Having looked at the verses concern in Hosea and Matthew I could only find one Bible that used ?loyalty? this was in the NASB.
Also on checking for the meaning of the Hebrew word in Hosea ?checed?
According to ?Strongs? I found the follow words can be used
mercy, kindness, loving-kindness, goodness, kindly, merciful, favour, good, goodliness, pity,
reproach, wicked thing
Mercy could be used in the sense that it conveys goodness and kindness.
I cannot see how ?loyalty? could be used.