In order to introduce any spin-polarization in DFT calculation, the potential must be a slightly difference for up and down electrons. Since the potential is sum of the the hartree potential (always unpolarized) and the exchange correlation potential, then exchange correlation must be polarized, however the exchange correlation potential is determined by the density solely.
However all the exchange correlation potential is constructed in such a way, that in the limit that if the system is unpolarized, then exchange correlation potential will also be unpolarized.
Therefore it goes like this, you set up a initial density, that has spin-components, but the polarization ( the spin up density minus the spin down density) is zero in all regions of space. Therefore the exchange correlation potential will become unpolarized, and hence the hamiltonian will in effect be unpolarized as up and down electrons feels the same potential, hence when you solve the schrodinger equation, you will end up with a density matrix that is in effect unpolarized, and hence you will get a new density that is unpolarized, and then your exchange correlation will again become unpolarized, and then it contiunes repeating the exact same pattern.
Perhaps saddle point is not the most correct word to use, but in a sense it gives the correct picture. If we converged the calculation with initial spin-polarization set to zero, we will end up with a minimum energy, however it is not the true minimum,
as we have not searched in all paths, but only in a certain path.
Perhaps the correct word could be that the zero spin-polarization density is a sub-space, and hence all transformations will still make the density living in this sub-space, and therefore in terms of total spin-polarization it becomes a fix-point.
I hope you can understand my ramblings