ICE’s Shift to API in 2025 Boosts Efficiency and Security in Mortgages

December 17, 2024

The new year will hold special significance for many users of ICE Mortgage Technology’s iconic Encompass loan origination system (LOS): The company will begin sunsetting its long-standing software development kit (SDK) in 2025, prodding the majority of the mortgage industry to transition to the efficient and accurate Encompass Partner Connect (EPC) ecosystem that leverages the up-to-date application programming interface (API). This move is expected to greatly enhance both efficiency and security for lenders and borrowers alike. Since ICE’s SDK has been in use for two decades, many companies have anticipated this change for years.

Following its $11.9 billion acquisition of Black Knight, ICE now commands a roughly 70% share of the mortgage technology market, making its decisions highly influential across the industry. In late October, ICE announced a grace period for those slower to adapt to the change, beginning on November 1, 2025. By May 1, 2026, those who insist on clinging to the SDK will incur a modest monthly fee. These developments have understandably caused some anxiety among vendors and lenders who have grown comfortable with the SDK. Despite this trepidation, the transition to API-based systems is expected to yield substantial benefits, addressing both the efficiency and security concerns that have long plagued the mortgage industry.

Stay informed on updates from ICE Mortgage Technology

Staying informed on updates from ICE Mortgage Technology is crucial as the company moves towards sunsetting its SDK. ICE Mortgage Technology’s updates will include important timelines, technical specifications, and support documentation that can help ease the transition. These updates will also cover new features and improvements being made to the Encompass Partner Connect ecosystem, ensuring that lenders are aware of the latest tools available to them. Regularly reviewing these updates will not only keep companies informed but will also help them adapt their processes in a timely manner. Understanding these changes and preparing for them can mitigate potential disruptions and ensure a smoother transition.

Lenders should make a concerted effort to attend webinars, participate in user groups, and engage with ICE Mortgage Technology’s support and sales teams. This proactive approach will help organizations stay ahead of the curve and leverage new capabilities as they become available. The change from SDK to API can be perceived as a daunting task, especially for those who have been using the current system for many years. However, by staying updated on the latest developments, lenders can take advantage of the increased efficiency, improved security, and enhanced functionality offered by the new API-based system. A well-informed workforce will enable a smoother transition and allow companies to better serve their clients during this period of change.

Document SDK usage in your system

One of the first and most important steps in preparing for the transition from SDK to API is meticulously documenting SDK usage within your system. This involves identifying all the aspects of your current mortgage technology infrastructure that rely on the SDK. By thoroughly documenting these dependencies, lenders can gain a comprehensive understanding of how deeply integrated SDK functionalities are within their operations. This documentation process enables an accurate assessment of the potential impact of the transition and helps in formulating a strategic plan for migration.

It is essential to involve various departments and stakeholders in this documentation process to ensure that all potential use cases are captured. This collaborative effort can help identify hidden SDK dependencies that might otherwise be overlooked. Additionally, a well-documented inventory of SDK usage allows for better resource allocation and task prioritization during the transition. Knowing exactly where and how the SDK is being utilized will make it easier to replicate or improve these processes using the new API-based system. When the time comes to migrate, having detailed documentation will reduce the risk of unexpected issues and streamline the overall transition process.

Utilize Encompass Home -> Customization Reporting

Utilizing Encompass Home -> Customization Reporting is another critical step in facilitating a seamless transition from SDK to API. This tool provides valuable insights into customization and configuration settings within the Encompass system, allowing lenders to fully understand the extent of their current customizations. By leveraging this reporting feature, companies can identify specific areas that will require reconfiguration or redevelopment in the new API environment. This proactive approach helps in creating a clear roadmap for migration, ultimately minimizing potential disruptions and downtime.

Customization reporting also aids in identifying any redundant or outdated customizations that may not need to be carried over to the new system. By streamlining existing customizations and eliminating unnecessary complexities, lenders can ensure a more efficient and effective transition to the API-based ecosystem. This tool also allows organizations to prioritize which customizations need immediate attention, enabling a phased approach to migration. Encompass Home -> Customization Reporting thus serves as a vital resource in the preparation phase, ensuring that lenders are well-prepared and fully informed about the changes required to adapt to the new system.

Classify each application based on its criticality

Classifying each application based on its criticality is a vital step in managing the transition from SDK to API effectively. By assessing the importance of each application, lenders can prioritize their migration efforts and allocate resources accordingly. Critical applications that are essential to daily operations should be addressed first, ensuring that they are fully compatible with the new API-based system before less critical applications are considered. This approach helps to maintain business continuity and minimizes the risk of operational disruptions during the transition period.

It is also essential to consider the impact on end-users when determining an application’s criticality. Applications that are heavily utilized by staff or clients should be given precedence to ensure a seamless user experience. Additionally, this classification process helps identify potential bottlenecks and challenges, allowing lenders to address them proactively. By focusing on the most critical applications first, lenders can ensure that their core operations remain stable and that any issues that arise can be managed more effectively. This strategic approach helps to manage the transition more efficiently, ensuring that lenders can continue to provide high-quality service to their clients throughout the migration process.

Collaborate with your reliable vendors to understand their transition plans

The upcoming year will be highly significant for users of ICE Mortgage Technology’s Encompass loan origination system (LOS) as the company plans to sunset its long-standing software development kit (SDK) in 2025. This move will pressure a majority of the mortgage industry to transition to the Encompass Partner Connect (EPC) ecosystem, utilizing a modern application programming interface (API), which promises enhanced efficiency and security for both lenders and borrowers. ICE’s SDK has been in use for nearly 20 years, so many companies have long seen this change coming.

Following ICE’s $11.9 billion acquisition of Black Knight, the company now holds approximately 70% of the mortgage technology market, making its decisions highly impactful industry-wide. In late October, ICE announced a grace period for slower adapters starting November 1, 2025, with a modest monthly fee for non-compliance beginning May 1, 2026. Understandably, these changes have generated anxiety among vendors and lenders accustomed to the SDK. However, the shift to an API-based system is anticipated to bring significant benefits, addressing longstanding efficiency and security issues within the mortgage sector.

Subscribe to our weekly news digest.

Join now and become a part of our fast-growing community.

Invalid Email Address
Thanks for Subscribing!
We'll be sending you our best soon!
Something went wrong, please try again later