This has been the hot rumor the past couple days and TomVH has confirmed that redshirt freshman safety/LB Brandon Smith has received transfer papers and is looking to move on. Hurray.
Smith was a top-100 "athlete" in the hybrid Rodriguez/Carr class who technically committed after the transition had been announced but, like JT Floyd, was a Carr recruit all the way who was just stringing out his commitment for reasons unknown. So this could be a "Carr guy" moving on to a place he'd rather be. In any case it's the departure of one of the most highly rated players in a class entering its third year at a position, be it linebacker or safety, of desperate need.
Smith didn't seem to be working out, as he was too big and slow for safety and spent his game as a quasi—linebacker starter on skates, but there's zero upside here. He could have put on 20-30 pounds easily—his "frame" was a reason he was rated so highly—and eventually turned into a contributor at linebacker. At the very least he would have been a relatively veteran body on a defense that needs every last potential contributor. BONUS: Michigan can't even add anyone to replace him because of a mysterious but apparently real oversigning change that prevents Big Ten teams from backdating players who enroll early*. DOUBLE BONUS: Before the season I took a look at Michigan's APR and concluded that sanctions resulting from transfers were unlikely, but the attrition has continued at a pace that makes me nervous.
*(Which will definitely help the struggling conference compete nationally.)