Mortgage insurer Genworth Financial (GNW) reported a net income of $45m in Q309, compared to a net loss of $258m in Q308. Despite the overall earnings, Genworth registered $116m in net operating losses of its US Mortgage Insurance (US MI) segment, compared to $121m in losses in Q308. According to the earnings report, Genworth changed its underwriting guidelines to produce future growth. In 199 metropolitan statistical areas (MSAs), Genworth had been restricting coverage to 90% loan-to-value (LTV) mortgages based on the housing markets’ conditions. But in Q309, Genworth reopened coverage to 95% loan-to-value mortgages. However, guidelines remained constricted in California, Florida, Arizona, Nevada and Michigan – hotbeds of the foreclosure crisis. For the third consecutive quarter, Genworth’s US MI segment increased loss mitigation savings and decreased losses. In Q309, Genworth saved $224m, totaling $557m for the year. With additional execution, resources and rising intensity loan modifications, Genworth expects to save between $775m and $825m in loss mitigation, according to the report. The savings should come as HAMP servicers increase modifications. At the beginning of October, HAMP servicers reached the 500,000 trial modification target – one month ahead of schedule. Based upon reports from government-sponsored enterprises (GSEs) and certain servicers, Genworth estimates 11,500 delinquent loans within the Home Affordable Modification Program (HAMP). Through the program, the US Treasury Department allocates capped incentives to participating servicers for the modification of loans on the verge of foreclosure. “We are encouraged by the multiple signs of stabilization and improvement in our served markets which combined with our focused growth strategies, engaged distribution relationships and risk reduction efforts position us well for improved results as we move ahead,” said Michael Fraizer, CEO of Genworth. Write to Jon Prior.