Rising interest rates, flattening home prices and high volumes of nonstandard loan products are among many factors that have converged to challenge servicing organizations' processes and procedures. In particular, the current environment has heightened the need for strong loss mitigation programs but, in an ironic twist, made loan workouts more difficult. Today, servicers, attorneys and investors must be proactive, innovative and flexible to manage risks and contain costs as delinquency and default volumes rise.