Texas Attorney General Ken Paxton and his wife Angela have owned a $1.5 million home in a gated Dallas community for several years. They also have a couple of other properties, including one in Austin, which they showcased in 2015.
However, there’s an issue. The mortgage paperwork they signed inaccurately labeled all three homes as their primary residences. This misclassification could allow them to secure lower interest rates, leading to significant savings over the loan’s duration, according to legal experts.
Additionally, the records reveal that the Paxtons improperly received Homestead tax credits for two of these homes, which also violates lending agreements associated with other properties they own.
Making a false statement on a mortgage document is a serious crime at both the federal and state levels. Legal experts note that if mortgage terms are violated, lenders may demand full repayment of the loan.
Mortgage Issues in a Political Context
This mortgage problem could impact Paxton’s campaign in the Republican primary for a U.S. Senate seat against the incumbent John Cornyn. The situation gets more complex considering the Democrats’ legal scrutiny of similar situations during the Trump administration.
Trump has criticized California Senator Adam Schiff and New York Attorney General Letitia James for alleged mortgage fraud, yet experts argue these cases are not as severe as he claims.
Paxton has expressed concern over James’ investigation, stating that if she has done something wrong, accountability is essential.
Recently, the Justice Department initiated a criminal probe into James, while an investigation into Schiff was referred to by the Federal Housing Finance Agency.
Neither agency has commented on whether there may be an investigation into Paxton.
James’ attorney called for the Trump administration to focus on Paxton instead, arguing that resources should be directed away from unfounded claims against her client and more towards addressing alleged fraud in Texas.
In response, Schiff’s spokesperson denounced the criminal accusations as a blatant effort by Trump to target political adversaries, asserting that Schiff has been transparent regarding his own real estate dealings.
It remains doubtful that Paxton, known for his loyalty to Trump, will face serious federal backlash like James and Schiff. Furthermore, he is part of the office that handles mortgage fraud investigations in Texas.
Repeated requests for comments from Ken Paxton and his representative went unanswered.
Paxton’s Multiple Primary Residences
Documentation reviewed indicates that Paxton has mortgages for three homes. The properties, including one in the Dallas suburbs and two in Austin, are all designated as primary residences, granting them considerable financial benefits.
The interest rates attached to primary residences are often lower than those for secondary homes or investment properties, which can save buyers a significant amount over the life of their loans.
To pursue legal action against Paxton, it would have to be established that he knowingly misrepresented the nature of the homes when he signed the mortgage documents, according to a Texas law professor.
Legal experts suggest the paperwork may have been prepared by the lender without thorough review from the Paxtons, but some contend that as a lawyer and the state’s chief law enforcement officer, Paxton should have been more vigilant.
Making false statements to obtain favorable mortgage terms is serious, especially for someone in his position, according to legal analysts.
Homestead Tax Credits
Paxton and his wife also accessed Homestead property tax credits on both homes outside Dallas and in Austin simultaneously, which typically is only permitted for one primary residence. This overlap raises further red flags regarding compliance with tax regulations.
The suburban Dallas home has been the Paxton family’s residence for a considerable time and is where they are registered to vote. This property is also in the district Angela Paxton represents in the state Senate.
Legal experts suggest the simultaneous receipt of tax credits from multiple homes indicates a more intentional wrongdoing, given the submission of forms for tax relief is a conscious act.
The savings from the credits could amount to thousands of dollars, leading to questions about why a chief law enforcement officer would engage in such practices.
Potential Violations in Rental Agreements
Moreover, land records suggest Paxton may have violated mortgage terms on additional properties. At a College Station home, the mortgage agreement stipulates the property cannot be rented. Renting it could provide grounds for the mortgage to be called in full. The property has been advertised for rent since at least 2022.
Another property, a luxury cabin in Oklahoma, also has similar rental restrictions in its mortgage agreement.
Responses from the banks involved in these mortgages were not received when inquiries were made.
The Political Landscape
Paxton’s real estate dealings are contrasted with those of James and Schiff, who have been scrutinized politically.
James is currently under investigation for a form she signed in connection with a Virginia home purchase, where questions have arisen about her declarations of residency. Email evidence suggests she may not have intended to move there, highlighting potential discrepancies.
Schiff, conversely, has designated properties in Maryland and California during his political career, but some changes in designations have also raised eyebrows.
Ongoing Legal and Political Challenges
Paxton has faced scrutiny for his actions in office before. He previously acknowledged violating securities laws in Texas and paid a fine while under investigation for several years.
Despite resolving some of those issues, he still faces allegations stemming from his connections with a real estate developer and various claims of misusing his office for private gain. Angela Paxton’s recent divorce filing mentioned her husband’s infidelity and undisclosed “recent discoveries,” further complicating the situation.
These ongoing investigations, accusations, and political challenges present a complicated landscape for Paxton, who has found himself under increasing scrutiny from both legal and political angles.
