Exhibit 23.1




                                         Consent of Independent Auditors



The Board of Directors
Dynex Securities Corporation


     We consent to incorporation by reference in the registration statement (No.
33-84846) on Form S-3 of Dynex Securities  Corporation of our report dated March
24, 1998,  relating to the balance sheets of Dynex Securities  Corporation as of
December 31, 1997 and 1996,  which report  appears in the December 31, 1997 Form
10-K of Dynex Securities Corporation.


                                     KPMG PEAT MARWICK LLP



Richmond, Virginia
March 24, 1998