If you want to list your recipe with all ingredients and additives, that might help us pinpoint the issue. It's typically the emulsifier that causes foam, because most of them are also surfactants. The more emulsifier used, the more foam there will be during the blending, and the more "soaping" effect you will get when applying it to your skin. But other ingredients can contribute to this, too.
Also, do you burp your stick blender after putting it into the mix, and before blending begins?
My lotion doesn't get super foamy while blending. When bubbles do appear, I use the spatula to smush most of them against the side of the bowl. The rest of them dissipate as the mixture cools. Have you tried letting the foam sit to see if it dissipates during cooling?