Zaio: Everybody buckle your seat belts

[Evincere]

http://appraisersforum.com/improving-profession/114448-zaios-ceo-responds.html

5) The primary product produced by Zaio Appraisers is a 2055 form. Zaio’s research of the appraisal market has concluded that across the United States, the number of 2055 appraisals and BPO’s ordered by clients EXCEEDS the number of URAR appraisals. Zaio is also developing a desk top appraisal, BPO, and other appraisal forms since our appraisers and lender clients have requested we do so. The whole idea of Zaio is to provide appraisers with tools that expand the offerings of an appraiser, allowing that appraiser to grow their revenues and attract new clients. This means appraisers who don’t offer 2055 or BPO products are missing out on large revenue streams and are forcing clients to use non-appraiser valuation suppliers like AVMs.

3) Zaio is facilitating the hiring of trainees for our local firms because of the anticipated increase in volumes and revenues over the next few years will create the need for more licensed appraisers.

E) Zaio's software is completely sold out in 170 cities;
H) Zaio already has the cash to fund a simultaneous launch of photo and appraisal operations in 170 USA cities planned for January and February of 2007, which puts us ahead of schedule in our ambitious effort of helping appraisers to inspect and appraise every home in America.

8) In appraisal text books there is a recognized difference between the “date of inspection” and the “date of valuation” (or effective date of the appraisal), and there is NO requirement that these two dates be the same


The officers and directors of Zaio most of whom are appraisers own 40% of Zaio's stock. Our cash investment means our interests are aligned with those of shareholders and appraisers. We are highly motivated to make this successful for appraisers since our business model relies exclusively on appraisers. It is comforting to see such a large number of appraisers “approve” of Zaio’s vision by making their own investment in Zaio’s software, stock, or both. Zaio’s 500% growth in under 6 months is real, sustainable, scalable, and Zaio is here to stay.

Thomas Inserra, CEO
Zaio Corporation

Ken,
Please find some acronyms for BPO. :new_llying:

http://en.wikipedia.org/wiki/BPO

Suit yourself. Select any of the above you feel appropriate to define what Zaio is trying to sell us as a tool to better our livelihoods and improve our professional skills. Perhaps, you are considering alternatively broadening your business, profile, operation with BPO’s. Well and fine if it fits your business model vision. Personally, I have not invested 20+ years as an appraiser to begin a new career developing $25.00 BPO’s with the expectation that it will evolve. Nor do I need Zaio to pursue a $15 online certification test. I do find intriguing Zaio’s ambitious attempts to corner the entire US market by selling $9,000 software packages. Since, as stated by T. Inserra, inspection date differences only exist legitimately in “text books” their new 2055 “is” obviously going to require some massaging, embellishment or reinterpretations somewhere along the line to be a viable, widely accepted lender product. And that’s where I see the necessary stacking of VIP’s on Q/F Boards.

I have a sanctioned, marketable, 2055 already sitting on my desktop. My existing, current, updated software is so proficient it’s not been necessary to renew my support fee. When form updates are required, I gladly pay.


There are 51,315 cities and communities, and 3,090+ counties in the United States. As to the 170 Zaio city Zones sold thus far I am impressed only by the aggressively shrewd marketing campaign that’s been undertaken to secure the remaining 51,145 cities necessary to make Zaio work as intended.

It was stated that candid, direct communication is appreciated. OHK. If we are going to make any great strides towards achieving this goal lets be as honest as possible. For a business venture such as Zaio (or any other) to succeed, especially for those already contracted, or those with not yet fully consummated Zaio contracts, it is to the investors interests only to encourage and promote the project. Actually, persuasion is imperative. By virtue of their investment they are now committed towards its expansion. To do contrary or otherwise would jeopardize the capital investment.

In the case of Zaio, to entice lenders interest. What I do find amusing, if not downright contradictory, “is” that it has been stated that in order to succeed, it “is” incumbent on Zaio execs, they have been charged with marketing the products to lenders/appraisers, who supposedly, are making the requests for the sake of what appears to be expedience. What/Why the "sell" if they are already in such high demand. The essence of what is being offered in an AAVM with digital photo enhancement.

There’s been much discussion regarding lenders needs and it’s been suggested that appraisers are estranged and have failed to meet those needs. I say contrary. Many have in fact met those needs, unfortunately, to an excess via non insulated pressure, increased value demands and against the interests of protecting the general public. Only an idealist would overlook results of such ingratiating business practices….the impending foreclosure market. Are the heavy handed, guilty party lenders now claiming they are no longer interested in this kind of activity and are desirous of cleaning up the industry? Wow.

Whether it is truly beneficial to all as suggested is really irrelevant because fact or simple logic “is”…. the venture “is” only beneficial to the investors who find it affordable and expect profits. This is all really, very elementary. Save a few company issued press releases the hypotheticals are plenty.

As to enabling appraisers to offer new, innovative, greater “varieties” of already existing products in the future ~ our industry has already been sufficiently decimated by a multitude of existing low fee competitors using similar products. What Zaio offers to us is nothing but a lesser proportion of the pie under the guise of greater tech opportunities. Although I have enjoyed reading the mini motivational for the Good and Betterment of Appraiser seminars/infomercials presented by Zaio principles and its investors, I have come to the conclusion that if there is any new or cunning grab for what remains of the lions piece meal, it will be vied for by the hyenas.

Ten+/- years ago it was the FNC ideology which bore the management companies and AVM innovators. For Appraiser production benefits they proclaimed. I’ve been away from this Forum for a few years and it was actually the Zaio letter that brought me back, initially, as a curious observer. Can’t say that I am sorry to have returned, it’s been enlightening.

Alas, across America, Zaio et al appears and valiantly concludes (it would be interesting to see the 2055 vs. 1004 supporting stats stated) that which will buffer its own interests, and its investors position in the market. Fine, America, free enterprise.

To the “trainee” cadres lurking……..if all else fails in the mentor search you will find these links to BPO certification more profitable and less feudal with regard to a real estate related career. Realtors might not like the sudden onslaught of trainees competing for the same BPO’s, nor will Zaio, but heck, they too have got to learn to share.

http://www.instantbpo.com/BPO

http://www.realestateproguides.com/BuildBPObusiness.htm?gclid=CJz4lLqmwYoCFQMLVAod_WZylg

 

[Ken Verrett]

Ken, you should do a search of "comp check" and read some of the threads, if you want additional verification of the built-in animosity toward USAP compliant answers to such requests.

My view: A request for a comp check should be followed up with an offer to perform a desktop appraisal (USPAP compliant, of course). If the appraiser doesn't want to do them, scare the client away with the quote

Please Mr. W, don't make me go to the comp check threads! I've dealt with this discussion for years. There are two clearly disconnected views of that issue. Never the twain shall meet is my conclusion. No additional dialogue would help.

Your view is a perfectly acceptable response. Hanging up on people is less acceptable in my view, but certainly within someone's range of choices. Calling them out in the street for a knife fight as one person suggested a year or more ago (not here...elsewere) is not acceptable...
Our approach of attempted education and sending documents for them to study is another....and my preferance.

Because each of us take different approaches, and because USPAP does in fact define the parameters for an acceptable way to deal with that in my mind justifies each of our chosen methods.

 

[Ken Verrett]

Quote: "Finally, it helps the consumer. Faster response times helps the consumer to better manage his assets in support of his families needs."

I feel their pain. You ought to run for office with PC BS like that.

Your sarcasim underwhelms me Mr. R. Figured I'd get some responses like that.

The fact is I truely believe that. Both points.

I'm wondering....do you disagree with the first statement, with the second statement, or both? I'm guessing from the wording that it is the second statement you intend to deride.

I can understand a disagreement with that first statement. That is certainly subject to different opinions.

But the second statement? What's to disagree with?

Or are you of the camp that all (or most) borrowers are dishonest and trying to defraud lenders to support their drug habits?

If that be the case, you can team up with that other camp that believes that all (or most) lenders care not at all about the public and we appraisers stand as the last defense of that public?

I'm being tongue in cheek here Mr. R., in part at least......

I just found another feature in this system! I can edit a posted response! Great feature!

I've been here for a week now, week and a half actually, and I think it's time to apply some discipline and restrictions on my posts. I'm acutely aware of Mr. S N and Mr. F's note that I'm taking up bandwith. I do agree with them.

So I'm here to continue to respond to questions and attempts at dialogue regarding what I've said. The dialogue is the key. Every person here to whom I've responded could be a candidate for true dialogue.

But some may have, appear to have, closed their minds to dialogue and won't change for the world! They've looked at data and ideas and opinions, come to their conclusions, and closed the issue.

That's perfectly fine with me and I support that decision as I said in my first post here (Page 8 Mr. Willie, to help you wade through all this babble, including mine.)

But I really would like to identify which responders are not seeking to learn and engage in dialogue and which are still interested in discussion. I'd like to address my reponses only to the latter if that is feasible.

The others are not useful, even to the lurkers. The problem is I may misjudge the decided mind for one that is still open, and I don't want to do that.

So. A proposal.

Would those who simply want to make fun of my comments and even of me feel free to do so....I'm not bothered by that at all, unless it gets slanderous...but not ask questions of me in those posts? I'll simply read those for the laughs they are intended to create and enjoy the humor along with you.

Those of you who want a reponse for the purpose of learning my thoughts extending the dialogue just address a question to me by name and I'll limit my bandwith here to those.

That sound fair and reasonable? And by the way, there are still a couple of outstanding issues that I haven't forgotten. I'm still researching and I'll report back when I'm done.

 

[Mr Rex]

I believe your

"Faster response times helps the consumer to better manage his assets in support of his families needs."

does sound a bit more like a payday lender slogan than anything that should be associated with a mortgage on a home. I haven't read your bio, but somewhere in there must be some MB or Doublewide salesman DNA lurking. Sorry, but I tend to be blunt, and sometimes rude, as the moderators have told me in private.

Edit to add, given the overall length of the whole mortgage process, I remain underwhelmed by the industry push to blame the delays on the appraiser/appraisal. Just another sly way of saying that appraisals are just a necessary nuisance. Cut out the live appraiser as much as possible, their thought process might just bungle the deal.

 

[JSmith43]

Roger,

Fair enough about the dispersion of bad actors. But let me ask you this: When it comes to holding business entities accountable for their actions, even if that mechanism is market-centric, do you think it's easier to do that with a lending institution that leaves a paper trail for everything it does, or with the 1,000 here-today-gone-tomorrow brokerages that feed it?

Yes and no. If I get a bad hamburger at McDonalds, I can sue and defame all that do business under the golden arches. I'm not sure how efficient that is, but it is more powerful and sweeping than suing and shutting down the local greasy spoon. I believe McDonalds, on the whole, is likely to be more accountable and predictable than individual greasy spoon establishments.

The big boys stand like mighty Sequoia, with many sharp lawyers on staff and on retainer. They can create layers of apparent due diligence. The buck stops with the appraiser, with the AMC or with the appraiser manager they might have to axe in an emergency. They are great with image stuff, aren't they?
I believe the T11 Licensing scheme helped them by adding another layer of insulation. The licensed/certified regulated seal of approval
When SHTF, it is much easier to bust the individual MB. There is sufficient paper trail to crush the bad actors by the legal actions of the correspondents, if not regulators. MB's can be cut off at the knees any time the direct lenders want them cut off. I'd say that is pretty good evidence that the direct lenders, who by the way, originate 2/3 of their loans via correspondent MB's, are happy with the arrangement as is.

IMO, the appraisal industry or those that cover the industry, ought to publicly out the irresponsible processes wherever they are and no matter how camouflaged. Appraisers should lobby the market makers, buyers and raters of these mortgage backed securities.

Additionally, if there were a significant financial benefit to use only the best appraisers, then a quality rating system would be in widespread existence by now. I'd say it is in sporadic existence, because normal market fluctuations dwarf the effect of appraisals being rosy scenario by 2-3% in the aggregate. The increased percentage of 2/28 B/C loans, 80/20 loans where the 80 is a 3/1 IO ARM.......stuff like that in the mix dwarfs the effect of any statistical "make the deal work" bias that exists in the appraisals in the mortgage files backing those pooled loans.

 

[Offshore]

Mr. Verrett no disrespect intended, but as I read all the replies I’m reminded of an episode of the original Star Trek series where an evil alien entity took over the Enterprise and gained sustenance when the Enterprise crew and the Klingons engaged in a never ending battle. Both crews finally realized that if the Enterprise crew and the Klingons simply got along, the evil alien would leave. I’m beginning to wonder this about the exalted company and the never ending posts. If people simply stop replying to you and the fine man at the tiller, will you finally go away and leave us alone?

 

[Willie]

Beam me up Richard.

 

[Ken Verrett]

I believe your

"Faster response times helps the consumer to better manage his assets in support of his families needs."

does sound a bit more like a payday lender slogan than anything that should be associated with a mortgage on a home. I haven't read your bio, but somewhere in there must be some MB or Doublewide salesman DNA lurking. Sorry, but I tend to be blunt, and sometimes rude, as the moderators have told me in private.

Edit to add, given the overall length of the whole mortgage process, I remain underwhelmed by the industry push to blame the delays on the appraiser/appraisal. Just another sly way of saying that appraisals are just a necessary nuisance. Cut out the live appraiser as much as possible, their thought process might just bungle the deal.

I like blunt Mr. R. Rude, not always. Getting time for golf so I'll be brief.

I absolutely agree with you about the too much blame being laid on the appraiser. It's pin the tail on the donkey time again and we will be the fall guy again. Doesn't matter if I agree with it or not...it is what is. My pragmatic side showing itself.

I am a businessman, an entreprenuer, to be that I have to be a salesman of my ideas and ideals. I believe I do that with morals and ethics.

Your doublewide reference...is that a put down or just part of a post to continue dialogue?

You are one that I have a little trouble discerning intent. Should I simply enjoy your humor at my expense or try to answer points you really want me to respond to?....Other than as a straight man that is....

 

[Tim Hicks (Texas)]

Ken, out of curiosity, do you actively perform (did inspect) appraisals on a daily basis? With posting here and golfing every day, it almosts seems that you have a desk job now. Wouldn't the constant inspecton of your zone interfere with your golf game and 24 hour turn time? I have nothing against supervisory appraisers, but it seems that supervisory appraisers have less of a problem with the Zaio system than others. Of course, I could be wrong. It happens quite often, but I rarely admit it.

 

[Evincere]

I like blunt Mr. R. Rude, not always. Getting time for golf so I'll be brief.

I am a businessman, an entreprenuer, to be that I have to be a salesman of my ideas and ideals. I believe I do that with morals and ethics.

Yes, I think you have made very clear the motivation. Bad press is often better than no press to convey an idea or project and image. Wanning celebrities, sports heros, movie stars do it all the time. Thanks to your candidness, I think we understand very well the above statement.