POWER OF ATTORNEY, JAMES C. WHEAT III

SECTION 16
POWER OF ATTORNEY


I, James C. Wheat III, do hereby constitute and appoint
Shannon V. Patterson, Susan S. Ancarrow, and Stephen J. Benedetti,
my true and lawful attorneys-in-fact, any of whom acting singly is
hereby authorized, for me and in my name and on my behalf as a
director, officer and/or shareholder of Dynex Capital, Inc., to (i)
prepare, execute in my name and on my behalf, and submit to the U.S.
Securities and Exchange Commission (the "SEC") a Form ID,
including any necessary amendments thereto, and any other
documents necessary or appropriate to obtain codes and passwords
enabling me to make electronic filings with the SEC of reports
required by Section 16(a) of the Securities Exchange Act of 1934 or
any rule or regulation of the SEC in respect thereof; and (ii) prepare,
execute and file any and all forms, instruments or documents,
including any necessary amendments thereto, as such attorneys or
attorney deems necessary or advisable to enable me to comply with
Section 16 of the Securities Exchange Act of 1934 or any rule or
regulation of the SEC in respect thereof (collectively, "Section 16").


I do hereby ratify and confirm all acts my said attorney shall
do or cause to be done by virtue hereof. I acknowledge that the
foregoing attorneys-in-fact, serving in such capacity at my request, are
not assuming, nor is Dynex Capital, Inc. assuming, any of my
responsibilities to comply with Section 16.


This power of attorney shall remain in full force and effect
until it is revoked by the undersigned in a signed writing delivered to
each such attorney-in-fact or the undersigned is no longer required to
comply with Section 16, whichever occurs first.


WITNESS the execution hereof this 25th day of August,
2008.




/s/ James C. Wheat III

James C. Wheat III