Do morgage companies take posession of a house you are no longer living in or just after you pass away?

My friend has a reverse morgage on her home which she obtained about four years ago. Since the morgage company now owns her home. She understands that when she dies the house goes to the morgage company but what if she moves out the home to live in assised living or nursing home. Do the morgage company take possession of the home is she is no longer living there or just when she passes away? She has a 63 y/o daughter living with her who has not worked for tha past 12 yrs and is living off the mothers social security/medicare income. They barely make it through the month because the daughter spends foolishly and can't budget her mothers money. Would the daughter not be able to remain in the home if mother passes or has to live in assisted living facility/nursing home? My friend is worried about her daughter becaue she refuses to work and is very verbally abusive to her.