**EXHIBIT 12.1**

 

The following table displaysour ratio of earnings to fixed charges and ratio of earnings to combined fixedcharges and preferred

stockdividends for the periods shown: (1) (2)

 

**IMPAC MORTGAGE HOLDINGS, INC.**

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

**FIXED CHARGES AND PREFERRED STOCK DIVIDENDS**

**(dollar amounts in thousands)**

 
| ** **                                                           | ** ** | **For the Three Months  Ended March 31,** | ** ** | **For the Year Ended December 31,** | ** ** |
|----------------------------------------------------------------------|------------|--------------------------------------------------------------------|------------|--------------------------------------------------------------|------------|
| ** **                                                           | ** ** | **2006**                                                           | ** ** | **2005**                                                     | ** ** | **2004** | ** ** | **2003** | ** ** | **2002** | ** ** | **2001** | ** ** |
| ** **                                                           | ** ** | ** **                                                         | ** ** | ** **                                                   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| Net earnings (loss)                                                  |       | $                                                                  | 83,715     |                                                         | $          | 240,607 |   | $ | 244,187 |   | $ | 147,430 |   | $ | 41,918 |   | $ | (7,469 | ) |
|                                                                 |       |                                                               |       |                                                         |       |   |   |   |   |   |   |   |   |
| Add: Fixed charges                                                   |       |                                                               | 324,091    |                                                         |       | 1,048,662 |   |   | 413,584 |   |   | 209,470 |   |   | 127,851 |   |   | 108,224 |   |
|                                                                 |       |                                                               |       |                                                         |       |   |   |   |   |   |   |   |   |
| Net earnings (loss) plus fixed charges                               |       | $                                                                  | 407,805    |                                                         | $          | 1,289,269 |   | $ | 657,771 |   | $ | 356,900 |   | $ | 169,769 |   | $ | 100,755 |   |
|                                                                 |       |                                                               |       |                                                         |       |   |   |   |   |   |   |   |   |
| Fixed charges                                                        |       | $                                                                  | 324,091    |                                                         | $          | 1,048,662 |   | $ | 413,584 |   | $ | 209,470 |   | $ | 127,851 |   | $ | 108,224 |   |
|                                                                 |       |                                                               |       |                                                         |       |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                            |       | 3,672                                                              |       | 14,530                                                       |       | 3,750 |   | —  | (3) | —  | (3) | 1,575 |   |
|                                                                 |       |                                                               |       |                                                         |       |   |   |   |   |   |   |   |   |
| Total fixed charges and preferred stock  dividends                   |       | $                                                                  | 327,763    |                                                         | $          | 1,063,192 |   | $ | 417,334 |   | $ | 209,470 |   | $ | 127,851 |   | $ | 109,799 |   |
|                                                                 |       |                                                               |       |                                                         |       |   |   |   |   |   |   |   |   |
| Ratio of earnings to fixed charges                                   |       | 1.26                                                               | x          | 1.23                                                         | x          | 1.59 | x | 1.70 | x | 1.33 | x | —  | (4) |
|                                                                 |       |                                                               |       |                                                         |       |   |   |   |   |   |   |   |   |
| Ratio of earnings to combined fixed charges  and preferred dividends |       | 1.24                                                               | x          | 1.24                                                         | x          | 1.58 | x | 1.70 | x | 1.33 | x | —  | (4) |
|                                                                      |            |                                                                    |            |                                                              |            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

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(1)Earnings used in computing the ratio of earnings to fixed charges consist ofnet earnings before income taxes plus fixed charges. Fixed charges includeinterest expense on debt and the portion of rental expense deemed to representthe interest factor.

 

(2)  Financial information for the years endedDecember 31, 2003 to 2001 reflects accounting restatements and reclassificationsfor prior periods. In addition, prior to the consolidation of IFC onJuly 1, 2003, the method used to calculate the ratio of earnings to fixedcharges and preferred stock dividends reflects the consolidated net earnings ofIMH less net earnings of IFC plus dividend distributions from IFC to 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, 2001was $7.5 million.

 

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