https://www.digitalocean.com/community/questions/sendmail-doesn-t-send-email-to-same-domain
I was able to find a resolution using the info in the link above. This issue can be closed.
"This is happening most likely because your mail service thinks that mail sent to it’s own configured hostname is handled locally. To fix this, open the /etc/mail/sendmail.mc file with your favorite text editor. If you use vim:
vim /etc/mail/sendmail.mc
Then go and edit the following. I’m using the domain SameVPSDomain.ext, but you want to replace that with whatever your domain name is.
define(MAIL_HUB',
SameVPSDomain.ext.')dnl
define(LOCAL_RELAY',
SameVPSDomain.ext.')dnl
Save that, then recompile things and restart sendmail with:
sendmailconfig
service sendmail restart
This should route mail from your domain using DNS and the MX records for SameVPSDomain.ext instead of routing it locally."