AZ HB2653

Amends A.R.S. §33-729 to exclude from the purchase money mortgage limitation on liability: mortgages on properties owned by persons engaged in designing, constructing or selling dwellings; properties with incompletely constructed dwellings; and properties with dwellings not actually being used as dwellings, effective for loans originated after December 31, 2014.

Modifies A.R.S. §33-814 to limit deficiency judgment protections for deeds of trust on residential properties (2.5 acres or less, single family or two-family dwellings) to borrowers and co-borrowers only for loans originated after December 31, 2014.

Excludes from the deficiency judgment restriction properties owned by developers, properties with incomplete dwellings, and properties with dwellings not actually occupied or utilized as dwellings.

Defines "substantially completed dwelling" as one that is occupied or available for use after completion per contract, with final inspection completed if required by the issuing governmental body.

Preserves existing protections for deeds of trust on residential properties for loans originated before January 1, 2015.