We present a nonequilibrium kinetic theory describing atom–molecule population dynamics in a two-component Fermi gas with a Feshbach resonance. Key collision integrals emerge that govern the relaxation of the atom–molecule mixture to chemical and thermal equilibrium. Our focus is on the pseudogap regime where molecules form above the superfluid transition temperature. In this regime, we formulate a simple model for the atom–molecule population dynamics. The model predicts the saturation of molecule formation that has been observed in recent experiments, and indicates that a dramatic enhancement of the atom–molecule conversion efficiency occurs at low temperatures.