If a bank agrees to lend you $1M against your $500k house, and you are completely honest with them about your earnings (say $50k/year), send legit paperwork etc. then you accept the loan (even though you know it's "too much"), is that fraud?
If someone lends you money on the basis of honest information you present to them I don't see how it is fraud. It might be unwise to take such loans, but that's a different thing.