Revenues to Zone Appraisers up 107%
CALGARY, Feb. 6 /CNW/ - Zaio Corporation (TSX-V: ZAO) and its Scottsdale,
AZ based subsidiary, Zaio Inc., announced the release of Version 2.0 of its
exclusive patent-pending database and technology. The company also reported
that the appraisal revenues sent to affiliated Zone Appraisers in Q4 2007
increased by 32% over Q3 2007, and increased by 107% from March 2007 to
December 2007, demonstrating its commitment to attract more revenues for its
elite network of local appraisers. Overall, Zaio sent revenues to 2,302
appraisal firms during 2007, with many firms having multiple appraisers.
One such appraiser is Zone owner Ken Verrett of Houston Texas who said:
"Our appraisal business received $39,345 in increased revenues as a result of
our Zaio affiliation during 2007, generating a handsome return on our
investment in Zaio technology".
Zaio's latest technology includes several enhancements that greatly
benefit lenders and appraisers. Lenders will no longer be required to wait 4
to 7 days to obtain the results of appraisals, and they can access appraisals
from a secure database in seconds, much the same way they obtain credit
reports. Instead of instantly populating only the 2055 exterior appraisal
form, with Version 2.0, appraisers are now able to produce a complete line of
valuation services ranging from AVMs, to desk top appraisals, to exterior
drive-by's, professional price opinions, and full URAR interior appraisals to
diversify their appraisal business and help grow revenues.
Traditionally, lenders have been required to obtain appraisal reports
from licensed appraisers. Previous industry attempts to increase the speed of
the appraisal process have resulted in lower appraisal quality and led to the
introduction of valuations performed by computer models and real estate
agents. However, Zaio's proprietary database and technology allows appraisers
to speed their delivery of appraisals without reducing quality. This is
significant because loans originated with appraisals have significantly lower
loss rates than loans originated with broker price opinions.
Over 2,300 appraisal firms and nearly 500 lenders in 50 states are now
benefiting from Zaio Technology. The company currently maintains a database of
140 million property records and Zaio's affiliated local appraisers inspect
and appraise every property in a city in advance of any transaction, thus
assuring total objectivity.
"These appraisals comply with the same rules and banking regulations as
any other appraisal prepared by a licensed appraiser. Zaio technology simply
helps lenders to obtain the reports more quickly, and allows the appraiser
sufficient time to conduct much more market analysis," said Thomas Inserra,
CEO of Zaio Corporation. While many appraisers often analyze only 3 comparable
sales in an appraisal, Zaio appraisers will be required to evaluate every sale
and listing in a neighborhood, allowing them to "Get the Whole Picture" of the
Zaio noted that the 107% increase in revenues to Zone appraisers was
achieved with limited marketing efforts. Much of the focus of Q4 was testing
and evaluating the Quality Control procedures and product quality to help
ensure that lenders would have a favorable experience. Since the end of the
fourth quarter, Zaio has introduced new lender marketing materials, hired
several national sales executives and is now focused on sustaining revenue
growth for its affiliated Zone appraisers.
Lenders are now discovering that loans originated with broker price
opinions and other alternative products have as much as a 4 to 6 times higher
probability of leading to loan losses, than loans originated with appraisals.
"Lenders are concluding that the best solution to the mortgage crisis is to
re-value their mortgage assets to more realistic market values, and to
strengthen their lending policies to require appraisals rather than Broker
Price Opinions," said Jim Kirchmeyer, Zaio Chief Marketing Officer.
Zaio is a technology and database company. Over 2,300 appraisal firms and
nearly 500 lenders in 50 states are now benefiting from Zaio Technology. Zaio
maintains a secure database of 140 million properties and is now site
verifying property data, photos and appraisals of virtually every property in
America. Zaio's network of premier, local appraiser experts photograph,
inspect, and appraise entire cities, one building at a time using a
proprietary "GeoScore(TM)" rating system. Zaio is a public corporation that
trades under the symbol "ZAO" on the TSX-V Exchange. Additional information is
available for U.S. investors under the symbol "ZAOFF". Visit www.zaio.com to
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: Thomas J. Inserra, President and CEO, Zaio
Corporation, (480) 575-5111; Rodney D. Mitton, CFO, Zaio Corporation, (403)