Lower Unit Question on 61' Evinrude 40

The engine is a 61' Evinrude and the motor cover says its a Lark III. The model number is 35525, ID # 09775.

The motor itself has a sort of "shroud or cover" that comes down from the block or case and covers aprox. 1/2 of the lower unit. (Not sure what to call the thing) This is approximently an inch wider in diameter than the lower unit itself. Anyhow, when I go to pull the actual lower unit up to put it in the transom saver, lets say from the sked or just above, the whole lower unit actual pulls fwd a bit before the motor itself even moves. i.e. I can pull the lower unit back, away from the transom, a bit without moving the motor itself.

Is something loose here? Seems to me that the whole construction should be very tight. Or is this just how the motors were back then?

Sounds like the lower motor mounts are gone.