This comes from the dodgiest of potential sources, the registration-free and largely anonymous MLive message boards -- the source of an unfounded Chris Perry broken leg rumor back in the day -- but it fills in some blanks that I had wondered about earlier. Anyway, the rumor:
Michigan just landed another 4 star QB, but this is a 2007 transfer, not a 2008 recruit. I don't think it will be offical until he meets with Lloyd and staff tomorrow. I am excited, as it is a personal friend of mine. The QB position looks real good for the next 5 years or so.This can only be instate quarterback Steven Threet, a four star from the '07 class who just announced he's fleeing Chan Gailey Equilibrium. Okay, okay. Unsubstantiated internet rumor, yes. But no one just leaps on a board to say "Michigan got a quarterback transfer" if they're trying to stir things up; no one gets stirred up by that sort of thing. Circumstantial evidence: more than one article in the aftermath of the Michigan camp had with direct quotes claiming Michigan would take two quarterbacks this year. In-state three star Brendan Kay was one of these players hoping for the second quarterback offer; he committed to Cincinatti yesterday. Implication: Michigan filled their need and Kay need not wait on an offer any longer. I buy it; expect a Threet announcement soon.
Assuming this is true, Threet would have an enforced redshirt then four years of eligibility. It would be just as if he enrolled with the rest of his class. Also, irony meters across the state will break if Michigan picks up a quarterback recruit who can only transfer because he enrolled early instead of loses one.
Update: A second source close to the situation confirms this; question mark removed from post.