Bank of America and Countrywide Financial have held discussions about an alliance that would create the biggest mortgage lending group in the US, people close to the matter said.

The talks are said to be at an early stage and may not lead to a deal. But if they proceed, the negotiations could lead to a joint venture between the two companies, under which BofA would use its big branch network to help sell home mortgages originated by Countrywide. Countrywide would have the support of BofA’s far bigger balance sheet to fund its lending.