**EXHIBIT12.1**

The following tabledisplays our ratio of earnings to fixed charges and ratio of earnings tocombined fixed charges and preferred stock dividends for the periods shown:

**IMPACMORTGAGE HOLDINGS, INC.**

**RATIOOF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO**

**FIXEDCHARGES AND PREFERRED STOCK DIVIDENDS**

**(dollar amounts in thousands)**
| ** **                                                           | ** ** | **For the Three Months** | ** ** | ** **                                                   | ** ** | ** **     | ** ** | ** **     | ** ** | ** **     | ** ** |
|----------------------------------------------------------------------|------------|-----------------------------------------|------------|--------------------------------------------------------------|------------|----------------|------------|----------------|------------|----------------|------------|
| ** **                                                           | ** ** | **Ended March 31,**           | ** ** | **For the Year Ended December 31,** | ** ** |
| ** **                                                           | ** ** | **2007**                                | ** ** | **2006**                                                     | ** ** | **2005**       | ** ** | **2004**       | ** ** | **2003**       | ** ** |
| ** **                                                           | ** ** | ** **                              | ** ** | ** **                                                   | ** ** | **(restated)** | ** ** | **(restated)** | ** ** | **(restated)** | ** ** |
| ** **                                                           | ** ** | ** **                              | ** ** | ** **                                                   | ** ** | ** **     | ** ** | ** **     | ** ** | ** **     | ** ** |
| Net  earnings (loss)                                                 |       | (119,802                                | )          | (77,130                                                      | )          | 267,781        |       | 260,399        |       | 153,240        |       |
|                                                                 |       |                                    |       |                                                         |       |           |       |           |       |           |       |
| Add:  Fixed charges                                                  |       | $                                       | 330,548    |                                                         | $          | 1,313,965      |       | $              | 1,048,662  |           | $          | 413,584 |   | $ | 209,470 |   |
|                                                                 |       |                                    |       |                                                         |       |           |       |           |       |           |       |
| Net  earnings (loss) plus fixed charges                              |       | 210,746                                 |       | 1,236,835                                                    |       | 1,316,443      |       | 673,983        |       | 362,710        |       |
|                                                                 |       |                                    |       |                                                         |       |           |       |           |       |           |       |
| Fixed  charges                                                       |       | $                                       | 330,548    |                                                         | $          | 1,313,965      |       | $              | 1,048,662  |           | $          | 413,584 |   | $ | 209,470 |   |
|                                                                 |       |                                    |       |                                                         |       |           |       |           |       |           |       |
| Preferred  stock dividends                                           |       | 3,722                                   |       | 14,698                                                       |       | 14,530         |       | 3,750          |       | —         | (3)        |
|                                                                 |       |                                    |       |                                                         |       |           |       |           |       |           |       |
| Total  fixed charges and preferred stock dividends                   |       | $                                       | 334,270    |                                                         | $          | 1,328,663      |       | $              | 1,063,192  |           | $          | 417,334 |   | $ | 209,470 |   |
|                                                                 |       |                                    |       |                                                         |       |           |       |           |       |           |       |
| Ratio  of earnings to fixed charges                                  |       | —                                  | (5)        | —                                                       | (4)        | 1.26           | x          | 1.63           | x          | 1.73           | x          |
|                                                                 |       |                                    |       |                                                         |       |           |       |           |       |           |       |
| Ratio of earnings to  combined fixed charges and preferred dividends |       | —                                  | (5)        | —                                                       | (4)        | 1.24           | x          | 1.61           | x          | 1.73           | x          |

 

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(1) Earnings used incomputing the ratio of earnings to fixed charges consist of net earnings beforeincome taxes plus fixed charges. Fixed charges include interest expense on debtand the portion of rental expense deemed to represent the interest factor.

(2)  Financial information for the years endedDecember 31, 2003 and 2002 reflect accounting restatements andreclassifications for prior periods. In addition, prior to the consolidation ofIFC on July 1, 2003, the method used to calculate the ratio of earnings tofixed charges and preferred stock dividends reflected the consolidated netearnings of IMH less net earnings of IFC plus dividend distributions from IFCto IMH.

(3)  No preferred stock dividends were paid duringthis period as IMH did not have any preferred stock outstanding.

(4)  Earnings were insufficient to cover fixedcharges. The amount of the deficiency for the year-ended December 31, 2006 was$77.1 million.

(5)  Earnings were insufficient to cover fixedcharges. The amount of the deficiency for the quarter ended March 31, 2007 was$119.8 million.

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