The mortgage-related businesses that Bank of America Corp. would get from buying Merrill Lynch might look redundant after its July purchase of Countrywide Financial Corp., but some observers say one or both of Merrill's subprime servicing units might help BoA work through its problem Countrywide loans.

BoA's deal, announced Monday, to buy Merrill for $50 billion of stock could also prompt a phasing out of the brokerage company's relationship with PHH Corp., analysts said. Merrill Lynch Credit Corp., a unit in Jacksonville, Fla., that makes prime jumbo mortgages for the brokerage's clients, has outsourced much of the work to PHH for at least 10 years.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.