Appraisal Scoop

Zaio's NEWCO - A National Coalition of Appraisers Announce Agreement May 13, 2009 - Offers "Z System" to Financial Services Industry

A National Coalition of Appraisers announced today that an agreement has been reached with Zaio Corporation (a Canadian public corporation) and the elected US Zone Appraiser representatives for the development of residential valuation products in America.

Under terms of the agreement, the network of American zone owners will create a new company (“Newco”) that will formalize a license agreement with Zaio to develop, control and manage the United States market.

Under the License, Newco will offer appraisal, valuation, and market analysis products (the “Z System”) to the financial services industry. The Z System is the innovative software that Zaio has been developing in conjunction with the network of 350 appraisal firms operating in most major cities across the country.

Brad Stinson, CEO of Zaio Corporation stated

“Negotiations took five months to complete. What bound us together was the belief that the Z System offers an effective, unique and valuable data base from which to provide appraisal, valuation, and market value research complied by local licensed appraisers.”

Randy Kass, CPA, Chairman of the elected Zone Appraiser Advisory Council, led the negotiations for Newco. Mr. Kass explained, “Our zone owners are recognized by major financial institutions as valuation and appraisal experts employing over 750 licensed appraisers and operating in 23 of the most populous states. We are convinced that the Z system offers a revolutionary software platform through which appraiser certified data can be provided in combination with local market expertise, in a manner that will offer significant improvements in valuation products and service to the financial community.”

Mr. Stinson noted that the Zaio’s near term focus will be the completion of specific technical tasks, overseen by Newco’s Technology Committee. Mr. Kass stated that the formation of Newco and the election of Directors are expected to be completed by the end of May, 2009. 

The Zaio Knowledge Warehouse consists of a data base of 76 million parcel records throughout the USA which Newco will now manage. The Zone Owners will continue to verify the data, combine the sales history of each parcel into the data base and use the Zaio valuation software aides known as Valytics to develop individual property valuation data and trends for the each of the neighborhood markets in which they operate.

Newco plans to offer its first four appraisal products to the market in the fourth quarter of 2009.

Mr. Stinson and Mr. Kass stated “We are pleased that the new agreement has been reached and believe that the Z Concept will offer attractive appraisal, valuation, and market analysis services to the financial industry which will benefit lenders, portfolio investors, and individual homeowners for years to come.”

For more information on Newco contact Ken Verrett at kverrett@oak-acorn.com

Zaio Corporation trades on the TSX Venture Exchange under the symbol “ZAO”.

Zaio Establishes New Terms with Zone Owners for United States Launch

CALGARY, May 12, 2009 Zaio Corporation("Zaio" or the "Company") announced today that the Company has signed a letter of intent and term sheet ("Terms") with the Zaio Zone Appraisers in the United States to proceed with a plan to complete the Company's national valuation database and offer services to lenders across the country.

The new Terms are expected to solve certain barriers that Zaio experienced in the past while compiling the world's first appraiser certified national valuation database.

Zaio will be issuing a national license for its patent pending technology to a new US entity which will be owned and operated by approximately 350 appraisal firms that currently hold Zaio

Zone licenses in most major US cities.

Zaio will receive a royalty equal to 50% of the profits generated by the sale of products from the growing appraisal and photo database.

Zaio will no longer incur the cost and management obligations of running a large US appraisal operation and will be able to focus on further development of its own technology.

From the Zone Owner's perspective there will be greater incentive to complete the respective market value research and data collection in each Zone. In addition, the unification of these skilled appraisers will create one of the largest national appraisal networks in the United States powered by Zaio's award winning appraisal database technology.

Randy S. Kass, Chairman of the Zone Owners' Advisory Committee says: "We are convinced that the Zaio system offers a revolutionary platform through which real estate appraisals and data can be provided with local market expertise and delivered in a manner that will offer significant improvements to valuation and service excellence."

Bradley Stinson, CEO of Zaio stated: "The Zone Owners are an organized group of entrepreneurial appraisal firms. We are very pleased to work with professionals that have exhibited a passion for market value research."

The Company also wishes to confirm that Bradley Stinson, founder and inventor of the Zaio technology concept, has been officially appointed CEO of Zaio Corporation.

Source:  Zaio (www.zaio.com) 

Zaio Closes Its Doors in the US Today!

 

Click here for the complete letter: Download Zaio_Notice_Appraiser.pdf

Zaio 2nd Quarter Results Are In! John Ross Joins RICS

Zaio has released their second quarter financial results for 2008 and opened with a positive statement by their CEO, Douglas Vincent:

"The Company reported record revenues and made significant progress with its proprietary technology development during the quarter," stated Douglas Vincent, CEO. "Zaio was pleased to announce the successful implementation of this technology in July as initial Zones were brought to "Live" status. The Company is now focused on leveraging this leading-edge technology across the more than 1,700 zones which we have sold to date, providing a national footprint for Zaio's Z products."

However, all is not a bed of roses for the company.  According to their press release:

Zone sales have been lower than expected this year due to adverse conditions. The lower than expected zone sales have had an impact on the Company's cash resources available for its national database expansion. As a result, the Company has made strategic decisions to concentrate its cash resources largely in the areas where zones have been purchased and paid for in accordance with the terms of the applicable license agreement.

In addition, the Company has been taking measures to reduce overall selling, general and administrative costs by taking advantage of operating efficiencies achieved as a result of advances in technology over last several months as well through the elimination of any redundancies which have been identified relating to the five acquisitions made over the past fifteen months.

"Readers are cautioned that the total remaining costs to bring a substantial number of the sold zones to live status over the next 12 months exceed the Company's current available cash resources. "

Continued operations are dependent upon the Company raising the necessary funds in the senior debt markets, subordinated debt markets and equity markets, and increasing sales and achieving profitability, but there is no assurance that this will occur.

"Accordingly, there is uncertainty regarding the Company's ability to continue as a going concern. " Source: Zaio / Yahoo

The Company continues to actively pursue all various financing alternatives available to it. Management also continues to explore opportunities to align with potential strategic partners in the valuation industry and will consider further acquisitions that allow us to penetrate our various markets sooner.

Click here to continue reading . . .

Press Release: Zaio Launches Propertywise Qualified Appraisal Program

Press Release: SCOTTSDALE, AZ, March 31 /CNW/ - Zaio Corporation (TSX-V: ZAO) and its Scottsdale, Arizona-based subsidiary Zaio Inc. announce the launch of the Propertywise Qualified Appraisal Program

Mortgage brokers can place a Propertywise Qualified Appraisal order (see order) through Zaio's new technology platform. Zaio will assign the order to an independent, pre-screened appraiser.

When the appraisal is returned to Zaio, (see example) Zaio will review the appraisal, and reconcile the value against automated risk indicators. Once completed, the appraisal will be delivered to the broker along with a Propertywise Seal of Approval, which indicates to the broker and to investors that the appraisal was independently ordered and reviewed.

GMAC ResCap recently reached an agreement to use Zaio's Propertywise Qualified Appraisal program for certain mortgages purchased through their Homecomings Financial wholesale channel.

Unbiased, quality appraisals are essential to the foundation of mortgage lending. Fannie Mae and Freddie Mac recently proposed changes to appraisal practices based on concern about appraiser pressure.

GMAC-ResCap worked with Zaio to create quality control procedures that promote the independence contemplated in the proposed Home Valuation Code of Conduct, and deliver high quality appraisal reports with great service to mortgage brokers.

Related Article: Download AppraisalBuzz_GMAC_Zaio_Deal.pdf

Click here to continue reading . . .

Press Release: Veros Chooses Zaio as Preferred Appraiser

Press Release: DALLAS--(BUSINESS WIRE)--Scottsdale, Ariz.-based Zaio Inc., a real estate database and technology provider announced it has reached an agreement with Veros Real Estate Solutions through a strategic partnership to offer Zaio’s services nationwide. Under the partnership,

Veros will offer Zaio’s appraisal services to its customers, allowing access to valuation information of properties around the country through Zaio’s secure database. Veros’ rules based platform, VeroSELECT will also offer upgrades to appraisal products from Zaio.

As a Veros preferred appraiser, Zaio will develop an interface to Veros’ VeroSELECT, a collateral risk management platform. The system gives lenders control of collateral risk strategies with the secure selection, acceptance and management of services, vendors, users and their own business processes. The decision management platform provides access to a full range of collateral risk solutions, including AVM products, broker price opinions, and now appraisal solutions with Zaio, collateral fraud tools and hybrid products and services. Veros also provides users access to Zaio’s AVM, i-Val Report™.

“Being able to provide access to appraisal products will give our lender and investor customers the edge they need in this critical and challenging market,” said Darius Bozorgi, president and CEO of Veros. “Zaio’s services will go a long way in giving the industry what it needs to make more informed decisions with a full spectrum of valuation products.”

Click here to continue reading . . .

Zaio Letter to Andrew Cuomo Applauds "Breakthrough agreement with FNMA, Freddie, and OFHEO"

The following letter was mailed today by Thomas Inserra, CEO of Zaio to Andrew Cuomo, State of New York's Attorney General:

RE: Proposed Appraisal Guidelines

Dear Sir:

I would like to applaud your breakthrough agreement with Fannie Mae, Freddie Mac and OFHEO. As the former National Chief Appraiser for the Federal Deposit Insurance Corporation (FDIC) and Resolution Trust Corporation (RTC) in Washington DC, I have dedicated my career to this industry. I believe that this will accelerate the successful resolution of the nation's current mortgage crisis.

Zaio is the leading advocate for restoring the independent appraiser.

Our sole focus is to use technology to create an accurate and independent appraisal process. It is my firm belief that mortgage fraud cannot be defeated unless the appraisal process is reengineered to remove all external pressure against the appraiser. Zaio upholds this belief by collecting appraisal data, using our patent-pending technology, in advance of any transaction similar to the operation of a credit bureau.

Using a secure database, such as Zaio, makes any attempts to change, alter of inflate an appraisal without detection next to impossible. To accomplish this, Zaio is creating a complete and comprehensive database of every property in the 250 largest cities in the United States. The process starts with a photographic database that will eventually include over 75 million property photos. Zaio is very far along in creating a national appraisal database repository and currently has 140 million property records in its national "Appraisal Knowledge WarehouseTM" database.

The proposed policies will have a material and positive effect on the mortgage industry and I strongly support this agreement.

Sincerely, Thomas Inserra, CEO Zaio

UPDATE . . . According to the Trading Markets.com article, "Zaio Applauds Landmark Agreement"

James Kirchmeyer, Chief Marketing Officer, said: "We believe the best way for lenders to ensure appraiser independence and comply with these new policies is to rely upon and leverage Zaio's independence, appraiser expertise, and proprietary technology solutions that, to our knowledge, are not available from any other service provider."

Related Articles:

Mark R. Chapin appointed Zaio Vice President, Zone Sales

Need for National Appraisal Database Now in the Spotlight

Zaio Inc., responded yesterday to a Wall Street Journal story [ Deal Nears to Curb Home-Appraisal Abuse ] that highlighted the need to establish a national appraisal database repository, remarkably similar to the database already being built by Zaio.  Click here for the full Zaio Press Release.   Download Deal_Nears_to_Curb_Home-Appraisal_Abuse_WSJ.pdf

Appraisal Scoop has gathered a collection of articles from various new sources that disclose possible settlement talks, between New York Attorney General Cuomo and Fannie and Freddie, which might include the requirement to establish a national appraisal database.   

Zaio Corp. believes that it is the only corporation in America that has been building a national appraisal database and believes it is the only way to defeat mortgage fraud and has provided what it believes are "five compelling competitive strengths" to its national database.

"In addition to building what is believed to be among the first national appraisal databases, Zaio’s national appraisal database has five compelling competitive strengths"  - Click here

Press Release: Zaio Acquires Appraisal.com Assets

Buffalo, NY, February 12, 2008 –  Zaio Corporation (TSX-V: ZAO) announced it has acquired the technology assets of Appraisal.com, one of the nation’s largest firms serving lenders and appraisers. Appraisal.com technology is used by more than 100 lenders, 7,500 Day One appraisers and 9,184 appraisers in their nationwide appraisal network.    Download Zaio_Acquires_Appraisal_com.pdf

Zaio is offering Appraisal.com lender customers a 20% discount on all appraisal orders they place over the next 60 days to introduce them to the quality, service and nationwide coverage offered by Zaio. Lenders may continue to use the  www.appraisal.com website to place orders.  Zaio currently serves nearly 500 lenders in the USA with a full range of appraisal and valuation services.

Zaio is also offering Day One appraisers a substantial price discount in the form of a free 3 month  extension for 1-year software renewals and free 6 month extension for 2-year software renewals. Day One and United Systems Appraisers may purchase Zaio Zones at a 10% discount through April 30, 2008. Zaio currently owns the nation’s first and most established appraisal technology known as United Systems and manages a network of about 9,000 appraisers. Zaio recently reported that its revenues paid to its elite local “Zone” appraisers were up 107%, demonstrating Zaio’s commitment to helping appraisers increase their revenues.

Jim Kirchmeyer, Chief Marketing Officer said: “We welcome Appraisal.com lenders and Day One appraisers. Simply continue to use the Appraisal.com and Day One technology as you have in the past, with the full confidence that Zaio, and its two national service centers in Buffalo, NY and Tempe, AZ are here to ensure you have a positive experience.”

“The Appraisal.com brand is known by lenders and appraisers throughout the USA”, said Thomas Inserra, CEO. “These technology assets provide us with the means to continue serving the needs of a large number of lenders and appraisers.”

Zaio has obtained possession of select technology assets necessary to serve appraisers and lenders on a go-forward basis. Customers will be served by Zaio’s Buffalo, NY office.

Rod Mitton, CFO said: “No stock or deferred fees were granted in this cash transaction. Zaio’s overhead costs will remain virtually unchanged since we are not obligated to retain any of the  Appraisal.com staff or assume any of their liabilities. With our cash and investments of over $12 million, the Company has sufficient resources to continue executing its business plans.”

More about Zaio . .

Zaio - The MOVIE!

This video is the first of three scenarios produced by Zaio.   In this video, Zaio is targeting lenders and brokers to demonstrate how Zaio and appraisers interact using their pre-appraised property database and the ability to upgrade opinions with interior inspection products.