Texas Attorney General Ken Paxton and his wife, State Sen. Angela Paxton, are facing renewed scrutiny over alleged mortgage fraud and improper tax breaks on multiple properties, according to a detailed investigation by the Associated Press.
Public records reveal the Paxtons claimed three separate homes — one near Dallas and two in Austin — as their primary residence when securing mortgages, a move that secured them significantly lower interest rates and could save them tens of thousands of dollars. Experts say such statements, if knowingly false, constitute mortgage fraud under both federal and state law.
Primary Residence Claims Raise Legal Red Flags
Designating a property as a primary residence allows borrowers to access more favorable mortgage terms. However, making that claim on more than one property simultaneously is legally problematic.
“All three of their mortgage documents list the home as their primary residence,” said Jennifer E. Laurin, a law professor at the University of Texas. “The issue becomes whether they knowingly misrepresented that.”
While it’s possible that lenders filled in the forms and the Paxtons signed without careful review, legal experts say that, as the state’s top law enforcement officer and a licensed attorney, Ken Paxton should have understood the implications.
Double-Dipping on Homestead Tax Breaks
Records also show that in 2018, the Paxtons simultaneously claimed a homestead property tax exemption on both their longtime home near Dallas and a $1.1 million house in Austin — another violation of Texas law, which allows the exemption for only one primary residence.
“To receive the homestead exemption, you have to file a formal application with tax authorities — it’s an intentional act,” said Texas real estate attorney Arif Lawji. “This is a clearer violation than the mortgage documents.”
Mortgage Violations and Rental Properties
Beyond misstatements about primary residences, the Paxtons may also have violated terms of other mortgage agreements.
A home in College Station, Texas, was listed for rent online, despite the mortgage agreement barring any rental use. Likewise, a luxury cabin the couple owns in Broken Bow, Oklahoma, carries a mortgage that also prohibits renting — yet it has been listed on Airbnb and other short-term rental platforms.
Comparisons to Other Investigations
These revelations come at a politically sensitive time: Paxton is reportedly preparing to challenge fellow Republican Sen. John Cornyn in the 2026 GOP primary. Meanwhile, the Trump administration’s Justice Department has launched criminal investigations into two of Paxton’s political opponents — New York Attorney General Letitia James and California Rep. Adam Schiff — for alleged mortgage fraud.
Ironically, Paxton himself publicly supported the investigation into James, stating in a campaign appearance: “If she’s done something wrong, I hope she’s actually held accountable.”
James’ attorney, Abbe Lowell, criticized the Trump administration’s focus, suggesting Paxton’s conduct deserves greater scrutiny. “If this administration was genuinely interested in rooting out fraud, they should focus on Paxton,” said Lowell.
A Pattern of Legal Trouble
This isn’t the first time Paxton has faced legal and ethical questions. He was under indictment for nearly a decade on securities fraud charges — which were dropped in 2024 — and was impeached in 2023 by the Texas House, only to be acquitted in a Senate trial. His wife, Angela, did not vote in the trial and has since filed for divorce, citing infidelity and “recent discoveries.”
Central to Paxton’s impeachment was his relationship with Austin developer Nate Paul, who recently pleaded guilty to lying to a financial institution.
Will Paxton Be Held Accountable?
Despite the mounting evidence, legal experts are skeptical that Paxton will face consequences in Texas, where his office plays a central role in enforcing mortgage fraud laws.
“The question isn’t just about legality, it’s about accountability,” said Lawji. “Why would the state’s top law enforcement official risk all this for a few thousand dollars in tax breaks?”
Ken Paxton and his office declined multiple requests for comment. Angela Paxton also did not respond to inquiries.
