MERS is In the News Again.

I am referring to the Mortgage Electronic Registration Systems, not Middle East Respiratory Syndrome.

To refresh your memory, it is an electronic registry created by the big banks.

They created it to evade registry fees when they sliced and diced mortgages, and sold them to greater fools.

Additionally, it creates a shell game where all sorts of skulduggery is hidden in a labyrinth of obfuscation.

The banks, and MERS, have claimed that it does, and does not, own the mortgage, and now the Tennessee Supreme Court has ruled that they have no property interests in the mortgages that they transfer:

Chattanooga, Tennessee — The Chattanoogan.com news site is reporting that in a lawsuit filed to set aside a tax sale of mortgaged land in Hamilton County, the Tennessee Supreme Court has held that Mortgage Electronic Registration Systems, Inc. was not entitled to prior notice of the sale because MERS did not have an interest in the land that is protected under the Due Process Clause of the U.S. Constitution!

READ THE OPINION HERE: MERS v DITTO_TN Supreme Court rules against MERS! The Tennessee Supreme Court is the first to rule in such a manner!

The site is reporting that the purchaser of the Hamilton County land borrowed money from a MERS member lender, signing a promissory note secured by the property by a deed of trust, which was recorded in the Hamilton County Register of Deeds office. The deed of trust described MERS as “a separate corporation that is acting solely as nominee for [the lender]” and said that MERS was the beneficiary of the deed of trust “solely as nominee” for the lender and any successor to the lender. As is customary in the MERS® System, the originating lender sold the note to another lender. Subsequent to that, the property owners failed to pay their 2006 property taxes, so Hamilton County initiated tax foreclosure proceedings.

The county sent notice of the foreclosure and the tax sale to the borrowers and to the original lender, but not to MERS. Eventually, the property was sold at a tax sale to Carlton Ditto. Just like in the Cabrera, Robinson and Johnston cases in California, after learning of the action, MERS filed a lawsuit to set aside the tax sale, naming Hamilton County and Mr. Ditto as defendants. MERS argued that Hamilton County violated its constitutional right to due process of law by selling the land without notifying MERS. This crap is the same argument propounded in the California cases, where MERS claimed that the deed of trust gave MERS its own independent interest in the Hamilton County property, so it was constitutionally entitled to prior notice of the tax sale. In California, MERS also wanted the courts to rule that the California Quiet Title Statutes were unconstitutional and that the judges who rendered the quiet title judgments in all three cases were civil co-conspirators, something this blogger has learned has infuriated the state judges! (I sure hope MERS doesn’t show up in front of one of them any time soon! LOL)

………

The Supreme Court considered whether Hamilton County was required to give MERS prior notice of the tax sale. The Court recognized that the Due Process Clause of the U.S. Constitution generally applies when the government sells a taxpayer’s land to satisfy unpaid taxes, so if the government fails to give the taxpayer such notice, the sale is unconstitutional and void. The Court then considered whether MERS had an interest in the land that was protected under the Constitution. The Court first noted that the deed of trust for the Hamilton County transaction used contradictory language to describe the role of MERS in the property loan transaction; it described MERS as a “beneficiary” but also said that MERS acted “solely as nominee” for the lender. Considering the parties’ roles in the loan transaction, the Court also held that MERS was not in fact a beneficiary but only an agent for the true beneficiary, the note holder, and that MERS acquired no independent interest in the Hamilton County land. Because MERS did not have an interest that was constitutionally protected, Hamilton County was not required to give MERS notice before it sold the land to pay the unpaid tax obligation. For this reason, the Supreme Court affirmed the trial court’s judgment in favor of Hamilton County and the tax sale purchaser, Mr. Ditto.

………

From gandering at the opinion issued by the Court, it appears they quoted MERS’s own counsel on company policies! Many attorneys have told me, as have certain legislators in DC, that just because MERS has a “business model” doesn’t mean: (1) it’s perfectly okay to rip off 3,007 counties across America in denying fees while obfuscating the real parties in interest from the borrowers; and (2) it should be accorded the same interests as the Lender, especially when the Lender doesn’t have a recorded (perfected) interest that still could be challenged.

(emphasis original)

Mortgage and property law has developed over hundreds of years through trial and error.

This process was pushed along by the very real need for property owners, lenders, and local governments to have certainty and protections on a process that would otherwise be rife with criminality and risk.

MERS was developed to short circuit that process, and it's nice that some courts are recognizing that just because someone in Wall Street comes up with a way to make money, it doesn't mean that it is legal.

FYI, you can also read a somewhat more sedate account of these cases, you can go here.

We May Be Seeing the Beginning of the First Pandemic Caused by Patents

We are seeing a major Middle East Respiratory Syndrome outbreak in Korea:

Two men have died of Middle East respiratory syndrome in South Korea, officials said Thursday. Theirs were the third and fourth confirmed deaths in what has become the largest outbreak of the virus outside the Middle East.

As fear spread, the government of President Park Geun-hye was accused of not doing enough to contain the outbreak and of endangering the public by withholding information about it.

At a news conference on Thursday, the influential mayor of Seoul, Park Won-soon, castigated the national authorities for not disclosing that a doctor at a Seoul hospital who was quarantined on Sunday with symptoms of the syndrome, known as MERS, had attended a gathering of more than 1,500 people in the southern part of the city only the day before.

More than 1,160 schools and kindergartens in South Korea have been shut down temporarily, and many Koreans are wearing surgical masks in public.

It has a fairly high mortality rate (about 40%, down from earlier estimates of over 50%), largely due to "co-morbitities" (Things like diabetes, heart disease, asthma, COPD, etc.).  The mechanism seems to involve a phenomenon known as HLH, which is one of the cytokine storm syndromes (the immune system going haywire), which causes edema in the lungs, and things like secondary pneumonia.

Historical note:  The lethality of Spanish Influenza was also largely caused this cytokine storm/pneumonia mechanism.  (Got your attention now?)

Note also that the cytokine storm tends to effect young adults more than the rest of the population. (I definitely have your attention now.)

One problem with dealing with what is (at this time) a small problem, is that, using purloined samples, the Erasmus Medical Center in Rotterdam sequenced the virus, and filed a patent on the genome, preventing timely research on things like vaccines and antiviral medications:

In the ongoing investigation of the MERS virus, a team from Erasmus Medical Center in Rotterdam received two patient samples from Dr. Ali Mohamed Zaki, an Egyptian scientist working in Jeddah, Saudi Arabia. After sequencing the MERS DNA, EMC claimed ownership of the samples. EMC now requires scientists hoping to work on the MERS problem to sign legal agreements with Erasmus. The U.S. Centers for Disease Control and Prevention (CDC) is still waiting to receive samples of MERS for testing that were collected in October 2012 because the legal teams from the CDC and Erasmus cannot negotiate agreeable terms for a material transfer agreement. As a result of these legal delays during a disease outbreak, Margaret Chan, director-general of the World Health Organization, publicly criticized Erasmus for putting patent laws ahead of protecting "your people."

I have covered these issues here.

Labs cannot do research because the Erasmus Medical Center has this tied up in patents, even though it is an discovery, and invention which is what has traditionally been required for patents.

Right now, MERS, a coronavirus,  is not that contagious because, unlike some of its near relatives in that viral family like the common cold, because, unlike the cold, it lurks deep in the lungs, as opposed to the nose and sinuses, so coughing and sneezing out virus is far less likely.

At least, it's not that contagious right now. 

I don't know about you, but I'd like to see a vaccine, and perhaps some antiviral drugs, before it develops an affinity for sinus tissue, and starts behaving more like measles.

That cannot happen, because of our current insane patent regime.

Oh, Crap

Have you heard about MERS?

I don't mean the fraudulent legal figleaf known as the Mortgage Electronic Registration System that is a plague upon home-owners, I am instead referring an actual plague to Middle East Respiratory Syndrome, a SARS like infectious disease with a 55% fatality rate centered in Saudi Arabia.

Discussions of this disease have been bouncing around the epidemiology world for a while, there have only been about 80 confirmed cases, but in a couple of months millions of pilgrims will be going to Saudi Arabia as a part of the Hajj:

When the Black Death exploded in Arabia in the 14th century, killing an estimated third of the population, it spread across the Islamic world via infected religious pilgrims. Today, the Middle East is threatened with a new plague, one eponymously if not ominously named the Middle East respiratory syndrome (MERS-CoV, or MERS for short). This novel coronavirus was discovered in Jordan in March 2012, and as of June 26, there have been 77 laboratory-confirmed infections, 62 of which have been in Saudi Arabia; 34 of these Saudi patients have died.

Although the numbers -- so far -- are small, the disease is raising anxiety throughout the region. But officials in Saudi Arabia are particularly concerned.

This fall, millions of devout Muslims will descend upon Mecca, Medina, and Saudi Arabia's holy sites in one of the largest annual migrations in human history. In 2012, approximately 6 million pilgrims came through Saudi Arabia to perform the rituals associated with umrah, and this number is predicted to rise in 2013. Umrah literally means "to visit a populated place," and it's the very proximity that has health officials so worried. In Mecca alone, millions of pilgrims will fulfill the religious obligation of circling the Kaaba. And having a large group of people together in a single, fairly confined space threatens to turn the holiest site in Islam into a massive petri dish.

The disease is still mysterious. Little is understood about how it is transmitted and even less regarding its origins. But we do know that MERS is deadly, with a mortality rate of about 55 percent -- a remarkably higher lethality than that posed by its close cousin, the severe acute respiratory syndrome (SARS) virus, which in 2003 terrified travelers across the globe but posed a fatality rate of only 9.6 percent. The MERS coronavirus is new to our species, so mild and asymptomatic infections seem to be rare, but the human immune response to infection is itself so extreme that it can prove deadly in some cases.

All this is going on while a Dutch lab is claiming rights to the species genome, which is crippling research on the disease.

This has all the hallmarks of a public health catastrophe.

Why Species Patents Suck, Part Gazillion

Stuck in the middle of an article about the Middle East Respiratory Syndrome coronavirus (MERS) is this tidbit about how a lab is claiming all rights to its genome, impeding research on the illness:

But impeding an effective response is a dispute over rights to develop a treatment for the virus. The case brings to the fore a growing debate over International Health Regulations, interpretations of patent rights, and the free exchange of scientific samples and information. Meanwhile, the epidemic has already caused forty-nine cases in seven countries, killing twenty-seven of them.

At the center of the dispute is a Dutch laboratory that claims all rights to the genetic sequence of the Middle East Respiratory Syndrome coronavirus [MERS-CoV]. Saudi Arabia's deputy health minister, Ziad Memish, told the WHO meeting that "someone"--a reference to Egyptian virologist Ali Zaki--mailed a sample of the new SARS-like virus out of his country without government consent in June 2012, giving it to Dutch virologist Ron Fouchier of Erasmus Medical Center in Rotterdam.

"The virus was sent out of the country and it was patented, contracts were signed with vaccine companies and anti-viral drug companies, and that's why they have a MTA [Material Transfer Agreement] to be signed by anybody who can utilize that virus, and that should not happen," Memish said.

Though Memish referred to a "patent," the Dutch team has not patented the viral genetic sequence but has placed it under an MTA, which requires sample recipients to contractually agree not to develop products or share the sample without the permission of Erasmus and the Fouchier laboratory. Memish said that the Dutch MTA was preventing Saudi Arabia from stopping the MERS-CoV outbreak, which appears to have started eleven months ago in the Eastern part of his country. The Dutch team denies the MTA is slowing work on the outbreak, saying it has given virus samples to any lab that has requested it.

If you thought that the idea of patenting software was bad, patenting genes and species is a whole new level of f%$#ed up.

In today's world, when we are in the middle of a potential epidemic, our first priority is to make the world safe for scumbag profiteers.