
Citing public records, the wire service reports the now-estranged Republican political couple own a $1.5 million residence outside Dallas plus two more dwellings in Austin. The Paxtons “collected an impermissible homestead tax break” on two of the real estate holdings while flouting lending agreements on other properties they own, the story alleges.
Knowingly making false statements on mortgage documents violates both federal and state law, according to the Associated Press. Further, it’s against Texas law to collect a homestead tax break on two separate properties, the story notes.
Neither Paxton nor his wife, who’s a Texas state senator, responded to the AP’s request for comment on the mortgages.
Some legal experts told the news organization lenders may have made mistakes in the mortgage documents, which the couple didn’t carefully review before signing. Even so, others said Ken Paxton — as the state’s top attorney — should have known to be on the lookout.
“If he filled out lender documents knowing that they were false, then that is a false statement to obtain a mortgage on favorable terms. That would be actionable,” veteran real estate attorney Arif Lawji said to the AP. “He’s the chief enforcement officer. You have to be accountable for stuff you do that’s wrong.”
Still, the AP’s investigation may not be without consequences.
The story breaks as Paxton digs in for a highly contentious Republican primary to unseat four-term U.S. Sen. John Cornyn. The incumbent’s allies have already brought up previous scandals involving the AG, including his impeachment trial in the Texas House on charges of bribery and abuse of office along with a recently settled state securities fraud case.
The Associate Press’ allegations of mortgage malfeasance also comes two weeks after Paxton’s wife, who’s a Texas state senator, publicly announced she’s divorcing him on “biblical grounds.” The divorce papers specify that she’s accusing him of adultery.
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This article appears in Jul 23 – Aug 6, 2025.
