I allways thought that you could not reduce wire size, say in homeruns run in #12NM and then reducing to #14 for the rest of the circuit.
BK, think of it as increasing the HR, and not decreasing the circuit wiring. Why would the NEC prohibit using larger than the minimum wire size? As long as the EGC is upsized, it's perfectly compliant.
Now, think about possible ramifications. What if, say, someone taps into the #12 somewhere, expecting it to be a 20a circuit, the load trips the 15a, and they see #12 and install a 20a breaker?
My suggestion would be to cut the #12's, black, white, and red (if used), about 6" or so inside the panel, and continue to the breaker(s) and bus with #14. Anyone seeing this done should get it.
Added: I know Bob is going to give me grief for this

smile

, but:
If several homeruns are really all that long, a sub-panel should be considered. Load diversification should minimizine the feeder requirements, and labor and materials can actually be reduced.