SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934

                                 Amendment No. 3

                                Downey Financial
--------------------------------------------------------------------------------
                                (Name of Issuer)

                                  Common Stock
--------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                   261018105
--------------------------------------------------------------------------------
                                 (CUSIP Number)

Check the  appropriate box to designate the rule pursuant to which this Schedule
is filed:
[x] Rule 13d-1 ( b)
[ ] Rule 13d-1 ( c)
[ ] Rule 13d-1 ( d)

The  remainder  of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures  provided in a prior cover page. The information in the remainder of
this cover page shall not be deemed to be "filed"  for the purpose of Section 18
of the Securities  and Exchange Act of 1934 ("Act") or otherwise  subject to the
liabilities  of that  section  of the Act but  shall  be  subject  to all  other
provisions of the Act (however, see the Notes).



                                       13G

Cusip No. 261018105
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1.   Name of Reporting Person
     S.S. or I.R.S. Identification No. of Above Person
     Westport Asset Management, Inc. - 06-1087640
     Westport Advisers LLC - 06-1497709

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2.   Check the appropriate box if a member of a group*
     (a)  [ ]
     (b)  [X]

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3.   SEC Use Only

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4.   Citizenship or Place or Organization
     Connecticut

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                    5.   Sole Voting Power
                         120,000
Number of           ------------------------------------------------------------
Shares              6.   Shared Voting Power
Beneficially             810,549
Owned               ------------------------------------------------------------
By Each             7.   Sole Dispositive Power
Reporting                120,000
Person              ------------------------------------------------------------
With                8.   Shared Dispositive Power
                         1,058,592
--------------------------------------------------------------------------------

9.   Aggregate Amount Beneficially Owned by each Reporting Person
     1,178,592

--------------------------------------------------------------------------------

10.  Check Box if the aggregate amount in row (9) excludes certain shares [x]
     5,081

--------------------------------------------------------------------------------

11.  Percent of Class Represented by Amount in Row 9
     4.2%

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12.  Type of Reporting Person*
     IA

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Item 1(a):     Name of Issuer:
----------     ---------------
               Downey Financial

Item 1(b):     Address of Issuer's Principal Executive Offices:
----------     ------------------------------------------------
               3501 Jamboree Road
               Newport Beach, CA  92660

Item 2(a):     Name of Person Filing:
----------     ----------------------
               Westport Asset Management, Inc.

Item 2(b):     Address of Principal Business Office:
----------     -------------------------------------
               253 Riverside Avenue
               Westport, CT  06880

Item 2(c):     Citizenship:
----------     ------------
               Connecticut

Item 2(d):     Title of Class of Securities:
----------     -----------------------------
               Common Stock

Item 2(e):     CUSIP Number:
----------     -------------
               261018105

Item 3.        If this stated is filed pursuant to Rules 13d-1(b),  or 13d-2(b),
-------        check whether the person filing is a:
               -----------------------------------------------------------------

               (a)  ( )  Broker or Dealer registered under Section 15 of the Act

               (b)  ( )  Bank as defined in Section 3(b)(6) of the Act

               (c)  ( )  Insurance Company as defined in Section 3(a) (19) of
                         the Act

               (d)  ( )  Investment Company registered under Section 8 of the
                         Investment Company Act

               (e)  (X)  Investment Adviser registered under Section 203 of the
                         Investment Advisors Act of 1940

               (f)  ( )  Employee Benefit Plan, Pension Fund which is subject
                         to the Provisions of the Employee Retirement Income
                         Security Act of 1974 or Endowment Fund; see ss.240.
                         13d-1(b)(1)(ii)(F)

               (g)  (X)  Parent Holding Company, in accordance with
                         ss.240.13d-1(b)(ii)(G) (Note: See Item 7)

               (h)  ( )  Group in accordance with ss.240.13d-1 (b)(1)(ii)(H)

Item 4.        Ownership.
-------        ----------

               (a)  Amount Beneficially owned:
                    1,178,592 shares

               (b)  Percent of Class:
                    4.2%

               (c)  Number of shares as to which such person has:

                    (i)  sole power to vote or to direct the vote:
                         120,000

                    (ii) shared power to vote or to direct the vote:
                         810,549

                    (iii)sole power to dispose or to direct the disposition of:
                         120,000

                    (iv) shared power to dispose or to direct the disposition
                         of: 1,058,592

Item 5.        Ownership of Five Percent or Less of a Class
-------        --------------------------------------------

If this  statement  is being filed to report the fact that as of the date hereof
the  reporting  person has ceased to be the  beneficial  owner of more than five
percent of the class of securities, check the following ( X )

Item 6.        Ownership of More than Five Percent on Behalf of Another Person:
-------        ----------------------------------------------------------------

               N/A



Item 7.        Identification   and   Classification  of  the  Subsidiary  Which
-------        acquired the  Security  Being  Reported on By the Parent  Holding
               Company.
               -----------------------------------------------------------------

Westport Asset Management,Inc. makes this filing pursuant to Rule 13D-1 (b) (ii)
(G) since it owns 50% of Westport Advisers LLC. Westport Asset Management,  Inc.
is an investment  advisor and Westport Advisors LLC is an investment advisor for
a Series of Public Mutual Funds.


Item 8.        Identification and Classification of Members of the Group.
-------        ----------------------------------------------------------
               N/A

Item 9.        Notice of Dissolution of Group.
-------        -------------------------------
               N/A

Item 10.       Certification
--------       -------------

     By signing  below,  I certify that, to the best of my knowledge and belief,
the  securities  referred  to above  were  acquired  in the  ordinary  course of
business  and were not acquired for the purpose of and do not have the effect of
changing or  influencing  the control of the issuer of such  securities and were
not acquired in connection  with or as a participant in any  transaction  having
such purpose or effect.

Disclaimer
----------

     The  undersigned  expressly  declares  that the filing of this Schedule 13G
shall not be construed  as an admission  that such person is, for the purpose of
Section 13(d) or 13(g) of the Securities  Act of 1934,  the beneficial  owner of
any securities covered by this statement.

     Signature.  After  reasonable  inquiry and to the best of my knowledge  and
belief,  I certify  that the  information  set forth in this  statement is true,
complete and correct.

Date:  February 14, 2003

                                        Westport Asset Management, Inc.

                                        By /s/ Andrew J. Knuth
                                        -------------------------------
                                        Andrew J. Knuth, Chairman