I believe it is a rumour. The MEI training, unless it has changed in the last decade, was done part 61, usually with a LEAD or Course Manager. A lot of us would take advantage of free classes because we were and employee of UND at take the ground school for free and get the aircraft at instructor rates. I think my MEI cost me somewhere around 3 grand maybe 4 grand.
I think where the "MEI Training Only from UND" comes from you will have to do a STAN ride before you can instruct, in any aircraft. If you didn't do your multi training at UND you will probably need a little dual to get up to standards on how UND wants you to instruct in the twins.