Consumer complaint received 2023-11-14 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Getting a line of credit — 
Company: Solar Mosaic LLC
State: CA

Complaint narrative:
On XX/XX/XXXX, I entered a home improvement contract with XXXX XXXX XXXX. Subsequently, I applied for two home improvement loans ( one under my name and another under my husbands name ) for a total of {$150000.00} with Solar Mosaic LLC 'which partners with XXXX as the lender ' to build an XXXX XXXX in XXXX XXXX California. 

During this period of time, they withdrew a total of {$60000.00} from Solar Mosaic. No construction stages were completed, and the project remains unfinished. XXXX lost its contractors license on XX/XX/XXXX and they can't provide me with their services anymore. 

Despite my efforts to cancel my loan, Solar Mosaic has not agreed to do so and is now charging me the monthly fee for the total of the loan of {$150000.00}. 

I find myself in debt for a construction project that remains unfinished, and Solar Mosaic LLC is not taking appropriate action or offering assistance to me. They continue to ask me to get a cancelation from the contractor who is not making himself available, and Solar Mosaic is not taking responsibility on my case to cancel my loan. 

As the holder of the Loan Agreement Solar Mosaic is liable, contractually under Federal law, under the terms of the Purchase the purchase Agreement and Loan Agreement, for all equities and defenses that the borrower could maintain against XXXX XXXX. Solar Mosaic is, therefore, liable to borrower for the acts of XXXX XXXX XXXX. 

As stated in the Code of Federal Regulations ( CFR ) which is considered legally binding and is primary federal law. Title 24 Subtitle B Chapter II Subchapter B Part 201 Subpart C 201.26 Conditions for loan disbursement. 

( a ) The lender shall comply with the following applicable requirements before disbursing the proceeds of a property improvement loan. ( 1 ) The lender shall ensure that the following conditions are met : ( 5 ) In the case of a dealer loan, the lender shall obtain a completion certificate, on a HUD-approved form and signed by the borrower and the dealer under applicable criminal and civil penalties for fraud and misrepresentation, certifying that ( i ) the improvements are eligible and have been completed in general accordance with the contract or cost estimate furnished to the lender, and ( ii ) The borrower has not obtained the benefit of and will not receive any cash payment, rebate, cash bonus, sales commission, or anything of more than nominal value from the dealer as an inducement for the consummation of the transaction. 

( 6 ) In the case of a dealer loan made on or after XX/XX/XXXX, the lender may disburse the loan proceeds solely to the borrower, or jointly to the borrower and the dealer or other parties to the transaction. 

( 7 ) In the case of a dealer loan, the lender must conduct a telephone interview with the borrower before the disbursement of the loan proceeds. The lender, at minimum, must obtain an oral affirmation from the borrower to release funds to the dealer. The lender shall document the borrower 's oral affirmation. 

( 8 ) For any property improvement loan, the lender shall provide the borrower with a written notice, to be signed by the borrower and retained in the loan file, that : ( i ) States that the loan will be insured by HUD and describes the actions the Secretary may take to recover the debt if the borrower defaults on the loan and an insurance claim is paid. 
( ii ) Constitutes the borrower 's agreement to pay penalties and administrative costs imposed by HUD as authorized by 31 U.S.C. 3717 ; and ( iii ) In the case of a direct loan, constitutes an acknowledgement of the borrower 's post disbursement obligation to furnish a completion certificate and to permit an on-site inspection by the lender or its agent in accordance with 201.40 ( b ) and ( c ). 

( 9 ) The lender shall assure that the loan file is complete and contains the note, security instrument, and copies of all other documents relating to the property improvement loan transaction. 

Additionally, to that, XXXX lost its contractors license on XX/XX/XXXX but continued to contract after that. In some instances, allegedly they obtained advances on loans after they lost their license, which also proofs that Solar Mosaic has been failing on keeping track of their merchants ' diligences on compliances with the Contractors State License Board and other regulatory institutions. 

As mentioned above, Solar Mosaic never completed any type of inspection or telephone interview with me or my husband before the disbursement of the loan proceeds. I dont hold myself accountable for that debt that is consequence of Solar Mosaic LLC XXXX negligence and not doing their due diligences according to Federal Codes, laws, and regulations.

Company response to consumer: Closed with explanation