**EXHIBIT 12.1**

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: (1)(2)

**IMPACMORTGAGE HOLDINGS, INC.**

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

**FIXEDCHARGES AND PREFERRED STOCK DIVIDENDS**

**(dollar amounts in thousands)**
| ** **                                                          | ** ** | **For the Six** | ** ** | ** **                            | ** ** | ** **                                                   | ** ** | ** **   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
|---------------------------------------------------------------------|------------|---------------------------|------------|---------------------------------------|------------|--------------------------------------------------------------|------------|--------------|------------|------------|------------|------------|------------|------------|------------|
| ** **                                                          | ** ** | **Months**                | ** ** | **For the Six Months** | ** ** | ** **                                                   | ** ** | ** **   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| ** **                                                          | ** ** | **Ended June**       | ** ** | **Ended June 30,**          | ** ** | **For the Year Ended December 31,** | ** ** |
| ** **                                                          | ** ** | **30, 2005**         | ** ** | **2006**                              | ** ** | **2005**                                                     | ** ** | **2004**     | ** ** | **2003**   | ** ** | **2002**   | ** ** | **2001**   | ** ** |
|                                                                | ** ** | ** **                |       |                                  |       |                                                         |       |         | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Net earnings (loss)                                                 |       | 112,023                   |       | 98,063                                |       | 240,607                                                      |       | 244,187      |       | 147,430    |       | 41,918     |       | (7,469     | )          |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Add: Fixed charges                                                  |       | 440,569                   |       | $                                     | 652,928.35 |                                                         | $          | 1,048,661.77 |       | $          | 413,584.38 |       | $          | 209,469.97 |       | $ | 127,850.52 |   | $ | 108,223.85 |   |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Net earnings (loss) plus  fixed charges                             |       | 552,592                   |       | 750,991                               |       | 1,289,269                                                    |       | 657,771      |       | 356,900    |       | 169,769    |       | 100,755    |       |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Fixed charges                                                       |       | 440,569                   |       | $                                     | 652,928    |                                                         | $          | 1,048,662    |       | 413,584    |       | $          | 209,470    |       | $          | 127,851 |   | $ | 108,224 |   |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Preferred stock  dividends                                          |       | 7,248                     |       | 7,344                                 |       | 14,530                                                       |       | 3,750        |       | —     | (3)        | —     | (3)        | 1,575      |       |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Total fixed charges and  preferred stock dividends                  |       | 447,817                   |       | $                                     | 660,272    |                                                         | $          | 1,063,192    |       | 417,334    |       | $          | 209,470    |       | $          | 127,851 |   | $ | 109,799 |   |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Ratio of earnings to  fixed charges                                 |       | 1.25                      | x          | 1.15                                  | x          | 1.23                                                         | x          | 1.59         | x          | 1.70       | x          | 1.33       | x          | —     | (4)        |
|                                                                |       |                      |       |                                  |       |                                                         |       |         |       |       |       |       |       |       |       |
| Ratio of earnings to combined fixed charges and preferred dividends |       | 1.23                      | x          | 1.14                                  | x          | 1.21                                                         | x          | 1.58         | x          | 1.70       | x          | 1.33       | x          | —     | (4)        |
|                                                                     |            |                           |            |                                       |            |                                                              |            |              |            |            |            |            |            |            |            |  |  |  |  |  |  |

 

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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 to 2001 reflects 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 reflects 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, 2001was $7.5 million.

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