The settlement services includes your escrow set-up, title and other closing costs, and your upfront FHA costs. This seems roughly what I would expect.
The origination is the number to focus on. It looks like you are paying a point to get the rate plus some kind of lender processing/underwriting fee to make up that $2556.
If your scores are 700+ you might be able to find a bit better on an FHA file, but the number is certainly reasonable. If you already have the appraisal done and are ready to close, go for it. If you are early in the process, make a couple phone calls to reputable providers and compare apples and apples.
What are your long term plans for the house? If you plan on staying for 10+ years this is a good deal compared to your currrent mortgage. If you are going to be in the house for 5-9 years, you might consider an FHA 5/1 ARM. This would be fixed for 5 years at something between 3.5% and 3.75% with little or no origination charges at all. At the end of 5 years the maximum that it can increase is 1% each year. I mention this product because the costs are likely lower and the amount of time needed to recoup what you spend is much faster. For roughly 9.5 years this loan is cheaper from a total cost prospective than the fixed rate even in a worst case scenario with the rate adjusting up. So you would need to feel confident that this isn't the house you plan to retire in, but if the timing is right for you this might be a good opportunity to see more dramatic savings numbers.
Good Luck,
Jason