(Lk 7:36-50)

The Lord can be gracious and forgive sins. Through love by faith, we may receive grace, be saved, and live in a state of peace.

Elsewhere Saint Paul writes that love makes up for a multitude of sins. Perhaps stated in another way, the extent of forgiveness is in proportion to love.
In any case, it works both ways: despite sin, we can love through faith in the hope of receiving grace, peace, and salvation; the Lord, by graciously forgiving, can further the works of the Holy Spirit in His creation, the chief of which are love and peace.

(see also A Brother Who Sins)