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                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

       DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 18, 2001

                             DOWNEY FINANCIAL CORP.
             (Exact name of registrant as specified in its charter)





                 DELAWARE                                 33-0633413
     (State or other jurisdiction of               (I.R.S. employer
      incorporation or organization)                identification number)

                         COMMISSION FILE NUMBER: 1-13578

                               3501 JAMBOREE ROAD
                         NEWPORT BEACH, CALIFORNIA 92660
              (Address of principal executive offices and zip code)

        REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (949)854-0300







ITEM 5. OTHER EVENTS.

On January 18, 2001, Downey Financial Corp. issued a press release reporting its
results of  operations  during the three and twelve  months  ended  December 31,
2000.


ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.


(c)  Exhibits

99.1 Press release dated January 18, 2001 reporting results of operations during
the three and twelve months ended December 31, 2000.





                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                                DOWNEY FINANCIAL CORP.





Date:  January 18, 2001              By        /s/  Thomas E. Prince
                                             ----------------------------
                                                    Thomas E. Prince
                                             Executive Vice President and
                                               Chief Financial Officer