The Solar Mosaic lawsuit picture has two layers: state attorneys general and individual homeowners sued the company over hidden “dealer fees” and deceptive solar loan practices, and in June 2025 Mosaic filed for Chapter 11 bankruptcy in the Southern District of Texas. The bankruptcy did not erase existing loans. Servicing was transferred to Solar Servicing LLC, a subsidiary of Forbright Bank, and homeowners with legal claims against Mosaic for conduct before June 6, 2025, had to file proofs of claim through the bankruptcy court rather than sue the company directly.1Forbright Bank. Solar Mosaic’s Loan Servicing Operations Transition to Solar Servicing2Kroll Restructuring Administration. Mosaic
What the Lawsuits Alleged
The central allegation against Mosaic was that its loans carried a large upfront charge, called a “dealer fee,” that was folded into the loan principal without clear disclosure to the borrower. The fee typically ran 10% to 30% of the system’s cash price, and the homeowner paid interest on that inflated balance over the life of the loan.3Star Tribune. Minnesota Homeowners Say They Were Hit With Massive Hidden Fees When Going Solar In Minnesota, the average dealer fee between 2019 and 2023 was 17.6% of the loan, roughly $5,843 per borrower.4PV Magazine USA. Minnesota Sues GoodLeap, Sunlight, Mosaic and Dividend Over Dealer Fees The Consumer Financial Protection Bureau, in an August 2024 report, found that dealer fees were often excluded from the cost-of-credit disclosures required by the Truth in Lending Act.5Consumer Financial Protection Bureau. Solar Financing Market Issue Spotlight
A second complaint involved the loan payment structure. Many Mosaic loans were built around a large principal prepayment, usually about 30% of the balance, expected around month 18. Homeowners were told the federal solar tax credit would fund that payment. But the 30% federal Investment Tax Credit is non-refundable: it only offsets tax you already owe. Homeowners with low tax bills got little or no benefit and were then hit with sharply higher monthly payments they had not planned for.5Consumer Financial Protection Bureau. Solar Financing Market Issue Spotlight
Mosaic denied wrongdoing. It called the dealer-fee allegations a “mischaracterization” of a standard industry practice used to buy down interest rates, and said installers, not the lender, handled disclosures to consumers.6ElevenFlo. Mosaic Sustainable Finance Bankruptcy3Star Tribune. Minnesota Homeowners Say They Were Hit With Massive Hidden Fees When Going Solar
State Attorney General Cases
Minnesota Attorney General Keith Ellison sued Mosaic on March 8, 2024, along with GoodLeap, Sunlight Financial, and Dividend Solar Finance, in Hennepin County court. The complaint alleged the four lenders had collectively charged Minnesota consumers $35 million in hidden fees on about 5,000 loans since 2017. Mosaic’s share was at least $12.67 million charged to 2,147 Minnesota consumers.7Minnesota Attorney General. Solar Lending4PV Magazine USA. Minnesota Sues GoodLeap, Sunlight, Mosaic and Dividend Over Dealer Fees The case was removed to federal court and briefly consolidated into a multidistrict litigation proceeding, but in January 2025 a federal judge remanded the Minnesota case back to state court after the state dropped the federal usury claim.8GovInfo. State of Minnesota v. GoodLeap LLC, Remand Order
The Tennessee and Kentucky attorneys general jointly sued installer Solar Titan USA, its owners, and Solar Mosaic, alleging violations of the Consumer Financial Protection Act, the Tennessee Consumer Protection Act, and other laws. In February 2023, a federal judge issued a temporary restraining order against Solar Titan, froze its assets, and installed a court-appointed receiver.9Tennessee Attorney General. Attorney General News Release The Tennessee AG’s office continues to route Mosaic complaints into that litigation.10Tennessee Attorney General. Mosaic Consumer Information
Homeowner Suits and Federal Complaints
Individual homeowners also sued. In September 2024, the Legal Aid Society filed a federal lawsuit for Claver Campbell, a Queens homeowner, against installer SUNco and Solar Mosaic. The suit alleged Campbell’s e-signature was forged on loan contracts and that she was steered into a 25-year, $160,000 loan carrying $536 monthly payments, and that Mosaic placed a lien on her home. The case was stayed after Mosaic’s bankruptcy and dismissed by stipulation in April 2026.11New York Focus. New York Solar Panels Electric Bill12CourtListener. Campbell v. Solar Mosaic LLC
A group of California homeowners sued Mosaic in April 2024 over roughly $3 million in home improvement costs, and the CFPB had logged more than 300 complaints against the company since 2019, most involving incomplete installations, non-functional systems, or unexpected loan obligations.11New York Focus. New York Solar Panels Electric Bill
California DFPI Enforcement
California’s Department of Financial Protection and Innovation issued an initial Desist and Refrain Order against Mosaic in September 2024, then withdrew it in October 2024. On April 4, 2026, the DFPI issued a new Desist and Refrain Order along with a Notice of Intention, meaning California regulatory action continued after the bankruptcy.13California DFPI. Solar Mosaic LLC
The Chapter 11 Filing and Sale to Forbright
Mosaic Sustainable Finance Corporation and certain subsidiaries filed for Chapter 11 on June 6, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas (Case No. 25-90156). The company listed assets and liabilities in the $1 billion to $10 billion range and lined up $45 million in debtor-in-possession financing, $15 million of it new money.14Bloomberg Tax. Solar Mosaic Plans Bankruptcy Filing as Clean Energy Woes Mount Mosaic had paused lending in May 2025, delaying milestone payments to installers, before formally filing.15PV Magazine USA. Bankrupt Residential Solar Loan Provider Mosaic Is Acquired
The proceeding moved quickly. The court confirmed the Fourth Amended Joint Chapter 11 Plan of Liquidation on September 5, 2025, 91 days after the petition. The plan went effective on September 22, 2025. Rather than reorganize, Mosaic wound down its loan origination business. Forbright Bank, which had held the role of administrative agent for about $113.6 million in prepetition secured debt, controlled the outcome, and its subsidiary Solar Servicing LLC acquired Mosaic’s roughly $8 billion servicing portfolio.16Davis Polk. Solar Mosaic Emerges From Chapter 111Forbright Bank. Solar Mosaic’s Loan Servicing Operations Transition to Solar Servicing
Market conditions helped push the company under: a 31% contraction in the residential solar market in 2024, higher interest rates, and the One Big Beautiful Bill Act signed on July 4, 2025, which terminated the 30% federal residential clean energy tax credit under Section 25D effective December 31, 2025.6ElevenFlo. Mosaic Sustainable Finance Bankruptcy17SEIA. Clean Energy Provisions Big Beautiful Bill
What It Means for Your Mosaic Loan
If you have a Mosaic loan, you still owe it. Payment terms and schedules did not change through the bankruptcy. What changed is who collects: borrowers now pay Solar Servicing LLC instead of Mosaic. Solar Servicing does not originate new loans, and a dedicated pipeline team was kept on to handle projects that were only partially funded when Mosaic filed.1Forbright Bank. Solar Mosaic’s Loan Servicing Operations Transition to Solar Servicing18Solar Servicing LLC. Corp Info FAQs15PV Magazine USA. Bankrupt Residential Solar Loan Provider Mosaic Is Acquired
If you believe Mosaic wronged you, whether through a hidden dealer fee, a forged signature, a misrepresented tax credit, or a non-functional system installed by a Mosaic-financed contractor, the path is not a direct lawsuit against the company. Obligations arising before June 6, 2025, run through the bankruptcy court. Homeowners were required to file a proof of claim with Kroll, the court-appointed claims agent. The general claims bar date was October 16, 2025, and the governmental bar date was December 3, 2025.2Kroll Restructuring Administration. Mosaic18Solar Servicing LLC. Corp Info FAQs If you missed those deadlines, talk to a consumer attorney about whether late-filed claims or claims against other parties (an installer, a co-lender bank like Truist or WebBank) remain available in your state.19Consumer Financial Protection Bureau. Issue Spotlight Solar Financing
Where Cases Stand Now
The bankruptcy plan has been consummated, but the docket is still busy. As of mid-2026, numerous adversary proceedings brought by individual borrowers remain pending, along with a case brought by the reorganized entities against a borrower (Mosaic v. Hodges). Motions for relief from the automatic stay, often filed by mortgage servicers seeking to clarify collateral rights against homes with Mosaic liens, have been scheduled through the first half of 2026.2Kroll Restructuring Administration. Mosaic
Outside the bankruptcy court, the Minnesota AG’s case, now back in state court, remains active against the remaining lending defendants.8GovInfo. State of Minnesota v. GoodLeap LLC, Remand Order The Tennessee AG’s litigation against Solar Titan and Mosaic is still pending.10Tennessee Attorney General. Mosaic Consumer Information California’s DFPI order issued in April 2026 signals that state regulators are not treating Mosaic’s bankruptcy as the end of the matter.13California DFPI. Solar Mosaic LLC If your state’s attorney general is involved, that office is the right first call before anything else.