**EXHIBIT12.1**

The followingtable displays our ratio of earnings to fixed charges and ratio of earnings tocombined fixed charges and preferred 

stock dividends for theperiods shown:

**IMPACMORTGAGE HOLDINGS, INC.**

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

**FIXEDCHARGES AND PREFERRED STOCK DIVIDENDS**

**(dollaramounts in thousands)**

 
| ** **                                                          | ** ** | **For the Six Months  Ended June 30,** | ** ** | **For the Year Ended December 31,** | ** ** |
|---------------------------------------------------------------------|------------|-----------------------------------------------------------------|------------|--------------------------------------------------------------|------------|
| ** **                                                          | ** ** | **2007**                                                        | ** ** | **2006**                                                     | ** ** | **2005** | ** ** | **2004** | ** ** | **2003** | ** ** |
| ** **                                                          | ** ** | ** **                                                      | ** ** | ** **                                                   | ** ** | **(restated)** | ** ** | **(restated)** | ** ** | **(restated)** | ** ** |
|                                                                |       |                                                            |       |                                                         |       |   |   |   |   |   |   |
| Net earnings (loss)                                                 |       | $                                                               | (269,129   | )                                                            | $          | (77,130 | ) | $ | 267,781 |   | $ | 260,399 |   | $ | 153,240 |   |
|                                                                |       |                                                            |       |                                                         |       |   |   |   |   |   |   |
| Add: Fixed charges                                                  |       | $                                                               | 655,437    |                                                         | $          | 1,313,965 |   | $ | 1,048,662 |   | $ | 413,584 |   | $ | 209,470 |   |
|                                                                |       |                                                            |       |                                                         |       |   |   |   |   |   |   |
| Net earnings (loss)  plus fixed charges                             |       | 386,308                                                         |       | 1,236,835                                                    |       | 1,316,443 |   | 673,983 |   | 362,710 |   |
|                                                                |       |                                                            |       |                                                         |       |   |   |   |   |   |   |
| Fixed charges                                                       |       | $                                                               | 655,437    |                                                         | $          | 1,313,965 |   | $ | 1,048,662 |   | $ | 413,584 |   | $ | 209,470 |   |
|                                                                |       |                                                            |       |                                                         |       |   |   |   |   |   |   |
| Preferred stock  dividends                                          |       | 7,443                                                           |       | 14,698                                                       |       | 14,530 |   | 3,750 |   | — | (3) |
|                                                                |       |                                                            |       |                                                         |       |   |   |   |   |   |   |
| Total fixed charges and  preferred stock dividends                  |       | $                                                               | 662,880    |                                                         | $          | 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)  Earningsused in computing the ratio of earnings to fixed charges consist of netearnings before income taxes plus fixed charges. Fixed charges include interestexpense on debt and the portion of rental expense deemed to represent theinterest factor

(2)  Financialinformation for the years ended December 31, 2003 and 2002 reflect accountingrestatements and reclassifications for prior periods. In addition, prior to theconsolidation of IFC on July 1, 2003, the method used to calculate the ratio ofe

(3)  Nopreferred stock dividends were paid during this period as IMH did not have anypreferred stock outstanding.

(4)  Earningswere insufficient to cover fixed charges. The amount of the deficiency for theyear-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$269.1 million. 

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