It's not late for you to use a different lender. If you are still in your contingency period you might wish to get an extension so that you can shop for a new loan. Also, check with your lender and see if they will give you a copy of the appraisel as you may be able to use this with your other purchase. Otherwise you might get stuck paying for another one. Finally, let your loan office know that you think the fees are too high and you are considering using another lender. Perhaps they might have some flexibility with them.
Congrats on moving to Echo Park! You'll be happy there. It's a great neigbohood.
All the best,
It is not to late to choose another Lender, but if that is the only problem you have at this time, I would try to negotiate the 1% with your current Lender.
They DEFINATELY have the authority to negotiate that with you and let me tell you, most Lenders will work with you if you tell them that you are going to check out your options with another Lender.
If you can get them down to the 1%, it will be much easier than starting out the process all over again with someone new.
Good luck and enjoy your new home!
Michele M Mayer