Unless your daughter is on the deed or the mortgage then no, she cannot deduct the mortgage interest on her tax return.

Thank you so much for answering my Qs xmasbaby0. 

<<Unless your daughter is on the deed or the mortgage...>>

Daughter must be on the deed in order for her to deduct mortgage interest.

Per the IRS:

You can deduct home mortgage interest if all the following conditions are met.

You file Form 1040 and itemize deductions on Schedule A (Form 1040).
The mortgage is a secured debt on a qualified home in which you have an ownership interest.

https://www.irs.gov/publications/p936

If she is not a legal owner of the home she cannot deduct the interest.