The Trump administration has used allegations of mortgage fraud as a cudgel against the president’s political enemies in New York and California. Now, a small-town official in East Texas is using this same tactic to file a complaint against one of the president’s close Republican allies: Attorney General Ken Paxton.
The Federal Housing Finance Agency under Director Bill Pulte has encouraged the investigation and prosecution of Democrats and other perceived Trump opponents for alleged mortgage fraud.
The most high-profile case involves Letitia James, the attorney general of New York, who the administration has accused of making rental income off a second home she had allegedly claimed as a primary residence. Last month, a federal grand jury indicted James on charges of bank fraud and making false statements.
Pulte has lobbed similar allegations against U.S. Sen. Adam Schiff, a Democrat, and Federal Reserve Board member Lisa Cook. All three have denied wrongdoing.
Now, Hunter Bonner, a Republican who lives in the city of Lone Star northeast of Tyler, says he filed a federal mortgage fraud complaint against Paxton.
Bonner, the head of the Marion County Republican Party, said he submitted it Sept. 21 via the online hotline Pulte created earlier this year. He said he made his complaint as a private citizen and not in his role as county party chairman.
According to a copy of the complaint he provided to The Texas Newsroom, Bonner wrote there is evidence Paxton has claimed multiple homes as his primary residence and rented other properties he owns in alleged violation of the terms of his mortgages. He cited a report by the Associated Press that said Paxton had claimed at least three homes as primary residences on mortgages.
Lower rates Paxton secured for these homes, the AP story said, could save tens of thousands of dollars over the life of these loans.
“Considering the seriousness of these allegations and media coverage that these issues have received, I am respectfully requesting that an investigation be conducted as soon as possible,” Bonner wrote in the complaint.
Paxton, who took office as attorney general in 2015, is challenging fellow Republican John Cornyn for his seat in the U.S. Senate. Cornyn has raised questions about Paxton’s finances, including corruption allegations that led to Paxton’s impeachment and temporary removal in 2023. Paxton ultimately beat the charges and was reinstated to office.
Paxton’s campaign spokesman, Nick Maddux, said in an email to The Texas Newsroom that Bonner’s complaint sounded like it was written by ChatGPT.
“Why are you just now deciding to write about this guy’s clown car word document ‘complaint’? Maddux said. He added the complaint “is not serious and you are not a serious person for writing about it.”
In an interview with The Texas Newsroom, Bonner said he is motivated by his faith. Bonner identifies as a Messianic Jew who believes that Jesus was the Messiah and son of God.
“It doesn't matter that they're Republican or not. What’s the right thing to do?” Bonner said. “It's about exactly that. It’s right versus right and wrong versus wrong.”
The Republican Party of Texas did not respond to requests for comment about the complaint.
The Texas Newsroom has written extensively about Paxton’s growing real estate portfolio, which has grown in recent years to include properties in Hawaii, Florida and Oklahoma. After multiple stories over two years that revealed Paxton did not disclose his complete property ownership to ethics regulators, the attorney general this year listed additional assets on his state financial forms.
Bonner, who describes himself as a lifelong Republican, said he has supported Paxton in general elections but has at times been critical of the attorney general. He opposed calls for Paxton to receive an apology after he beat the impeachment charges, accused one of Paxton’s close advisers of antisemitism and called out Paxton’s alleged adultery.
Paxton’s wife, state Sen. Angela Paxton, is seeking divorce on the grounds that he had an extramarital affair. Ken Paxton’s spokesperson has not answered questions about whether the adultery allegations are true.
Bonner has also publicly weighed in on the U.S. Senate matchup, posting on X that it was between “John Cornyn and Clowny McClownface.” He told The Texas Newsroom he does not have a vendetta against Paxton.
“I don't have a personal beef with him,” Bonner said, adding that his complaint is a test of sorts to see whether the Trump administration will treat all inquiries equally — regardless of the party affiliation of the accused.
“Do we have a justice system that applies across the board? Is the way our founders of this country and even the founders of the state of Texas envisioned? Or is there a two-tier system?” he said.
Bonner said he has not heard back from the Federal Housing Finance Agency, which also did not return The Texas Newsroom’s request for comment.
Pulte was asked during a TV interview in September if he was looking into whether Paxton committed mortgage fraud. He demurred.
“Unless it's something that's either been made public by lawyers like Norm Eisen or in criminal referrals,” Pulte said, referring to a prominent attorney who has criticized James’ indictment, “I'm not going to comment on any specific situation.”
