Webster Bank is denying that U.S. Rep. Christopher Murphy, D-5th District, got special treatment on a home loan after he fell behind on his mortgage payments and was threatened with a foreclosure action.
The Waterbury-based lending institution issued the following statement to Hearst Connecticut Newspapers this afternoon, claiming the Democratic Senate nominee was accorded the same rates and terms as the bank’s other customers.
“Constitution Mortgage Co. originated a residential first mortgage loan and home equity loan to then-State Senator Murphy in 2005 on behalf of Webster Bank’s Wholesale Banking Division. Webster subsequently sold the first mortgage to Chase Home Finance, consistent with Webster’s wholesale mortgage banking practices, and held the home equity loan for its own portfolio, also its customary practice.
The first mortgage and home equity loans conformed to all underwriting guidelines, were approved with no exceptions and were priced in line with the prevailing market rates and terms.
Webster refinanced Congressman Murphy’s home equity loan into a home equity line of credit in 2008, again with no exceptions and at market rates and terms. The credit line was repaid when the home was sold in 2010. Currently he has no outstanding loans with Webster.
Congressman Murphy consistently met the terms of all of his agreements with Webster. Congressman Murphy received the same high quality service extended to all Webster customers.”