Okay figured out my own problem. It was in the SMTP settings under protocols.
Here's what I did:
-> Servers -> Protocols -> SMTP -> Default SMTP Virtual Server -> Right Click -> Properties -> IP Address -> Select the servers IP -> Delivery Tab -> If Outbound Security is necessary click Outbound Security Button -> Enter Credentials (basic auth) -> OK -> Advanced button -> Masquerade Domain ->
-> FQDN -> Smart Host -> -> OK -> Apply -> OK