ACH Provider Expects Check Conversion to Gain Steam.(Automated Clearing House)(Ventanex)

Ventanex here, a privately held technology firm that facilitates electronic payments, is making a push into the mortgage banking arena, in part because the firm believes demand for "check conversion" services is on the rise.

Company executives told MSN recently that they have already been hired by a number of mortgage bankers. The company says it can reduce the direct transaction fees that mortgage servicers are paying for phone and Web payment options.

In addition, Ventanex says it helps servicers reduce costs further with a check conversion service that turns paper checks into electronic payments at a servicer's lockbox for receiving payments. Ventanex says servicers can reduce the cost of paper check processing by 30% to 50% by using the company's check conversion process, which turns checks into automated-clearinghouse payments when a consumer's payment arrives at a lockbox.

The key to Ventanex's value proposition is that it uses one platform to support all automated clearing-house payment options, which can significantly reduce costs and enhance the collection process, according to company CEO Kelly Green.

And while automated payment options are gaining acceptance from consumers, most still pay by check. Currently, Mr. Green estimates that 15% to 20% of borrowers pay their mortgage bill through an electronic option, but in many cases they must pay a fee to do this, and that serves as a deterrent.

But servicers are ...