Each of the following is a reason for the existence of points on the front-end of a mortgage loan EXCEPT.

1. Points compensate mortgage brokers who find and filter loan applicants for the financial institutions who supply the long-term capital.
2. Points are a way for the loan originator to make some profit on the front-end of the loan.
3. Points provide some disincentive against early prepay off the loan by the borrower.
4. All of the following are reasons that points exist.