Zaio Accelerates its National Appraisal Knowledge Warehouse(TM)

    Sub-Prime Meltdown Underscores Need for Accurate Valuations

    SCOTTSDALE, AZ, Aug. 13 /CNW/ - Zaio Corporation's (TSX-V: ZAO) USA
subsidiary Zaio Inc. announced today its plans to accelerate its national
Appraisal Knowledge Warehouse(TM) and valuation solutions due to increased
demand from the Mortgage Backed Securities (MBS) and Asset Backed Securities
(ABS) markets which hold more than $20 trillion in loans secured with real
    "The sub-prime meltdown and current liquidity crisis is a result of the
market's inability to accurately value the underlying real estate for the MBS
and ABS markets," said Thomas J. Inserra, Zaio Corporation CEO. "Increased
loan delinquencies, foreclosures and the Sub-Prime meltdown have and are
expected to continue to result in increased interest for Zaio's products by a
wide variety of customers. That increased demand among customers is causing us
as a company to accelerate our Appraisal Knowledge Warehouse(TM) development
and roll-out of these important products."
    Mr. Inserra served as National Chief Appraiser at both the Resolution
Trust Corporation (RTC) and Federal Deposit Insurance Corporation (FDIC)
during the banking and S&L crisis of the late 1980's, when nonperforming real
estate loans based on faulty property appraisals precipitated massive losses
across the mortgage finance industry. Given his experiences while helping to
resolve this crisis, Mr. Inserra is intimately familiar with the importance of
credible and timely real estate valuations in the MBS and ABS markets.
    Recent news accounts indicate the SEC is taking a closer look at the MBS
and ABS markets to ensure that owners of these portfolios are properly
accounting for the decline in the underlying real estate collateral. Lenders
are also generally required by their regulators and auditors to increase the
frequency and amount of valuations performed for delinquent or non-performing
loans, as well as for REO and foreclosure purposes. These conditions result in
a notable increase in demand for a wide range of appraisal products, including
those currently offered by Zaio through its national network of appraisers. As
a result of its recent business acquisitions, Zaio now has established
relationships with over 10,000 appraisers capable of providing a full range of
valuation services ranging from AVMs, BPOs, desk top valuations, drive-by,
Review Appraisal, and full interior appraisal assignments. Zaio now has
relationships with over 400 revenue generating customers who are ordering a
wide range of valuation services.
    Inserra added: "Large institutional customers are telling us there are
two significant problems in the mortgage backed securities markets today.
First, buyers and sellers of these large portfolios need to be able to
instantly and accurately value the real estate for hundreds of thousands of
properties, yet appraisers take days, weeks or months to complete that task.
Second, pressure exerted on appraisers to artificially inflate the value of
properties has compromised their independence and objectivity, causing the
market to question the accuracy and consistency of appraisers. In the past,
there has been no reliable method in place to measure the accuracy rate of
appraisers. Zaio is the only company in North America that has solved these
problems, and as a result, we are now accelerating the deployment of our
valuable products across the USA."
    Zaio Corporation has partnered with elite local appraiser experts who are
now helping to photograph, inspect and appraise every property in America.
Zaio stores those completed appraisals in what is becoming the largest
repository of official real estate appraisals by licensed appraisers in the
world. Zaio's proprietary solution allows those appraisers to update the value
estimate of each property in an entire city, in real time, daily, weekly or
monthly, as may be needed by the client. It is important to note that during
this site inspection of every property, Zaio is discovering that as much as
60% or more of the property records are inaccurate, because no other company
has ever taken the time to put "feet on the streets" to verify the property
data. Zaio customers are asking us to accelerate our deployment since they
believe that access to this corrected property data will result in higher
accuracy rates when making decisions relating to loan securitization, mortgage
back securities, delinquencies, foreclosures and the fact that the valuations
can be obtained "instantly" in real time increases liquidity in the securities
    Just like credit agencies that collect and store borrower credit
information and credit scores in a proprietary database, Zaio maintains a
proprietary "GeoScore(TM)" on each property as a way to defeat mortgage fraud.
Also, since the appraisals performed by Zaio affiliated appraisers are
prepared prior to any transaction, there is no opportunity to exert pressure
or influence the value estimate and customers can access the secure data
instantly rather than waiting days or weeks. By carefully measuring the value
estimate with actual sales that occur over time, Zaio is able to produce a
reliable Accuracy Rate for every appraiser, which confirms the accuracy of the
appraisals and the licensed experts who are preparing those appraisals.
    Zaio's recent acquisitions have provided significantly more resources
necessary to support an acceleration of our growth. In fact, Zaio now has the
current ability to deliver a full range of valuation services in all 50 states
to the mortgage backed securities and lending markets. Also, Zaio and its
affiliated appraisers and photographers are now simultaneously deployed and
implementing these new automated solutions in more than 200 USA cities across
America. Zaio is quickly adding photos, site verified property data, and
valuations to its National Appraisal Repository so these markets can
objectively and "instantly" value real estate. Zaio's database currently
consists of 140 million property records, and 7.3 million photos growing at
the rate of over 58,000 homes per day.

    About Zaio

    Zaio Corp. and its USA Subsidiary Zaio Inc. is the North American leader
in developing and maintaining a site-verified database of photos, valuations
and property information of virtually every property for entire cities, using
a proprietary "GeoScore(TM)" property rating system. Zaio and its network of
premiere, local appraiser experts photograph and appraise entire cities, one
building at a time from the street.
    Zaio is a public corporation that trades under the symbol "ZAO" on the
TSX-V Exchange in Canada. Zaio was awarded "Venture-50" status by the stock
exchange ranking it among the top 10 technology firms out of 2,000 public
companies based on return on investment, revenues, market cap and trading
volume. Additional information is available for US investors under the symbol
    For investors who would like to be added to Zaio's investor distribution
list, please contact Collum Hunter at

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.

    This press release contains forward-looking statements which may include
financial and business prospects, as well as statements regarding the
Company's future plans, objectives or economic performance and financial
outlooks, including without limitation, a forecast on expected annual
revenues. Such statements are subject to risk factors associated with the real
estate industry, and the overall economy in both Canada and the United States.
The Company believes that the expectations reflected in this press release are
reasonable, but actual results may be affected by a variety of variables and
may be materially different from the results or events predicted in the
forward-looking statements. Readers are therefore cautioned not to place undue
reliance on these forward-looking statements.
    In evaluating forward-looking statements readers should consider the risk
factors which could cause actual results or events to differ materially from
those indicated by such forward-looking statements. These forward-looking
statements are made as of the date hereof, and unless otherwise required by
applicable securities laws, the Company does not intend nor does it undertake
any obligation to update or revise any forward-looking statements to reflect
subsequent information, events, results or circumstances or otherwise.

    %SEDAR: 00020572E

For further information:

For further information: visit or please contact: Thomas J.
Inserra, President and CEO, (480) 575-5111; Rodney D. Mitton, CFO, (403)

Organization Profile

Zaio Corporation

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890