FRAUDULENT MORTGAGE ACTIVITIES
Ken Paxton obtained mortgages on four separate residential properties — three in Texas and one in Oklahoma — each time affirming in writing that the property would be for his sole use, and not to be used as rentals.
However, according to public records, this WAS NOT TRUE.
Falsely claiming a property as your primary residence on mortgage paperwork is a federal offense under 18 U.S.C. § 1014, punishable by up to 30 years in prison and $5 million in fines per violation.
In one instance, Paxton also claimed a homestead tax exemption — a criminal offense under Texas law if done fraudulently.
AUSTIN, TX – Property 1 (2015 Purchase)
The Paxtons purchased the property in 2015 using a $175,200 mortgage.
They classified the property as their primary residence on the mortgage.
The loan required them to occupy the home within 60 days. They never did.
The Mortgage terms forbade them from listing it as a rental.
However, the Paxtons regularly listed the property as a rental on Zillow.
Paxton even admitted he received rental income from the property, which was against the terms of the mortgage he secured.
AUSTIN, TX – Property 2 (2019 Refinance)
The Paxtons refinanced this property through two separate lenders.
One mortgage classified the home as a second residence.
The other listed it as a primary residence.
They also claimed a homestead exemption on this home.
The Mortgage terms forbade them from listing it as a rental.
However, the Paxtons regularly listed the property as a rental on Zillow.
Paxton even admitted he received rental income from the property, which was against the terms of the mortgage he secured.
College Station, TX – Property 3 (2016 Purchase)
Paxtons purchased the property in 2016 with a mortgage from Cornerstone Home Lending.
They classified it as a second home on the mortgage.
The loan prohibited the use of the home as a rental property.
The property has been listed for rent at least seven times since 2015.
This home is currently being rented, despite the fact that it violates the terms of the mortgage.
Broken Bow, OK – Property 4 (2022 Purchase)
Paxton purchased the property in 2022 with a $1.28 million mortgage.
He classified it as a second home on the mortgage.
The loan prohibited short-term rentals or timeshare use.
The property operates as a luxury short-term rental (Copper Canyon Lodge).
Paxton is the sole owner and sole signer on the mortgage.
Rental listings are active on VRBO and include luxury services.
