She's a "once saved, always saved" believer, so I guess I am not surprised about the forgiveness belief.
Martin Luther:
What does such baptizing with water signify?
It signifies that the old Adam in us should, by daily contrition and repentance, be drowned and die with all sins and evil lusts, and, again, a new man daily come forth and arise; who shall live before God in righteousness and purity forever.