I think perhaps you’ve misunderstood what Hahn is saying, as I can’t believe he’d make such basic error in regard to Luther.
Hi James, here is an actual transcript of this part of the discussion with Scott Hahn that I had written out previously. I’ve posted it here so that you can see what he means more fully.
"In Protestantism justification is a legal (forensic term) to denote the acceptance of anyone as righteous in the sight of God. It is a legal declaration involving the legal imputation of Christ’s righteousness to us. They [Protestantism] deny that justification is more than legal, that is an actual infusion of Christ’s righteousness to us (which is the Catholic position). So in effect a person remains sinful even after they are justified so that Christ’s righteousness is imputed to us legally but not imparted to us actually. God, in other words, justifies someone who is ungodly. Works don’t enter into the picture in regards to justification.
The classical protestant position clearly acknowledges the need for works but only after you are justified. So in other words faith alone (sola fide) leads to justification but after you are justified then works flow out of the justification.
There are some protestant positions that are rather extreme in their affirmation of faith alone. They are saying that not only are you justified by faith alone but you are also saved by faith alone. But that is not the historic protestant position. The historic protestant position is that justification is what marks the beginning of your spiritual life and its by faith alone and your consequent walk with Jesus Christ, called sanctification, involves works but they are works done out of gratitude for having being justified by faith alone.
There is considerable consensus amongst Protestants on this idea that justification is a legal declaration that God declares us to be just based on the work that Christ has done for us and that it is not to be understood as Christ’s righteousness being imparted to us or something he is in the process of doing to us.
Once you say that justification is based on faith alone you discover that the term faith alone is understood in two diametrically opposite ways, the Lutherans and the Calvinists. The Lutheran view was first as Luther really started the reformation and the Calvinist view came later. The majority of reformed evangelicals, the majority of bible Christians today, aren’t aware of the Lutheran view, the historic, the original view; they tend to follow the reformed or Calvinist view.
The Lutheran view of faith alone is that the word ‘sola’ or ‘alone’ is an adjective that modifies the word faith, so that you are justified by faith and faith by itself. The Calvinists view of ‘alone’ is different. Sola fide for the Calvinists is an adverb that modifies the word ‘justify’. So the Calvinist would say you are not justified by a faith that is alone rather you are only justified by faith.
Now that seems to be a very fine distinction but it was the distinction that led the Lutheran theologians like Mueller and Pauper and all the classical Lutheran theologians to say in effect that what the Calvinist is affirming is already half way back to Rome.
For the Lutherans our faith is what justifies us but our faith is what we ourselves contribute on our own power. The Calvinist say, oh no, you can’t generate on your own a faith that would justify. God has to regenerate you first. He has to send his Spirit down to you. He has to recreate you in order for you to exercise any faith that would possibly justify you. The Lutheran would say, oh no, you can’t say that God has to regenerate you or recreate you in order for you to exercise any faith that God would justify you with because once you say that that you’ve allowed the Catholic position back in through the back door. Because what you are in effect saying is that God only justifies the person he transforms and makes righteous and godly. So the Lutherans accused the Calvinists of kicking out the front door what they are bringing back through the back door.
The Calvinists were accused of bringing back the Catholic notion that God when declaring us to be just he doesn’t just declare it but does what he declares. Just as when God said ‘let there be light’, before he said it there was darkness, but once he said it ‘there was light’. God’s word does not return to him void. When God declares us to be just he makes us just. He does what he declares by declaring it. His word is the very power of creation and it’s also the very power of redemption. And so we would say with the Calvinists, yes, sola fide, in this limited sense where 'sola’ is an adverb, every Catholic could say that you are only justified by faith.
In fact St. Thomas Aquinas has the famous hymn Pange Lingua where we sing sola fide sufficet; only faith suffices because our own natural powers aren’t enough. God has to impart to us his Spirit and once he regenerates us through the holy Spirit he’s imparted to us his own life, he has infused to us Christ’s righteousness; he has given to us the holy Spirit and the result is we have a new principle of activity that comes from outside our nature, it comes from God himself and that is what we call faith and only that kind of faith justifies."
continued…