EXHIBIT 12.1

THE PMI GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)



|                                                                                                         |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|-------------------------------------------------------------------------------------------------------- |  | --------------------------------- | ---------- | - | ---- | - | -------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                                                         |  | Year Ended December 31,           |           
|                                                                                                         |  | 2007                              |            |   | 2006 |   |          | 2005 |  |   | 2004    |   |  | 2003 |        
|                                                                                                         |  | (In thousands, except for ratios) |           
|Earnings                                                                                                 |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|(Loss) income before income taxes                                                                        |  | $                                 | (1,127,416 | ) |      | $ | 559,715  |      |  | $ | 540,831 |   |  | $    | 478,991 |   |  | $ | 393,122 |  
|Less: Equity in losses (earnings) from unconsolidated subsidiaries                                       |  |                                   | 741,500    |   |      |   | (127,309 | )    |  |   | (97,885 | ) |  |      | (83,554 | ) |  |   | (4,597  | )
|Add: Equity in (losses) earnings from unconsolidated subsidiaries with greater than 50% ownership        |  |                                   |           |   |      |   |         |      |  |   | (942    | ) |  |      | 764     |   |  |   | (31,096 | )
|Add: Distributed earnings of subsidiaries with less than 50% ownership                                   |  |                                   | 18,317     |   |      |   | 17,439   |      |  |   | 7,190   |   |  |      | 1,007   |   |  |   | 157     |  
|Less: Interest capitalized, net of amortization expense                                                  |  |                                   | 558        |   |      |   | 482      |      |  |   | (3,296  | ) |  |      |        |   |  |   |        |  
|Fixed charges                                                                                            |  |                                   | 35,536     |   |      |   | 43,315   |      |  |   | 47,177  |   |  |      | 49,701  |   |  |   | 40,414  |  
|                                                                                                         |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Total (losses) earnings                                                                                  |  | $                                 | (331,505   | ) |      | $ | 493,642  |      |  | $ | 493,075 |   |  | $    | 446,909 |   |  | $ | 398,000 |  
|                                                                                                         |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Fixed charges                                                                                            |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Interest expense, distributions on mandatorily redeemable preferred securities and capitalized interest* |  | $                                 | 33,398     |   |      | $ | 40,359   |      |  | $ | 34,927  |   |  | $    | 34,626  |   |  | $ | 24,491  |  
|Interest expense of unconsolidated subsidiaries with greater than 50% ownership                          |  |                                   |           |   |      |   |         |      |  |   | 9,781   |   |  |      | 12,744  |   |  |   | 12,389  |  
|Interest component of rent expense **                                                                    |  |                                   | 2,138      |   |      |   | 2,956    |      |  |   | 2,469   |   |  |      | 2,331   |   |  |   | 3,534   |  
|                                                                                                         |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Total fixed charges                                                                                      |  | $                                 | 35,536     |   |      | $ | 43,315   |      |  | $ | 47,177  |   |  | $    | 49,701  |   |  | $ | 40,414  |  
|                                                                                                         |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  
|Ratio of earnings to fixed charges                                                                       |  |                                   | ***        |   |      |   | 11.40    |      |  |   | 10.45   |   |  |      | 8.99    |   |  |   | 9.85    |  
|                                                                                                         |  |                                   |            |   |      |   |          |      |  |   |         |   |  |      |         |   |  |   |         |  



|* | 2006 includes net costs to exchange and extinguish long-term debt.
|- | ------------------------------------------------------------------



|** | Represents an estimated interest factor.
|-- | ----------------------------------------



|*** | Total earnings were insufficient to cover fixed charges by $367.0 million for the year ended December 31, 2007. Total earnings for 2007 included approximately $795 million
of increase in net loss reserves, a $39 million partial impairment of the investment in RAM Re and $36 million impairment of the deferred policy acquisition cost assets.
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