Formation lights show up above the 3D model

[Harker]

On the external model, the formation lights show up above the actual model, when turned on.

 

In the attached screenshots, the first one shows the Hornet with formation lights off. The sun reflects off of the formation light (glass or plastic?) housing.

 

The second one shows formation lights on, on the lowest intensity. At this intensity, the light shouldn't show up at all on the part lit by the sun. Furthermore, the sun reflection is gone from the housing, because the light shows up above it.

 

Also, since the lights are above the 3D model, they are unaffected by any effects on it, such as dirt. They always show up as perfect rectangles.

 

Lastly, the formation light rectangle texture is a little too big compared to the housing dimensions in the 3D model.