Expert Confirms USPAP Compliance
SCOTTSDALE, AZ, Oct. 30 /CNW/ - Zaio Corporation (TSX-V: ZAO) and its USA
based subsidiary, Zaio Inc. announced the conclusions of a leading national
expert who recently conducted an independent compliance evaluation of Zaio
Zaio disclosed it had retained Mr. Danny Wiley, former Chair of the
Appraisal Standards Board (ASB) which is authorized by the United States
Congress to establish official national appraisal regulations known as the
"Uniform Standards of Professional Appraisal Practice" or (USPAP). These
important appraisal standards were adopted as a result of a major mortgage
crisis in the 1990's and exist to ensure that appraisers observe strict
standards during the development and reporting of appraisal results.
Mr. Wiley completed six years of service as a Member of the ASB including
three years as Chair. Mr. Wiley is no longer affiliated with the ASB and his
Zaio assessment was conducted in his capacity as an independent consultant.
The objective of Mr. Wiley's assessment was to conduct an independent
evaluation of the technology, processes, and appraisal report outputs to
determine the overall USPAP compliance when Zaio technology is used by
properly licensed and certified appraisers to develop and report appraisal
Since state licensed and certified real estate appraisers use Zaio
patent-pending technology and proprietary business processes to develop and
report appraisal results to clients, Zaio thought it would be prudent to
obtain third-party verification of USPAP compliance.
Mr. Wiley stated: "After a thorough review conducted over the past
several months, I confirm that, if used properly by the licensed appraiser,
the work performed by the appraiser along with the information contained
within the report will fully comply with all USPAP appraisal standards,
including USPAP STANDARD 1 and STANDARD 2."
"Since Zaio appraisers inspect large volumes of homes, some have
incorrectly assumed that that the reports should be classified as 'Mass
Appraisals' and be governed under STANDARD 6 of USPAP. However, that is not
correct. My evaluation concluded that the objective is for Zaio appraisers to
arrive at a defensible, independently supported USPAP compliant appraisal for
each individual property, rather than valuing an entire universe of
properties, and thus STANDARD 6 does not apply."
Wiley added, "Some had questioned the 'scope of work' performed by a Zaio
appraiser and the 'intended use' and 'intended user' of the Zaio reports, or
were concerned because the inspection occurs prior to the transaction. In my
opinion the Zaio process and resulting valuation products fully comply with
the USPAP requirements for development and reporting of all of these items."
Thomas J Inserra, CEO of Zaio stated: "The favorable conclusions of this
third-party review provides Lenders, Realtors, Loan Securitizers, Appraisers,
and other clients with the confirmation they need that the appraisals produced
by licensed appraisers using Zaio technology do fully comply with USPAP
Zaio develops and maintains a secure database of site-verified photos,
property information and appraisals of virtually every property in entire
cities. Zaio's network of premiere, local appraiser experts photograph,
inspect, and appraise entire cities, one building at a time from the street
using a proprietary "GeoScore(TM)" rating system.
Zaio is a public corporation that trades under the symbol "ZAO" on the
TSX-V Exchange in Canada. Additional information is available for U.S.
investors under the symbol "ZAOFF".
For investors who would like to be added to Zaio's investor distribution
list or receive a 2006 annual report, 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. 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.
For further information:
For further information: visit www.zaio.com or please contact: Thomas J.
Inserra, President and CEO, (480) 575-5111; Rodney D. Mitton, CFO, (403)