Conseco Finance and its Tempe, Arizona Presence

Conseco Finance, formerly known as Green Tree Financial, established a significant presence in Tempe, Arizona during its period of rapid expansion in the late 1990s and early 2000s. The company, specializing in manufactured housing and subprime lending, utilized Tempe as a key operational hub, particularly for servicing and collections.

The Tempe office played a critical role in managing a substantial portfolio of loans, interacting directly with borrowers across the United States. Employment at the Tempe location peaked during Conseco Finance’s most aggressive growth phase. Many residents of the Phoenix metropolitan area found employment opportunities within the company’s various departments, including customer service, loan processing, and collections. The company’s presence contributed to the economic landscape of Tempe, bolstering the local job market.

However, Conseco Finance’s business model, heavily reliant on subprime lending and securitization, ultimately proved unsustainable. The company faced mounting financial difficulties due to high default rates and aggressive accounting practices. These issues eventually led to a massive accounting scandal and subsequent bankruptcy filing in 2002, one of the largest in U.S. history at the time. The repercussions of the Conseco Finance collapse were felt across the country, including the Tempe office.

The bankruptcy significantly impacted the Tempe operation. Large-scale layoffs were implemented, leaving many employees suddenly unemployed. The closure and downsizing of the Tempe office had a tangible effect on the local economy, contributing to a period of economic uncertainty for those who had relied on Conseco Finance for their livelihoods. The ripple effect extended to local businesses that had supported the company and its employees.

After the bankruptcy, the remnants of Conseco Finance underwent restructuring and rebranding. While the Conseco name still exists, the specific operations related to the subprime lending that characterized the company’s earlier years were largely discontinued. The physical presence of Conseco Finance in Tempe, as it existed during its peak, is no longer a factor in the city’s economic landscape. The former employees and the memories of the company’s rise and fall serve as a reminder of the risks associated with aggressive lending practices and the potential for significant economic disruption when such companies falter.