Mine was that way when I purchased the TM earlier this year. As Bill said, it is a Fontana and you will need to replace the unit. I plan on ordering one soon online once my better halve gives me the approval to purchase one. Looks fairly simple to do. I have already remove the old unit.
Cut the caulking around the housing, remove 4 screws and hot and cold lines on back. I did find that removing the lower cold connector on the bottom first gave me a little more room to pull the unit out to remove the top hot connector. You'll see what I mean once you go to remove the old unit, very little room to work with as the water lines do not pull out very far.
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