Freddie Mac sells its 2nd-largest tax-exempt bond

NEW YORK, Sept 17 (Reuters) - Freddie Mac (FRE.N), the second-largest provider of funding for U.S. mortgages, on Wednesday said it securitized $548 million in bonds that finance affordable housing units.

Collateral for the "tax-exempt bond securitization," or TEBS, is primarily tax-exempt and taxable multifamily housing revenue bonds, Freddie Mac said in a statement.

The deal is Freddie Mac's second-largest TEBS transaction, and was completed with Citigroup Inc. (C.N) unit Municipal Mortgage Holdings Inc.

(Reporting by Al Yoon)