produces award-winning craft spirits in Portland, Oregon, and operates a digital can printing business.

The deal gives Eastside access to Beeline's end-to-end artificial intelligence (AI)-enhanced platform targeting millennials, Gen Z and so-called "gig workers." Beeline gains the opportunity to create shareholder liquidity and grow its asset value as mortgage rates are expected to fall.

"It can be a power imbalance, where the 'little guy' can't access the same loans the tycoons use and can feel small up against the 500-pound mortgage lender who holds all the power — and the money," Beeline noted on its site. "So, we've opened it up to everyone, transforming a meandering home loan journey into a Beeline — using a combination of tech, old-fashioned warmth, and responsiveness."

'Still a Good Entry Point'

On January 6, Technical Analyst Clive Maund noted the combined company will have "the scale necessary to leverage the investment in a public company structure while providing growth capital to each business."

"This strategic partnership positions Eastside as a leader in the digital mortgage services space while continuing to grow its legacy craft spirits business," Maund wrote. "This development and the way the stock is shaping up on the charts are the reasons that we are looking at it now. A US$0.4 million financing announced on the 5th (of) September was announced closed the next day, having been taken up by a single institutional investor, which is viewed as a positive sign."

Maund noted that almost all of the volume for the stock since late September "has been upside volume that has driven the Accumulation line steadily higher. This is clearly bullish, especially as the buying has become more intense with passing time."

"We can also see that the 'Handle' of the Cup & Handle base ... has taken the form of a bullish Rising Triangle and with it starting to close up the price is already trying break out of it to the upside on good volume and fortunately, since it hasn’t succeeded yet, at the time of writing, we still have a good entry point."

Bob Performs Better, Costs Less

Beeline noted that while the industry converts inbound conversations to leads at about 25%, Bob is performing at 48%. Bob also converts those leads into applications at a rate of 22% vs. an industry standard at 16%, the company said.

The company also said the cost for an employee to perform Bob's services would be about US$60,000 per year on average, while Bob costs about US$2,000 per year and performs better. Much of those savings will go into lower-cost loans for consumers.

"By having Bob working on top of the funnel sales activities and early-stage conversions, Beeline Loan Guides can spend more time on qualified leads allowing Beeline to close more loans with less people," the company said.

Bob will start performing more robust processes over the next 90 days, Beeline said.

Beeline offers a variety of options, including refinancing, to consumers through its digital platform. It has built its premise on making homeownership more accessible to a wider, more diverse market, making it an attractive prospect if mortgage rates continue to fall.

'Simple, Easy to Use'

The company launched a proprietary front-end mortgage platform in 2020 and closed 1,500 mortgages by the end of 2021. Beeline said 2024 is expected to be its strongest year.  

Writing for Smart Asset, Chris Thompson reviewed the company and praised its "simple, easy-to-use online application process."

"As an online mortgage lender, everything Beeline Loans offers is accessible through your computer or smartphone," he wrote.

Robinhood revolutionized the stock-buying industry by fractionalizing stocks, and according to Thompson, "Beeline's calling card is its speedy application process."

Beeline Loans reports that its largest shareholder is founder and Chief Executive Officer Nick Liuzza. According to Beeline, it has raised US$46 million to date through the sale of equity.

Will There Be Another Housing Bust?

No matter which prediction you hold to, the coming year is expected to be an interesting year for the market. According to the 2025 Housing Forecast by Realtor.com, it could be a great time for buying and selling homes.

Property prices are set to grow by 3.7% and mortgage rates are to remain relatively steady at 6.3%, "but prospective home buyers can also expect to see an 11.7% increased inventory" of existing homes, the site predicted, according to a report by HouseBeautiful.com,

According to a report on predictions for the next five years in the real estate market by Patrick S. Duffy in U.S. News & World Report, mortgage rates will be the key.

"If they remain relatively high, transactions will be based more on households making moves due to changes in jobs, nances or household composition," Duffy wrote. "However, if mortgage rates manage to fall faster, then pent-up demand from the last few years could be unleashed with volumes returning more to historic norms. How this plays out will determine just how different the list of the hottest housing markets in 2029 may look versus 2024."

Duffy predicted that "mortgage rates will likely range from about 6% to 7% unless there is a recession, but short-term lending rates will continue falling through 2026."

However, financial author John Rubino wrote that reality has "finally bit U.S. housing" and he expects a housing bubble to burst. He cited Wolf Street's Wolf Richter, who wrote, "Unsold inventory for sale of completed new houses spiked by 57% year-over-year to 124,000 houses in November, according to Census Bureau data today (December 23), the highest since June 2009 during the depth of the Housing Bust when homebuilders, stuck with a huge pile of completed houses amid plunging demand, were trying to survive."

This surge of "completed, essentially move-in ready supply is good news for the overall housing market, though not for homebuilders, and not for homeowners that want to sell an existing property," Richter said. " These 'spec houses' will need to be sold quickly because builders have sunk a lot of capital into them, and because builders are continuing to build at a faster clip than they’re selling them — though they’re selling them at a pretty good clip — thereby adding to the pile on a monthly basis."