Federal Arbitration Act (FAA)

Updated May 17, 2026

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.