A delay of Bank of America Corp.’s return to selling mortgage securities shows the housing bust is still limiting the market’s revival.
Its Merrill Lynch unit has been considering since last month a plan to package hundreds of millions of dollars of U.S. jumbo home loans it had acquired into securities, said four people familiar with the matter. With the firm mired in litigation over mortgages sold during the boom, executives are cautious about doing a deal, said the people, who asked not to be named because discussions are private.
