ICE Mortgage Technology’s Encompass loan origination system (LOS) will undergo significant changes in 2025, as the company plans to sunset its SDK in favor of the more efficient Encompass Partner Connect (EPC) ecosystem. This transition to the updated API will impact the majority of the mortgage industry.
The impending change has been anticipated for years, considering the longstanding use of ICE’s SDK for two decades. Following ICE’s acquisition of Black Knight, which now commands a 70% share of the mortgage technology market, the industry is poised for a major shift.
ICE has announced a grace period, starting on Nov. 1, 2025, to ease the transition for those slower to adapt. By May 1, 2026, users still clinging to the SDK will incur a monthly fee. This has caused some vendors and lenders to feel apprehensive about the switch.
However, the shift from SDK to API is not as ominous as it seems. An SDK can be likened to a classic rock band, with each member specializing in an instrument, while an API acts as the unifying force, much like Geddy Lee in Rush. An SDK provides tools and code samples specific to a platform, while an API facilitates communication between software applications.
While SDKs have enabled innovation in the mortgage industry, APIs offer more efficiency and security. By transitioning to an API approach, lenders can expect faster processing, simplified installation, rapid feature deployment, and a unified user experience.
ICE is not forcing the mortgage community to switch to APIs; rather, the introduction of a fee schedule for SDK usage post-2026 acknowledges the varying readiness for change among clients. Most Encompass users are likely to utilize both the web app and desktop app, catering to different needs.
As the industry prepares for the transition, mortgage technologists are advised to stay informed on ICE Mortgage Technology’s guidance, assess SDK usage in their environment, collaborate with vendors, and categorize applications based on importance. Ultimately, the shift to APIs promises a more streamlined and efficient mortgage technology landscape.
Patrick O’Brien is CEO of LenderLogix.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
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