EXHIBIT 12.1



THE PMI GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)



|                                                                                                         |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  
|-------------------------------------------------------------------------------------------------------- |  | --------------------------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | -------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                                                         |  | Year Ended December 31,           |           
|                                                                                                         |  | 2008                              |            |   | 2007 |   |            | 2006 |  |   | 2005     |   |  | 2004 |        
|                                                                                                         |  | (In thousands, except for ratios) |           
|Earnings                                                                                                 |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  
|(Loss) income from continuing operations before income taxes                                             |  | $                                 | (1,321,154 | ) |      | $ | (1,255,204 | )    |  | $ | 432,378  |   |  | $    | 415,501 |   |  | $ | 369,233 |  
|Less: Equity in losses (earnings) from unconsolidated subsidiaries                                       |  |                                   | 51,802     |   |      |   | 741,500    |      |  |   | (127,309 | ) |  |      | (97,885 | ) |  |   | (83,554 | )
|Add: Equity in (losses) earnings from unconsolidated subsidiaries with greater than 50% ownership        |  |                                   |           |   |      |   |           |      |  |   |         |   |  |      | (942    | ) |  |   | 764     |  
|Add: Distributed earnings of subsidiaries with less than 50% ownership                                   |  |                                   | 100        |   |      |   | 18,317     |      |  |   | 17,439   |   |  |      | 7,190   |   |  |   | 1,007   |  
|Less: Interest capitalized, net of amortization expense                                                  |  |                                   | 520        |   |      |   | 558        |      |  |   | 482      |   |  |      | (3,296  | ) |  |   |        |  
|Add: Fixed charges                                                                                       |  |                                   | 42,281     |   |      |   | 34,520     |      |  |   | 42,738   |   |  |      | 46,666  |   |  |   | 49,199  |  
|                                                                                                         |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  
|Total (losses) earnings                                                                                  |  | $                                 | (1,226,451 | ) |      | $ | (460,309   | )    |  | $ | 365,728  |   |  | $    | 367,234 |   |  | $ | 336,649 |  
|                                                                                                         |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  
|Fixed charges                                                                                            |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  
|Interest expense, distributions on mandatorily redeemable preferred securities and capitalized interest* |  | $                                 | 41,007     |   |      | $ | 33,391     |      |  | $ | 40,234   |   |  | $    | 34,919  |   |  | $ | 34,552  |  
|Interest expense of unconsolidated subsidiaries with greater than 50% ownership                          |  |                                   |           |   |      |   |           |      |  |   |         |   |  |      | 9,781   |   |  |   | 12,744  |  
|Interest component of rent expense**                                                                     |  |                                   | 1,274      |   |      |   | 1,129      |      |  |   | 2,504    |   |  |      | 1,966   |   |  |   | 1,903   |  
|                                                                                                         |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  
|Total fixed charges                                                                                      |  | $                                 | 42,281     |   |      | $ | 34,520     |      |  | $ | 42,738   |   |  | $    | 46,666  |   |  | $ | 49,199  |  
|                                                                                                         |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  
|Ratio of earnings to fixed charges                                                                       |  |                                   | ***        |   |      |   | ***        |      |  |   | 8.56     |   |  |      | 7.87    |   |  |   | 6.84    |  
|                                                                                                         |  |                                   |            |   |      |   |            |      |  |   |          |   |  |      |         |   |  |   |         |  



|* |  | 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 $1.3 billion for the year ended December 31, 2008 and $494.8 million for the year ended December 31, 2007.
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 in losses from FGIC, a $39 million partial impairment of the investment in RAM Re and $36 million impairment of the deferred policy acquisition cost assets.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------