Flagstar Bancorp (FBC) 8-K Flagstar Bancorp, Inc. Announces Pricing of $380.0 million Underwritten Public Offerings of Common Stock and Convertible Preferred Stock

Exhibit 12.1

Statement of Computation of Ratios of Earnings to Fixed Charges and Preferred Dividends

	Nine-Months
	Ended
	September 30,			Year Ended December 31,
	2010			2009			2008			2007			2006		2005
Income (loss) from continuing operations, before income tax	$	(187,433	)	$	(441,670	)	$	(423,367	)	$	(58,814	)	$	116,021	$	123,955
Fixed charges:
Interest on short-term borrowings		2,750			4,676			32,722			120,075			188,861		39,383
Interest on long-term debt		131,814			231,615			240,040			218,126			65,542		169,718
Preferred dividends		10,000			10,555			—			—			—		—
Combined fixed charges, excluding interest on deposits		141,814			246,846			272,762			338,201			254,403		209,101
Interest on deposits		123,677			241,507			282,710			357,430			331,516		253,292
Combined fixed charges, including interest on deposits	$	265,491		$	488,353		$	555,472		$	695,631		$	585,919	$	462,393
Ratio of earnings to combined fixed charges and preferred stock dividend requirements:
Excluding interest on deposits		(1)			(1)			(1)			(1)			1.46		1.59
Including interest on deposits		(1)			(1)			(1)			(1)			1.20		1.27

(1) Earnings were insufficient to meet fixed charges and preferred stock dividends by approximately $441.7 million, $423.4 million and $58.8 million for the years ended December 31, 2009, 2008 and 2007, respectively, and $187.4 million for the nine month period ended September 30, 2010.

     We did not pay preferred stock dividends 2005 through 2008. Payments of $10.0 million were made on our Series C preferred stock during the nine months ended September 30, 2010, payments of $10.6 million were made on our Series C preferred stock during 2009.

     For the purpose of computing the consolidated ratio of earnings to fixed charges, “earnings” consist of income before income taxes and extraordinary items plus fixed charges. “Fixed charges” consist of interest on short-term and long-term debt and where indicated, interest on deposits. For the nine months ended September 30, 2009, fixed charges also includes preferred stock dividends. We did not pay any preferred stock dividends prior to 2009. The ratios are based solely on historical financial information, and no pro forma adjustments have been made thereto.