Authentication failed: the server presented no authentication mechanisms in JBoss EAP 6

Issue

• We have two standalone JBOSS EAP server. server 1 hosts the JMS topic and server 2 is trying to connect to it remotely.
  Server 2 will try to do a remote JNDI loop up to connect to JMS server one server 1. This will fail with the error.
  I am attaching both server config file and error below:

ERROR (127.0.0.1:8080-2) Exception while getting the JMS Connection: javax.naming.AuthenticationException: Failed to connect to any server. Servers tried: [remote://remote-host:4447 (Authentication failed: the server presented no authentication mechanisms)] [Root exception is javax.security.sasl.SaslException: Authentication failed: the server presented no authentication mechanisms]
                at org.jboss.naming.remote.client.HaRemoteNamingStore.failOverSequence(HaRemoteNamingStore.java:237) [jboss-remote-naming-1.0.8.Final-redhat-1.jar:1.0.8.Final-redhat-1]
                at org.jboss.naming.remote.client.HaRemoteNamingStore.namingStore(HaRemoteNamingStore.java:149) [jboss-remote-naming-1.0.8.Final-redhat-1.jar:1.0.8.Final-redhat-1]
                at org.jboss.naming.remote.client.HaRemoteNamingStore.namingOperation(HaRemoteNamingStore.java:130) [jboss-remote-naming-1.0.8.Final-redhat-1.jar:1.0.8.Final-redhat-1]
                at org.jboss.naming.remote.client.HaRemoteNamingStore.lookup(HaRemoteNamingStore.java:271) [jboss-remote-naming-1.0.8.Final-redhat-1.jar:1.0.8.Final-redhat-1]
                at org.jboss.naming.remote.client.RemoteContext.lookup(RemoteContext.java:79) [jboss-remote-naming-1.0.8.Final-redhat-1.jar:1.0.8.Final-redhat-1]
                at org.jboss.naming.remote.client.RemoteContext.lookup(RemoteContext.java:83) [jboss-remote-naming-1.0.8.Final-redhat-1.jar:1.0.8.Final-redhat-1]
                at javax.naming.InitialContext.lookup(InitialContext.java:417) [rt.jar:1.8.0_65]
                at javax.naming.InitialContext.lookup(InitialContext.java:417) [rt.jar:1.8.0_65]
                at com.redhat.examples.util.ServiceLocator.lookup(ServiceLocator.java:123) [util.jar:1]

• Our client application is failing with this exception trying to do a remote jndi lookup with remote-naming:

javax.naming.AuthenticationException: Failed to connect to any server. Servers tried: [remote://localhost:4447 (Authentication failed: the server presented no authentication mechanisms)] [Root exception is javax.security.sasl.SaslException: Authentication failed: the server presented no authentication mechanisms]
    at org.jboss.naming.remote.client.HaRemoteNamingStore.failOverSequence(HaRemoteNamingStore.java:237)
    at org.jboss.naming.remote.client.HaRemoteNamingStore.namingStore(HaRemoteNamingStore.java:149)
    at org.jboss.naming.remote.client.HaRemoteNamingStore.namingOperation(HaRemoteNamingStore.java:130)
    at org.jboss.naming.remote.client.HaRemoteNamingStore.lookup(HaRemoteNamingStore.java:271)
    at org.jboss.naming.remote.client.RemoteContext.lookupInternal(RemoteContext.java:104)
    at org.jboss.naming.remote.client.RemoteContext.lookup(RemoteContext.java:93)
    at org.jboss.naming.remote.client.RemoteContext.lookup(RemoteContext.java:146)
    at javax.naming.InitialContext.lookup(InitialContext.java:411)
    at Test.main(Test.java:32)
Caused by: javax.security.sasl.SaslException: Authentication failed: the server presented no authentication mechanisms
    at org.jboss.remoting3.remote.ClientConnectionOpenListener$Capabilities.handleEvent(ClientConnectionOpenListener.java:389)
    at org.jboss.remoting3.remote.ClientConnectionOpenListener$Capabilities.handleEvent(ClientConnectionOpenListener.java:243)
    at org.xnio.ChannelListeners.invokeChannelListener(ChannelListeners.java:72)
    at org.xnio.channels.TranslatingSuspendableChannel.handleReadable(TranslatingSuspendableChannel.java:189)
    at org.xnio.channels.TranslatingSuspendableChannel$1.handleEvent(TranslatingSuspendableChannel.java:103)
    at org.xnio.ChannelListeners.invokeChannelListener(ChannelListeners.java:72)
    at org.xnio.nio.NioHandle.run(NioHandle.java:90)
    at org.xnio.nio.WorkerThread.run(WorkerThread.java:198)
    at ...asynchronous invocation...(Unknown Source)
    at org.jboss.remoting3.EndpointImpl.doConnect(EndpointImpl.java:286)
    at org.jboss.remoting3.EndpointImpl.doConnect(EndpointImpl.java:267)
    at org.jboss.remoting3.EndpointImpl.connect(EndpointImpl.java:365)
    at org.jboss.remoting3.EndpointImpl.connect(EndpointImpl.java:349)
    at org.jboss.naming.remote.client.EndpointCache$EndpointWrapper.connect(EndpointCache.java:105)
    at org.jboss.naming.remote.client.HaRemoteNamingStore.failOverSequence(HaRemoteNamingStore.java:197)
    ... 8 more