What defines identity theft in the context of mortgage fraud?

Identity theft in the context of mortgage fraud is fundamentally characterized by the unauthorized use of another person's financial information to secure a mortgage or loan. This practice involves obtaining sensitive personal details such as Social Security numbers, bank account information, or credit profiles without the victim's consent.

When an individual uses someone else's identity to apply for a loan, they are effectively committing fraud by impersonating that person to gain financial benefits. This can lead to significant financial loss for the victim, including damage to their credit score and potential legal ramifications.

In contrast, the other options do not accurately represent the concept of identity theft in mortgage fraud. For instance, creating fake identities may involve fraudulent activity, but it does not specifically address the theft of someone's existing financial information for illicit loan acquisition. Similarly, borrowing money without credit checks or against future assets refers to different types of financial arrangements or schemes that do not inherently involve the unlawful use of another person's identity.