Latest news with #mortgagefraud
Yahoo
10 hours ago
- Business
- Yahoo
Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue
WASHINGTON (AP) — Texas Attorney General Ken Paxton and his wife, Angela, are longtime owners of a $1.5 million house in a gated community outside Dallas. In 2015, they snapped up a second home in Austin. Then another. The problem: Mortgages signed by the Paxtons contained inaccurate statements declaring that each of those three houses was their primary residence, enabling the now-estranged couple to improperly lock in low interest rates, according to an Associated Press review of public records. The lower rates will save the Paxtons tens of thousands of dollars in payments over the life of the loan, legal experts say. The records also revealed that the Paxtons collected an improper homestead tax break on two of those homes at the same time. It is a federal and state crime to knowingly make false statements on mortgage documents. It's also against the law in Texas to collect a homestead tax break on two separate properties. Mortgages have become political fodder The mortgage revelations are sure to become fodder in the Republican primary for a U.S. Senate seat in which Paxton is seeking to topple the incumbent, John Cornyn. The situation is further complicated by the Trump administration's pursuit of Democrats over similar issues. President Donald Trump has accused two of his political foes — Sen. Adam Schiff of California and New York Attorney General Letitia James — of committing mortgage fraud in similar, though far less serious, circumstances. The Democrats have long been targets of Trump's ire for having led various investigations into his conduct as president and as a business executive. The Justice Department has launched a criminal investigation of James. It received a criminal referral for Schiff last week from the Federal Housing Finance Agency. James' attorney, Abbe Lowell, urged the Trump administration to investigate Paxton instead. 'If this administration was genuinely interested in rooting out fraud, it appears they should stop wasting their time on the baseless and discredited allegations against the New York Attorney General James and turn their attention to Texas,' said Lowell, a prominent Washington attorney whose past clients include Hunter Biden and Ivanka Trump. In a statement, Marisol Samayoa, a Schiff spokeswoman, blasted the criminal referral as 'a transparent attempt' by Trump 'to punish a perceived political foe who is committed to holding him to account.' It's unlikely that Paxton, a staunch Trump ally, will face the same federal scrutiny as James and Schiff. It's equally doubtful that Paxton will face much legal trouble in Texas: His office is one of the primary agencies tasked with investigating allegations of mortgage fraud. Ken Paxton and his spokesman did not respond to multiple requests for comment. Angela Paxton, who is a state senator in Texas, did not respond to requests made through her office. Three of the Paxtons' homes are each listed as a primary residence Documents reviewed by the AP show the Paxtons hold mortgages on three homes — one in suburban Dallas, two in Austin — that are each listed as their primary residence. The designation comes with a considerable financial upside. Interest rates on primary homes are significantly lower than those for mortgages on secondary homes or investment properties, saving buyers tens of thousands of dollars — if not more — over the life of a loan. Legal experts say it's possible that the Paxtons' lenders prepared the documents and that the couple did not carefully review them before signing. Even if that were the case, some legal experts say that Paxton, as an attorney and Texas' top law enforcement officer, ought to have known better. '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,' said Arif Lawji, a veteran Texas real estate attorney. Low interest rates are not the only perk the Paxtons secured, records show. In 2018, they simultaneously collected homestead property tax breaks on their family's home in suburban Dallas, as well as on a $1.1 million home in Austin, property records and tax statements show. A homestead tax break is a property tax reduction that a homeowner is only eligible to collect on one property that is also their primary home. The suburban Dallas home is where the Paxtons' family has long resided. It's where Ken and Angela Paxton are registered to vote. It is located in the state Senate district that Angela Paxton represents in the Legislature, which Ken Paxton held before his election in 2014 to be attorney general. Lawji said the Paxtons' simultaneous collection of two homestead tax breaks appears to be a more clearcut violation. That's because one must obtain a form and submit it to taxing authorities to receive such a tax break, making it an 'intentional act,' he said. The tax break was worth several thousand dollars, a fact that confounded real estate lawyers. 'Why would you try to do all of this,' Lawji said, 'when you are the attorney general? That's a bigger question to me than the money, when you are AG and have to enforce this law.' Schiff and James come under fire from GOP Paxton's real estate dealings are in many ways distinct from those of James and Schiff, the Democrats targeted by the Trump administration. The investigation of James centers on forms she signed in 2023 while helping a niece buy a home. One form stated that James intended to occupy the home as her 'principal residence.' But in other documents, the New York attorney general made clear she had no intention of living there. An email to the mortgage loan broker two weeks before she signed the documents stated the property 'WILL NOT be my primary residence.' For over a decade, Schiff owned homes in Maryland and California, the state he represents, that were both designated as a primary residence. Schiff corrected the issue in 2020 — a step Paxton has not taken. Paxton's real estate dealings are not the first time he has drawn scrutiny for his conduct while in office. He spent roughly 10 years under state indictment on securities charges while serving as the state's top law enforcement official. The charges were eventually dropped in 2024. Other alleged misdeeds led to his impeachment by Texas' GOP-controlled House in 2023. He was acquitted in a trial by the Senate. What ultimately unleashed the impeachment push was Paxton's relationship with Austin real estate developer Nate Paul, who pleaded guilty this year to one count of making a false statement to a financial institution. In 2020, eight top aides in Paxton's office told the FBI they were concerned the state's top law enforcement official was misusing his office to help Paul. Brian Slodysko, The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Politics
- Yahoo
Trump accuses impeachment leader Schiff of ‘mortgage fraud' over Maryland home he keeps while repping California
President Donald Trump called for California Senator Adam Schiff to be prosecuted for what he described as 'mortgage fraud' as he claimed his longtime political foe has broken the law by previously claiming a home in suburban Maryland as his primary residence. Writing on Truth Social Tuesday, the president claimed he'd been given information from the federally-backed mortgage lender Fannie Mae indicating that Schiff, who led the investigation leading to the president's first impeachment trial, 'has engaged in a sustained pattern of possible Mortgage Fraud.' He accused the first-term senator of having falsely claimed a Potomac, Maryland, house he has owned for decades as a 'primary residence' while representing California in Congress, thereby gaining a more favorable interest rate than he otherwise would have been entitled to. 'Adam Schiff said that his primary residence was in MARYLAND to get a cheaper mortgage and rip off America, when he must LIVE in CALIFORNIA because he was a Congressman from CALIFORNIA. I always knew Adam Schiff was a Crook,' Trump said. The Democrat accused Trump of a 'baseless attempt at political retribution' in a post on X Tuesday. 'Since I led his first impeachment, Trump has repeatedly called for me to be arrested for treason,' Schiff said. 'So in a way, I guess this is a bit of a letdown. And this baseless attempt at political retribution won't stop me from holding him accountable. Not by a long shot.' President Donald Trump accused political rival and Democrat Adam Schiff of 'mortgage fraud' for his Maryland home. (Copyright 2025 The Associated Press. All rights reserved) The president added that the alleged 'fraud' ran from a 2009 refinancing of Schiff's Maryland house until he designated it as a second home in 2020. Schiff has represented California in D.C. since 2001 and, for almost all of that time, has kept a home in Maryland, where he has lived with his wife and where his children have attended public schools. He also keeps a condominium in Burbank, California, which is part of his former Los Angeles-area House district. It was once common for House and Senate members to bring their families to Washington before the practice was turned into fodder for campaign attacks by Republicans during the 1994 midterm elections. In recent years, most members have kept their families back home for fear of political fallout, with some going so far as to sleep in their offices to avoid establishing any roots in the nation's capital. Other senators have faced questions over their Capital-area residences. Schiff's predecessor, former senator Laphonza Butler, was forced to re-register to vote in California after she was appointed to the seat following the death of longtime California senator Dianne Feinstein. Butler, a longtime Democratic activist and operative, had longstanding ties to the Golden State but had been registered to vote in the Washington area. Schiff's ownership of the Maryland property was reported on during his Senate campaign by CNN, which at the time reported that the then-House member wasn't likely to face any legal repercussions because the law at issue is ambiguous when it comes to the definition of a primary residence. But Marisol Samayoa, Schiff's spokesperson during the campaign and his current press secretary, told CNN last year that he has claimed both his properties as primary residences for mortgage purposes 'because they are both occupied throughout the year and to distinguish them from a vacation property.' Schiff has been a top political target of Trump's since his first administration and is often on the receiving end of the president's ire (AFP/Getty) Schiff has been a top political target of Trump's since his first administration and is often on the receiving end of the president's ire. Schiff played a prominent role in the investigation into Russian interference in the 2016 presidential election and served as chair of the House Intelligence Committee in 2019. Trump and Republicans ramped up their attacks on Schiff after special counsel Robert Mueller did not find sufficient evidence of criminal conspiracy. The president hurled numerous insults at Schiff, including 'pencil neck,' 'Schifty Schiff' and 'watermelon head.' The Democrat became the lead prosecutor in 2020 at Trump's first impeachment trial, where Trump was acquitted by the Senate. Schiff also served on the House's January 6 committee.
Fox News
7 days ago
- Business
- Fox News
Timeline of 'scam artist' Adam Schiff's mortgage fraud allegations stretching back years
Longtime President Donald Trump political foe Democrat California Sen. Adam Schiff was referred to the Department of Justice to face criminal prosecution over alleged mortgage fraud that reportedly stretches back years. Schiff, who was elected to the Senate in the 2024 election cycle following decades as a House lawmaker, is under scrutiny after the U.S. Federal Housing Finance Agency (FHFA) sent a letter to the Department of Justice in May sounding the alarm that in "multiple instances," Schiff allegedly "falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003-2019 for a Potomac, Maryland-based property." FHFA is an independent federal agency that oversees Fannie Mae, Freddie Mac and the Federal Home Loan Bank System. This week, Trump publicly lambasted Schiff over the alleged mortgage fraud, while Fannie Mae's financial crimes investigations concluded Monday in a letter to the FHFA that Schiff allegedly engaged in "a sustained pattern of possible occupancy misrepresentation" on five Fannie Mae loans, Fox News Digital previously reported this week. "I have always suspected Shifty Adam Schiff was a scam artist," Trump posted to Truth Social Tuesday. "And now I learn that Fannie Mae's Financial Crimes Division have concluded that Adam Schiff has engaged in a sustained pattern of possible Mortgage Fraud." "Adam Schiff said that his primary residence was in MARYLAND to get a cheaper mortgage and rip off America, when he must LIVE in CALIFORNIA because he was a Congressman from CALIFORNIA. I always knew Adam Schiff was a Crook. The FRAUD began with the refinance of his Maryland property on February 6, 2009, and continued through multiple transactions until the Maryland property was correctly designated as a second home on October 13, 2020." Potomac, Maryland, is a suburb of Washington, D.C., located just more than 10 miles away from the nation's capital across the Maryland border. Trump and Schiff have long been political foes, which was underscored during Trump's first administration when Schiff served as the lead House manager during the first impeachment trial against Trump in 2020 and when Schiff repeatedly promoted claims that Trump's 2016 campaign colluded with Russia Fox News Digital took a look back at the timeline of Schiff's Maryland home, and when the public was first made aware in 2023 of allegations that Schiff claimed a more than 3,000-square-foot home in the suburbs of Washington as his primary residence, while taking a homeowner's tax exemption on a small condo in his home state of California. The investigation into Schiff's mortgages and homes follows a similar mortgage investigation earlier in 2025 focused on New York Attorney General Letitia James, who is also a longtime political Trump foe. The FHFA sent a criminal referral to the Department of Justice in April arguing the attorney general appeared to have falsified mortgage records to obtain more favorable loans. At the heart of that case is a Norfolk, Virginia, home James purchased in 2023, which she identified on mortgage documents and a Fannie Mae/Freddie Mac form as a property that would serve as her primary residence, according to the FHFA letter from April. James is legally required to live in New York as a statewide elected official in the Empire State. Fox News Digital reached out to Schiff's office for additional comment on the matter, but did not immediately receive a reply.
Fox News
16-07-2025
- Business
- Fox News
Fox News Politics Newsletter: Schiff Flagged for Potential Mortgage Fraud by Trump Official
Welcome to the Fox News Politics newsletter, with the latest updates on the Trump administration, Capitol Hill and more Fox News politics content. Here's what's happening… - Jill Biden 'work husband' pleads Fifth Amendment, dodges House GOP cover-up probe questions - Israel strikes Syria's military headquarters as the regime clashes with Druze civilians - Senate marches toward passing Trump's $9B clawback bill after dramatic late-night votes Sen. Adam Schiff, D-Calif., has been referred to the Department of Justice for criminal prosecution regarding mortgage documents. The director of the U.S. Federal Housing Finance Agency (FHFA) sent a letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche in May citing alleged misconduct by Schiff, who owns homes in California and Maryland. "Based on media reports, Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003-2019 for a Potomac, Maryland-based property," FHFA Director William Pulte wrote in the letter, which Fox News obtained on Wednesday. "As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA's regulated entities and the security and stability of the U.S. mortgage market…" READ MORE. DIPLOMATIC DEMOLITION: 'It's sort of scary': Officials flag surprising revelations from deep State Department cuts PINK SLIP POLITICS: Trump's controversial plan to fire federal workers finds favor with Supreme Court NO MORE SECRETS: Bondi should release 'credible' Epstein files, Trump says LEGAL SHELL GAME: Judge weighs Abrego Garcia detention status as Trump admin confirms plans to immediately deport him HHS SHAKEUP: RFK Jr. fires two top aides at HHS LOYALTY FIRST: Loyal Jill Biden aide arrives for sworn deposition in Comer's cover-up probe HIDING THE DECLINE: Jill Biden's 'work husband' pleads Fifth Amendment, dodges House GOP cover-up probe questions OVERRULED: Conservative legal group presses agency to act on Trump's voter citizenship mandate despite court injunctions FAITH TAKES PRIORITY: EXCLUSIVE: Trump admin strengthens religious accommodations in federal workforce TRIPLE THREAT RISING: Japan says China, North Korea and Russia represent biggest threat since WWII, US is 'cornerstone of peace' in the region BLAME GAME BEGINS: Israel slams UN for ignoring aid already in Gaza while demanding more AYATOLLAH ULTIMATUM: Iran's leader threatens 'even bigger blow' against US, Trump says he's in 'no rush' to talk TRADE ON THE ROCKS: From bourbon to bordeaux: Trump's tariffs spill into global booze markets BATTLE HEATS UP: Israel strikes Syria's military headquarters as the regime clashes with Druze civilians PROMISES DELIVERED: RNC chair says 'big, beautiful bill' key part of GOP's strategy to win seats in midterm elections SPENDING CUT SPRINT: Senate marches toward passing Trump's $9B clawback bill after dramatic late-night votes BIDEN BORDER FAILURE: FIRST ON FOX: Mother of daughter murdered by alleged MS-13 gang member speaks out in favor of new house bill BENEFIT BATTLE: Workers striking by choice could lose unemployment benefits in blue states under GOP proposal FOREIGN TOURISTS PAY UP: Congress considers permanent national park fee increase for foreign visitors 'SERIOUS LOWLIFE': WATCH: Adam Schiff silent after Trump accused him of mortgage fraud MESSAGE LOST: Speaker Johnson reveals Musk left MAGA ally's lengthy text hanging in 'the ether' after Trump blowup TENSIONS BOIL OVER: Dem Disorder: DNC squabbles play out in NYC mayoral race for all to see THE HOT SEAT: Former DC council member wins back seat months after being expelled over bribery charge SWEET DECEPTION: Texas AG Paxton office launching investigation into M&Ms and Skittles manufacturer Mars for "deceptive" practices promising to remove artificial dyes CRYING FOUL: Ghislaine Maxwell's family insists she received unfair trial in high-profile Epstein case TRUMP'S 'BACKUP': Aiming to give Trump 'backup,' second Republican enters swing state race for Democrat-held Senate seat PAST EXPOSED: Unearthed social media posts expose radical anti-Israel views of Mamdani's dad: 'Colonial occupation' Get the latest updates on the Trump administration and Congress, exclusive interviews and more on
CTV News
16-07-2025
- Business
- CTV News
Trump says Democratic rival Schiff should be ‘brought to justice' for alleged fraud
Rep. Adam Schiff, D-Calif., speaks with members of the media after former deputy national security adviser Charles Kupperman signaled that he would not appear as scheduled for a closed door meeting to testify as part of the House impeachment inquiry into President Donald Trump, Monday, Oct. 28, 2019, on Capitol Hill in Washington. (AP Photo/Patrick Semansky) U.S. President Donald Trump said on Tuesday a top antagonist, Democratic Senator Adam Schiff, should be 'brought to justice' for alleged mortgage fraud, in a move the California Democrat said amounted to political persecution. Schiff, a leading player in Trump's first impeachment in 2020, denied wrongdoing. 'This is just Donald Trump's latest attempt at political retaliation against his perceived enemies,' he wrote on social media. Trump said a U.S. housing finance agency, Fannie Mae, had concluded that the senator had engaged in a 'sustained pattern of possible Mortgage Fraud' for declaring a house he owned in Maryland as his primary residence to get a lower mortgage rate. 'Mortgage Fraud is very serious, and CROOKED Adam Schiff (now a Senator) needs to be brought to justice,' he said on his Truth Social platform. The New York Post reported the Federal Housing Finance Agency, which oversees Fannie Mae, had sent a criminal referral to the Justice Department for possible prosecution. Officials at the DOJ, Fannie Mae, and FHFA declined to comment. Schiff, like some other members of Congress, owns a residence in the Washington area as well as in his home state, and a spokesperson said lenders who provided mortgages for both homes were aware that he used both of them year-round. Schiff has been a top Trump target since 2019, when he led the House of Representatives' impeachment inquiry into whether Trump withheld aid to Ukraine to pressure that country to investigate Democrat Joe Biden ahead of the 2020 presidential election. Trump was impeached in the Democratic-led House, but the Republican-controlled Senate did not convict him. (Reporting by Andy Sullivan; Editing by Scott Malone and Rod Nickel)
