AUTHORIZATION CARD

Exhibit 99.2
Revised 9/97
To Join the Plan:
(1) Complete this card. Be sure to include your social security
or tax identification number and signature.
(2) Detach card, stamp and mail. Reverse side of card is
self-addressed.

DYNEX CAPITAL, INC.
DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
AUTHORIZATION CARD

I hereby appoint First Union National Bank (or any successor) ("First
Union") as my agent to receive cash dividends that may hereafter become payable
to me on shares of Common or Preferred Stock (as defined in the Prospectus) of
Dynex Capital, Inc. registered in my name as set forth below, and authorize
First Union to apply such dividends, together with any optional cash deposits I
may properly make, to the purchase of full shares and fractional interests in
shares of the Company's Common Stock.
I understand that the purchases will be made under the terms and conditions
of the Dividend Reinvestment and Stock Purchase Plan as described in the
Prospectus and that I may revoke this authorization by notifying First Union, in
writing, of my desire to terminate my participation.
By signing below, I certify under penalty of perjury that: (1) The number
shown on this form is my correct taxpayer identification number; and (2) I am
not subject to backup withholding because (a) I am exempt from backup
withholding, or (b) I have not been notified by the Internal Revenue Service
that I am subject to backup withholding as a result of a failure to report all
interest or dividends, or (c) the IRS has notified me that I am no longer
subject to backup withholding.
Return this card only if you wish to participate in the Plan.

Please indicate your participation below:

Common Stock:
__Full dividend reinvestment on all shares Print
name(s) as shown on stock certificate
__Partial dividend reinvestment on ______ shares only
__Optional Cash Deposits only Signature(s)

Signature(s)
Series A Preferred Stock:
__Full dividend reinvestment on all shares
__Partial dividend reinvestment on ______ shares only Print PO
Box and/or Street Address
__Optional Cash Deposits only

Print City, State, Zip Code
Series B Preferred Stock:
__Full dividend reinvestment on all shares
__Partial dividend reinvestment on ______ shares only Print your
phone number
__Optional Cash Deposits only
Date

Series C Preferred Stock: Social Security
Number or Tax ID Number
__Full dividend reinvestment on all shares __Partial dividend reinvestment
on ______ shares only __Optional Cash Deposits only


If your shares are held of record by a broker or nominee, you must make
appropriate arrangements with the broker or nominee to participate in the Plan.