Which scenario does NOT illustrate mortgage fraud?

The scenario involving redlining an underserved, urban area does not illustrate mortgage fraud because redlining refers to a discriminatory practice where lenders refuse to offer loans or insurance in certain neighborhoods based on racial or ethnic composition without regard to the individual creditworthiness of the residents. While redlining is an unethical practice and is illegal under the Fair Housing Act, it does not directly involve fraudulent activity in the context of information misrepresentation or deception related to loan origination, which are the hallmarks of mortgage fraud.

In contrast, the other scenarios involve actions where incorrect or deceptive information is used, often with the intent to deceive lenders for financial gain. Filing incorrect documents, using incorrect information intentionally, and intentionally falsifying a borrower's income all fall under the definition of mortgage fraud, as they involve manipulation or misrepresentation aimed at obtaining a mortgage under false pretenses. Therefore, these actions clearly align with fraudulent practices in the mortgage industry.