If you're getting prime - .5 or .6%, consider yourself lucky. Most of the lenders are moving to prime - .2 or even closer to prime.
Most lenders I've spoken with feel the discounted VRM's are going to be a thing of the past. Now, Benjamin Tal came out with the same statements after the crash, but we saw the rates go back pretty much to the same level of discounts. This time, it seems different with more economic pressure and regulation dictating the reduced discounting.
Time will tell.