"In Scripture...there is a difference between unrighteousness and iniquity. Unrighteousness - (lack of conformity with what is right) - is the sin of unbelief, or the lack of the righteousness which flows from faith, just as, for example, he is righteous who believes; and he is unrighteous who does not believe (cf Romans 1:17; Mark 16:16). He who does not believe is disobedient; and he who is disobedient is unrighteous. Iniquity - (violation of what is right) - is the sin of self-righteousness which men choose for themselves in their own foolish zeal for piety. We might also say: Iniquity consists in this, that man neglects the duty which he is bound to do, and that he does that which, (contrary to the divine Word), seems good in his sight. The right conduct, however, shows itself in this, that man puts aside what seems good to him, (but is contrary to the divine Word), and does what he should do." - Martin Luther, "Commentary on Romans," pg. 49.
"For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who by their unrighteousness suppress the truth." - Romans 1:18, God's view towards man
"Ah, sinful nation, a people laden with iniquity, offspring of evildoers, children who deal corruptly! They have forsaken the Lord, they have despised the Holy One of Israel, they are utterly estranged. " - Isaiah 1:4, God's view towards His people
"And to the one who does not work but believes in him who justifies the ungodly, his faith is counted as righteousness," - Romans 4:5, God's gift to all
Justification by faith alone means that righteousness is obtained for us by Jesus' death and resurrection. It's not acquired not by us. Since there is no righteousness in us (Romans 3), we must go outside ourselves to find a righteousness that will be acceptable to God. Thanks be to God for His free gift of grace, an overabundant supply of righteousness for the unrighteous and the people laden with iniquity.
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