Formal:
* Elle faisait ses devoirs. (This is the most common and neutral way to say it.)
Informal:
* Elle faisait ses devoirs. (This is also acceptable in informal settings.)
* Elle bossait ses devoirs. ("Bosser" is a more informal word for "work".)
Adding specificity:
* Elle était en train de faire ses devoirs. (This emphasizes that she was in the process of doing her homework.)
* Elle s'est mise à faire ses devoirs. (This emphasizes that she started doing her homework.)
Ultimately, the best way to say it depends on the context of your conversation.