forward-flow-governance - MediaHedge Underwriting Knowledgebase

# Financing-Partner Governance In a forward-flow relationship, MediaHedge originates, underwrites and services loans that meet an agreed investment policy while a financing partner purchases or funds eligible assets under defined mechanics. Governance allows routine eligible assets to close efficiently while preserving investor control over material risk. ## Architecture 1. **Investment policy and allocation:** define eligible borrowers, collateral, sizing, pricing, concentration, term, exclusions and pipeline allocation. 2. **Purchase and funding mechanics:** define commitment, approval, purchase price, settlement, title transfer and failed-purchase consequences. 3. **Representations and remedies:** distinguish origination defects from ordinary borrower credit deterioration and apply tailored cure, indemnity or repurchase. 4. **Servicing and reporting:** delegate draws, monitoring, collections and reporting within measurable standards. 5. **Governance and continuity:** reserve material decisions and provide audit, custody, data, replacement and portfolio run-off rights. ## Eligible Asset Workflow MediaHedge submits a standardized underwriting package and eligibility certificate. The financing partner or delegated process confirms buy-box compliance. Settlement establishes the intended ownership, purchase price, collateral-agent and account rights. Post-close data feed concentration and performance tests. Exceptions, amendments and waivers follow the reserved-matter matrix. ## Delegated Authority Versus Reserved Matters MediaHedge needs authority for ordinary servicing within documented parameters. The investor should control eligibility exceptions, concentration breaches, material extensions, principal compromises, collateral releases, enforcement, changes to payment control, related-party conflicts and servicer replacement. ## Structural Distinctions True sale, participation, secured lending, agency and other structures can produce different ownership, insolvency, regulatory and risk-retention results. Capital generally need not pass through MediaHedge's balance sheet, but the actual documents must establish the chosen structure. Repurchase for an origination breach should not silently become full credit recourse unless expressly agreed and priced. ## Limits and Failure Modes Subjective eligibility or approvals without deadlines can make a commitment economically optional. Overly rigid criteria can strand sound assets. Broad repurchase obligations can convert asset purchase into recourse financing; narrow remedies may leave investors with origination defects. Fee conflicts, concentration calculations, data use, confidentiality, cyber risk and termination economics require explicit rules. ## Connections The buy-box incorporates [[wiki/concepts/loan-sizing|Loan Sizing]] and [[wiki/concepts/portfolio-construction|Portfolio Construction]]. Delegated authority governs [[wiki/concepts/monitoring-and-servicing|Monitoring and Servicing]], and reserved matters determine control during [[wiki/concepts/defaults-workouts-and-recoveries|Defaults, Workouts and Recoveries]]. ## Continue Exploring [[MediaHedge Knowledgebase|Home]] · [[wiki/syntheses/financier-diligence-route|Financier’s Guide]] · [[wiki/syntheses/credit-lifecycle|Credit Lifecycle]]