Study notes. AI-assisted reference for NMLS SAFE exam prep — verify against primary sources (CFR, statute, CFPB) before relying on it. Not legal advice.
Federal Arbitration Act (FAA)
federalarbitrationdispute-resolution
The Federal Arbitration Act (FAA), codified at 9 U.S.C. §§ 1 et seq., is a federal statute that governs arbitration in the United States. It establishes a national policy favoring arbitration and ensures that arbitration agreements are enforceable in federal and state courts.
Relevance to Fannie Mae IDR Process
The Government Sponsored Enterprise (GSE) (IDR) is explicitly governed by the Federal Arbitration Act (Fannie Mae IDR Process.pdf, Part B, Introduction). This means that the IDR process, which is a binding arbitration, operates under the legal framework established by the FAA, ensuring the enforceability of its awards.
Source material
- Fannie Mae IDR Process
Study the full exam sections
This page is reference detail. The five SAFE exam study guides put it in context.