I love the Wall Street Journal, but think this story blew it:

The Federal Bureau of Investigation and the Department of Housing and Urban Development would get more funds to crack down on mortgage fraud under the fiscal year 2010 budget.

The budget would also boost funding to HUD to promote affordable housing, a key Democratic priority.

The proposed funding comes as evidence mounts that mortgage fraud is on the rise, and scrutiny of illegal or predatory practices intensifies in response to the housing-market crisis.

The number of suspicious activity reports filed by financial institutions related to suspected mortgage fraud increased 44% in the 12 months ended June 2008 compared with the prior year, the Financial Crimes Enforcement Network, a Treasury Department unit, said this week.

The truth: Banks are uncovering fraud committed mostly during the housing boom but only coming to light now as foreclosures mount.

This story leaves the incorrect impression that fraud intensified in 2008. Not likely. Buyers and sellers continue to cheat the system - I'm investigating at least one such scheme - but we're nowhere near the mass cheating of 2005.