WATERBURY, Conn., Sept. 7, 2012 /PRNewswire/ -- Webster Bank today responded to questions posed in a press release by the campaign of the Republican candidate for U.S. Senate from Connecticut regarding mortgage and home equity loans made by the bank in 2005 and 2008 to her Democratic opponent. In 2005, Chris Murphy, then a state senator, applied to Constitution Mortgage Co., for a mortgage and home equity loan in connection with a home purchase. Constitution Mortgage Co. was a mortgage broker that originated loans on behalf of lenders, including Webster Bank's wholesale mortgage banking division. Webster underwrote and funded the 30-year first mortgage loan, which carried a fixed interest rate of 5.625 percent, and the home equity loan, which carried a fixed interest rate of 6.75 percent. Webster subsequently sold the first mortgage to Chase Home Finance, consistent with Webster's wholesale mortgage banking practices. Webster held the home equity loan for its own portfolio, also its customary practice. Both loans conformed to all underwriting guidelines, were approved with no exceptions, and were priced in line with prevailing market rates and terms. In 2008, Webster refinanced Congressman Murphy's home equity loan into a home equity line of credit, again with no exceptions and at market rates and terms. It is notable that real estate values generally rose during the 2005-2008 timeframe. The 4.99 percent interest rate on the credit line was well above the 3.99 percent rate that the bank's most creditworthy customers were receiving at the time. The credit line was repaid when the home was sold in 2010. Currently Murphy has no outstanding loans with Webster. Murphy met the terms of all of his loan agreements with Webster. He received the same high quality service extended to all Webster customers.