It would help if you could find out who claimed that Urban said this.

Urban II died on 29 July 1099, just 2 weeks after the crusaders first breeched the walls and only 1 week after power was fully consolidated by declaring Godfrey de Bouillon leader of Jerusalem. News simply could not spread from Jerusalem to Rome in 1-2 weeks. For comparison, it took Richard the Lionheart 3-4 weeks to get from Sicily to Cyprus during the Third Crusade. A fairly standard time frame for a sea crossing from Italy or southern France to Acre (the usual port of choice for pilgrims and crusaders) was 4-6 weeks depending on the weather. It would have been impossible for Urban to have even learned of Jerusalem's fall, let alone formulate a response, before his death.

So might it have been said by the next pope, Paschal II? Well I can't find any evidence that he did, having consulted Thomas Asbridge's The First Crusade and Christopher Tyerman's God's War. It's unlikely that he would have cared about Muslims or Jews, as Paschal II was quite happy to authorise further crusading expeditions, particularly the crusades of 1101 (to reinforce the Crusader States) and 1106 (against the Byzantine Empire). As far as the sources tell us - though there is precious little evidence - the papacy was not horrified by the violent capture of the city.