How to Cancel a Solar Mosaic Loan After Its 2025 Bankruptcy — Complete Guide

Solar Mosaic was once a $15 billion solar fintech lender — the dominant financing engine behind a large portion of residential solar installations in the United States. In 2025 the company filed Chapter 11 bankruptcy. Forbright Bank acquired the $8 billion-plus servicing portfolio in a 91-day liquidation. For the hundreds of thousands of homeowners who signed Mosaic loans in 2018-2024, the bankruptcy changed the legal landscape dramatically.

If your solar loan was funded by Solar Mosaic — or if you now receive statements from Forbright Bank on what used to be a Mosaic loan — the post-bankruptcy period is the single strongest window to challenge the loan. The FTC Holder Rule, dealer fee misrepresentation, state UDAP claims, and the Minnesota Attorney General's active lawsuit (Hennepin County 27-CV-24-3558) all converge in a way that produces settlements favorable to homeowners. Stick with me. I'll walk you through exactly how the Mosaic bankruptcy creates leverage, what claims to file, and what realistic outcomes look like.

What Happened to Solar Mosaic

Solar Mosaic was founded in 2010 and grew to be one of the largest dedicated solar lenders in the United States. At its peak, Mosaic funded deals through a network of enrolled installers, using WebBank as the chartered-bank partner to provide federal preemption shield for nationwide rate exports.

By 2023-2024, Mosaic faced mounting consumer protection pressure:

• Nearly 160 CFPB complaints filed against Mosaic since 2019
• Minnesota Attorney General lawsuit (Hennepin County 27-CV-24-3558, filed March 2024) naming Mosaic as a defendant alongside GoodLeap, Sunlight Financial, and Dividend — alleging systematic undisclosed dealer fees
• Documented average dealer fees of 10-36% across Mosaic loans (CFPB August 2024 Issue Spotlight)
• The NY Attorney General's March 17, 2026 complaint against Attyx named Solar Mosaic and WebBank as co-defendants in a $275 million action
• The documented pattern of installer bankruptcies creating waterfall FTC Holder Rule exposure

Mosaic filed Chapter 11 in 2025 amid these pressures. Forbright Bank acquired the $8 billion-plus servicing portfolio in a 91-day liquidation. The transition means:

• Mosaic borrowers now receive statements from Forbright Bank
• Payment processing and customer service transferred to Forbright
• Legal liability for Mosaic-era conduct remains with the bankruptcy estate but continues to affect Forbright as the servicing successor
• The underlying loan documents still reference Mosaic as the original creditor

Why the Bankruptcy Creates Leverage

Four reasons the Mosaic bankruptcy strengthens individual borrower claims:

1. Installer bankruptcies created cascading material breach. Many Mosaic-financed installers have also filed Chapter 11 (Sunnova, SunPower, Freedom Forever, Titan Solar). When the installer cannot perform warranty and service obligations, the transaction underlying the loan has failed — creating FTC Holder Rule grounds regardless of whether Mosaic itself misbehaved.

2. The dealer fee pattern is now publicly documented. The Minnesota AG complaint, the CFPB Issue Spotlight, and the NY AG Attyx complaint all establish the specific dealer fee structure Mosaic used. Individual borrowers do not need to independently prove the pattern — it is institutionally documented. This dramatically lowers the evidentiary burden for individual claims.

3. The bankruptcy estate has limited ability to defend individual cases. Post-Chapter 11, Mosaic's legal defense resources are consumed by aggregate creditor claims and the state AG actions. Individual cases typically get routine settlements rather than contested litigation — the bankruptcy estate cannot afford to fight every case.

4. Forbright Bank has strong incentives to settle quickly. As the acquirer of the servicing portfolio, Forbright wants to stabilize the book. Litigation exposure from Mosaic-era conduct is a drag on that stabilization. Clean settlements with borrowers are strategically preferable to Forbright compared to extended disputes.

The Core Claim — Dealer Fee Misrepresentation

The single strongest claim against Mosaic (and now Forbright as servicer) is the dealer fee misrepresentation. The pattern is consistent across thousands of Mosaic loans:

1. Installer presented a "system price" of $X during the sales pitch
2. Loan documents from Mosaic showed an "Amount Financed" of $X plus 10-36% dealer fee
3. The dealer fee was baked into the loan principal but NOT disclosed as a finance charge under 15 U.S.C. § 1605
4. The disclosed APR was therefore wrong — the effective APR when the dealer fee is properly classified as a finance charge is often 10-14%, not the disclosed 1.99-2.99%

This is a TILA disclosure defect. It opens the 3-year rescission window under 15 U.S.C. § 1635 (read the TILA breakdown). It violates state UDAP statutes in every state with deceptive practices provisions. It constitutes common-law fraudulent inducement. And it is actionable against Forbright as the servicing successor under the FTC Holder Rule (read the FTC Holder Rule breakdown).

The Minnesota AG lawsuit established: GoodLeap averaged 19.32% dealer fees on 853 MN loans ($7,552 per borrower); Mosaic's average was similar, with $85.5 million in aggregate dealer fees across 2,147 Minnesota loans. Your specific loan likely contains a 10-36% undisclosed dealer fee — check using the methodology in the how-to-check-dealer-fee breakdown.

Step-by-Step: Cancel Your Mosaic Loan

Step 1: Confirm Your Loan Is (or Was) with Mosaic

Check your loan documents. If the original creditor was "Solar Mosaic," "Mosaic Solar Loans," or similar, this applies to you. If your statements now come from Forbright Bank with references to Mosaic loan numbers, you are in the same category.

Step 2: Calculate Your Dealer Fee

Pull your sales proposal and compare the system price to your loan's "Amount Financed" on the TILA disclosure. Subtract. The difference is your dealer fee. Calculate as a percentage of the system price. If it is 10% or more, you have a textbook dealer fee misrepresentation claim.

Step 3: Document Installer Issues

If your installer has filed bankruptcy, has been unresponsive to warranty claims, or has failed to deliver promised performance, document the issues. Pull monitoring data showing production shortfall. Pull records of unanswered service requests.

Step 4: Send Written Claims

Send certified mail to Forbright Bank (as Mosaic servicer) asserting:

• FTC Holder Rule claim under 16 C.F.R. § 433.2 citing the installer's misrepresentations and breach
• TILA rescission notice under 15 U.S.C. § 1635 citing the dealer fee disclosure defect (if within 3-year window)
• State UDAP claim under your state's statute (CA CLRA+UCL, TX DTPA, NJ CFA, MA 93A, etc.)
• Common-law fraudulent inducement
• Elder financial abuse if applicable

Step 5: File a CFPB Complaint

File at consumerfinance.gov. Federal lenders must respond within 60 days. The CFPB complaint creates a public record and typically produces a response within days — in contrast to certified mail that can take weeks to receive formal acknowledgment.

Step 6: Engage Counsel on Contingency

Solar exit attorneys typically work on contingency given the state UDAP fee-shifting provisions. Your out-of-pocket cost is usually zero. The attorney's fee comes from the settlement or the defendant's fee payment.

Typical Settlement Outcomes

Based on reviewed cases, Mosaic/Forbright settlements typically include one or more of these outcomes:

• Full loan cancellation — remaining principal wiped; equipment retained on roof. Most common outcome when strong dealer fee + installer bankruptcy combination exists
• Principal reduction — 40-70% reduction from remaining balance. Common when dealer fee is clearly documented but installer is still operating
• Refund of payments made during claim period — typically 6-18 months of payments returned when settlement is reached
• Credit reporting cleanup — delinquencies removed, loan reported as paid in full
• Attorney's fee payment — Forbright pays plaintiff's counsel's fees under state UDAP statutes

Total economic value of a typical settlement on a $50,000-70,000 Mosaic loan: $40,000-80,000 including loan cancellation, refunded payments, and credit value of restored score.

Timing Matters

The 90-day post-Chapter 11 window is when individual settlements get most favorable. As the bankruptcy estate and Forbright Bank stabilize their combined position, class-action frameworks may emerge that consolidate individual cases. Those class frameworks often produce worse individual outcomes than immediate action.

If you are reading this in April 2026, the window is still open but narrowing. Filing the claim now produces stronger individual outcomes than waiting for class certification.

Here Is What Actually Happens When We Take Your Case

We are not a referral mill. We review every case before we take it. If you meet the criteria — and most homeowners reading an article like this one do — here is what typically happens:

Outcome #1: Your contract gets completely canceled. You keep the system.

Read that again. That $30,000 loan, that $80,000 loan, that $150,000 loan — gone. Wiped. And the equipment on your roof? You keep it. It is yours. Hire a local electrician or solar tech to clean it up and tie it in properly, and you have got a functioning solar system for the cost of a service call.

Not a typo. That is the best-case outcome, and it is what we push for on every case we accept.

Outcome #2: Your loan gets massively reduced. Typically 40% to 60%.

Every case is different, but the pattern is consistent:

• A $150,000 loan knocked down to around $75,000
• A $70,000 loan cut to $35,000
• A $175,000 loan restructured to something you can actually live with

If we cannot completely kill the contract, we fight like hell to get the principal slashed — and we have a track record of doing it.

If we take your case and cannot deliver either outcome?

You get 40% of your fee back after we have exhausted every angle. That is our guarantee, in writing. Nobody else in this space puts that on paper. We do — because we only take cases we believe in.

The Bottom Line

Solar Mosaic's 2025 Chapter 11 and the Forbright Bank servicing acquisition created the single strongest leverage window for borrowers whose loans were funded by Mosaic. The dealer fee pattern is institutionally documented. The FTC Holder Rule routes claims against the servicer. State UDAP statutes provide enhanced damages and fee shifting. The installer bankruptcies create cascading material breach. Every element that makes a solar case winnable converges in the Mosaic fact pattern.

The question is not whether your Mosaic loan has legal defects. It almost certainly does. The question is whether you act during the window when those defects produce favorable individual settlements — or whether you wait until class frameworks consolidate the cases and produce worse individual outcomes.

The equipment on your roof works. The Mosaic loan structure that funded it was built on misrepresentations that courts, state AGs, and now bankruptcy courts have all recognized. The legal path to cancellation is well-worn. The settlement leverage is at its peak right now.

Related Reading

• 14 Legal Loopholes That Can Kill a Solar Contract
• The Hidden Dealer Fee — How Lenders Added 30% to Your Loan
• How to Check If Your Solar Loan Has a Hidden Dealer Fee
• FTC Holder Rule Explained — The Federal Law That Makes Your Lender Pay
• TILA Rescission for Solar Loans — The 3-Year Undo Button
• Which Solar Companies Are Going Bankrupt in 2026
• State UDAP Stacking — Triple Damages
• Stop Paying Your Solar Loan — What Actually Happens