Texas AG Claims Three Homes as Primary Residence; Democrats Under Investigation

Mortgage Fraud Allegations and Political Implications

Texas Attorney General Ken Paxton and his wife, Angela, have been the owners of a $1.5 million house in a gated community outside Dallas for many years. In 2015, they added a second home in Austin, followed by a third. The issue arises from the fact that mortgages signed by the Paxtons contained inaccurate statements claiming each of these three homes was their primary residence. This allowed them to secure lower interest rates, which experts estimate could save them tens of thousands of dollars over the life of the loans.

Making false statements on mortgage documents is considered a federal and state crime. The revelations about the Paxtons’ mortgages have become a topic of political discussion, particularly in the context of the Republican primary for a U.S. Senate seat where Paxton is trying to unseat incumbent John Cornyn. The situation has also drawn attention due to the Trump administration's focus on similar issues involving Democrats.

Federal and State Scrutiny

President Donald Trump has accused two of his political opponents—Sen. Adam Schiff of California and New York Attorney General Letitia James—of mortgage fraud in circumstances that are less severe compared to the Paxtons' case. The Democrats have been targets of Trump’s criticism, especially because they led investigations into his conduct as a president and business executive.

The Justice Department has launched a criminal investigation into James, and the Federal Housing Finance Agency recently referred a case against Schiff. Abbe Lowell, James’ attorney, has urged the Trump administration to investigate Paxton instead, suggesting that the administration should focus on real cases of fraud rather than targeting the New York attorney general.

A spokeswoman for Schiff called the referral a “transparent attempt” by Trump to punish a political opponent who holds him accountable. However, it seems unlikely that Paxton, a close ally of Trump, will face the same level of scrutiny as James and Schiff. Additionally, it’s unclear whether he will face legal consequences in Texas, given that his office is responsible for investigating mortgage fraud allegations.

Financial Benefits of Primary Residences

Documents reviewed by the Associated Press show that the Paxtons hold mortgages on three homes—one in suburban Dallas and two in Austin—all listed as their primary residence. This designation offers significant financial benefits, as interest rates for primary homes are much lower than those for secondary homes or investment properties. Over the life of a loan, this can result in substantial savings.

The suburban Dallas home is where the Paxtons have lived for years. It is where they are registered to vote, and it falls within the state Senate district represented by Angela Paxton. Ken Paxton’s Senate campaign website previously stated that he lived there. Legal experts suggest that while lenders may have prepared the documents, the couple should have reviewed them carefully before signing.

As an attorney and Texas’ top law enforcement officer, Paxton should have known better. Arif Lawji, a veteran Texas real estate attorney, said that if Paxton knowingly filled out false lender documents, it would be actionable.

Comparing Cases: Schiff, James, and Paxton

Paxton’s real estate dealings differ from those of James and Schiff, both Democrats targeted by the Trump administration. The investigation into James involves forms she signed in 2023 while helping her niece buy a home. One form claimed she intended to live there as her principal residence, but other documents showed she had no intention of doing so. An email to a mortgage broker stated the property “WILL NOT be my primary residence.”

Schiff, on the other hand, owned homes in Maryland and California, both designated as primary residences. He corrected the issue in 2020, unlike Paxton, who has not taken similar steps.

Past Controversies and Legal Issues

Paxton has faced scrutiny before during his time in office. He spent about 10 years under state indictment on securities charges while serving as the state’s top law enforcement official. These charges were eventually dropped in 2024. Other alleged misdeeds led to his impeachment by Texas’ GOP-controlled House in 2023, though he was acquitted by the Senate.

The push for his impeachment was largely driven by his relationship with Austin real estate developer Nate Paul, who pleaded guilty in 2024 to making a false statement to a financial institution. In 2020, eight top aides in Paxton’s office told the FBI they were concerned about his misuse of office to help Paul.