It is a common thing that if you have some login that creates the
title element content to finish with several new lines in it. For example:
<title> Title | Category | My Site Name </title>
Does this has some semantic falls? Is it bad for SEO?
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No, it won't affect your SEO, Amit is right: Google ignores whitespace as many designers are not aware of structuring HTML, Google understands the fact well, but - maybe in future it will.
What I would like to ask you is why you are going to do that. I don't think you are going to be benefited in any aspect by doing so.
No, though if it's doing something like this throughout the code it could create a small amount of drag because of the extra whitespace. You may want to investigate minifying your code.