Form: S-3

Registration statement for specified transactions by certain issuers

September 17, 1997

ACCOUNTANTS CONSENT

Published on September 17, 1997




Exhibit 23.1

CONSENT OF INDEPENDENT AUDITORS


The Board of Directors
Dynex Capital, Inc.:

We consent to the use of our report incorporated by reference herein and to the
reference to our firm under the heading "Experts" in the Prospectus.


KPMG PEAT MARWICK LLP