Final answer:
The Mortgage Loan Officer (MLO) should inform the underwriter immediately and request guidance on how to proceed with the HECM application.
Step-by-step explanation:
In this situation, the Mortgage Loan Officer (MLO) should inform the underwriter immediately and request guidance. Moving to a retirement community just before closing can have an impact on the loan terms and eligibility. The underwriter would be able to assess the situation and provide guidance on how to proceed with the HECM application.