**Exhibit      31.1**

**CERTIFICATION      OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO      SECTION 302**

| 1.   | I              have reviewed this quarterly report on Form 10-Q of Dynex Capital,              Inc.; |
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| 2.   | Based              on my knowledge, this report does not contain any untrue statement              of a              material fact or omit to state a material fact necessary to make the              statements made, in light of the circumstances under which such statements              were made, not misleading with respect to the period covered by this              report; |
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| 3.   | Based              on my knowledge, the financial statements, and other financial information              included in this report, fairly present in all material respects the              financial condition, results of operations and cash flows of the              registrant as of, and for, the periods presented in this              report; |
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| 4.   | I              am responsible for establishing and maintaining disclosure controls              and              procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))              for              the registrant and have: |
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| 5.   | I              have disclosed, based on my most recent evaluation              of              internal control over financial reporting,              to the registrant's auditors and the audit committee of the registrant's              board of directors (or persons performing the equivalent              functions): |
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| (b)   | any              fraud, whether or not material, that involves management or other              employees who have a significant role in the registrant's internal              control              over financial reporting. |
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|                              |                                           |
|-----------------------------------|------------------------------------------------|
| Date:                May 15, 2006 | /s/                Stephen J. Benedetti        |
|                              | Stephen                J. Benedetti            |
|                              | Principal                Executive Officer and |
|                              | Principal                Financial Officer     |