**EXHIBIT      21.1**

**NEWCASTLE      INVESTMENT CORP. SUBSIDIARIES**

|   |                                                      |   | STATE/COUNTRY                OF |
|--------|-----------------------------------------------------------|--------|---------------------------------|
|   |                                                      |   | INCORPORATION/FORMATION         |
| 1.     | Commercial                Asset Holdings LLC              |   | Delaware                        |
| 2.     | DBNCF                Circle LLC                           |   | Delaware                        |
| 3.     | DBNCH                Circle LLC                           |   | Delaware                        |
| 4.     | DBNC                Peach Holding LLC                     |   | Delaware                        |
| 5.     | DBNC                Peach LLC                             |   | Delaware                        |
| 6.     | DBNC                Peach I Trust                         |   | Delaware                        |
| 7.     | Fortress                Asset Trust                       |   | Delaware                        |
| 8.     | Fortress                CBO Holdings I Inc.               |   | Delaware                        |
| 9.     | Fortress                CBO Investments I Corp.           |   | Delaware                        |
| 10.    | Fortress                CBO Investments I, Ltd.           |   | Cayman                Islands   |
| 11.    | Fortress                Finance (Belgium) s.p.r.l.        |   | Belgium                         |
| 12.    | Fortress                Realty Holdings, Inc.             |   | Ontario                         |
| 13.    | Impac                CMB Trust 1998-C1                    |   | Delaware                        |
| 14.    | Impac                Commercial Assets Corporation        |   | California                      |
| 15.    | Impac                Commercial Capital Corporation       |   | California                      |
| 16.    | Impac                Commercial Holdings, Inc.            |   | Maryland                        |
| 17.    | Karl                S.A.                                  |   | Belgium                         |
| 18.    | LIV                Holdings LLC                           |   | Delaware                        |
| 19.    | Monterrey                B.V.                             |   | Netherlands                     |
| 20.    | Monterrey                Belgium S.A.                     |   | Belgium                         |
| 21.    | NC                Circle Holdings LLC                     |   | Delaware                        |
| 22.    | NC                Circle Holdings II LLC                  |   | Delaware                        |
| 23.    | Newcastle                2005-1 Asset-Backed Note LLC     |   | Delaware                        |
| 24.    | Newcastle                CDO Holdings LLC                 |   | Delaware                        |
| 25.    | Newcastle                CDO I Corp.                      |   | Delaware                        |
| 26.    | Newcastle                CDO I, Ltd.                      |   | Cayman                Islands   |
| 27.    | Newcastle                CDO II Corp.                     |   | Delaware                        |
| 28.    | Newcastle                CDO II Holdings LLC              |   | Delaware                        |
| 29.    | Newcastle                CDO II, Ltd.                     |   | Cayman                Islands   |
| 30.    | Newcastle                CDO III Corp.                    |   | Delaware                        |
| 31.    | Newcastle                CDO III Holdings LLC             |   | Delaware                        |
| 32.    | Newcastle                CDO III, Ltd.                    |   | Cayman                Islands   |
| 33.    | Newcastle                CDO IV Corp.                     |   | Delaware                        |
| 34.    | Newcastle                CDO IV Holdings LLC              |   | Delaware                        |
| 35.    | Newcastle                CDO IV, Ltd.                     |   | Cayman                Islands   |
| 36.    | Newcastle                CDO V Corp.                      |   | Delaware                        |
| 37.    | Newcastle                CDO V Holdings LLC               |   | Delaware                        |
| 38.    | Newcastle                CDO V, Ltd.                      |   | Cayman                Islands   |
| 39.    | Newcastle                CDO VI Corp.                     |   | Delaware                        |
| 40.    | Newcastle                CDO VI Holding, LLC              |   | Delaware                        |
| 41.    | Newcastle                CDO VI , Ltd.                    |   | Cayman                Islands   |
| 42.    | Newcastle                CDO VII Corp.                    |   | Delaware                        |
| 43.    | Newcastle                CDO VII Holdings LLC             |   | Delaware                        |
| 44.    | Newcastle                CDO VII, Limited                 |   | Cayman                Islands   |
| 45.    | Newcastle                MH I LLC                         |   | Delaware                        |
| 46.    | Newcastle                Mortgage Securities LLC          |   | Delaware                        |
| 47.    | Newcastle                Mortgage Securities Trust 2004-1 |   | Delaware                        |
| 48.    | NIC                BR LLC                                 |   | Delaware                        |
| 49.    | NIC                CNL LLC                                |   | Delaware                        |
| 50.    | NIC                CR LLC                                 |   | Delaware                        |
| 51.    | NIC                CSR LLC                                |   | Delaware                        |
| 52.    | NIC                DBRepo LLC                             |   | Delaware                        |
| 53.    | NIC                GCMRepo LLC                            |   | Delaware                        |
| 54.    | NIC                GR LLC                                 |   | Delaware                        |
| 55.    | NIC                GS LLC                                 |   | Delaware                        |
| 56.    | NIC                GSE LLC                                |   | Delaware                        |
| 57.    | NIC                Holdings I LLC                         |   | Delaware                        |
| 58.    | NIC                NK LLC                                 |   | Delaware                        |
| 59.    | NIC                TRS Holdings, Inc.                     |   | Delaware                        |
| 60.    | Steinhage                B.V.                             |   | Netherlands                     |

----