Ex-Sprout CEO's Wife Launches New Mortgage Firm Amid Bankruptcy Saga

Investor Funding Corp. founded by Elizabeth Strauss as husband Michael Strauss faces massive liabilities from Sprout Mortgage's collapse.

Jan. 30, 2026 at 5:07pm

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While Michael Strauss, the former CEO of the now-defunct Sprout Mortgage, faces a slew of legal issues and liabilities from the company's 2022 shutdown, his wife Elizabeth Strauss has launched a new mortgage firm called Investor Funding Corp. The new company, which employs a former Sprout executive, raises questions about potential ties between the Strausses and the fallen lender.

Why it matters

The Sprout Mortgage collapse left hundreds of employees without jobs and millions in unpaid wages, while creditors are seeking over $87 million from the bankruptcy case. The emergence of a new mortgage company connected to the Strauss family is drawing scrutiny, as Michael Strauss' handling of Sprout's funds has been described as akin to money laundering by the bankruptcy trustee.

The details

Investor Funding Corp. was founded by Elizabeth Strauss in 2024 and is registered to do business in four states. The company has three employees, including Vinh Nguyen Luu, who was previously the senior vice president of servicing at Sprout Mortgage. It's unclear if Luu was part of the mass layoffs at Sprout in 2022. Elizabeth Strauss was briefly involved in Sprout's bankruptcy case, but Investor Funding Corp. otherwise has no other known relationship to Sprout or Michael Strauss.

  • Sprout Mortgage shut down in July 2022 as interest rates began rising post-COVID.
  • Elizabeth Strauss founded Investor Funding Corp. in 2024.
  • Michael Strauss agreed to a $3.5 million settlement with former Sprout employees in 2023, but the payment was halted due to the bankruptcy case.

The players

Michael Strauss

The former CEO of Sprout Mortgage, who is facing massive liabilities and court cases over the company's collapse.

Elizabeth Strauss

The wife of Michael Strauss, who founded the new mortgage firm Investor Funding Corp. in 2024.

Vinh Nguyen Luu

A former senior vice president of servicing at Sprout Mortgage, who is now an employee at Investor Funding Corp.

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What’s next

The judge overseeing the case involving former Sprout employees seeking unpaid wages has threatened to close the three-year-old case if the plaintiffs cannot properly serve notice on Michael Strauss.

The takeaway

The emergence of a new mortgage company connected to the Strauss family raises concerns about potential conflicts of interest and the handling of Sprout Mortgage's assets, as the bankruptcy case drags on and former employees continue to seek relief for their abrupt termination and unpaid wages.