Object disappears when animation starts in generic mode, but not in legacy mode

It basically changes position from where I originally put it. I tried setting it as a child of an empty gameobject, I tried setting the bones in my modelling application (3ds max) to 0 position. The weird thing is, it only happens if I'm using mecanim. If I set it to legacy it works fine.

Here is a screenshot of the settings I put:

Model settings http://i.imgur.com/OmRREmF.jpg?1

Animation settings http://i.imgur.com/7evRz2u.jpg?1

If I go to the animator component and uncheck "apply root motion" it works just fine, but I consider that more a work around than an actual solution, which is why I'm asking this question.

Here's a link to the model I'm using in case it helps: https://www.dropbox.com/s/iempvmf9z4edrv7/Colt%2045%28animated%29%40Reload.FBX