If you think 2007 was bad, wait till 2008 when hundreds of Billions of ARMS reset, March 2008 they are showing $100 billion worth of ARMS about to reset which in some cases homeowners could see their mortgages jump by 50%. The housing bottom is far from over, 2010 could be the earliest we see the housing market coming back. TWIST OF THE ARMs That's frightening news for banks that already have absorbed losses on their balance sheets due to delinquent subprime borrowers. The losses so far amount to about 10 percent of the forecast of $100 billion in losses. "The disturbing number here isn't 10 percent ... but the $100 billion," Pomboy said. With nearly $700 billion in ARMs in negative equity facing interest-rate resets, "depending on how much lenders can ultimately recover, this implies (bank) losses will be more like $210 billion to $346 billion," she said. "And that's assuming the situation doesn't get worse." In July, Federal Reserve Chairman Ben Bernanke had estimated the losses at $100 billion at the most.