Michigan definitely has its problems and has difficulty getting transfers for decades. The problem is Michigan rejects a lot of transfer credits or will only count them as electives. This leads to students needing an extra semester or two in order to graduate. The whole process is also dragged out, taking weeks to get word. There is an appeal process, but that too takes weeks and almost always gets denied. Players look elsewhere and seem to have no problem with transferring credits.
Michigan lost out on Terrance Shannon last year similar to what happened with Caleb Love. Shannon instead transferred to Illinois with no problems. He was voted all Big Ten: 1st team coaches, 2nd team media.