SNAFU
Loretta is Roger Dooley's wife. Their marriage and family life are part of the personal history that Fennhoff uses against Dooley while manipulating him. Dooley's memories of his family become part of the hypnotic fantasy Fennhoff constructs for him.
Loretta's relationship with Roger is tied to his increasing awareness of the cost of his work and the distance his responsibilities have created between him and his family. She is used by Fennhoff as the leverage he needs on Dooley as he takes control of his mind, ultimately leading to the death of Roger Dooley.