Exhibit 21.1

Dynex Capital, Inc.

List of Consolidated Entities

As of December 31, 2005

Dynex Commercial Services, Inc.

Dynex Securities, Inc.

GLS Capital Services, Inc.

GLS Development, Inc.

SMFC Funding Corporation

MSC I L.P.

Issued Holdings Capital Corporation

Commercial Capital Access One, Inc.

Resource Finance Co. One

Resource Finance Co. Two

ND Holding Co.

MERIT Securities Corporation

Financial Asset Securitization, Inc.

GLS Capital, Inc.

GLS Properties, LLC

Allegheny Commercial Properties I, LLC

Allegheny Income Properties I, LLC

Allegheny Special Properties, LLC

GLS Capital Services - Marlborough, Inc.

SHF Corp.

NOTE:

All companies were incorporated in Virginia except for GLS Properties, LLC, Allegheny Commercial Properties I, LLC, Allegheny Income Properties I, LLC, and Allegheny Special Properties, LLC (Pennsylvania).