EXHIBIT 12.1



THE PMI GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)



|                                                                                                         |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  
|-------------------------------------------------------------------------------------------------------- |  | --------------------------------- | -------- | - | ---- | - | ---------- | ---- |  | - | ---------- | - |  | ---- | ---------- | - |  | - | -------- | -
|                                                                                                         |  | Year Ended December 31,           |         
|                                                                                                         |  | 2010                              |          |   | 2009 |   |            | 2008 |  |   | 2007       |   |  | 2006 |           
|                                                                                                         |  | (In thousands, except for ratios) |         
|Earnings                                                                                                 |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  
|(Loss) income from continuing operations before income taxes                                             |  | $                                 | (773,028 | ) |      | $ | (1,061,283 | )    |  | $ | (1,321,154 | ) |  | $    | (1,255,204 | ) |  | $ | 432,378  |  
|Less: Equity in losses (earnings) from unconsolidated subsidiaries                                       |  |                                   | 12,247   |   |      |   | 12,019     |      |  |   | 51,802     |   |  |      | 741,500    |   |  |   | (127,309 | )
|Add: Distributed earnings of subsidiaries with less than 50% ownership                                   |  |                                   | 1,658    |   |      |   | 10         |      |  |   | 100        |   |  |      | 18,317     |   |  |   | 17,439   |  
|Less: Interest capitalized, net of amortization expense                                                  |  |                                   | 541      |   |      |   | 553        |      |  |   | 520        |   |  |      | 558        |   |  |   | 482      |  
|Add: Fixed charges                                                                                       |  |                                   | 49,346   |   |      |   | 43,162     |      |  |   | 42,281     |   |  |      | 34,520     |   |  |   | 42,738   |  
|                                                                                                         |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  
|Total (losses) earnings                                                                                  |  | $                                 | (709,236 | ) |      | $ | (1,005,539 | )    |  | $ | (1,226,451 | ) |  | $    | (460,309   | ) |  | $ | 365,728  |  
|                                                                                                         |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  
|Fixed charges                                                                                            |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  
|Interest expense, distributions on mandatorily redeemable preferred securities and capitalized interest* |  | $                                 | 48,632   |   |      | $ | 43,013     |      |  | $ | 41,007     |   |  | $    | 33,391     |   |  | $ | 40,234   |  
|Interest component of rent expense**                                                                     |  |                                   | 714      |   |      |   | 149        |      |  |   | 1,274      |   |  |      | 1,129      |   |  |   | 2,504    |  
|                                                                                                         |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  
|Total fixed charges                                                                                      |  | $                                 | 49,346   |   |      | $ | 43,162     |      |  | $ | 42,281     |   |  | $    | 34,520     |   |  | $ | 42,738   |  
|                                                                                                         |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  
|Ratio of earnings to fixed charges                                                                       |  |                                   | ***      |   |      |   | ***        |      |  |   | ***        |   |  |      | ***        |   |  |   | 8.56     |  
|                                                                                                         |  |                                   |          |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |          |  



|* |  | 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 $758.6 million for the year ended December 31, 2010, by $1.0 billion for the year ended
December 31, 2009, by $1.3 billion for the year ended December 31, 2008 and by $494.8 million for the year ended December 31, 2007. Total losses for the year ended December 31, 2010 included approximately $1.3 billion of losses
and loss adjustment expenses and a $113.5 million change in the fair value of debt instruments. Total losses for 2009 included approximately $319.9 million of an increase in net loss reserves. Total losses for 2008 included approximately $1.1
billion of an increase in net loss reserves and a $103.6 million impairment of the investment in FGIC. Total losses for 2007 included approximately $795 million of increase in net loss reserves, $763.3 million in equity losses from FGIC, a
$39 million partial impairment of the investment in RAM Re and $36 million impairment of deferred policy acquisition costs.
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