ANZ is bringing more of the closing tasks in its home loan production chain back in-house after a disappointing couple of years sourcing this work out to Perpetual.Other tasks, including mortgage settlement services, will be progressively taken over by Espreon, a business owned by SAI Global.Grumbles surfaced in early 2010 over the quality of ANZ's mortgage settlements, with some of the blame (at least on the part of lawyers and their clients) being directed at Perpetual for poor service, with the need to rebook settlements in some cases.The episode forced ANZ to rethink its processes and to re-tender the work only two years after selecting Perpetual to verify documents and act on behalf of the bank at settlement. For this ritual, Australia still demands that representatives of the purchaser, the vendor and their respective lenders meet and exchange titles and cheques.Perpetual also stamped (that is, paid taxes) on mortgages and registered the documents with land title offices.A bank spokesman said yesterday that ANZ does not blame Perpetual for the decline in standards last year. He said the bank was not properly prepared for the shift in business practices.Outsourcing of settlement services coincided with efforts to centralise the preparation of mortgage documents in Melbourne, with some tasks also being handled by ANZ's operations' hub in Bangalore. From the first half of 2012, ANZ will, on a state-by-state basis, bring back in-house key services, one of the bank's media advisers wrote in an email. This means ANZ will prepare the letter of offer, verify documents, take settlement bookings and prepare cheques.Espreon will progressively replace Perpetual as provider of mortgage settlement services for ANZ in six states and territories, and expects to be handling the work nationwide from August 2012. SAI Global announced the bank's decision on Monday.Espreon already acts for ANZ in Queensland and Western Australia, according to SAI.SAI said incremental revenue from the contract would be in the order of A$10 million a year from 2013, though how much revenue Perpetual will lose is not clear, given the wider scope of work it undertakes for ANZ.The income from the ANZ contract appears to have been the major driver in a near-doubling in revenue for Perpetual's mortgage servicing division in the second half of 2010, to A$26 million.On the other hand, the increased volume failed to lift pre-tax profit by much, which increased $1 million, to $19 million, in the half. No doubt costs were higher given the quality issues afflicting the ANZ relationship.Perpetual has at least two other mortgage-processing contracts up for renegotiation in the near future, for the HomeSide division of NAB and also for ME Bank.