Will a decline in foreclosure rates mean an increase in lending in California?

According to a report by RealtyTrac®, California topped the list by accounting for seven out of the ten highest metro foreclosure rates and ten out of the top twenty metro foreclosure rates during the first half of 2012. Being among the top on the list is definitely not something to be proud of, and any improvement in the California market will definitely have an impact nationally.
As the new year began, there was sharp drop in the foreclosure rates, reaching an “87-month low in January” which stood out in red letters. Along with this there was also a 62% drop in the notices of default, according to RealtyTrac’s® January report. Could this mean that the housing market that has been on the decline for so long is finally going to rise?
This drop is linked to the Homeowner Bill of Rights that became effective on January 1st, 2013, which “prohibits lenders from simultaneously proceeding with a foreclosure while working on alternatives to foreclosure.”
The fact however is that this decline in foreclosures may not be here to last; just like other trends our state has seen. Similar bills have also been passed in Washington and Nevada, with hopes of slowing the degeneration of the housing market. Right from 2008, we have been seeing a rise and fall in the foreclosure rates, and the current trend seems to be one among them.
The only thing we can hope for is that this time it may last long enough to see some improvement in the housing  market and an increase in lending, in California.