Exhibit 23.2




                         Consent of Independent Auditors


The Board of Directors
Dynex Securities Corporation:


We consent to  incorporation  by reference  in the  Registration  Statement  No.
33-84846 of Dynex  Securities  Corporation on Form S-3 of our report dated March
24, 1998 relating to the balance sheet of Dynex  Securities  Corporation as of
December  31, 1997,  which report  appears in the December 31, 1998 Form 10-K of
Dynex Securities Corporation.


KPMG LLP




Richmond, Virginia
March 31, 1999