Texas Attorney General Ken Paxton Embroiled in Mortgage Fraud Allegations

Texas Attorney General Ken Paxton and his wife, Angela, are owners of three homes, including a $1.5 million house in a gated community outside Dallas and two homes in Austin. An Associated Press review of public records revealed that the couple has been claiming improper homestead tax breaks on two of the homes, while also signing mortgages with inaccurate statements declaring each of the three houses as their primary residence. The mortgage revelations are likely to become a contentious issue in the Republican primary for a U.S. Senate seat, where Paxton is seeking to topple incumbent John Cornyn.

Key Takeaways:

• The Paxtons have been claiming improper homestead tax breaks on two homes, including a $1.1 million home in Austin, while also collecting a tax break on their family's home in suburban Dallas.
• The couple has signed mortgages with inaccurate statements declaring each of the three houses as their primary residence, which could result in lower interest rates and tens of thousands of dollars in savings over the life of the loan.
• Legal experts say that the Paxtons' actions may constitute mortgage fraud and tax violations, and that they should have known better as a lawyer and the state's top law enforcement officer.
• Paxton's office is one of the primary agencies tasked with investigating allegations of mortgage fraud, making it unlikely that he will face federal scrutiny for his actions.
• The Paxtons' real estate dealings have also raised questions about their relationship with Austin real estate developer Nate Paul, who pleaded guilty to making a false statement to a financial institution.

Statistics:

• The Paxtons' three homes are each listed as their primary residence, with the designation coming with a considerable financial upside of lower interest rates and tens of thousands of dollars in savings over the life of the loan.
• The Paxtons collected an improper homestead tax break on two of their homes worth several thousand dollars.
• The Texas Attorney General's office is one of the primary agencies tasked with investigating allegations of mortgage fraud, making it unlikely that Paxton will face federal scrutiny for his actions.
• The Associated Press review of public records revealed the mortgage and tax discrepancies on two of the Paxton's homes.

Sources:

• Associated Press review of public records
• Statement from Marisol Samayoa, a Schiff spokeswoman
• Statement from Abbe Lowell, attorney for New York Attorney General Letitia James