SECTION 16

POWER OF ATTORNEY


	I, Michael R. Hughes, do hereby constitute and
appoint Stephen J. Benedetti, Alison G. Griffin,
Shannon V. Patterson and Susan S. Ancarrow, 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 8th day of
November, 2010.


		/s/ Michael R. Hughes
		Michael R. Hughes