In R12 the forgot password link name changed to Login Assistance.
The process to Enable Login Assistance is bit different from 11i and the profile option 'Local Login Mask' is depricated in R12.
Beelow are the steps to enable the Login assistence link.
1. Logon with Functional Administrator responsibility.
2. Click on 'Personalization' Tab.
3. Enter /oracle/apps/fnd/sso/login/webui in document path and click on 'Go' button.
4. Click on 'Pencil' icon under 'Personalize Page' for oracle/apps/fnd/sso/login/webui/MainLoginPG.
5. Make sure that 'Include' for Site is checked and click on 'apply'
6. Look for (LoginRN.MainLoginRN.ForgotPasswordUrlRowLayoutRN1) and click on 'Pencil' icon in
'Personalize' column.
7. Change 'rendered' property value to 'True' at Site level from LOV and click on Apply.
8. This will enable the link and users logging in after the change will see the Login Assitence link.