Final answer:
Misrepresentation of personal financial information to secure a mortgage is known as Fraud for housing. It is distinct from identity theft, which involves stealing another person's identity to illicitly access funds or secure credit.
Step-by-step explanation:
When a borrower misrepresents his or her employment history, credit history, or income to improve the chances of securing a mortgage, this is known as Fraud for housing. This type of misrepresentation is done not primarily for profit but to obtain housing that the borrower would otherwise be ineligible to secure.
It is different from identity theft, which involves the wrongful acquisition and use of another person's personal information without permission, leading to theft of the victim's identity and financial resources. Some ways borrowers can reassure banks about their ability to repay loans include providing an accurate account of their financial situation, having a cosigner, offering collateral, or engaging in a complete and transparent credit check process.