The Paxtons allegedly locked in low interest rates improperly, which could have saved them tens of thousands of dollars. They have also been found to have claimed dual homestead tax exemptions, violating legal standards. This pattern of mortgage fraud is being scrutinized amid political tensions, particularly impacting Paxton's Senate challenge. The allegations could influence Republican primary races, as Paxton criticizes other politicians while facing similar accusations. Currently, neither the Department of Justice nor the FHFA has decided on any investigations against Paxton, despite indications of mortgage term violations.
Lying on mortgage documents or claiming multiple homestead tax breaks is illegal, and violating loan terms can lead lenders to demand full repayment.
The lower rates would have saved the Paxtons tens of thousands of dollars in payments over the life of the loans, according to the AP.
Mortgage fraud has become a political pawn and an aggressive target of the second Trump administration through the Federal Housing Finance Agency (FHFA).
Legal experts say it's unlikely Paxton will face a similar investigation either federally or in Texas.
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