CONSENT OF INDEPENDENT AUDITORS
Published on March 25, 1998
Exhibit 23.1
Consent of Independent Auditors
The Board of Directors
Dynex Capital, Inc.
We consent to incorporation by reference in the registration statements
(Nos. 33-50705, 333-22859, 333-10783, 333-10587 and 333-35769) on Form S-3 of
Dynex Capital, Inc. of our report dated February 4, 1998, relating to the
consolidated balance sheets of Dynex Capital, Inc. and subsidiaries as of
December 31, 1997 and 1996 and the related consolidated statements of
operations, shareholders' equity and cash flows for each of the years in the
three-year period ended December 31, 1997 and the related financial statement
schedule dated December 31, 1997, which report appears in the December 31, 1997
Form 10-K of Dynex Capital, Inc.
KPMG PEAT MARWICK LLP
Richmond, Virginia
March 18, 1998