Texas Ag Ken Paxton under control of potential mortgage fraud
This was the now banned couple To lock low interest rates incorrectly. The lower rates would have saved the Paxtons tens of thousands of dollars in payments during the lifetime of the loans, according to the AP.
The records assessed by the AP Also show that the Paxtons incorrectly claimed that the tax exemption from Homestead was simultaneously claimed on two property on two property and repeatedly violated the loan conditions on other houses. A tax benefit in the home is a reduction in the property tax that a homeowner is only eligible to collect on one real estate that is also his primary home.
Consciously lying on mortgage documents or claiming multiple tax benefits about the home is illegal and the violation of loan conditions can lead to a full reimbursement of lenders.
Mortgage fraud has become a political pawn and an aggressive target of the second Trump administration by the Federal Housing Financing Office (FHFA).
The mortgage contact could be attacked in the Republican primary varieties, because Paxton is challenging John Cornyn for one American Senate Sit next year. And Trump has at the same time tried to continue Democrats such as James and Schiff about similar accusations.
Paxton, an ally of Trump, has publicly called that James is being held responsible, but legal experts say that it is unlikely that he will be confronted with a similar research federal or in Texas.
The lawyer of James, Abbe Lowell, argued that Paxton should be the focus instead, and told the AP that the allegations against James are ‘unfounded’. The Schiff team also rejected the reference as a political one, and noted that he was looking for legal guidance and revealed his second home to money lenders.
Neither the Ministry of Justice Neither the FHFA has said they will investigate Paxton, according to the AP.
Separately give land data evaluated by the AP indicate that the Paxtons have violated the mortgages for the other houses they possess.
The mortgage at a house in the College Station, Texas, says that the real estate is for the exclusive use of the Paxtons and cannot be rented. This would lead to the mortgage being terminated, the document states. But the house has been mentioned for rent on real estate websites on and off since at least 2022, according to the outlet.
Previous legal problems
Paxton has also previously confronted legal problems with regard to his position in function. Before he was chosen as Attorney General, Paxton, then a Senator of the State, he admitted in 2014 to violating the Securities Law of Texas. He paid a fine as a result.
Paxton spent almost a decade under state declaration for securities fraud while he served as AG before the charges were withdrawn in 2024. Separate accusations of misconduct led to his accusation by the Texas House in 2023, although he was later acquitted by the Senate.
The accusation was largely powered by the ties of Paxton with Austin developer Nate Paul, who in 2025 argued guilty of making a false statement to a financial institution. In 2020, Paxton’s assistants reported concern to the FBI that he abused his office in favor of Paul, such as collecting lawsuits and giving favorable legal opinions.
House confusing managers also accused Paxton of helping Paul in exchange for favors, including home renovations that Paul paid on the same house that Paxton wrongly claimed as his third primary home.
