( Updated with closing stock prices.)

NEW YORK ( TheStreet) -- Fannie Mae ( FNM) and Freddie Mac ( FRE) were among the worst performers of the financial sector Wednesday, retracing some of their recent rally sparked by the Treasury Department's decision to remove a cap on aid.

Fannie Mae and Freddie Mac each jumped 19% through Tuesday's session after the Treasury Department Thursday removed the $400 billion financial cap on the money it will provide to both.

Lately, though, Fannie and Freddie shares were sliding as momentum traders booked profits. Fannie closed down 7.2% to $1.16, and Freddie lost 5.3% to $1.42.

Similarly, Radian Group ( RDN) and other mortgage-insurance stocks were declining, one day after a positive report on U.S. home prices spurred buying. The Standard & Poor's/Case-Shiller home price index of 20 major cities improved for the ninth-consecutive month, although that was down 7.3% from a year ago.

Radian, which gained 5.9% during Tuesday's session, closed down 3.4% to $7.32. Among other related stocks retracing the previous day's gains, PMI Group ( PMI) slid 1.6% to $2.52 and MGIC Investment ( MTG) fell 2.9% to $5.68.

On the other hand, Horizon Bancorp ( HBNC) was among the winners of the session, climbing 7.2% to $15.90 after the company said it will acquire most of the banking-related assets and deposits of American Trust & Savings Bank, which carry an estimated value of $110 million. Terms of the deal weren't disclosed, but the transaction should be completed in the second quarter of 2010.

Most other bank stocks were trading mixed in an absence of any major headlines. Citigroup ( C) lost 1.5% to $3.32, Bank of America ( BAC) slid 0.3% to $15.07 and JPMorgan Chase ( JPM) added 0.1% to $41.53.

Goldman Sachs ( GS) and Wells Fargo ( WFC) were outliers, up 1.6% and 0.5%, respectively. Goldman shares are now near the highest levels in more than two weeks.

-- Written by Robert Holmes in Boston.

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