Issues with cellphone footage automatically scaling.

So im working on a video where at the end, a cellphone footage is place. Premiere is automatically upscalling the footage where it detects blackspace? 

I tried setting to frame, scale to frame, 

I tried putting it into a new sequence with the footage scaled up and blured in the back. But premiere still detects the black space within that footage if its within frame.   

My guess that I could place Artificial Black images and maybe premiere will not scale the footage, but whats the correct way to stop premiere from scaling this footage?