I rarely fly in LOITER but when I do and I fly all is good, slow but good.
Stopping is a different story, when I stop the craft kinda bounces around like on a rubber band back and forth.
I was not really worried about it but with the upcoming HYBRID mode I was worried that I may have the same issue there.
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It's hard to be sure without a log but there are certainly some issues with the transition into loiter or RTL being a bit rough if you're flying forward at high speed. Some of that will be smoothed out with AC3.2. Hybrid mode has a special 6 second period where it engages a slowdown step before the underlying loiter is engaged so I suspect you'll like it better.
TY, if I get the problem in hybrid/3.2 I'll post the logs. Once I get hybrid I doubt I'll ever use Loiter anyhow unless I want to stay in one place.