UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 4)*

DYNEX CAPITAL INC
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE PER SHARE
(Title of Class of Securities)
26817Q506
(CUSIP number)
Thomas B. Akin
Talkot Capital, LLC
2400 Bridgeway, Suite 200
Sausalito, CA 94965
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)

January 16, 2002
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /. Note: Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. See Rule
13d-7(b) for other parties to whom copies are to be sent.

*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
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities 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). Potential persons who are to respond to the collection of
information contained in this form are not required to respond unless the form
displays a currently valid OMB control number.


1	NAME OF REPORTING PERSON
  IRS IDENTIFICATION NO. OF ABOVE PERSON

  Thomas Bruce Akin
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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	SOURCE OF FUNDS*

  	PF
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5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
  	PURSUANT TO ITEMS 2(d) or 2(e)			              /  /
-----------------------------------------------------------------------------
6	CITIZENSHIP OR PLACE OF ORGANIZATION

  	United States of America
-----------------------------------------------------------------------------
NUMBER OF            7 	SOLE VOTING POWER
SHARES                  555,350
BENEFICIALLY         --------------------------------------------------------
OWNED BY             8	SHARED VOTING POWER
EACH                    1,084,131
REPORTING            --------------------------------------------------------
PERSON               9	SOLE DISPOSITIVE POWER
WITH                    555,350
                     --------------------------------------------------------
                     10	SHARED DISPOSITIVE POWER
                        1,084,131
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11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

        555,350
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12	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
   	CERTAIN SHARES*	                                              /  /
-----------------------------------------------------------------------------
13 	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

        4.85%
-----------------------------------------------------------------------------
14	TYPE OF REPORTING PERSON*

	IN



1	NAME OF REPORTING PERSON
  IRS IDENTIFICATION NO. OF ABOVE PERSON

  Talkot Crossover Fund, L.P.
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2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*       (a)   /  /
                                                                (b)   /x/
-----------------------------------------------------------------------------
3	SEC USE ONLY
-----------------------------------------------------------------------------
4	SOURCE OF FUNDS*

  	GF
-----------------------------------------------------------------------------
5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
  	PURSUANT TO ITEMS 2(d) or 2(e)	                              /  /
-----------------------------------------------------------------------------
6	CITIZENSHIP OR PLACE OF ORGANIZATION

  	United States of America
-----------------------------------------------------------------------------
NUMBER OF           7 	SOLE VOTING POWER
SHARES                  -0-
BENEFICIALLY        ---------------------------------------------------------
OWNED BY            8	SHARED VOTING POWER
EACH                    -0-
REPORTING           ---------------------------------------------------------
PERSON              9	SOLE DISPOSITIVE POWER
WITH                    -0-
                    ---------------------------------------------------------
                    10	SHARED DISPOSITIVE POWER
                        -0-
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
   	PERSON

        528,781
-----------------------------------------------------------------------------
12	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
   	CERTAIN SHARES*	                                   	      /  /
-----------------------------------------------------------------------------
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

        4.62%
-----------------------------------------------------------------------------
14	TYPE OF REPORTING PERSON*

  	GR


This amendment amends and supplements Schedule 13D, of Thomas B.
Akin and Talkot Crossover Fund, L.P. dated July 23, 2001, and filed on July
23, 2001 with the Securities and Exchange Commission ("SEC"), Amendment
No. 3 to Schedule 13D dated March 12, 2001, and filed on March 12, 2001
with the SEC, Amendment No. 2 to Schedule 13D. dated January 11, 2001 with
the SEC, and Amendment No. 1 to Schedule 13D, dated August 29, 2000 with the
SEC (together, the "Schudule 13D").  Except as amended by this amendment,
there has been no change in the information previously reported on the
Schedule 13D.



ITEM 1. SECURITY AND ISSUER.

This statement relates to shares of Common Stock (the "Stock") of Dynex
Capital Inc. ("DX"). The principal executive office of DX is located at
10900 Nuckols Road, 3rd Floor, Glen Allen, Virginia  23060.

ITEM 2. IDENTITY AND BACKGROUND.

The persons filing this statement and the persons enumerated in Instruction
C of Schedule 13D and, where applicable, their respective places of
organization, general partners, directors, executive officers and controlling
persons, and the information regarding them, are as follows:

The names of the persons filing this statement are Thomas Bruce Akin (Thomas
Akin), and the Talkot Crossover Fund (the Fund).

     (a) The names of the persons filing this statement are Thomas Bruce Akin
         ("Thomas Akin"), Talkot Crossover Fund, L.P. ("the Fund"),
         (collectively, the "Filers").

     (b) The address of the filers is 10 Via El Verano, Tiburon, CA 94920.
         The Talkot Crossover Fund, L.P. is located at 2400 Bridgeway, Suite
         200, Sausalito, CA 94965.

     (c) Thomas Akin is the Managing General Partner of the Talkot Crossover
         Fund, L.P. which is located at 2400 Bridgeway, Suite 200,
         Sausalito, CA 94965.

     (d) During the last five years, none of the Filers has been convicted in
         a criminal proceeding (excluding traffic violations or similar
         misdemeanors).

     (e) During the last five years, none of the Filers was a party to a civil
         proceeding of a judicial or administrative body of competent
         jurisdiction and as a result of such proceeding was or is subject
         to a judgment, decree or final order enjoining future violations of,
         or prohibiting or mandating activities subject to, federal or state
         securities laws or finding any violation with respect to such laws.

     (f) All of the Filers who are natural persons are citizens of the United
         States of America.


ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.

The source and amount of funds used in purchasing the Stock were as follows:

Purchaser         Source of Funds         Amount

Thomas Akin             PF                $2,975,355
The Fund                GF                $3,856,326


ITEM 4. PURPOSE OF TRANSACTION.

The Filers have acquired the Stock primarily for investment. The Filers feel
DX to be a significantly undervalued asset with increasing earning
capability given recent events in both interest rate reductions and paydown
of outstanding debt.  The Filers intend to review continuously their options
with respect to their investment in the Stock and expressly reserve their
right to (a) purchase additional shares of the Stock; (b) dispose of all or
part of their holdings of the Stock by public or private sales or otherwise,
at such prices and on such terms as they may deem advisable; or (c) take such
other action with respect to their investment in the Stock as they may deem
appropriate, including meeting or consulting with the management or the
Board of Directors of DX to discuss DX's assets, corporate structure, dividend
policies, capital operations, properties management and personnel or potential
extraordinary transactions such as a merger, reorganization or liquidation of
DX or any of its assets or subsidiaries, and contacting other stockholders of
DX to discuss corporate strategy or any of the foregoing matters.

Except as set forth above, the Filers have no present plans or proposals that
would result in or relate to any of the transactions described in Item 4 of
Schedule 13D.

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.

(a)      Aggregate number and percentage of securities beneficially owned:

Thomas Akin is the direct beneficial owner of 555,350 shares of Common Stock,
representing approximately 4.85% of Dynex's Common Stock, which amount includes
131,625 shares of Common Stock that may be acquired by Mr. Akin upon the
conversion of shares of preferred stock of Dynex held by Mr. Akin. Talkot
Crossover Fund, L.P. is the direct beneficial owner of 528,781 shares of
Common Stock, representing approximately 4.62% of Dynex's Common Stock, which
amount includes 177,781 shares of Common Stock, that may be acquired by the
Fund upon the conversion of shares of preferred stock of Dynex held by the
Fund. By virtue of the relationship between Mr. Akin and the Fund described
in Item 2, Mr. Akin may be deemed to possess indirect beneficial ownership
of the shares of Common Stock beneficially owned by the Fund. Ownership
percentages of Common Stock is based upon the common shares outstanding per
Dynex's Form 10-Q Report for the Quarter ended March 31, 2001 (11,446,206
shares of Common Stock outstanding at November 14, 2000 reflecting a
one-for-four reverse Common Stock split effective August 2, 1999), plus the
295,756 shares of Common Stock into which the Dynex preferred stock
collectively held by the Mr. Akin and the Fund is convertible.

(b)	 The beneficial ownership of the Stock of the persons named in Item 2 of
  this statement is as follows at the date hereof:

                    Aggregate
                    Beneficially
                    Owned               Voting Power         Dispositive Power
Name                Number     Percent  Sole     Shared      Sole     Shared

Thomas Akin         555,350      4.85%  555,350  1,084,131   555,350  1,084,131
The Fund            528,781      4.62%  -0-	 -0-	     -0-      -0-


(c)	Transactions effected during the past 60 days or since the most recent
  filing on Schedule 13D, whichever is less:

The persons filing this statement effected the following transactions in the
Stock on the dates indicated, and such transactions are the only transactions
in the Stock by the persons filing this statement since November 5, 2001.


                 Purchase               Amount of           Price Per
Name             or Sale    Date        Preferred Stock     Share ($)
                                   			    9.75% Series A (1)


Thomas Akin	 S	    11/05/01	4,100		    $16.80000
The Fund	 P	    12/24/01    7,600         	    $16.33777
The Fund	 P	    01/14/02      100               $16.42000
The Fund	 P          01/15/02      500               $16.55000




                 Purchase               Amount of           Price Per
Name             or Sale    Date        Preferred Stock     Share ($)
                                   		  	    9.55% Series B (1)

Thomas Akin	 S	    11/05/01	8,100		    $17.15000
The Fund         P	    01/09/02    1,000	            $16.43500
The Fund         P	    01/10/02    2,100	            $16.67714



                 Purchase               Amount of           Price Per
Name             or Sale    Date        Preferred Stock     Share ($)
                                   			    9.73% Series C (1)


Thomas Akin	 S	    11/05/01   11,100       	    $21.00000
The Fund	 P	    12/28/01    2,500	            $20.52600



(1)      Each preferred share is exercisable into 1/2 share of Dynex Capital
         common stock.


The persons filing this statement effected the above transactions in the
Stock on the dates indicated, and such transactions are the only transactions
in the Stock by the persons filing this statement since November 5, 2001.
Transactions effected above include the purchase of shares of Common Stock
plus Common Stock into which the Dynex preferred stock is convertible.

All transactions were executed as open market transactions. The Filers
beneficially owned more than five percent of the outstanding shares of the
Stock as of June 1, 2000.

ITEM. 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
         RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.

Thomas Akin is the Managing General Partner of the Fund.  As such, he has the
power to vote the Stock held by such persons and to direct the receipt of
dividends from, or the proceeds from the sale of, the Stock held by such
persons.

ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.

Not applicable.

SIGNATURES

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

DATED: Jamuary 16, 2002



/s/ Thomas Bruce Akin
Thomas Bruce Akin



TALKOT CROSSOVER FUND, L.P.




By:  /s/  Thomas Bruce Akin
Thomas Bruce Akin, Managing General Partner