Okay, I have tried asking this question before, with no answer. While working on this for awhile, I finally see what is causing the alignment issue. Apparently, when rotating an SMI, UE4 is scaling the object smaller a minuet amount. Actually I have come up with the correct scale needed to fix this offset alignment. I don’t know why, and I am wondering if someone can explain this to me or is it a bug. Here is a snapshot of the blueprint with the corrected scale in the x axis.
PS. if the image is too small, you can hold down the ctrl key and scroll the mouse wheel up. This will zoom-in the image.