( 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.

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