8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K



                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


        Date of report (Date of earliest event reported) January 11, 2011


                     First Trust/FIDAC Mortgage Income Fund
             (Exact Name of Registrant as Specified in its Charter)



       Massachusetts                   811-21727                  35-6758396
(State or Other Jurisdiction    (Commission File Number)        (IRS Employer
     of Incorporation)                                       Identification No.)


   120 East Liberty Drive, Suite 400
           Wheaton, Illinois                                        60187
(Address of Principal Executive Offices)                          (Zip Code)


      Registrant's telephone number, including area code   (630) 765-8000


       ___________________________________________________________________
         (Former Name or Former Address, if Changed Since Last Report.)



Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):


|_|   Written communications pursuant to Rule 425 under the Securities Act
      (17 CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)

|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))





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Item 7.01    Regulation FD Disclosure.


First Trust/FIDAC Mortgage Income Fund (the "Fund") is filing herewith a
press release issued on January 11, 2011, as Exhibit 99.1. The press release was
issued by First Trust Advisors, L.P. to that Fixed Income Discount Advisory
Company ("FIDAC") has submitted its notice of resignation, effective April 30,
2011, as the investment sub-advisor to First Trust/FIDAC Mortgage Income Fund.



Item 9.01    Financial Statements and Exhibits.


     (d)   Exhibits

        Exhibit
        Number        Description

           99.1       Press release of First Trust Advisors, L.P. dated
                      January 11, 2011.





                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Dated: January 12, 2011          FIRST TRUST/FIDAC MORTGAGE INCOME FUND

                                 By:    /s/ W. Scott Jardine
                                        ----------------------------------
                                 Name:   W. Scott Jardine
                                 Title:  Secretary





                                  EXHIBIT INDEX
        Exhibit
        Number        Description

           99.1       Press release of First Trust Advisors, L.P. dated
                      January 11, 2011.

EX-99.1

PRESS RELEASE                                 Source:  First Trust Advisors L.P.

FIRST TRUST ADVISORS L.P. ANNOUNCES APRIL 30, 2011 RESIGNATION OF INVESTMENT
SUB-ADVISOR FOR FIRST TRUST/FIDAC MORTGAGE INCOME FUND

Wheaton, IL - (BUSINESS WIRE) - January 11, 2011 - First Trust Advisors L.P.
announced that Fixed Income Discount Advisory Company ("FIDAC") has submitted
its notice of resignation, effective April 30, 2011, as the investment
sub-advisor to First Trust/FIDAC Mortgage Income Fund (NYSE: FMY). Until April
30, 2011, FIDAC will continue to serve as the Fund's investment sub-advisor.
First Trust Advisors L.P. ("First Trust"), the Fund's investment manager, is
currently evaluating the impact of FIDAC's resignation on the Fund and is
assessing alternatives to ensure continuity of portfolio management for the
Fund. First Trust has served as the Fund's investment manager since the Fund's
inception and will continue to serve in such capacity following FIDAC's
resignation.

The Fund is a diversified, closed-end management investment company that seeks
to provide a high level of current income. As a secondary objective, the Fund
seeks to preserve capital. The Fund pursues these investment objectives by
investing primarily in mortgage-backed securities representing part ownership in
a pool of either residential or commercial mortgage loans that, in the opinion
of the Fund's investment sub-advisor, offer an attractive combination of credit
quality, yield and maturity.

First Trust Advisors, L.P., along with its affiliate First Trust Portfolios
L.P., are privately-held companies which provide a variety of investment
services, including asset management, financial advisory services, and municipal
and corporate investment banking, with collective assets under management or
supervision of over $42 billion as of December 31, 2010 through closed-end
funds, unit investment trusts, mutual funds, separate managed accounts and
exchange-traded funds.


CONTACT:  Jeff Margolin (630) 915-6784

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SOURCE:  First Trust Advisors L.P.