“According to the Formula of Concord (FC) the doctrine of justification (iustitia fidei coram Deo) includes only God’s favour, that is, imputed righteousness. Justification is the same as absolution, the declared forgiveness of sins.
“…Contrary to Luther, however, the FC excludes gift, the renewal of a Christian and the removal of sin, from the doctrine (locus) of justification. The FC indeed mentions gift, but at the same time it defines the gift in a radically limited sense compared with Luther. The gift is faith: the right knowledge of Christ, confidence in him, and the security that God the Father considers us righteous because of the obedience of Christ. So, gift means in the FC only the reception of forgiveness, knowledge of faith, and confidence (fiducia), a gift that I would call donum minimum.
“The FC then excludes from gift everything else that according to Luther is included in it. Regeneration, renewal (renovatio), vivification (vivificatio), and God’s presence in the sinner (inhabitatio Deo) do not belong to the doctrine of justification but are consequences of God’s declarative act (imputed righteousness). According to the FC, the indwelling of God is not that righteousness by which we are declared righteous. The indwelling of God follows the antecedent of justification by faith. This means that God is not really present in a Christian when declaring him or her righteous through faith for Christ’s sake.”
–Simo Puera, “Christ as Favor and Gift,” Union with Christ: The New Finnish Interpretation of Luther, edited by Carl E. Braaten and Robert W. Jenson (page 45)