ESPN reports that the NCAA has issued a notice of inquiry to the University of Michigan. A notice is issued when there is reasonably credible information available to suggest a violation may have occurred.
The investigation will be completed by December 31. It is unknown whether the NCAA is investigating allegations of minor or major infractions.
One concern, of course, will be the effect, if any, on recruiting. Fortunately, the December 31 deadline is prior to February's signing day, so recruits can make their decision after the first report has been made.
According to the Anti-Rodriguez Press , the next step after the investigation phase would be to issue notice of allegations, assuming any violations were found.
That would likely mean penalties, but the range of penalties probably won't be known until the allegations, if any, are revealed.
Keep in mind folks, the likelihood that these will result in major penalties such as losing scholarships and bowl suspensions is very low. This does not appear to be on par with the FSU cheating scandal or buying offensive lineman recruits.